Accountancy services for IT Contractors and Freelancers
SJD Accountancy provides proactive tax advice and accountancy services for IT contractors who choose to work through their own limited company, all backed up by our unique money-back service guarantee.
IT Contracting has never been more popular, higher take-home pay, the most tax efficient method possible, more freedom, fewer office politics. . . and what seems like the end of the ‘permanent’ job. Downsizing, outsourcing, corporate politics, the death of the final salary scheme all seem to be pushing skilled IT professionals into contracting.
Contracting for some may be the perfect option but it doesn’t come without a fair share of challenges. Generally, as a contractor, if you work for a company for a fixed period under a fixed contract, you will essentially be selling your skills and time and usually be paid by the hour. Anecdotal evidence suggests that although contracts are for a fixed time they are often extended but it is always your choice whether you stay or move on to your next contract. Many contractors work for the same company for years and other than a few small tax implications regarding travel costs to and from work, there is nothing wrong with this at all.
Benefits of IT Contracting?
Freedom – being able to choose when and where to work
- Being your own boss
- Money – you’ll usually be paid more money than permanent members of staff working on similar projects. The following links will help you to understand more about take-home pay and contract amounts: Instant online take-home pay calculator and Limited or Umbrella the major differences in take-home pay
- Doing the type of work you enjoy doing. Often as an employed person,d you are pulled in numerous directions, as a contractor your work will generally be more focused
- Work experience – developing an impressive and varied CV by moving contracts frequently and experience of working in different types of organisations and work cultures
- Less involvement in office politics, but this can’t be guaranteed
- Taking time out – we know many contractors who work extremely hard for 9 – 12 months and then take 2 – 3 months off
Remember – you always have the safety net that if you don’t like contracting you can return to permanent work.
Tax is complicated, even the Governments’ guideline booklet on expenses is over 100 pages long, so if you are thinking of going limited you’ll need to think carefully about appointing an accountant.
You’ll need an accountant who specialises in Contractors, Consultants and Freelancing issues, no point choosing an accountant who specialises in Pubs, engineering or shed manufacturing.
At some point you may want to meet up with your accountant – most contractors manage their relationship with their accountant over the telephone and email. However, for yearly reviews or just to go over something that’s unusual or complicated it’s good to know you can meet up.
Reviews and awards are a good sign of credibility as is safety in numbers if lots of other contractors use a particular firm there’s probably a good reason why. One thing to remember is all accountants are restrained by the same rules and regulations so don’t be tempted by offers of schemes that seem to be too good to be true (they probably are as all accountants have access to the same schemes). HM Revenue and Customs treat all accountants the same, nobody gets preferential treatment.
If you are still undecided as to whether contracting is the right choice for you, then the following pages will provide you with all the information you need to know:
- Limited vs Umbrella
- Contractor Guides
- Case Study – Moving from Permanent to Contracting
- Contractor FAQ’s
- Becoming an IT Contractor
If you have any question about contracting or would like any further advice please contact our new business team using the below form.