Accountants for contractors Limited Company
When deciding to contract, it’s important to understand the benefits of a limited company. The first real benefit is that it has veil of corporation. This means that you are not directly responsible for the debts of the company. The company is a separate legal entity and you are an officer of the company and in most cases taking a salary , dividends, or bonuses.
Go professional accountants have tax planning strategies to ensure you get the right balance between these streams of income. This can help Lower corporation tax as well as personal tax.Get a Quote Now
The filing requirements for contractors
After incorporation you have 12 months till the accounting period end. At this stage you will need to produce statutory accounts, CT600 and abbreviated accounts. You will need to file accounts after 9months from the period end. The corporation tax is payable 9months and 1 day after the period end.
If you are taking a salary or dividends . You will need to keep note of these as paye taxes are collected monthly/quarterly. Dividends are calculated per tax year in your personal self assessment. This runs from the 6th April till the 5th April. The personal taxes are due on the 31st Jan.
Expenses for Contractors
This is a common question for contractors and dependent on IR35. If you are outside IR35 and in a temporary contract under 24 months. Then travel and subsistence is usually allowable. This is normally the main expense for contractors. This must be reasonable and not excessive as with any other expenses.
Why choose GM professional accountants
Gm professional accountants specialise in contractors. We ensure you understand the complexities of contracting and provide tailor made solutions to suit your needs. Call us now for a free quote