Our start-up service contains everything needed to ensure a professional launch of your business from day one, leaving you more time to concentrate on fulfilling the duties of the contract. Read more..
Switching to AccountsNet is very easy. We simply require some details which will enable us to contact your current accountant and request your files be forwarded to ourselves Read more..
When contracting through your own limited company, all expenses incurred in the running of your business are tax deductible. It’s important that these expenses are reclaimed correctly.Read more..
This is the main piece of legislation affecting contractors today, and the financial consequences are such that its imperative that PCG Quality Accountant is able to examine the contact and provide defence against IR35.Read more..
Ltd Company vs Umbrella
In business it’s important that you run in as tax efficient manner as possible. To achieve this, the best way is to incorporate a limited company with you as a director and shareholder of the business. Read more
AccountsNet can help you get set up with the various insurances you will need. Whilst the risk of a claim being made against your company is small, it can happen, and so adequate insurance provision is a must. Read more..
Why use a contractor accountant?
Just as there are specialists in different areas of IT for example, the same applies to qualified accountancy firms. You need to be certain that the advice you receive is applicable to the work you do as a consultant.
The Intermediaries legislation was introduced on 6th April 2000 and is commonly referred to as IR35. The aim of the legislation is to eliminate the avoidance of tax and national insurance contributions in circumstances where a worker could be considered to be an employee of the client.
Prior to the introduction of the legislation an individual could avoid being taxed as an employee on payments for services and paying Class1 NIC by providing services through an intermediary such as a Personal Service Company. Money could be paid to the worker in the form of dividends instead of salary and as dividends are not liable to National Insurance or PAYE they would pay less tax and NI than a conventional employee.
There are a number of factors that are taken into account in determining whether an individual is caught by the legislation and each contract should be considered individually.
The 3 pre-requisites that must exist for a relationship between parties to be deemed as employment are:
1. An obligation for the worker to provide personal service
2. Mutuality of obligations between the parties
3. Sufficient control to create a master/servant relationship
AccountsNet are a PCG accredited accountant and our staff can advise you on all aspects of IR35 and contract status.