Contractor Services
Contractor accountants you can rely on…
Spend less time dealing with your finances and more time focusing on your work, with contractor services from Carrington Accountancy. We specialise as contractor accountants, and understand the challenges and priorities our clients face when managing their accounts.
Our experienced team provide dedicated support and advice, to help you reduce your tax burden and plan for the future.
Limited Company set up
Carrington Accountancy offer a fast and efficient incorporation service for contractors who need a limited company. Once our simple questionnaire has been completed and submitted we can usually have your Certificate of Incorporation to you within a matter of hours.
You can choose a name that suits you and we will check it is available. We will also check to see if it is beneficial to have more than one shareholder and if you would benefit from a second class of shares being issued. Such benefits are often overlooked when using an online formation agent.
Carrington can also complete the CT41G form that is issued from HMRC, help with the company bank account set up as well as PAYE registration, VAT registration and Corporation Tax registration.
For more information or to get started with your limited company call Carrington Accountancy on 0203 713 4530.
Bank Account Advice
Many contractors need a limited company bank account opened quickly so that they can start to receive their payments from their recruitment agency. Organising a company bank account can be time consuming and the range of ‘deals’ being offered confusing.
Keeping costs down is paramount and there is no point in having an ‘all singing all dancing’ bank account when a simple cost effective account is all that is needed. Carrington Accountancy can offer a ‘Start Up & Switcher Business Bank account with Metro Bank.
Account features include:
- 200 FREE transactions per month
- No fixed monthly maintenance fee for the first year. Thereafter £15 per month if your balance falls below £2,000
- FREE online banking
- FREE cash withdrawals/deposits up to £10,000 per month
- No charge from Metro Bank on foreign transactions in Europe
Metro Bank aim to open new accounts within 7 working days provided they have all the required information and ID documents.
For more information call Carrington Accountancy on 0203 713 4530.
Advice on Share Structure
Over the last few years the share structure of a contractor limited company has become more relevant and the importance of share structure when incorporating a business is often overlooked. There are now several aspects about the type and number of shares that need to be considered. If you are using Carrington Accountancy to form a new limited company our accountants will always discuss share structure with you at the outset after obtaining as much information as they can in regards to your personal tax position. It may be that you could take advantage of a spouses tax position if they are not utilizing their personal allowance of if their highest rate of tax is lower than that of your own.
Another important point about share splits comes into play when closing a limited company. It may be that you can take advantage having more than just one Capital Gains Tax allowances by organizing a suitable share split. Carrington Accountancy can advise on this complex area as there are several options are available when closing down a company.
Share structure can also be changed as part of a personal tax planning exercise and this can involve the issue of a different class of shares where voting rights may differ. The arrival of the new dividend tax in 2016 has prompted a significant increase in clients looking to use different classes of shares to fully utilize the tax-free dividend tax allowance. Again, Carrington will conduct an in-depth review of your personal financial circumstances and determine if the use of ‘Alphabet shares’ would be beneficial. We can then arrange for the necessary documents to be completed, filed at Companies House and recorded in the Company records.
If you would like to know more, please contact Carrington Accountancy on 0203 713 4530.
VAT registration including Flat rate application if advantageous
For most contractors, registering their company for VAT is the norm and indeed most agencies ask for the company VAT number together with the limited company name and bank account details. Certainly, in most cases a contractor’s company will need to register for VAT but not necessarily for all. Carrington Accountancy will always go review your company’s position as in certain circumstances it may not be necessary or advantageous to become VAT Registered.
The other aspect about VAT that needs to be addressed, particularly for a contractor limited company is the Flat Rate VAT scheme. The Autumn Budget in 2016 announced significant changes to the Flat Rate scheme that take effect from April 2017. It used to be the case that it was almost always advantageous for a contractor limited company to register under the Flat Rate VAT scheme. However, the changes to this scheme now mean it is important to weigh up if this is still the case. Carrington Accountancy will always advise on this before going ahead and completing the necessary registration.
Carrington Accountancy can give you in depth advice about VAT registration and the Flat Rate VAT scheme. We can complete and submit the necessary application online and apply for the Flat Rate scheme if necessary. Even if you don’t use our formation service we can still advise on the best approach for your VAT.
If you would like to know more, please contact Carrington Accountancy on 0203 713 4530.
Dividend calculation and distribution
Many contractors working via their own limited company operate a remuneration strategy based primarily on dividends. They take a lower salary from the company and take the majority of remuneration as dividend payments. A dividend is the distribution or profit after any corporation tax has been taken into consideration.
Carrington Accountancy provide our contractor clients with regular reports showing what amount is available to take as a dividend. Some clients simply call or email to ask for a dividend figure and we can have this information back within 24 hours. We also advise clients on how the dividend will impact on their personal tax position and this is especially important since the introduction of the dividend tax in April 2016. It is vital that a company does not declare any illegal dividends and it is also very important that the necessary documentation is prepared and recorded each time a dividend is declared.
Carrington Accountancy offer a comprehensive service to clients, calculating dividends and giving detailed advice, preparing the necessary paperwork and ensuring that companies do not declare any illegal dividends.
For more information please call us on 020 7397 2282.
Annual Accounts
Carrington Accountancy provide a comprehensive and efficient service to produce and submit your company accounts. Your annual accounts are really a measure of the financial health of your business and they also form the basis on which the business’ tax position is established.
If we have all your company financial information we aim to produce the full company accounts within 12 weeks of your year end. In many cases the accounts are prepared even earlier than this. Once we have your accounts formulated we usually meet with you to discuss how your business is performing.
We can highlight both positive and negative trends in the business and it also allows you to plan for the corporation tax liability that will be calculated when the accounts are finalised.
For more information please call us on 020 7397 2282.
IR35 and Contract Reviews
We have in house experts that can offer detailed advice on IR35. We offer a detailed contract review service that will not just give you an ‘in or out’ verdict on your contract. We will give you clear detailed instructions as to where your contract is weak and how it can be improved. If you have received notification from HMRC that they want to review your IR35 status we can help with this.
If you would like to know more, please contact Carrington Accountancy on 0203 713 4530.
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