Contractor & Freelancer Accounting
Maximize your take-home pay and secure your IR35 compliance. We handle your contractor limited company accounts, VAT, dividends, and self-assessments for a fixed fee.
Tax-efficient corporate structures and contract compliance
As an independent contractor or freelancer, you are both the worker and the director. Your main goal is to maximize your contract earnings and take-home pay, while ensuring you remain completely compliant with HMRC's strict compliance rules.
Internal Accountants specializes in contractor limited companies. We structure your accounting plan to balance low-salary payouts, dividend drawings, and company expense claims to minimize your overall tax burden.
We keep your books organized using digital automation (Xero and mobile scanning), meaning you only need to spend minutes a month on your bookkeeping.
Contractor Package Features
- Full IR35 contract reviews and compliance determination advice
- Filing of statutory annual accounts and company tax returns (CT600)
- Management of personal Self-Assessment tax returns
- VAT flat-rate scheme calculations and quarterly submissions
- Strategic planning for director salary, dividends, and retained earnings
- Digital bookkeeping with Xero and automated bank feeds
IR35 Status Reviews
We conduct detailed reviews of both your written service contracts and actual working practices to verify your IR35 status, ensuring you avoid costly HMRC audits and penalties.
Maximizing contract take-home pay
Trading through a limited company is highly efficient when managed by experts. We set up tax structures that let you extract your earnings legally with the lowest possible tax rate:
Contractor & Freelancer FAQs
What is IR35 and how does it affect contractors?
IR35 is tax legislation designed to identify 'disguised employees', which refers to individuals who provide services via an intermediary (like a limited company) but who would be treated as employees if they were engaged directly. If your contract is 'inside IR35', you must pay tax and NI at standard employment rates. If 'outside IR35', you can pay yourself tax-efficiently via dividends. We review your contracts and working arrangements to help establish your correct IR35 status.
Should I trade as a limited company or sole trader as a freelancer?
Trading through a limited company is often more tax-efficient once your earnings exceed £40,000 to £50,000, as it allows you to utilize dividends, control when you withdraw profits, and protect your personal assets. However, it involves more administrative work and filing requirements. Sole trader status is simpler to set up and manage, but offers fewer tax planning opportunities. We help you choose the best structure for your situation.
What is the VAT Flat Rate Scheme?
The Flat Rate Scheme simplifies VAT for small businesses. You charge VAT at standard rates (20%) to clients but pay a lower, fixed flat rate (e.g. 14.5% for IT consultants) to HMRC. You cannot reclaim VAT on purchases (except capital assets over £2,000), but the scheme can simplify admin and sometimes result in tax savings. We calculate if this scheme is beneficial for you.
Can you handle multi-currency accounting for global clients?
Yes. Many of our freelance clients work with agencies or companies in the US, Europe, or Asia. We configure Xero to handle multi-currency transactions, automatic exchange rate calculations, and cross-border invoicing compliance.
Maximize your independent contract profit
Ditch the administrative burden and partner with specialist contractor accountants.
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