Maximize your net take-home pay with tax-efficient salary/dividend splits and compliant IR35 contract reviews. Fully managed by senior FCCA & ACCA accountants.
Operating as an IT contractor in the UK means navigating complex IR35 regulations (off-payroll working rules). We provide professional contract reviews to verify whether your engagement is "Inside" or "Outside" IR35, helping protect you from HMRC challenges and ensuring correct tax calculations.
We guide you through the optimal distribution of profits. By paying a low salary up to the National Insurance primary threshold (£12,570) and drawing the remainder in dividends, we reduce your personal tax burden and minimize employer NICs.
We set up and support real-time digital bookkeeping using FreeAgent or Xero, allowing you to track invoices and see your tax bill instantly.
Your annual Director Self Assessment return is prepared, checked for other income streams, and filed securely with HMRC.
Quarterly flat-rate or standard VAT returns and year-end Corporation Tax returns prepared and filed under MTD rules.
Direct email and phone access to our FCCA/ACCA certified accountants. No ticketing systems or junior call handlers.
Most IT contractors operate via a Limited Company for professional credibility and liability protection. The journey begins with company incorporation, setting up a business bank account, registering for Corporation Tax, and selecting MTD-compliant accounting software (like FreeAgent or Xero) to log invoices and record your expenses.
You must submit:
• Statutory Accounts: Filed with Companies House and HMRC within 9 months after your financial year-end.
• Corporation Tax Return (CT600): Filed with HMRC within 12 months after your year-end.
• Confirmation Statement: Filed with Companies House annually to confirm share structure and directors.
• Director Self Assessment: Filed by 31st January following the tax year.
If your taxable turnover exceeds £90,000, VAT registration is mandatory. Many IT contractors register voluntarily even below this threshold to claim back VAT on business purchases (like laptops) or to use the Flat Rate Scheme, which simplifies calculations and can sometimes improve profit margins.
First-time contractors typically take a low director salary up to the National Insurance primary threshold (£12,570 in the current tax year) to build qualifying years for the state pension without incurring personal tax or NI. The remaining profit is then drawn as dividends, which have lower tax rates than salary.