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Why choose a specialist contractor accountant?

Every contractor should think about taking on a specialist contractor accountant to help with their finances, as it will help maximise their earnings and safeguard their future.

Every contractor will have their own unique set of finances to deal with, and at some point they will become complex enough that you’ll find yourself wishing you had an accountant. Some people will have years of self-employment before they get to this stage, while others will reach it as soon as they start out being their own boss.

However long it takes you to get there, taking on an accountant is usually a good idea. They will be able to optimise your earnings, making sure you aren’t paying a penny more in tax than you need to, and free up valuable time that you can spend on paid work. However, you will have to make a choice: do you opt for a high-street accountant, or a specialist contractor accountant?

You might wonder if choosing a specialist contractor accountant is worth it; we’re here to tell you that it definitely is. The expertise that a specialist can bring is invaluable if you are self-employed, as your circumstances will be different from the majority of a high-street accountant’s clients.

If you’re wondering why exactly a specialist contractor accountant is better for you, then we’ve got you covered. Read on to find out, or download our free guide if you’d like to get your hands on even more information.

Up to speed on IR35?

Most self-employed people will be aware of IR35 by now, but it remains a vital element of being a contractor. If you want to maximise your take-home pay, you need to ensure all your contracts abide by the rules of this divisive piece of legislation.

A specialist contractor accountant should be familiar with the intricacies of IR35, so will be able to look over any jobs you have to make sure they allow you to define yourself as self-employed. This will ensure you are taxed correctly, enabling you to take home as much of your earnings as possible.

Do you have a pension prepared?

Most people in permanent employment are part of a pension scheme, with both them and their employer contributing money to it each month automatically. Unfortunately, this is not an option available to the self-employed, and many contractors find themselves without any financial plans for retirement.

A specialist accountant will be able to help you here. Dealing with contractors makes them well aware of the many options available for you, from investments to private pension schemes. This enables them to give you the advice you need to make saving for your retirement simple, giving you a safety net for your old age.

Do you have a self-employed mortgage?

Home ownership is the goal for many people, but if you’re a contractor, you might find that getting a mortgage is difficult. Many lenders will not offer you anything unless you can prove you’ve made a profit for a certain number of years, while others will not lend to you at all. Luckily, a contractor accountant can help.

Not only can a specialist help you with your books so they accurately reflect your profits, making it more likely for you to get a standard mortgage, they can also point you in the direction of options designed for the self-employed. Enough people work for themselves that mortgages are getting easier to come by for contractors, and an accountant can help you find them.

Looking for an all-inclusive service?

A high-street accountant can certainly help you with your finances, but as a contractor you will have your own set of needs they will not be able to fulfil. If you run your own limited company, for example, you will want more oversight over your ingoings and outgoings, while an umbrella contractor might want someone else to deal with all their financial issues.

A specialist will understand this, and provide you with whatever service is right for you. No two contractors are the same, and an accountant specialising in working with the self-employed will know this and be able to provide you with the services you need.

If you would like to discuss the benefits of using a contractor accountant, contact Brookson today

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