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Contractors trading via a limited company can choose to run their contractor company accounts themselves, but the administration burden is time consuming, tax laws are complex and the cost savings relatively small. So most of the people choose specialist contractor accountants, who are geared up to providing efficient accountancy services. But of the many thousands of firms offering accountancy services, which is the best? Here are five tips to help you choose: 1: Only consider specialist contractor accountants High street accountants and big 'audit' accountancy practices mostly focus on small businesses, individual tax planning and large corporations. But contractors' accountancy needs are unique. So, make sure you choose a specialist contractor accountant, or an accountant with a dedicated team of contractor specialists. It should have many years' experience dealing mainly with contractor clients and not just local SMEs or large corporate. A good place to start is by checking out paid-for advertisements on contractor-focused websites, because only specialist contractor accountants will advertise there. 2: Choose qualified and regulated contractor accountants Contractor accountants should be regulated by professional bodies and may be members of contracting sector trade organizations. They may also be accredited by contractor and freelance organization, PCG. Make sure you choose a contractor accountant that has professionally qualified accountants on its staff and industry accreditation from a recognized contracting industry organization. 3: Choose contractor accountancy services that suit your needs and are priced accordingly You probably don't need to speak to the senior partner every time you have a query, so don't pay fees as if you do. You may only need annual accounts and do much of the admin yourself, or you might want accountants to do everything for you. So choose a contractor accountant that best suits your needs and charges only for services you use. And do carefully check the small print so you know which contractor accountancy services are included in the price and which are extras. 4: Ask other contractors about their own accountants Contractor accountants who do a good job will be recommended by clients. So ask contractors about their experiences of contractor accountancy services and the pros and cons of each provider. Then choose one that gets good reviews from other contractors who are still clients. Look for online testimonials and perhaps ask questions of other contractors in online forums. 5: Choose an accountant with in-depth knowledge of contractor legislation A specialist contractor accountant will understand IR35, the Managed Services Company (MSC) legislation and Section 660. If they don't have a deep understanding of the complex nature of these specialist laws, it could prove extremely costly to you. So choose a specialist who understands contractor tax law. And look for free extras - many contractor accountants now provide free IR35 contract reviews. Contractor accountants usually charge a monthly fee, which is typically between £60 and several hundred pounds per month, depending on which contractor accountant you choose and what services it says it will provide.
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