Contractor FAQ

Contractor FAQs

Welcome to our Contractor FAQs page, we have put together a comprehensive list of some of the most common questions that we get asked by clients and prospects. Take a look below to see if we have answered any of your questions and if you would like any further information, please don’t hesitate to contact us and a member of our friendly team will be happy to help.

How do I switch from sole trader to limited?

Our expert accountants can help you with all of this. We’ll form your limited company in a matter of hours and ensure that you are able to start trading through your limited company as soon as possible.

As a limited company owner you’ll need to file company accounts with Companies House among other things. We can take the weight off your shoulders by managing all of your accountancy and taxation needs with our all-inclusive, fixed-fee service.

To find out more information, visit our services page or call our friendly team on 020 7481 4743

How much paperwork will I need to complete?

We understand that you have many demands on your time and you want to focus as much effort as possible on the day to day running of your business. That’s why we work hard to minimise your paperwork and administrative duties.

You’ll need to notify us of your income and expenditure each month, but this should take no more than a few minutes. Leaving you more time to focus on developing your business.

Should I go sole trader or limited?

This is a question that we get asked regularly, and the answer varies according to your individual situation. Before you make a decision about whether to go sole trader or limited, there are a number of factors that may influence you:

  • How much profit you expect to make
  • Will your clients only deal with limited companies
  • Would you like greater opportunities for tax planning
  • What level of commercial risk are you prepared to be exposed to
  • Are you willing to invest some extra time each month for greater tax saving opportunities

These are just some of the factors that you should consider and we recommended calling us and talking through your situation with our friendly accountants before making a decision.


Easy to manage accounting with FreeAgent

Contractor Accountants Online have partnered with award winning online accountancy service provider, FreeAgent. With FreeAgent, you will receive, a no hassle, stress free way of managing your finances. Say goodbye to endless piles of receipts and spending hours sifting through paperwork, FreeAgent can dramatically reduce the time you spend on your financial duties.

To find out more information about FreeAgent, read on or visit their website.

With Free Agent’s award winning service you will receive:

  • Easy invoicing templates
  • A simple way of documenting your expenses
  • Real time tax liabilities
  • One place to manage all of your financial affairs
  • The ability to control your bank accounts
  • Peace of mind that there will be no nasty tax surprises

We will review your FreeAgent books on a regular basis to ensure that we offering proactive accountancy advice throughout the year and not just when you communicate with us. After all, we have years of experience in the industry and if we can identify a way for you to work more tax efficiently we’ll let you know about it.

That covers our services and how we use FreeAgent to make your life much easier, to find out more information about how we can help, call 020 7481 4743 or use our contact form.

Can I still trade through a limited company if I am inside IR35?

Yes you can still operate through a limited company even if your contract falls inside IR35. To find out more information about IR35 and working through a limited company, read our IR35 page or call our fully qualified accountants.

Do you offer IR35 contract checks?

Yes, we work with Bauer and Cotrell. They are experts in contract reviews and will be able to analyse your contract thoroughly to identify whether you are inside or outside of IR35 – they’ll also suggest any improvements that could be made to your contract.

We always recommend that you get an IR35 check. Whilst more often than not, these reviews are just a formality, the peace of mind of knowing where you stand is invaluable.

What is FreeAgent?

At Contractor Accountants Online we use FreeAgent. Free Agent is an online accountancy tool that makes it much easier to manage your finances. You can create invoices, upload expenses, monitor cash flow and much more.

Our clients love using FreeAgent as it drastically reduces the amount of time they need to spend on administrative tasks and they can analyse the financial side of their business at a glance.

What is the flat rate VAT scheme?

The Flat Rate VAT Scheme was introduced to reduce the costs of fulfilling your VAT obligations. In a nutshell, the scheme enables you to charge your clients VAT at the standard rate of 20% but pay HMRC a reduced rate. The rate you pay varies according to your category of work, for more information click here.

What is RTI?

RTI stands for Real Time Information. It is a system that was employed by HMRC for the reporting of payroll information. Employers and pension providers are now required to provide HMRC with detailed information each time they pay an employee. Under previous legislation this only has to be done once a year.

Thank you for reading our FAQs, we hope that we have been able to answer your questions. If you would like to know more about our services, call us on 020 7481 4743 and we will be happy to talk things through with you.