Things to avoid when choosing a contractor accountant

Published on May 11, 2009 |

As a limited company contractor, the professional person you are most likely to seek advice from is your accountant. In this article, we look at five key things you don't want your accountant to do.

Many long-term contractors will have used several accountancy firms before settling on their current one. Although personal preference plays a part when choosing an accountant, there are some things all contractors will hope they won't encounter with their provider.

General accounting mistakes

It goes without saying that, of all people, you need your accountant to be accurate and organised. Some contractors will have used accountants in the past who have made basic errors when compiling accounts, running their company payroll, and calculating tax liabilities.

Although the nature of accounting means that the occasional error may arise, a conscientious accountant will rapidly make good any mistakes.

Missing deadlines

As a company director, you are ultimately responsible if information is not submitted to Companies House within the prescribed deadlines.

Failure to submit company documents such as your annual accounts and annual return (Form AR01) can result in significant financial penalties.

You need to be confident that your accountant is aware of these deadlines, and is not a 'late filer', otherwise you will be penalised.

The same timeliness is essential when it comes to settling your tax liabilities (VAT, PAYE, NICs, etc.)

Lack of contact

Some accountants seem to be permanently engaged. Phone messages are not returned regularly, and the staff to client ratio may seem inadequate.

For many contractors, customer service will be as important a factor in choosing an accountant as price. Some firms even offer service guarantees, which may prove attractive to many.

Unfortunately, it is often hard to judge how you well an accountancy firm communicates with clients before you sign up. For this reason, you can't underestimate the power of personal recommendations from other contractors when selecting an accountant.

Not pro-actively offering tax advice

Many accountants provide a monthly service which will include everything from compiling your accounts, to running your payroll and calculating your VAT liabilities. However, you may find that they do not offer any detailed tax saving or investment advice.

Typically, you need to pay a higher monthly fee for more specialist advice, but you will often receive a better all round service if you a prepared to pay a bit more each month rather than signing up with the cheapest accountancy provider.

Lack of familiarity with contractors

This is a key factor when choosing an accountant. We recommend that contractors use specialist accountants.

Not only will they be very aware of the duties required to run your accounts in an efficient way, they should also be aware of industry-specific tax issues, such as the currently-shelved 'income shifting' proposals, IR35, and manged service company legislation.

Further resources

Try these guides to help you find the right accountant:

- How to choose a contractor accountant
- Typical duties of a contractor accountancy firm
- Start-up guide to contractor tax and accounting
- IT contractor accountants directory

Contractor Services

Income Protection (PHI) and Contractor Mortgages - Specialist quotes
Free Umbrella Company - Save over £1400 p.a. on fees with Springboard
Contract Experts - ClearSky Accounting on 08000 325 326
Qdos - IR35 experts - Providers of low cost insurances
Parasol - the UK's favourite umbrella company
Free IR35 & Tax Review - Call ICS on 0800 195 3750
K & B Accountancy Group- Fixed fee accounting for contractors only £75pm
Cloud 9 Group - Umbrella Solutions only £19.95 per week
Umbrella4Contractors - Low fees, same day setup
Professional Indemnity Insurance - Contractor PI cover


Back to top
Search Contract Eye

 Our Partners
Parasol PAYE umbrella
Award winning service
Contractor Accountants
Full Service, Fixed Fee!
Free Umbrella Company
Save over £1400 p.a.
ClearSky Accounting
From £95 per month
Fixed Fee Accounting
Contractor Specialists
Umbrella4Contractors
Low fees, same day setup
Free IR35 / Tax Review
Call ICS - 0800 195 3750
Umbrella Co. Solutions
Only £19.95 per week
PRINCE2, MSP & M_o_R
Maven Training

 Contractor Insurance
Hiscox Office Insurance
Instant Online Quote
IR35 Insurance
Essential Protection
Income Protection
If you're unable to work



 Contractor Services
Compare Insurance Deals
PI & Business Liability
Contractor Ltd Company
Instant online formation
IT Contractor Pensions
The last great tax break
Private Medical Insurance
Tailored contractor cover
IT Contractor Mortgages
Based on hourly rates!
Protect Your Income
Get a PHI quote
IT Contractor Life Cover
Protect your dependants
Critical Illness Cover
Comprehensive cover



 IT Contractor Guides
Contractor Umbrella
Umbrella Co. Guides
Credit Crunch Contractors
Recession survival tips
IT Contract Rates
Contractor rate guides
Limited or Umbrella?
Which company structure?
What is IR35?
Guide to the tax rules
Corporation Tax
IT Contractor Guide
IT Contractor Mortgages
Sound mortgage advice
Contractor Insurance
Are you covered?
Contractor Banking
Choose a bank account
Security Clearance
How do you get it?
IR35 Insurance
Tax investigation cover
Contractor PI Insurance
IT contractor cover
Umbrella Companies
Links to key providers
Contractor Accountants
Accountancy Directory
IR35 Contract
Contract review guide
PAYE Umbrella Company
How umbrellas' operate
Parasol Umbrella Company
'My Parasol' portal

Stay up to date with our RSS feed | Terms of Use | About Us | Directory | Site Map | MSC Legislation | Income Shifting

Copyright © 2006-9, Contract Eye Limited, All Rights Reserved.

UK Contractor Guides, Contractor Accountants, Umbrella Companies, IR35, Insurance, Contractor Mortgages
Design by Blue Egg Web Agency