IT Contractor FAQs

This new section will contain answers to many of the questions often asked by contractors (both new and veterans). Alongside the concise answers (provided by our team or appropriate 'experts'), we also provide links to further sources of information.

Visit our contractor accountant and umbrella company directories

Income protection insurance - should my limited company pay the premiums?

What is income protection insurance?, and would a contractor be better off taking out a policy via their own limited company, or on an individual basis?
(Mar 12, 2010 in Contractor FAQs )

Can I claim for broadband costs via my limited company?

What are the tax consequences of claiming broadband expenses via either your limited company, or personally?
(Mar 10, 2010 in Contractor FAQs )

How do you authorise your contractor accountant to act on your behalf with HMRC?

When you sign up to a new contractor accountant, one of the first things you'll be asked to do is to authorise the accountant to act on your behalf with HMRC.
(Mar 9, 2010 in Contractor FAQs )

Can I reclaim expenses from before I formed by contractor limited company?

Can contractors claim for any expenses incurred before they formed their limited companies?
(Feb 26, 2010 in Contractor FAQs )

What is a PAYE umbrella company?

What is a PAYE umbrella company, how do they operate, and further information on selecting the right scheme for your individual needs.
(Feb 22, 2010 in Contractor FAQs )

Are IT contractors better off using the Flat Rate VAT scheme?

Are limited company contractors generally better off registering for the Flat Rate VAT scheme, or the standard VAT scheme?
(Feb 16, 2010 in Contractor FAQs )

Do I need to submit my VAT returns online?

HMRC have asked us to remind our visitors that VAT will shortly be moving online, so paper based filing will soon become a thing of the past.
(Feb 9, 2010 in Contractor FAQs )

Can some contractor umbrella companies save me more tax than others?

Some umbrella companies appear to claim they can save contractors more tax than others. Why such claims should be treated with caution.
(Jan 19, 2010 in Contractor FAQs )

Do I need to register my ltd company for VAT?

At what stage do limited company contractors have to register for VAT?
(Jan 5, 2010 in Contractor FAQs )

What does a contractor accountant do?

What should limited company contractors typically expect their accountants to do?
(Dec 14, 2009 in Contractor FAQs )

Why don't IT contractors operate as sole traders?

A brief overview of sole trading, and given how easy it is to set up, why don't IT contractors operate as sole traders?
(Nov 17, 2009 in Contractor FAQs )

Contractor accountant fees - how much should you expect to pay?

How much do contractor accountants charge, and what other factors you should consider before signing up?
(Sep 21, 2009 in Contractor FAQs )

Do I need contractor professional indemnity insurance cover?

Do you need to take out contractor PI insurance policy?, and how to make sure you are adequately covered.
(Sep 21, 2009 in Contractor FAQs )

Contractor travel expenses - what is the 24 month rule?

An explanation of the 24 month rule with respect to contractor travel and subsistence expense claims.
(Sep 10, 2009 in Contractor FAQs )

What is a Managed Service Company?

How to identify a Managed Service Company provider, and ensure that you are not caught by the MSC rules.
(Aug 18, 2009 in Contractor FAQs )

How much money can I distribute in dividends?

If you are a limited company contractor, how do you extract dividend income from your company?
(Aug 10, 2009 in Contractor FAQs )

When are my limited company annual accounts due?

If you have set up a new limited company for your contracting business, when do you have to submit your company accounts to Companies House?
(Aug 5, 2009 in Contractor FAQs )

How do you register your contractor company for corporation tax?

If you have set up a limited company for your contracting business, how do you register to pay corporation tax?
(Aug 3, 2009 in Contractor FAQs )

Can I download an "IR35 contract" from the web?

Why compliance with IR35 involves a lot more preparation than simply downloading an "IR35 contract" from the internet.
(Jul 30, 2009 in Contractor FAQs )

What would trigger an IR35 investigation?

What events might lead to an 'IR35 investigation', and how should IT contractors protect themselves against such an eventuality.
(Jul 29, 2009 in Contractor FAQs )

What hourly / daily contract rate should I charge?

How to work out what hourly rate you need to achieve in order to secure your target annual gross income.
(Jul 29, 2009 in Contractor FAQs )

How do I set up a contractor limited company?

The steps you must follow if you want to contract via your own limited company.
(Jul 28, 2009 in Contractor FAQs )

Why don't IT contractors set up as sole traders?

The most popular way to start up in business in the UK is as a sole trader. So why do IT contractors avoid this route, and work via their own limited companies or via an umbrella company scheme?
(Jul 3, 2009 in Contractor FAQs )



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