IT Contractor Tax - Accountants for Contractors

If you are a limited company contractor, you will need to be familiar with a number of HMRC forms, which cover VAT, Corporation Tax and your company payroll. Here, we look at what the most common forms are used for.

Form 64-8

When you sign up with a contractor accountant, you need to 'authorise your agent' to deal with HMRC on your behalf - for both company and tax purposes. In the past, this could only be achieved by filling in Form 64-8, although this can now be achieved online via HMRC Online Services. Your accountant will apply to act on your behalf, HMRC will send you an authorisation code, which can then be used to complete the process.

VAT 1

This form is used to register your company for VAT. You may find it easier to apply online, although you will first have to enrol with HMRC Online Services or the Government Gateway. You can find out more about how to register for VAT here (HMRC).

CT41G

This form is used to tell HMRC that your new limited company exists, and that you'll be liable to pay Corporation Tax on your profits. You can download a copy here (HMRC).

CT600

This is your annual Corporation Tax return. Since 1st April 2011, all returns must now be submitted online, so the paper form is redundant. Any Corporation Tax liabilities must also be paid electronically. Found out more here (HMRC).

P45

Perhaps the most well known HMRC form, you receive a P45 when you stop working for an employer. You will need to hand Parts 2 and 3 of your P45 in to your new accountant so they can set up your new company payroll. The P45 contains your tax code and a record of all income tax and NICs paid in the current tax year so far.

P46

If you are starting your first employment, are starting a second job, or haven't got your P45 to hand for some reason, your accountant will give you a P46 to complete.

P60

Your P60 provides a summary of your income, and the tax that has been deducted over the previous tax year. You may need this to help complete your self assessment return.

P11D

The P11D is a statement of the expenses and benefits paid to employees and company directors during the course of a tax year. You can find out more about HMRC payroll forms (P45, P46, P60 and P11D on the HMRC site).

P35 & P14

The Employer Annual Return consists of Form P14 for each employee you have, and a P35 which summarises the year end payroll totals for all employees of your limited company. Your accountant must submit this by 19th May each year.

Self Assessment

This is your annual tax return, which may or may not be completed by your accountant (you should make sure if it carries an extra charge to complete). Here, you declare any income you may have received in the previous tax year - including any capital gains, bank interest, income from property rentals, and any other relevant sources of income.