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Contractor accountant launches iPhone application
Posted Sep 9, 2009
In a move which might reassure contractors who thought that some contractor accountants were still getting used to using email, one of the leading specialist firms has launched its own iPhone application which shows limited company contractors what their take home pay would be for a given hourly or daily rate.
The App, created by SJD Accountancy, shows the percentage tax paid on a contractor's net annual invoice total, and the take home percentage.
Limited company benefits
Aside from the dividend tax benefits that a limited company can provide, MD Simon Dolan told us that the calculations in the App also take into account the significant National Insurance and VAT savings which can be made by working via a limited rather than an umbrella company.
For example, by joining the flat rate VAT scheme, and taking into account the first year discount, a contractor on £350 per day could be £3,670 better off (based on a 45 week working year).
According to SJD, by working via a limited company rather than an umbrella, a contractor on £350 per day could save £12,000 per year in NI contributions (based on a 45 week working year).
More information
For contractors who have access to an iPhone, simply search for "contractor" in the App Store, and download.
To compare the tax treatment of limited and umbrella companies, try our start-up guide to choosing limited or umbrella?
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