There are hundreds of specialist accountants working within the contracting industry, which promotes healthy competition and keeps fees relatively low.
And most contractors have a very similar accounting profile – unlike other small businesses.
They’re typically one-man bands with a simple share structure: They take a tax-efficient salary and extract profits as dividends.
For this reason, you can reasonably accurately compare contractor accountants – as they almost all offer the same core services as standard.
In our experience, cost and customer service are the two most important factors contractors consider when choosing an accountant.
This concise guide looks at the typical fees and additional costs you’re likely to pay when you hire an accountant.
What are the typical monthly fees?
Here are some examples of how much the leading specialist firms charge:
£119 | Free company formation, face-to-face meeting, free tax return.
What’s included in the monthly fee?
Most contractor accountants charge fixed monthly fees.
Depending on the firm and the number of services it provides, you can pay anything from £50 to £150 per month and more.
Firms sometimes offer different service packages, often known as ‘essential’, ‘standard’ and ‘ultimate’, or similar.
The more expensive packages often contain business insurance and extra tax planning services. Or they give you priority over other clients when completing your annual accounts.
Core services
However, all monthly packages, whatever the cost, should include some specific core services.
These are the basics that ensure your company accounts are processed, and your statutory deadlines are met.
As part of their core offering, your accountant should:
