If you’re working as a contractor you might think your tax affairs are simple and straightforward. Maybe you think that bookkeeping and accountancy isn’t something you need to worry about. However, if you try using Millhouses Accountancy, specialist accountants for contractors you might quickly change your mind.
Specialist accountants for contractors
Whatever your trade; whether you are a builder, plumber, electrician or a plasterer you probably earn your living because you make things look simple. A householder might watch a plasterer leave a smooth wall at the end of the day and think they could save money by doing the other three walls themselves.
It would not take long before they released it was a false economy. Without the tricks of the trade and craftsmanship a professional offers it probably wouldn’t be long before the householder relented and called the plasterer back to rescue their lumpy and uneven wall. It’s the same when using a specialist accountant. Using someone who understands how you work and can help to guide you through the processes will be far more cost-effective than trying to do it yourself.
Understanding your trade
Even if you think your situation is straightforward, you get a job, do it and get paid. There are plenty of additional factors where a specialist accountant can help. For instance would you understand everything you can claim for against your income, would you understand the construction industry scheme rules (including the HMRC deadlines for submission of CIS returns along with the associated tax payment). Bookkeeping and accountancy is not just for big businesses. No matter how small your business you will need to produce books and accounts and submit returns and tax payments to HMRC.
It’s important to realise that an accountant isn’t just for completing tax returns per year but is there the whole year. Not only do they know how you work. They also understand how your work changes, a specialist accountant for builders for instance knows you have a winter lull when people may avoid disruptive work. Whereas a specialist accountant for plumbers will realise that winter is a peak season as you have to help fix burst pipes and resuscitate broken boilers. An Accountant will help you keep your affairs in order all year, identifying the records you need to keep, and helping you track them, so that when the time comes you can complete your accounts quickly and easily. This also means they can help you when it comes to making sure you keep your tax bill as low as possible.
Saving you money
You might not have thought about all the expenses that you have to pay to stay in business. These aren’t just the supplies you have to buy to do your job or the tools you need to do your trade or the consumables you use. It’s also the other expenses you incur. If you have to travel to a different place to work every day, for example; or you need safety equipment before you are allowed on site you would be able to claim these against tax. You could claim for registration fees you have to pay in your industry.
However, the situation is always complex, and the best way to handle your accounts will depend on how you are set up. That’s why it’s always best to use a specialist accountant for contractors because just like the clients you ultimately work for, using a specialist will pay for itself in the long run.
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You can read more about accounting for trades people here.