Fixed-fee accounting and tax support for IT contractors and consultants operating outside IR35, whether you work through your own limited company or as a sole trader, covering company accounts, VAT and Making Tax Digital, UK-wide.
Contracting through a personal service company or working as a self-employed consultant brings its own accounting priorities: getting the balance of salary and dividends right, and keeping VAT and payroll on schedule between contracts. We work exclusively with IT contractors and consultants operating outside IR35 across the UK, from first-time limited company owners to established consultancies, keeping your compliance straightforward so you can focus on your next contract.
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We prepare and file your limited company’s annual accounts and corporation tax return, keeping records reconciled against your contract income and business expenses so you have a clear, accurate picture of your company’s position.
We help you draw income from your company in a tax-efficient way, balancing salary and dividends against the current tax thresholds and your personal circumstances, and keeping the paperwork in order for HMRC.
We keep your company or self-employed books up to date, reconciling invoices, expenses and bank transactions so your accounts and tax returns are always built on accurate, current records.
We prepare and submit your quarterly VAT returns under the flat rate or standard VAT scheme, advise on which scheme suits your contracting income, and keep you compliant with Making Tax Digital for VAT.
We run your company payroll, including your own director’s salary, so your PAYE and National Insurance are calculated and reported correctly and on time, every pay period.
We prepare and submit your personal self assessment tax return, and manage your quarterly submissions once Making Tax Digital for Income Tax applies to you, keeping you ahead of HMRC’s reporting deadlines.
Contracting through your own limited company brings its own tax planning considerations. Here is what matters most.
Many IT contractors and consultants operate through a personal limited company because they are working outside IR35, meaning HMRC does not treat the engagement as disguised employment. Determining IR35 status is a decision for you and your end client to make based on the working arrangement, and we do not provide IR35 status assessments. Once you are confident you are working outside IR35, we handle the company accounting, tax and compliance that comes with it.
If your company is VAT-registered and eligible for the Flat Rate Scheme, HMRC sets the flat rate for ‘Computer and IT consultancy or data processing’ at 14.5% of your VAT-inclusive turnover, rising to 16.5% if you are classed as a ‘limited cost business’ because you spend very little on goods. There is also a 1% discount in your first year of VAT registration. We help you work out whether the Flat Rate Scheme or standard VAT accounting suits your business best.
Company profits over £250,000 are taxed at the main Corporation Tax rate of 25%, while profits of £50,000 or less are taxed at the small profits rate of 19%. Profits in between attract marginal relief, and both thresholds are reduced if your company has associated companies. We calculate your liability accurately and make sure you claim the reliefs you are entitled to.
Your contracting company can usually claim costs such as professional indemnity insurance, use of home as an office, relevant training, travel to client sites and equipment like laptops and monitors. Under the Annual Investment Allowance, you can deduct the full cost of most equipment, up to £1 million a year, from your company’s profits before tax. We keep your expense claims compliant and make sure nothing is missed.
Most contractors pay themselves a mix of a modest salary and dividends from company profits. Dividends are taxed only once they exceed your Personal Allowance and the £500 annual dividend allowance, with rates depending on your Income Tax band. We plan your salary and dividend split to keep your take-home pay as tax-efficient as current rules allow.
We offer fixed-fee packages whether you work as a sole trader or through your own limited company. Each package covers the core compliance work below, with optional extras you can add as needed.
Self Employed
Optional
Limited Company
Optional
Limited Company
Optional
Limited Company
Optional
All packages are guide prices, excluding VAT. Your exact fee depends on your turnover, transaction volume and the level of support you need — request a quote for a price tailored to you.
Straightforward answers to the questions we’re asked most.
Most IT contractors trade through their own limited company, which can be more tax-efficient for higher day rates and gives clients confidence you’re operating as a genuine business. Some shorter-term or lower-income contractors prefer the simplicity of self-employment. We can talk through the tax and administrative differences based on your day rate and contract length.
Most contractor directors take a modest salary, generally set at a level that preserves state pension entitlement without triggering higher National Insurance, topped up with dividends from the company’s post-tax profits. The right balance depends on your income, other earnings and current tax rates, which we review with you each year.
You must register for VAT once your taxable turnover in any rolling 12-month period exceeds £90,000, though many contractors choose to register earlier. We can advise on whether the VAT flat rate scheme or standard scheme suits your circumstances, and handle your quarterly returns under Making Tax Digital for VAT.
Allowable expenses typically include accountancy fees, business insurance, travel to client sites, equipment and software used for your contract work, and pension contributions. We’ll help you keep accurate records and claim what you’re entitled to.
Making Tax Digital for Income Tax is being phased in based on your gross income from self-employment and property. It became mandatory from 6 April 2026 for income over £50,000, and will extend to income over £30,000 from 6 April 2027 and income over £20,000 from 6 April 2028. We’ll confirm when you’re due to join and handle the quarterly submissions on your behalf.
If you trade through a limited company, the company pays corporation tax on its profits, and you pay income tax and National Insurance on the salary and dividends you draw, reported through your personal self assessment tax return with a balancing payment due by 31 January following the end of the tax year. If you’re self-employed, you pay tax and Class 2 and Class 4 National Insurance on your profits through Self Assessment on the same timetable.
No. While most clients prefer cloud software such as Xero, QuickBooks, Sage or FreeAgent, we understand not everyone wants to work in the cloud. If you'd rather not use cloud software for your bookkeeping, we also support off-cloud software such as VT Transaction+.
Tell us about your circumstances and we’ll come back to you with clear next steps, typically the same working day. Our support is available in person, by phone, email or a virtual video meeting, whichever suits you best.