At ABM we want to make life easy for the independent contractor. We offer a full professional service for a fixed monthly fee (ranging from £90 to £115 including vat) where everything is taken care of.
This nationwide service covers all of the end of year filing obligations for Companies House, corporation tax and PAYE and even includes monthly PAYE returns and quarterly vat returns were applicable. Two basic personal self assessment tax returns for the shareholders are also included in the fee where appropriate. This service is different to similar services offered by other accountants because your company position is reviewed every month. You can be reassured that you are drawing the correct and maximum amount of dividends each month rather than leaving everything until the end of the year. We are also able to carry out tax planning during the year as our information is always kept up to date.
Although this service was initially offered to contractors in the local area, we now operate on a national level and have clients from all over the UK.
Are you concerned about IR35? We will undertake an initial assessment and let you know our opinion of your current situation. A more in depth contract review can be arranged if necessary for an additional fee. You may also be able to take out insurance against any potential tax losses incurred during an HMRC investigation.
You send in your paperwork (by post or email) and, on a pre-determined day each month, we calculate all the necessary payments. At the outset we will provide you with a comprehensive guide on claiming expenses through your company to help you complete the expenses information. Then, each month, we send you a full breakdown of how the company monies have been allocated together with details of how much money is available for dividend. Have you heard of the term “illegal dividends”? It can present serious problems for contractors if dividend calculations are left until the end of the year, have a look at our guide to illegal dividends to find out more.
The biggest advantage with ABM doing all the bookkeeping and paperwork every month is that you have immediate access to all the funds available from your limited company whilst knowing that you haven’t taken too much! You will also get up to date information on your corporation tax liabilities together with an estimate of any additional income tax which may be due and by what date.
Vat returns are submitted quarterly on your behalf making full use of the benefits of the flat rate scheme where possible. Do you know about the limited cost trader category which was introduced on 1st April 2017? Is the flat rate scheme still the best option for your company or would you be better off on standard vat accounting? These are questions you should be asking your accountant.
We think the service works very well and represents excellent value for money, and more importantly our clients agree!
If you are already reading this page you are probably aware of the big tax and national insurance savings to be made when operating as a limited company. Typically, contractors operating as a limited company can expect their take home pay to be around 78%. If you are invoicing your client £50,000, you could end up with £40,469 (81%) in your pocket after tax deductions. Invoicing your client £100,000 gives you a take home pay of up to £77,935 (78%). (Please note that a second shareholder may be required to achieve these rates. Also any expenses incurred by your limited company will alter these percentages). This compares with rates of 74% operating as self-employed (reducing to 66% for £100,000) and 74% for employees under PAYE (reducing to 66% for £100,000 salary).
If you want to find out more or arrange a free consultation, please call 01642 592802 or email Loraine@teessideaccountants.co.uk