Accountants for Contractors

Contracting is efficient when it is structured properly and expensive when it is not. Most of the value sits in three decisions: how you trade, whether your contracts fall inside IR35, and how you take money out.

IR35 and off-payroll working

IR35 asks a single question: stripped of the intermediary, would this look like employment? Control, substitution and mutuality of obligation drive the answer. For most private-sector engagements with medium and large clients, the client determines status and the fee-payer operates PAYE. Where you contract with a small company, the responsibility remains yours.

Status is judged contract by contract, so a portfolio can contain both inside and outside engagements at once. Our guide to IR35 in 2026, limited company versus umbrella covers the comparison in detail, and off-payroll working covers the rules themselves.

Limited company or umbrella?

An umbrella is simpler and makes sense where most work is inside IR35: you are employed, taxed through PAYE, and there is little left to plan. A limited company is usually more efficient for outside-IR35 work, giving control over timing, a salary and dividend mix, pension contributions and expenses, at the cost of running a company and filing accounts.

The right answer often changes as your contract mix changes, and it is worth revisiting rather than deciding once.

Expenses: what actually qualifies

Contractor expenses attract more HMRC attention than most areas, and the rules are less generous than the internet suggests. Travel to a workplace you attend regularly is likely to be ordinary commuting rather than business travel, and the 24-month rule catches longer engagements. Home office, equipment, professional subscriptions, training and insurance are more straightforward. See contractor expenses, what you can and cannot claim.

Taking money out efficiently

For outside-IR35 work through a company, the salary and dividend mix is the core decision, and it moved again when dividend rates rose in April 2026. Pension contributions from the company are frequently the most efficient route of all, particularly in a strong year. See the most tax-efficient director salary and profit extraction beyond salary and dividends.

What we do for contractors

Company accounts and corporation tax, payroll, VAT where you are registered, your Self Assessment, and a status and extraction review each year, on a fixed monthly fee.