A potential client (lets call him Andy) had found Clearways Accountants through the Professional Contractors Group accredited accountants scheme.

Andy wanted an accountant with start-up knowledge and experience in IR35. He was concerned over the tax he was paying through an umbrella company and wanted some impartial advice.

At Andy’s free consultation we discussed his current position.  He was always in demand from customers and so generating a good income and although he was happy with the service the umbrella company provided he was paying quite a lot in fees and was paying a lot in tax.

After plugging his income into the Clearways Accountants tax calculator and looking at the difference in tax it was clear that it would be best to terminate his umbrella company contract and become the shareholder and director of his own limited company.

As Andy is so busy meeting customer demands he quickly decided to let us incorporate his new company and straight away he signed up for our single person limited company package; this package includes payroll, VAT, company accounts, abbreviated accounts (for Companies House), the company annual return, company tax return, directors self-assessment return, dividend resolutions, dividend vouchers and unlimited contact with your accountant.

We applied for a PAYE dispensation to cut down on end of year payroll administration and following a check of Andy’s trading figures, we put Andy’s company into the VAT Flat Rate scheme.

In addition, Andy decided he wanted as much spare time as possible to enjoy his earnings and so he signed up for the Clearways Accountants bookkeeping service and so, once a month or as time allows, Andy sends through copies of his invoices and purchase receipts.

Since signing up for the package Andy has had his contracts IR35 reviewed and he has taken advantage of the “unlimited contact with your accountant clause” to request additional tax and accounting advice on company cars.

If you would like help in setting up your contractor company, please contact us by telephone on 01737 244298.