Fixed fees · Free first consultation · UK wide

Accountants for contractors and freelancers

We have worked with contractors online for more than ten years. The questions are consistent, and getting them right early is worth far more than getting them right at the year end.

AccountsHelp provides limited company accounting to contractors and freelancers throughout the United Kingdom, covering the off-payroll working rules, salary and dividend planning, VAT scheme selection and allowable expenses, on a fixed monthly fee.

What is different about this sector

Where contractors and freelancers need more than generic accounting

01

The off-payroll working rules

Whether an engagement falls inside or outside the rules changes your take-home materially. For public sector and medium or large private clients the client makes the determination. Where the client is a small private company, the responsibility sits with your company.

02

Salary and dividend planning

The efficient mix changed in April 2026. Dividend rates rose by two percentage points, and employer National Insurance is 15% above a £5,000 secondary threshold, so the familiar advice no longer lands where it did. This is worth revisiting annually rather than setting once.

03

Choosing a VAT scheme

Many contractors meet the limited cost business definition, which applies a higher flat rate and removes most of the benefit of the Flat Rate Scheme. Both positions should be calculated on your own figures before choosing.

04

Expenses that get challenged

Travel to a single long-term client site can be treated as an ordinary commute rather than business travel. Home working, equipment and subsistence all have boundaries worth knowing before you claim rather than after.

05

Closing the company down

When you go permanent or stop contracting, how retained profits come out of the company affects the tax you pay. Worth planning before you stop trading, not after.

Common questions

Questions from contractors and freelancers

How do the off-payroll working rules affect me?

They decide whether an engagement is taxed like employment. For public sector clients and medium or large private sector clients, the client makes the determination and the fee payer operates PAYE where an engagement is inside. Where the end client is a small private company, the responsibility stays with your own company. The determination changes your take-home materially, so we review each contract with you.

What is the most tax efficient salary for a contractor?

There is no single figure, and the answer changed in April 2026. Employer National Insurance is now 15% above a £5,000 secondary threshold, so a salary at the personal allowance triggers employer NI on most of it, and the Employment Allowance does not help a company whose only employee is a single director. We work it out on your figures each year rather than applying a rule of thumb.

Should I use the VAT Flat Rate Scheme?

Only if the numbers support it. Many contractors fall within the limited cost business rules, which apply a higher flat rate and remove most of the benefit. We calculate both positions on your actual figures before recommending either.

How much do you charge contractors?

Our Essential contractor package is £70 a month, covering annual accounts, the corporation tax return, VAT, Companies House filing, payroll for one and your personal tax return, in one fixed fee with no year-end extra.

General information about how we work with this sector, not advice for your circumstances. Any tax figures mentioned were checked against gov.uk and are set out with their sources on our tax dates and rates page.

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