What is the best business structure for a UK consultant?
It depends on more than tax. On 2026/27 tax rates, a limited company that pays out all its profit leaves you with less take-home pay than a sole trader, but a company lets you keep profit in the business, choose when to take dividends and make employer pension contributions. If your contracts are predominantly inside IR35, or you are just starting out on modest earnings, operating as a sole trader may be simpler. You can talk this through in a free consultation.
How does IR35 affect consultants in the UK?
IR35 is a set of tax rules that determines whether you are working as a genuine business or effectively as an employee of your client. If you are inside IR35, you may have to pay more tax and National Insurance. IR35 is assessed contract by contract. GoForma reviews every new consulting contract for IR35 status and advises on how to structure working arrangements to protect your outside-IR35 position where appropriate.
Does GoForma help me set up and use FreeAgent?
Yes. FreeAgent is included at no extra cost with GoForma's service, and we help you get up and running from day one. Your accountant can help you link your bank feeds and get started with invoicing and expense tracking.
Can I switch accountants to GoForma mid-year?
Yes. GoForma makes it easy to switch accountants at any point in the financial year. Your new accountant works through the handover from your previous accountant with you, including your records and HMRC authorisations.
What expenses can I claim as a UK consultant?
UK consultants can claim a wide range of allowable expenses including a proportion of home office costs, travel to client sites at 55p per mile for the first 10,000 business miles in 2026/27, professional indemnity insurance, professional body memberships, training related to your current specialism, technology and software subscriptions, and, through a limited company, employer pension contributions. Your GoForma accountant can check your expense claims with you.
Do I need to register for VAT as a consultant?
You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period. Once you exceed this figure, you have 30 days to register. If your turnover is below £90,000, registration is optional but can be beneficial if your clients are VAT-registered businesses that can reclaim any VAT you charge.
What does an accountant for consultants do?
An accountant for consultants handles your financial and tax responsibilities, from setting up your business structure and preparing your Self Assessment or Corporation Tax return, to advising on IR35, VAT, and allowable expenses. At GoForma, you work with a named accountant you can contact directly whenever you need support.
What is Making Tax Digital and does it affect consultants?
Making Tax Digital for Income Tax (MTD for ITSA) is HMRC's programme to move tax reporting to a digital, quarterly basis. From 6 April 2026, self-employed consultants with qualifying income above £50,000 must keep digital records, send quarterly updates to HMRC and still file a tax return. The threshold falls to £30,000 from 6 April 2027 and £20,000 from 6 April 2028. GoForma's Start Sole Trader + MTD package (£68 a month) covers the quarterly submissions and the return.
How much does an accountant for consultants cost?
GoForma offers fixed monthly packages for limited companies and sole traders, all including FreeAgent software. Limited company packages run from £28 (Lite Bundle) to £148 (Grow Bundle) a month, and the Start Bundle at £88 a month includes a dedicated accountant, year-end accounts and CT600, director payroll and an IR35 review on every contract. Sole trader packages start at £22 a month. Prices exclude VAT. Get an instant online quote to see the right package for your situation.