Contractor Accountants

What can accountants help contractors with?

A good contractor accountant goes well beyond filing tax returns. They advise on the most tax-efficient salary and dividend split, manage monthly payroll and VAT submissions, review IR35 contract clauses, handle expense queries, and provide strategic guidance on pension contributions, company investments, and year-end tax planning. Choosing an accountant with genuine contractor expertise ensures you maximise take-home pay while staying fully compliant with HMRC.

By Jordan Macey MAAT Reviewed by Noor Fiaz Updated 16 Apr 2026 1

What can accountants help contractors with? - GoForma Contractors | UK Accountants & Tax Advisors

Key takeaways

Contractor accountants manage statutory filings including annual accounts, corporation tax returns, VAT, payroll, and personal self-assessment.
They advise on the most tax-efficient salary and dividend strategy each year based on your personal circumstances and current tax thresholds.
Many offer IR35 contract reviews and can help you understand your employment status position before accepting an engagement.
Proactive accountants flag tax planning opportunities such as pension contributions, capital allowances, and research and development relief.
They act as a buffer with HMRC during enquiries, handling correspondence and providing the supporting documentation required.

The goals for accountant's is to help businesses with tax and compliance duties whilst providing strategic advice to save money and time, allowing the business to focus on it's core activities. A specialist contractor accountant will also cover the areas specific to contracting, such as IR35 status and the balance between salary and dividends.

Everyone knows that accountants will complete tax returns and accounts but the very best accountants will go one step further in ensuring the very best for the business.

Frequently asked questions

Can an accountant help with IR35 contract reviews?

Yes. Many specialist contractor accountants offer IR35 contract reviews as part of their monthly service package or as a paid add-on for each new engagement. They assess your contract terms and actual working practices against HMRC criteria and advise on specific clauses that could strengthen your outside-IR35 position, such as substitution rights, control provisions, and project-based deliverables.

Do contractor accountants handle payroll?

Yes. Running monthly payroll is a core part of virtually all contractor accounting packages. Your accountant processes your salary payment each month, calculates the correct PAYE and National Insurance deductions, submits the Real Time Information report to HMRC by the required deadline, and issues your payslip so you have a record of each payment made.

How do contractor accountants help reduce my tax bill?

They optimise your salary and dividend split each tax year based on current thresholds, identify all allowable business expenses you may have overlooked, advise on pension contributions that reduce both corporation tax and personal tax liabilities, and carefully time dividend payments to avoid unnecessarily crossing into higher tax bands. This strategic tax planning advice typically saves far more than the accountancy fee itself.

Will my accountant deal with HMRC on my behalf?

Yes. If HMRC opens a compliance check or formal enquiry into your company or personal tax affairs, your accountant acts as your authorised agent and handles all correspondence on your behalf. They prepare and submit the required documentation, respond to HMRC queries, and represent your interests throughout the entire process, which significantly reduces stress and generally improves outcomes.

Can an accountant help me set up my contractor limited company?

Most specialist contractor accountants offer company formation as a standard part of their onboarding process for new clients. This typically includes registering your company with Companies House, setting up corporation tax and VAT registrations with HMRC, and recommending a suitable financial year end date. Some include company formation in their monthly fee while others charge a separate one-off setup cost.

What is the difference between a bookkeeper and a contractor accountant?

A bookkeeper records day-to-day financial transactions, reconciles bank feeds, and categorises your business expenses accurately. A contractor accountant does all of this plus prepares statutory annual accounts, files tax returns, runs payroll, advises on tax-efficient extraction strategies, reviews IR35 compliance, and handles HMRC correspondence. Most contractors need a qualified accountant rather than just a bookkeeper.

How often should I speak to my contractor accountant?

At minimum, you should check in quarterly around each VAT return period and schedule a detailed year-end tax planning call two to three months before your financial year closes to optimise your position. Good contractor accountants also proactively reach out when tax thresholds or relevant legislation change, and most offer unlimited email and phone support for day-to-day queries.

Need help with this for your business?

Book a free 20-minute call with one of our MAAT or ACCA qualified accountants. We will tell you honestly whether we can help.

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