Contractor guides & resources
Plain-English guides on IR35, limited company accounts, dividends, expenses, and everything else UK contractors need to get right. Written and reviewed by ACCA and AAT qualified accountants.
What is IR35? A guide for contractors
IR35, also called the off-payroll working rules, decides whether a contractor working through their own limited company is taxed like an employee of the client. Medium and large private sector clients have decided…
What business insurance do contractors need?
Employers' liability insurance is the only business cover most UK contractors must have by law, and a company employing only its owner, who…
How do I pay myself as a contractor?
Outside IR35, most limited company contractors take a salary of £12,570, £6,708 or £5,000 through payroll and the rest of the profit as…
How does tax change as a contractor?
When you move from permanent employment to contracting through a limited company, your entire tax position changes. Instead of PAYE…
How to Become a Contractor in UK
Becoming a UK contractor means selecting a business structure, registering with HMRC, setting up accounting, understanding IR35, arranging…
Can contractors reclaim insurance costs?
Business insurance is an allowable company expense for UK contractors operating through a limited company. Professional indemnity, public…
What deadlines do I need to know as a contractor?
UK contractors running a limited company must track multiple filing and payment deadlines throughout the year. These include corporation…
How do accountants charge contractors?
Most contractor accountants charge a fixed monthly or annual fee that covers year-end accounts, corporation tax filing, payroll, VAT…
When do I need a Limited company as a contractor?
There is no single income threshold that triggers the need for a limited company, but most UK contractors benefit from incorporating once…
Employing contractors
Hiring contractors gives UK businesses flexible access to specialist skills without the overhead of permanent employment. However, it comes…
What are the different types of contractors?
UK contractors span a wide range of sectors and working arrangements. The most common types include IT and technology contractors…
What expenses can I claim as a contractor?
UK contractors operating through a limited company can claim a wide range of business expenses against corporation tax. Allowable costs…
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…
Is a contractor an employee?
A contractor is not automatically an employee, but the distinction depends on the actual working relationship rather than the contract…
Can I get a mortgage as a contractor?
UK contractors can absolutely get a mortgage, though the application process differs from permanent employees. Specialist lenders and…
Guide to the Construction Industry Scheme (CIS)
The Construction Industry Scheme (CIS) is HMRC's tax deduction framework for UK construction. Contractors deduct 20 or 30 percent from…
Personally paid expenses vs company paid expenses
UK contractors operating through a limited company should pay business expenses directly from the company bank account wherever possible…
Top 7 Disadvantages of Contracting
Contracting in the UK offers flexibility and higher rates, but also brings real downsides. Income stops between engagements, contractors…
Is a contractor self employed?
Whether a contractor is self-employed depends on the specific working arrangement, not the job title. HMRC uses tests around control…
What is a Contractor?
A contractor is a self-employed professional hired to deliver specific work for a defined period rather than as a permanent employee. In…
Contractor Business Services UK
UK contractors typically need specialist accounting with FreeAgent or Xero, IR35 contract review, contractor-friendly business banking…
How to find contract jobs: 22 best contractor recruitment job sites
Finding UK contract work in 2026 means using specialist platforms rather than general job boards. Contractors typically combine recruitment…
What are the advantages of contracting?
Contracting offers UK professionals several significant advantages over permanent employment. The most impactful benefits include higher…
Best contractor accounting software
Choosing the right accounting software saves UK contractors hours each month on bookkeeping, VAT returns, and tax calculations. The leading…
Umbrella Companies Explained: FAQs for Contractors
Moving from umbrella to contracting through a limited company can significantly increase your take-home pay and provide greater control…
What are the disadvantages of Umbrella company?
Umbrella company disadvantages include reduced take-home pay due to employer's National Insurance contributions, limited control over…
What are the advantages of an Umbrella company?
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Frequently asked questions
Do I need a specialist contractor accountant?
If you invoice through a limited company or umbrella, a specialist will save you more than they cost. IR35, the 24-month rule, and dividend strategy all have contractor-specific quirks that generalists rarely see.
How much does an accountant for contractors cost?
GoForma's contractor packages start from £28/month (Lite Bundle), with full-service packages from £88/month (Start) — dedicated accountant, FreeAgent, year-end accounts, Corporation Tax, payroll, and unlimited support included.
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