Contractor Accountant for Limited Company Contractors
Contracting pays well and generates more admin than most people expect: a company to run, IR35 status to evidence, VAT to file, payroll for a single director and a self assessment on top. R&R Chartered Certified is an ACCA-registered practice in Blackburn acting as contractor accountant for IT, engineering, construction and healthcare contractors across the UK.
Quick answer: A contractor accountant runs your limited company compliance — accounts, corporation tax, VAT, director payroll and self assessment — reviews your IR35 position and sets the salary and dividend mix so you keep more of your day rate legitimately.
What Is Included
Company accounts and corporation tax. Statutory year-end accounts filed at Companies House with the CT600 to HMRC.
Director payroll. A tax-efficient salary run through RTI each month, with the employment allowance position checked.
VAT. Registration, scheme choice and quarterly MTD VAT returns, including the flat rate decision and reverse charge where you work in construction.
Self assessment. Your personal self assessment tax return, covering dividends, benefits and any other income.
Bookkeeping in the cloud. Xero set up and maintained so invoices, expenses and mileage take minutes rather than evenings.
IR35 and Your Status
IR35 decides whether HMRC treats your engagement as self employment or as disguised employment. Where the end client is medium or large, they issue the status determination; where the client is small, the decision and the risk sit with your company. We review contracts and working practices, keep the evidence on file, and tell you plainly when an assignment looks inside rather than outside. Our guide to IR35 for limited company contractors goes through it in detail.
Limited Company or Umbrella?
Outside IR35 work at a decent day rate is normally better through your own limited company, because you control the salary and dividend mix and can claim genuine business costs. Inside IR35, short assignments, or a first contract while you decide often suit an umbrella. We compare the take-home on your actual rate and contract length before you commit either way.
Paying Yourself Efficiently
Most contractors take a small salary plus dividends, but the right split changes with allowances, thresholds and whether a spouse is involved in the business. We set it at the start of the year and review it, rather than discovering the problem at the year end. See salary vs dividends for 2026/27 and director’s loan accounts if you have drawn money out ahead of profits.
Who We Work With
IT and software contractors, engineers, project managers, construction contractors working under CIS, and locum medical and healthcare professionals. Everything runs remotely, and if you are nearby our accountant in Blackburn page has the office details.
Frequently Asked Questions
How much does a contractor accountant cost?
Limited company contractor packages typically run from £90 to £150 plus VAT a month, covering accounts, corporation tax, VAT, director payroll and your self assessment. We agree the fee before starting and it does not change mid year.
Should I contract through a limited company or an umbrella?
Outside IR35 work is usually more tax efficient through your own limited company. Inside IR35 or short-term assignments often suit an umbrella. We run the numbers on your actual day rate before you decide.
What is IR35 and who decides my status?
IR35 tests whether you are genuinely in business on your own account or working like an employee. For medium and large clients the end client decides and issues a status determination statement; for small clients the responsibility stays with your company.
What expenses can a contractor claim?
Business travel and mileage, accommodation on assignment, equipment and software, professional subscriptions, insurance, training that maintains existing skills, and a proportion of home office costs where you work from home.
How should I pay myself as a contractor?
Usually a modest salary plus dividends, with the split set to use allowances efficiently. Our guide to salary versus dividends works through the 2026/27 figures.
Can you take over mid contract or mid year?
Yes. We obtain your records through professional clearance, register as your agent with HMRC and pick up from wherever your filings currently stand.
This page is general guidance for UK businesses and does not constitute personal financial or tax advice. Rules, thresholds and individual circumstances vary — always confirm your specific position with a qualified accountant before acting.
Starting or Switching a Contractor Company?
Tell us your day rate and contract length and we will show you the take-home comparison plus a fixed monthly fee.
