Accountant for Contractors & Freelancers
Companies999 provides specialist accountancy services for contractors and freelancers across the UK. Whether you work through a limited company, as a sole trader, or through an umbrella company, we understand the unique tax landscape of contracting and ensure you keep as much of your earnings as legally possible. We handle your accounts, tax returns, and payroll so you can focus on landing your next contract.
What We Offer
Tailored services for you
Limited Company Accounts
Full annual accounts preparation and submission to Companies House and HMRC. We keep your limited company compliant and your tax position optimised.
Expense Management
Expert guidance on what you can and cannot claim as a contractor. We make sure every legitimate expense is captured to reduce your tax bill.
Tax-Efficient Pay Strategies
We help you extract profits in the most tax-efficient way through a combination of salary, dividends, and pension contributions.
Self Assessment
Personal tax returns prepared and filed on time, covering all your income sources including employment, self-employment, and dividends.
VAT Returns
Quarterly VAT returns prepared and submitted. We advise on the best VAT scheme for your business, whether flat rate or standard.
Bookkeeping & Payroll
Monthly bookkeeping, payroll processing, and pension auto-enrolment all handled so you can focus on your contracts.
Tax-Efficient Pay: Salary, Dividends & Pension
As a limited company contractor, the most tax-efficient way to extract profits is typically through a combination of a low salary (set at the National Insurance threshold), dividends from post-corporation-tax profits, and employer pension contributions. From April 2026, dividend tax rates increase by 2% (basic rate rises to 10.75%, higher rate to 35.75%), so the optimal salary-dividend split needs careful annual calculation. Corporation tax is 19% on small profits up to £50,000, rising to 25% above £250,000 with marginal relief in between. We calculate the most efficient combination for each client individually.
Allowable Expenses for Contractors
Contractors can claim a wide range of legitimate expenses including travel to temporary workplaces, accommodation when working away, professional subscriptions and training that maintain existing skills, professional indemnity insurance, home office costs (a proportion of utilities, broadband, and council tax — note the flat-rate £6/week working from home allowance has been removed from April 2026, but actual costs can still be claimed with evidence), equipment and technology, accountancy fees, and business phone costs. We ensure every legitimate expense is claimed to reduce your tax.
Sole Trader vs Limited Company
The choice depends on your income level and personal circumstances. Once taxable profits exceed approximately £30,000–£35,000 per year, a limited company usually becomes more tax-efficient. Important: from April 2026, incorporation relief is no longer automatic and must be actively claimed on your self assessment return. We analyse your situation and advise on the best structure, handling the entire incorporation process if a switch makes sense.
Making Tax Digital for Sole Traders
If you operate as a sole trader with gross income over £50,000, MTD for Income Tax becomes mandatory from 6 April 2026 (dropping to £30,000 from April 2027 and £20,000 from April 2028). This means keeping digital records and submitting quarterly updates to HMRC using approved software. We set up MTD-compliant record-keeping and handle submissions on your behalf.
Why Choose Us
Built for the way you work
Contracting is a completely different world from traditional employment, and your accountant needs to get that. We work with contractors and freelancers across the UK and know the challenges you face, the expenses you can claim, and the opportunities to keep your tax bill as low as legally possible.
Software We Work With
FAQs
Frequently Asked Questions
How much does a contractor accountant cost?
Our fees start from a fixed monthly amount covering annual accounts, corporation tax return, personal tax return, and year-round access to your dedicated accountant. No hourly rates. Call 0121 638 0905 for a quote.
Do I need an accountant as a freelancer?
Most freelancers earning above the personal allowance (£12,570) benefit significantly from professional support. An accountant ensures you claim all expenses, file on time, and pay only what you owe.
What expenses can I claim as a contractor?
Travel, accommodation, equipment, software, professional insurance, training, memberships, home office costs (actual costs with evidence from April 2026), and accountancy fees.
Should I be a sole trader or limited company?
Generally, once profits exceed £30,000–£35,000, a limited company is more tax-efficient. From April 2026, incorporation relief must be actively claimed. We advise on your specific circumstances.
What are the April 2026 dividend tax changes?
Basic rate rises from 8.75% to 10.75%, higher rate from 33.75% to 35.75%. Additional rate stays at 39.35%. Dividend allowance remains £500. We recalculate optimal salary-dividend splits for all clients.
Do you handle VAT?
Yes. We advise on registration (threshold £90,000), choose the best scheme, and prepare and submit quarterly returns.
What accounting software do you recommend?
Xero or FreeAgent for most contractors. FreeAgent has built-in dividend and tax forecasting. We set it up and train you.
Can you do my personal tax return?
Yes. Our packages include your personal self assessment covering salary, dividends, and other income.
Related Services
Ready to get started?
Whether you're just starting out as a freelancer or you're an experienced contractor looking to switch accountants, we make it seamless. Call us on 0121 638 0905 for a free discovery call.