When you think of what your accountant does, what comes to mind? Year-end tax returns? Company accounts? Perhaps an email reminder about a deadline? While those tasks are certainly part of the job, our specialist accountants can do so much more to help you succeed as a freelancer or contractor. Your accountant could be one of the most valuable allies you have in growing your business. We want you to view them as a long-term partner - the more you share with us about your goals, your work, and your plans, the more we can support you, not just with compliance and tax, but with making smarter financial decisions. Here’s how you can make the most of your Workwell accountant’s expertise, and put them to work for your growth.
1. Tap into Their IR35 Knowledge
Although IR35 status of a role is now determined by your hirer and/or recruitment agency, it’s still important for you to know if your role has been correctly assessed. IR35 is the tax legislation that determines whether you’re working as a genuine contractor or what the taxman would view as a disguised employee. If your contract falls inside IR35, you’re subject to PAYE taxes and National Insurance just like an employee. If you’re outside IR35, you can pay yourself more tax-efficiently through your limited company. But this line can be blurry. As specialist accountants who understand contractor tax law, we can help you assess your status accurately, reviewing contracts and looking at aspects of your role that could affect your status. The right IR35 status not only ensures you work compliantly, but also ensures you’re getting the best take-home pay.
2. Work Smarter, Not Harder - Tax Efficiently
A major benefit of working through your own limited company is the opportunity to structure your income in a tax-efficient way. But that only works if you fully understand how to pay yourself properly, and that’s where your Workwell accountant really makes a difference. We can help you:
- Set a sensible director’s salary
- Top up with dividends at the right time and in the right amounts
- Make use of the tax-free dividend allowance
- Avoid unnecessary personal tax bills
- Plan for pension contributions and other tax-saving strategies
It’s about keeping more of what you earn while also planning for the future. If your accountant knows what your income goals are and how your workload is shaping up, they can proactively offer advice on when and how to withdraw money and help you to set funds aside for tax, so you don’t get any nasty surprises.
3. Work Compliantly, Without The Hassle
As a contractor, you’ve got enough to focus on without worrying about when your VAT return is due or whether your company records have been filed. Your accountant should be keeping you ahead of all the key dates - Corporation Tax, Self-Assessment, VAT, payroll, etc. But the benefit isn’t just in avoiding penalties. Meeting your deadlines and staying on top of your obligations means your business runs more smoothly. It’s also helpful if you want to apply for mortgages or loans, when lenders will want to review your finances.
4. Understand Your Cashflow and Forecast Effectively
Growth isn’t just about bringing in more money - it’s about knowing where your money is going and whether your business can sustain itself in the months ahead. Your accountant can help you analyse your cashflow, project your income, and plan for slow periods. They can help you build a buffer for future tax payments, forecast what you’ll take home after expenses, and ensure you’re not caught short when a contract ends or an invoice gets paid late. Understanding the rhythm of your finances is vital to making smart decisions, giving you the flexibility to rest, invest in training, or save for a rainy day.
5. Maximise Your Allowable Expenses
Limited company contractors are entitled to claim a wide range of business expenses, from travel and software to home office costs and professional development. But many don’t claim everything they’re entitled to, or worse, claim things they shouldn’t and risk problems with HMRC. Your Workwell accountant can guide you through what’s allowable and what’s not, help you keep good records, and ensure you’re claiming efficiently and correctly. They can also advise on how to handle things like subsistence and mileage, all of which can make a difference to the money you take home.
6. Share Your Goals and Get Strategic Advice
This might be the most important point of all: talk to your accountant. Let them know your goals. Are you looking to grow your day rate? Take on subcontractors? Transition to a different industry? Build up your business so you can sell it one day? Whatever your ambition, your accountant can offer tailored advice - but only if they understand what you’re trying to achieve. They may suggest switching from sole trader to limited company (or vice versa), advise on timing your investments, or point out risks and opportunities you hadn’t considered. The more open the conversation, the more value you’ll get. Remember, your accountant isn’t just a financial admin service. Use their expertise, keep the lines of communication open, and treat them as part of your team. Find out more about our specialist contractor accountancy service or speak to a member of our team on 01923 257257 to get the tailored advice and support you need.