Stockport: 0161 477 6789 London: 020 3174 1436

If you have questions about our services or accountancy in general, you may find the answers you’re looking for here, otherwise we’re more than happy to speak with you on a one-to-one basis over the phone or via email.

If you’re considering appointing Warr & Co as your accountants, here’s a little more information about appointing your first accountant or switching to Warr & Co from another accountancy firm.

Starting out as a contractor?

If you’re considering a change of career and want to become a contractor, why not register for our free Contractor Starter pack? It’s full of downloads, blogs and free resources to help you get started on the right foot.

FAQs about accounting for contractors

What fees do we charge for our accounting services?

We have a few payment options on offer to contractors and other SMEs.

Firstly we offer a tailored service where you pay only for the amount of work necessary. The exact amount charged will depend on the services a client requires, but a contractor who maintains reasonable records, has a turnover under £100,000 and who draws a salary once a month from his company will pay, on average, £775 plus VAT for his annual accounts and £15 per month for payroll services. Extra charges will be made for other services that may be required such as completing VAT returns.

Secondly we offer a monthly payment plan, which is becoming the most popular option for contractors and SMEs, called Encompass. Encompass includes a wide range of services that we believe will be of benefit to your business. These include; access to the Accounting Cloud, quarterly VAT returns, dividend documentation, accounts submission to HMRC & Companies House, Corporation Tax, Tax Enquiry Service, payroll (up to 2 employees with options to add extra), auto enrolment, company secretarial services, annual return, registered office service, references and access to a 24/7 business legal helpline. For only £125+VAT per year Encompass often offers the best value in the long-run for contractors and consultants, and if you’d rather not spend your time on business admin, then Encompass is probably the best choice for you.

 

What work do I have to do and how long will it take me?

We want you to deal with all aspects relating to you billing for your services and we want you to regularly record your financial transactions. We also expect you to retain prime accounting records such as bank statements and receipts. We can then help you with PAYE and VAT as necessary during the year. Most of our clients handle their own VAT but ask us to deal with PAYE. Your work on administration is likely to take about 1 hour per month.

 

Will I have to file a tax return and if so is this something that you can help me with?

At present, HMRC require directors to file self assessment returns. Because you become a director when your company is formed, you will need to file tax returns. Many people starting a company already file tax returns and for most the process is not complicated. Nevertheless about 70% of our clients ask us to assist them in this respect and we are please to do so. The fee for a straightforward return is typically around £200 plus VAT.

 

How do I form a company?

By far the cheapest way of doing this is to do it yourself at companieshouse.gov.uk. The fee is just £15. Alternatively we can do this for you. We charge £150 plus VAT, but if you use us we provide advice on the share structure and provide statutory records complete at day 1. We also then assist with your first VAT return at no extra charge.

 

Should I involve my spouse or partner within the company?

This is ultimately for you to decide, but we will discuss this with you from a tax planning point of view and explain where appropriate the tax advantages of that person being a director, employee and/or shareholder.

 

What if HMRC opens an enquiry into my accounts or tax returns?

This does happen from time to time and we know how stressful it can be, unfortunately tax enquiries are becoming more frequent. It can take many ours to compile the information and documents that have been requested and to deal with the follow-up questions that HMRC will ask about a case. In addition, you may need your accountant to attend meetings with tax inspectors in order to settle the investigation. The costs of all these activities are your responsibility – even if you did nothing wrong in the first place and the case is settled in your favour.

Due to these factors and taking into account that a tax enquiry could cost you upwards of £5,000 to completely resolve, we have introduced a Tax Enquiry Service into our service portfolio. One small annual fee will cover all of Warr & Co’s potential charges for an HMRC tax investigation. Read more here.

Please note, if you are a Warr & Co ‘Encompass’ client, the cost of the Tax Enquiry Service is included in your monthly fees and you are automatically covered, no need to sign up.

 

What if I decide that your services aren’t right for me and I want to switch to another accountant?

Obviously we hope this doesn’t happen but if that is what you do decide, we won’t stand in your way and won’t try to bill you for any work not yet done. We will cooperate with your new accountant by providing all the handover information he requests in a timely manner.

Get in touch…

If you have further questions about our accounting services for contractors, please complete this form below or call us on 0161 477 6789 / 0203 174 1436.