IT contracting is an attractive option for professionals with valuable skills. Working on contract, payment is hourly or by the project. You’ll also have the flexibility to arrange your schedule around your life. Of course, paying the right tax is still very much essential. In order to stay on track, you may benefit from specialist accountants for IT contractors.

3. IT contracting is an attractive option for
professionals with valuable skills. Working on
contract, payment is hourly or by the project.
You’ll also have the flexibility to arrange your
schedule around your life. Of course, paying
the right tax is still very much essential. In
order to stay on track, you may benefit from
specialist accountants for IT contractors.
smart opportunities and
future pitfalls.

6. Accountants for IT contractors
We can advise on pertinent
issues and business structure.
For example, the most tax
efficient model is to set up a
limited company. However, this
comes with a number of specific
tax liabilities.

9. Corporation tax
Corporation tax is levied on profit. In
other words, it’s levied on whatever’s left
over when expenses and salary have
been taken. This includes profits from
investments and capital gains.
IT contractors have their own unique
deadlines for corporation tax returns to
HMRC. Often, this differs from the
regular tax return deadline.

12. Tax on dividends
Running a limited company allows you to
pay most of your income in dividends.
Ultimately, this helps to lower your tax bill.
However, you still need to record these on
your tax return. As specialist accountants
for IT contractors, we can help you get this
right.

15. Income tax and National Insurance
Contributions (NIC)
Income tax and NIC are payable on salary
deducted from turnover. As your own
company director and employee, you’ll only be
paying yourself. Even so, you need to set up a
PAYE system for payroll.
VAT
After a certain threshold, you’ll be expected to
register for VAT. After that, you’ll need to
charge this tax on invoices and submit
quarterly returns.