What business insurance do I need?
As a contractor, it is essential to obtain the correct level of cover to protect yourself and your limited company. Business insurance requirements can usually be found within the service agreement contract. As a director of your own limited company, it is vital that you check all contractual obligations in regards to insurance and ensure the level of insurance you have meets the demands of each assignment.
The usual requirements in regards to insurance are as follows:
- Employers’ liability insurance
- Public liability insurance
- Professional indemnity insurance
Where can I obtain business insurance?
Just like with many insurance products, there are several providers available, but we can also recommend one of our trusted affiliate Qdos Contracting with complete confidence. There is also a 10% discount available for MyAccountant clients from them.
When are my annual accounts due?
Annual accounts are due for filing at Companies House nine months after the end of your company’s financial year.
Will I be informed when my tax is due?
Yes, we will endeavour to give you as much advance notice as possible so that you can make a payment before the deadline.
Do I need to complete a self-assessment tax return?
If you are a director of a limited company, you are required to complete a self-assessment tax return.
Will you complete my self-assessment form?
Yes, MyAccountant can assist you with completion of this. Please contact us for details of our fees.
Do I have to file any other forms?
A company Confirmation Statement needs to be submitted yearly at Companies House together with the applicable fee. Our Company Secretarial team will prepare this and submit it online for you.
How does the invoicing process work?
Some of our client's invoices are raised by their agency (self-billing), some prepare theirs using the cloud accounting software (FreeAgent). If you'd like us to prepare your invoices, e-mail your timesheet/instructions to your accounts assistant. The cut-off for same-day invoicing is 12 pm.
How will I know when the invoice has been sent across to my agency/end-client?
You will be copied in on the invoice e-mail that is sent to your agency/end-client, so you will be notified as soon as it goes across.
How long does it take for an invoice to be paid?
Payment terms are dictated entirely by the contract you hold with your agency/end-client. Therefore it is best to check with them for an accurate time frame as to when your invoices will be paid.
What expenses can I claim?
A wide spectrum of tax-free expenses can be claimed via your limited company. Please refer to our Expenses Guide for examples or contact your accounts assistant or manager.
If I use my home for maintaining my business records, can I claim an expense via the limited company?
As there is only minor use, the Inland Revenue would allow a small claim (£6 per week).
If I use a room at my home for business use, can I claim an expense via the limited company?
Generally speaking, you can only claim the additional cost incurred as a result of working from home. As this area is quite subjective, you should contact your Accounts Manager for more information.
How does a director determine how much salary to take?
A director will decide how much to pay themselves based upon their own personal circumstance and needs. Your Accounts Manager can help with your decision.
Will I receive a monthly payslip?
Yes, we will issue you a monthly payslip, which clearly shows your net salary to draw to your personal account.
What are dividends?
A dividend is a distribution of company profits to its shareholders, in this instance yourself. National insurance is not charged on dividends, which is one reason why they can be a tax-efficient method of remuneration.
How do I pay myself dividends?
MyAccountant will produce management accounts for your limited company showing how much profit is available for dividend distribution.
How much dividend can I pay myself?
MyAccountant will advise you as to how much profit is available as a possible dividend. We will ensure that funds are set aside to meet your tax liabilities before drawing a dividend.
Do I have to register my company for VAT?
You are obliged to register for VAT if your gross turnover exceeds the threshold of £85,000 (rate effective 1 April 2021) over a rolling 12 month period. However, you can choose to register below this threshold, voluntarily and we can guide you through the process.
Why would I voluntarily register for VAT?
The advantages of registering for VAT are that you can reclaim the VAT on any VAT-able business expenses incurred. The disadvantages are that you would have to charge VAT on your sales invoices and pay this over to HMRC. There are different VAT schemes available and MyAccountant can advise which one is right for you.
How long will VAT registration take?
VAT registration usually takes less than a week.
What is IR35?
IR35 is a piece of legislation introduced by HM Revenue and Customs in 2000, which was implemented to prevent contractors who are effectively employees of their clients benefiting from the tax savings of operating via a limited company. Have a look at the IR35 page here on our website for more information.
What does IR35 mean for my limited company?
Any contractor deemed to be caught by this legislation will be liable to full taxation on their dividends, thus negating the primary tax benefit of operating via a limited company.
Do MyAccountant.co.uk offer contract reviews?
We are unable to provide any legally binding judgements; however, our specialist partner Qdos Contractor offers a comprehensive IR35 advisory service and free contract review with an IR35 insurance policy.
Do MyAccountant offer IR35 insurance?
The Managed Service Company legislation prevents us from offering any IR35 insurance. However, if you require this, then we will be able to put you in touch with our specialist affiliate Qdos Contractor who offers a 10% discount for MyAccountant clients on a wide range of insurance products. Please don’t hesitate to contact us for additional information.
Will my monthly fees cease if I am not contracting?
Our monthly fees do not stop automatically when your contract ends. This reflects the element of fixed costs that MyAccountant will incur in preparing the year end accounts and company tax return. We will however review charges made in the year to date and reduce the monthly fee where necessary, in order that a minimum annual fee is charged, based upon months worked in the year.