Contractor accountants are good news for a contractor set up as a limited company who would like to keep more of the money they currently pay out in tax. When Benjamin Franklin said, “nothing can be said to be certain except death and taxes,” he failed to make mention of the fact that, while taxes may be an unfortunate certainty, the amount you have to pay need not always be as much as you think you have to pay. Contractor accountants can help in this respect.
Apart from providing the normal services of accounting and tax, good contractor accountants will help your company set up a remuneration plan aimed at reducing the amount of tax you currently pay. This will be planned for the long term, and will aim to be sustainable and tailor made for your needs. Perhaps you are already wondering just how much tax you could save for your company. As a limited company contractor, it could be 80% or more of your gross contract value.
One specialist contractor accountants Aberdeen based company is Pipeline Accounts. Their work services limited company contractors in the oil, gas and renewable energy sector of the North Sea and elsewhere. They proceed with every new client by conducting a tax efficiency review to determine exactly where the limited company contractor stands, as regards their tax situation. From there, a remuneration strategy, tailor made to the company, can be implemented, and significant tax savings can be expected as the result.
Pipeline Accounts will assign a personal advisor to each client. This will be someone with a name and a smiling face to go with it; not some bureaucratic lifeless and soulless entity operating behind a desk – somewhere. The personal advisor is there to develop an ongoing partnership with the client company, giving out valuable advice and money saving suggestions, the kind that result in a lot less tax being paid into the tax man’s pockets. It doesn’t take a maths genius to work out that less tax being paid means more company profits and a much healthier and more robust business environment.
A contractor may wonder why it is necessary to become a limited company when simply working as a sole trader, or in a partnership, could get the job done just as well. This is true, but it is the tax situation that is being considered, and not the ability to do the work the business is contracted to do. There are possible potential problems being a contractor while set up as a sole trader or in a partnership, or even just as an employee to the main client. The greatest tax efficiency possible is in a properly set up and managed limited company, which also offers the greatest protection against any company debts, should they occur.
Setting up a limited company is actually a lot easier than most people think. For example, Pipeline Accounts offer a company formation package that will take care of all the legalities, including registration for all the necessary taxes. If you are thinking of setting up a limited company, or if you are already a limited company, working as a contractor in the oil, gas and renewable energy sector, they may be the right contractor accountants for you.

Leona Simpson is a freelance copywriter who specializes in topics to do with Scotland, tourism, contractor accountancy, recreation and renewable energy.

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