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Accounting for Contractors
It's hard enough being good at what you do, without having to be an accounting expert as well.
Not only do some contractors not realise the tax obligations, such as GST, PAYE and so on, that they have... they may not even be aware of expenses they could be claiming, or that structuring their business in a different way could make a real difference to their bottom line. And even if you have the basics down right now, your business will probably grow over time, and you'll need better and more in-depth accounting advice.
That's where we come in. We spend a lot of time on structuring, especially with clients that are starting up - there's nothing like starting off on the right foot. Is it better to have a company or to operate as a trading trust? Who should own the company? And should it be owned individually, or collectively? And how would that affect other obligations such as family and child support?
A few years ago, a UK court ruling stated that a tax payer is not obligated to pay the highest rate of tax on the books. You have a legal right to minimise your tax to the extent that the law allows and, very often, clients need professional advice to do that. If you rely on knowledge from friends and relatives, however well-intentioned, it's more than likely that you will end up paying more than you need to. And then, there's also the risk of falling foul of the law.
One of the benefits of coming and talking to us about things like business structuring and what you are doing with your business is that we try and minimise, legally and to the greatest extent possible, your income tax obligations.