Oxon accountancy has been offering accountancy for contractors and freelancers for many years. We specialize in technology-driven services that take the hassle out of accounting and we offer your very own dedicated accountant with unlimited support.
Our specialist contractor accountants have decades of experience amongst them and don’t want accounting to be a laborious process brimming with jargon that is difficult to understand, extortionate rates and a personal accountant that’s never there when you need them.
At Oxon Accountancy, we can help you no matter your accounting requirements. Are you incorporating your very own Limited Company? Or are you trying to maximise your tax efficiency? Perhaps you want IR35 advice?
All contractors and subcontractors should register with HMRC for the construction industry scheme. Subcontractors will be subject to a higher-rate deduction if they have not registered. Contractors deduct money from a subcontractor’s payments and pass it to HMRC. These deductions count as advance payments towards income tax and national insurance, similar to PAYE.
A limited company will have deductions taken by the contractor from the income due to the company. This deduction can then be offset against other company tax liabilities such as PAYE, VAT, corporation tax or can be refunded to the company after the end of the tax year. Sole traders and partnerships will also have deductions made from the income they receive.
They are then required to report their gross income on their self-assessment tax returns, with contractor deductions also reported on the tax return and subsequently deducted from any income tax liability which is calculated as being due. Contractors need to verify a subcontractor’s status with HMRC before payment is made to establish whether they are registered and the correct amount of tax to withhold. Tax can be deducted at source at 0%, 20% or 30%. Contractors must report all of the payments they have made under the scheme to the Revenue, or report they have made no payments in the tax month, by the 19th of each month. Penalties apply if the monthly return deadline is missed more..
Oxon Accountancy offers one straightforward accountancy package from just £60 + VAT per month.
Please contact us today on 01235 250011 or complete our online contact form. We are here to help you start and grow your business and take the burden off you so you can get on with running your company.
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