Starting Up

Making the move to contracting should be an exciting time. In this section James has included a number of guides he believes contractors will find helpful, when they are considering making the move.

If you would like to appoint Dolan Accountancy as your accountants, please visit our become a client page or if you have any questions about contracting please call us on 01442 795100 or email sophie.lewis@dolanaccountancy.com.

The pages

Limited or Sole Trader?

This is one of the most common questions we get asked – and the answer is different for everybody. Depending on your personal circumstances, you might be better off as a sole trader or as Director of a Limited Company.

Your income is a key determining factor, but it is also worth considering your appetite for risk, your future plans for your business and the amount of administration you are happy with.

Is the IT Contracting Life for me?

Contracting is certainly different to being employed. You work for yourself – no bosses to deal with. On the flipside, you have sole responsibility for your own finances, and if you can’t find contracts, you don’t earn. A typical contract will range from one to six months, although contracts often run longer.

Offshore Tax Avoidance Schemes

Hearing you could take home 90-95% of your contract rate, can seem really appealing. Though in reality these are just tax avoidance schemes.
Did you know, if you are caught using one of these schemes, you will have to pay back all of the unpaid tax, as well as a very hefty fine!

Should I set up a Limited Company?

Being a sole trader is the most common way to operate a fledgling business. However, as a freelance business grows, it’s likely you’ll be better-served setting up a Limited company. This quick guide gives a run-down of the benefits of doing so.

Switching Accountants

There are a lot of accountancy firms out there – some more suitable for contractors than others. Although it can seem like a big step, switching needn’t be a tricky process. If any of the below apply, it might be worth looking to make the switch!

Moving from Self Employed to Limited

Self-employment as a sole trader is the first step that many contractors take when working for themselves. It’s simpler, especially in terms of your responsibilities and administration, and easier to juggle alongside permanent employment.

The Benefits of Contracting

The reasons they give us are different. One constant is the financial benefit – contract rates can easily double that of a permanent employee, and the tax advantages of operating through a Limited company mean that you’ll take home even more of that increased income. Carving out a career as a professional freelancer or contractor Read More...

Moving from Permanent to Contracting

Leaving the security and comfort of a permanent job for contract work isn’t the easiest decision to make – change can be scary, and there are few bigger changes! Once you’ve made the leap, though, many contractors find it unthinkable to give up the variety of work, higher pay, ability to choose your own clients and flexible working patterns.