Contractor Accountants - Changing Accountants
If you want a dedicated contractor accountant with a fully managed service then EAFS is here to assist.
If you’re presently with an Umbrella Company but rather have the benefits of running your own Limited Company, then EAFS are here to help you make the transition.
The process can be quite simple. Just inform your Umbrella Company or current accountant that you no longer require their services. EAFS can then assist in arranging the formation of your new Limited Company “even on the same day”. If you already have an existing Limited Company and just require a change of accountants, we can also help you with the transfer over to using EAFS as your new accountants.
Working through your own Limited Company is by far the most tax efficient way of working. As well as having far more control you will also find that you keep more of your earnings than you would with any other solution.
How much more can I earn?
The difference in the amount of earnings you can take home between using an Umbrella Company or Limited Company is clearly quite visible.
- With an Umbrella Company you’ll typically be taking home 60%-65% of your contract Value.
- With your own Limited Company this figure is more likely to be between 75%-85% of the contract value.
In addition with the introduction of the Government’s Flat Rate VAT scheme, which enables you to keep a percentage of the VAT you charge onto your agency/client, you’ll make even more money.
Using the Government’s Flat Rate VAT scheme a £50,000 contract in your first year of using the scheme will be worth additional earning of £1,900 to you. In turn a contract of £100k will gain you £3,800 in additional earnings. As you are also saving to pay for your tax, you can also expect to make up to several hundred pounds a year in additional interest.
Is it not complicated or time consuming to run your own Limited Company?
No not really you can move to a limited at any point, even during a contract. Even setting up your new company only takes a few minutes. Alternatively you can just let EAFS do this for you and from then on we can work with you to manage you VAT & taxation affairs from then on…
What about your FEES?
Our fees are fixed and will be clearly detailed in our free initial meeting with you. All we ask you to do is a small amount of monthly admin “about 15 minutes of your time” and we’ll do the rest, leaving you to enjoy the rewards from your contract work. Our guarantee to you is to provide you a proactive, prompt and efficient service.
I’m inside IR35; can it be worth it?
If your contract and working practices look like you are inside IR35 you can still claim: traveling and accommodation expenses, 5% of your turnover, benefit from the VAT flat rate scheme, and receive interest on the funds held within your own company. So yes, from a financial point of view it still could be worth it. Also, any other contract work you do could also be put through your existing company
So what do I need to do?
Your company will be set up on the same day, and all documentation will be sent out by first class post within 24 hours. There is a one off charge of just £125 plus VAT, for setting up your Limited Company and includes opening a Company Bank Account, VAT/PAYE registration and advice on share structure.