Contractor Frequently Asked Questions
When you work for yourself, advice isn’t always easy to find. But luckily, we’re here to help. With over three decades of experience helping contractors, we’re well-equipped to answer any of your questions. Below, we’ve outlined some of the most common questions we’re asked by contractors.
1. Does Caroola offer pensions advice?
Saving for the future is important, but due to the nature of contracting, it’s unlikely that any two contractors’ needs will be the same when it comes to their pensions plan. When you work through your own limited company, there are a few options available to you: you can make personal pensions contributions or pay into a fund through your limited company. You can find out more about the different options available to you in our guide to contractor pensions. Or, speak to our Financial Planning team, here.
2. Where can I find the tax return on the website?
3. Can I just do a set of annual accounts instead of having to be a client?
We would not recommend this. Annual accounts can take a significant amount of time to complete. Entrusting your accounts to a specialist, who has the experience and qualifications to ensure your accounts are accurate and submitted correctly to Companies House, takes the pressure off you .
4. Can I have a face to face meeting first before signing up?
Yes, if you would prefer to meet an accountant face-to-face before joining us, you can do so in one of our north-west offices or by video call.
5. Where can I send a reference request to?
You can send references to your personal accountant.
6. How will Making Tax Digital impact me?
Under the new Making Tax Digital rules, companies are required to file and submit returns digitally. As of April 2019, VAT returns will need to be submitted online, using an HMRC-approved software package if your annual turnover exceeds £85,000. If you already have an accountant, nothing much is likely to change as they will take care of this transition for you. Read our comprehensive guide to Making Tax Digital to find out how you could be impacted.
7. Will I be able to take money from the business every month?
Yes, we usually advise that the most tax-efficient way of operating is to pay yourself a combination of dividends and salary, which can be withdrawn each month if necessary. You can find out more by visiting our guide to taking money out of your limited company.
8. How do I calculate student loans as a contractor?
For contractors who are required to make student loan repayments, we will calculate these deductions when completing your Self-Assessment Tax Return. This is paid across with your tax liability to HMRC.
9. What should I do if my work is sporadic?
If you need to stop trading for a period of time, we can accommodate this. Our dormant monthly service is designed for periods of non-trade and you can move between dormant and trading packages as required.
10. Expenses - what can and can’t be claimed
Any cost which is used 'wholly and exclusively' for your business can, in theory, be claimed back as an allowable expense. This includes any business mileage, the cost of using your home office and any tools or equipment required for your work. The full rules alongside a rundown of what can and can’t be claimed can be found in our guide to expenses.
Interested in finding out more? Speak with our expert Sales Team to see how we can work together.
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