Contractor Accounting and IR35 Guidance From Qualified Accountants

IR35 — inside or outside?

IR35 is one of the most consequential tax questions a contractor faces. If HMRC determines you are inside IR35, your income is taxed as employment income — significantly reducing your take-home pay. Getting a correct, documented assessment of your status before you take a contract is essential. We assess your contracts and advise on your IR35 position as part of our service.

Salary and dividend structure

Most contractor limited companies pay a small director's salary (typically at the NI threshold) and extract remaining profits as dividends. This is significantly more tax-efficient than paying everything as salary. Getting the balance right for your income level, combined with the current corporation tax rate, requires careful calculation. We structure this for every client annually.

Year-end accounts and CT600

Your limited company must file annual accounts with Companies House and a CT600 corporation tax return with HMRC every year. Miss the deadlines and automatic penalties begin immediately. We prepare both and file on time, every year, as part of your monthly fee.

IR35 guidance included as standard

Most accountants charge separately for IR35 contract reviews. At Cledger, assessment of your IR35 position is part of the service. When you take on a new contract, we review it, give you a written opinion, and advise on any steps to strengthen your outside-IR35 position.

Salary and dividend planning every year

Tax legislation changes annually. The optimal salary and dividend split for a contractor depends on the current corporation tax rate, income tax bands, NI thresholds, and dividend allowance — all of which have shifted in recent years. We recalculate your optimal structure every tax year, not just when you ask.

Fixed fee, no surprises mid-contract

Contracting income can be variable — between contracts, your accountancy fee should not add to the uncertainty. Cledger charges one fixed monthly fee regardless of your workload that month. You know exactly what you pay.

Transparent Fixed-Fee Contractor Accounting

Contractor accounting starts from £175 per month for a single director limited company. Pricing scales with turnover and the services you require. Use our calculator for an instant estimate.