Contractor accounts

[Mr Panda]

Where can I find examples of contractor accounts please?

I understand I need to submit a profit and loss statement plus a balance sheet, but as a contractor offering services only (opposed to sales of goods etc) the examples I've come across currently are not best suited.

Excel templates would be a bonus.

[Patrick@Intouch]

A template wouldn't really be ideal for you as knowing that you have to submit something and knowing what to submit are two very different things.

As a contractor you will need advice on what kinds of costs are allowable for corporation tax, what to watch out for in terms of benefits in kind, how to judge dividends and many, many other areas.

You are also likely to need advice and guidance with regards to IR35 and associated pitfalls.

Engaging the services of a professional accountant, maybe one that specialises in contractor accountants would really pay dividends (excuse the pun) in the long term.

[RonBW]

Where can I find examples of contractor accounts please?

Have you asked your accountant for some?

[Mr Panda]

I was going to save some money by doing it myself.

[SueEllen]

I was going to save some money by doing it myself.

Doing it wrong and getting fined by HMRC isn't saving money.

[RonBW]

I was going to save some money by doing it myself.

But you don't know what you have to do, or how to do it. HMRC fines can be large.

I'd either do some accountancy training or pay someone to do it for you. And having done the former, I always choose the latter.

[Mr Panda]

I think I will have to relent and get an accountant. I'm deliberately between contracts at the moment trying to get my head around this as I know I am more than capable, but the grey areas are slowing me down and it's beginning to hold me back - although at the same time I'm kicking myself stupid.

Once I've had an accountant for a year it should be straightforward to emulate what they do from there onward and I can tackle my own accounts for the following financial year - am I correct?

[northernladuk]

Not really. Can you keep up with legislation and stay on the right side of it? Will you know enough to know what changes to the changes in what you can earn before hitting the tax thresholds etc?

(looks around) Many of us are experienced contractors and still find accountants good value. For 80 a quid a month all the worry of getting wrong is sorted. It's just peanuts.

You are a business now and you have a legal responsibility to run your accounts properly. You also be turning over 80k+ so less than an hours worth of income per month is a no brainer really.

For that 80 quid you'll also get access to FreeAgent (with certain accountants) which will save you a lot of time and effort as well.

[Alan @ BroomeAffinity]

Although I clearly have a dog in this fight, I'd still say DON'T DIY. At the very least, pay £300 - 3500 and get a pro to do your year end. You can do your books, VAT, payroll etc if you like, and you'll get a sanity check of all this in the year end process (normally). You could conceivably do your year end, but why would you? Surely you've better things to do with your time. I could almost say the same for the monthly stuff too, tbh.

In the same way I COULD lay my own carpets, paper my own walls, clean my own gutters. But I prefer to pay someone to do it for me so I can have fun. Get an accountant, take your kids to the park, go see a film with your missus.

[pr1]

You also be turning over 80k+ so less than an hours worth of income per month is a no brainer really.

is this another nluk sweeping assumption?