Does your industry matter when choosing an accountant?

[Wolfgirl]

Hi,

Completely new to contracting, just been offered first contract and trying to choose an accountant. Danbro was recommended by the recruiter and I have had a chat with them which was very helpful to get an idea of umbrella vs limited and what my take-home would be for the various options; they also did a free IR35 review (and I am inside it which I suspected I would be); however now I've done a bit more research they seem relatively expensive.

I've looked at the threads here and am going to get in touch with a couple of others; Nixon Williams seems to be recommended and also InTouch. I'm looking initially for a high level of support from an accountant as I am new to this and don't want to get it wrong and be hammered by HMRC or spend ages doing paperwork. Probably going to go with a ltd company rather than umbrella as contract is for 12 months and over 25k.

My question is: does it matter too much what industry you're in when choosing an accountant? I will be a contractor in the pharmaceutical industry and a lot of advice etc seems to be about IT contractors. I don't know if this really matters providing it's a good accountant who knows what they're doing, but wondered if any other pharma contractors on here have any recommendations, or if anyone else thinks it matters that much.

Thanks!

[Jessica@WhiteFieldTax]

No, for a contractor, it makes no difference at all IMV.

Our clients span many sectors, IT, engineering, social work, sound, the list goes on.

[Kenny@MyAccountantFriend]

I would agree it doesn't make a difference which industry you are in and would recommend speaking to a few accountants to get an idea of what service each includes for their fees.

[Louisa@InTouch]

Wolfgirl,

Agree with all the above, the industry that you work in doesn't really impact which accountant to choose.

Instead, it's the services that you provide in the industry that are key. For example, if you supply medical services this could impact on your VAT. Or if you are providing public services, could impact a claim for the employers allowance.

You should give a few more contractor specialists a call, get a feel for the services they provide (especially as you will need some handholding in the first year ).

Plus a second look at your contract and working conditions wouldn't hurt before you make any final decisions on how to pay yourself.

[Wolfgirl]

Thanks! Pretty much what I thought (after all Danbro, the recommended one, wasn't making any specific claims re industry), it's just that when I looked at SJD they were making a thing out of expertise in pharmaceuticals and I started wondering if this would be an advantage.

Don't know if this is taking it too far off original topic but are there any really obvious rookie mistakes I should try to avoid? Either choosing an acct or generally? Been reading this forum to get ideas which is very helpful but just in case I missed something.

[Wolfgirl]

Wolfgirl,


Plus a second look at your contract and working conditions wouldn't hurt before you make any final decisions on how to pay yourself.

I must have posted at about the same time! Thanks for your reply. Do you mean get a second opinion re IR35?

[Louisa@InTouch]

Wolfgirl,

Yes, no harm in looking at a second assessment around IR35.

And as for rookie mistakes, there are too many to name!

But with a good accountant, who is proactive, they can review any historical information to make sure you are on the right track. They can advice around expenses that you might not have considered, guidance on how to take income being tax efficient and more.

[Wolfgirl]

Wolfgirl,

Yes, no harm in looking at a second assessment around IR35.

And as for rookie mistakes, there are too many to name!

But with a good accountant, who is proactive, they can review any historical information to make sure you are on the right track. They can advice around expenses that you might not have considered, guidance on how to take income being tax efficient and more.

Thanks Louisa! I've seen several companies offering free IR35 reviews; does this tend to be after you sign up? Danbro has done this already which was helpful to get an idea, wasn't sure if others would do same. It was useful to get that but not sure how much it matters when choosing an accountant; is it something I should be fairly firm on if possible before deciding who to go with, or would it be sorted out after I have chosen an accountant and start the process of creating the company? Initially I wanted to know when I was deciding between umbrella and ltd.

A million questions sorry, but thanks for your helpful advice.

[Louisa@InTouch]

Yes, most offer free IR35 reviews once you are a client, or they may charge you in advance of signing up and offset against your future fees.

When choosing as an accountant, I would just check if the reviews are included as part of the service or whether there are additional charges.

There is no need to have decided before setting up a company your IR35 status, this will impact how you can pay yourself and therefore can be determined once you have started trading.

[Alan @ BroomeAffinity]

Remember, don't make this decision based on fees. There is likely to be less than £100 pcm between the most expensive and the least expensive. Its more important that you have somebody you know you can deal with, knows what they're talking about and has systems you are comfortable working with.