traditional accountants vrs online accountants

[Cid]

So i have managed to go freelance and secure my first contract.

I have spoken with a couple of local accountants and the costs seem to be unclear and every increasing.
a few hundred for this and a few for that and next thing we are talking about £3-4k a year.
Even then its not entirely clear that everything is covered.

at the same time i'm looking at online accountants such as Gorilla and SG.
i like the idea of a fixed cost all in.

if i'm operating a very simple business.
1 invoice out per month.
expenses will basically be travel in the form of either train tickets or mileage.

i don't envisage it getting any more complicated.
my questions is will the online accountants be as tax effective as the local red brick chap given such a simple set up ?

[Lance]

read the dedicated thread on accountants.



https://www.contractoruk.com/forums/...-requests.html

[northernladuk]

What's up with your formatting? You using an old green screen with fixed character width and no wrapping or something?

[Craig@Clarity]

Hi Cid,

Firstly congratulations on your first contract.

As long as your local red brick chap understands the ins and outs of a contractor, how they operate, things they can and can't claim, IR35, MSC etc there shouldn't be any difference in being "tax effective". In theory, there shouldn't really be a need to see your accountant face to face as everything can be done via email and telephone. Many of the online accountants you come across will be specialist contractor accountants so they can guide you along your journey and advise on the what you should or shouldn't be doing. Find one that you connect with and make sure you have direct access to them.

They'll be a lot to take in if you're new to all this so having an accountant you can contact at any time is essential. Online accountants will cater for this. Most local "face-to-face" accountants won't just see you if you rock up off the street unannounced IMO.

Do check out the sticky suggested above though

[Cid]

25 something pages of sticky thread read...few more to go.

[northernladuk]

25 something pages of sticky thread read...few more to go.

I like your level of diligence. I've wrapped up the ones that are regularly mentioned in the first post but if you want to check for individual companies use the Google search method.

(accountant name) site:forums.contractoruk.com

Might speed things up for you.

[Alan @ BroomeAffinity]

There lots of smaller firms who are both contractor-specialist and able to provide the personal service redolent of a traditional practice. In my (less than impartial) view those are worth seeking out.

Also, Freeagent is a must. If the accountant doesn't support it, move on.

[Maslins]

[Googles "redolent"]

Also worth pointing out most "online accountants" will come in at give or take £1k/year all inclusive (well, some may have a few exclusions that are charged as extras, eg personal tax returns, or registered office address). If your local accountants are suggesting £3-4k, then they're significantly pricier.

[northernladuk]

[Googles "redolent"]

Ficko!!!

[taxevo]

Great news on securing your first contract.

Using a local accountant or an online accountant shouldn't result in you being more tax efficient with one than the other. Any accountant will be able to offer you advice on how to operate in the most efficient manner, just make sure they have an understanding of contractor specific legislation like IR35.

FreeAgent is also a must as it will make your life much easier.