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Contractor accountancy services on the Wirral

A contractor working through his or her own limited company could be taking home about 75% of the value of their contract. There are many tax efficiencies to be gained through operating as a limited company, even when compared with operating through an umbrella company. In comparison to an umbrella company, it will save money as there are no national insurance contributions on dividends, assuming the contract is not caught by IR35. For those looking for the best way to protect their hard earned gains, advice on setting up a limited company is just one of the contractor accountancy services available on the Wirral.

Limited companies pay corporation tax and their owners have to calculate the amount of tax themselves in a process known as corporation tax self-assessment. Company returns now have to be filed online instead of through the post. The timescales for filing are strict and, once a company’s accountancy period ends, its tax return must be filed within 12 months. A company’s accounting period does not necessarily coincide with the tax year. Instead, it starts and ends with the dates on which the financial accounts where sent to Companies House. Corporation tax must be paid within nine months of the end of the company’s accounting period.

Sometimes, a company’s accounts cover a period in excess of 12 months. In such instances, the period must be split into two periods of corporation tax accounting, and two company tax returns will need to be submitted separately, so that each period is accounted for.

Calculating corporation tax can be both complicated and time-consuming. Although it is possible to complete and file your company’s tax returns, it is one of those tasks which is better performed by an accountant. Top-notch contractor accountancy services on the Wirral are available at Wainwrights Ltd, allowing business owners the opportunity to focus more on their business and forging links in local big-hitting cities like Chester, Liverpool and, slightly further afield, Manchester.