Contractor Accountant (Ltd Co) in Harrow
Get matched with an accountant who specialises in contractor limited companies.
- Going-limited conversion support
- Optimal salary/dividend split
- Monthly payroll & RTI
How do you work?
A limited company is powerful — right up until nobody's running it properly.
There's a reason contractors incorporate: at the profit levels most IT, management, legal and creative contractors hit, a limited company is straightforwardly the most tax-efficient structure — once the set-up is clean, once the salary/dividend split is right, once corporation tax and VAT are running cleanly, and once money's being taken out the right way at the right time.
That's a lot of "onces". And most limited-company contractors discover too late that their previous accountant wasn't doing the optimisation — they were just doing the filings. The difference between a merely-compliant Ltd and an actually-optimised Ltd is typically £3,000-£8,000 a year in take-home for a contractor earning £500-£600 a day.
We're a free matching service. Tell us about your situation — new Ltd, existing Ltd with another accountant, or sole trader thinking about going limited — and we'll introduce you to an ACCA or ICAEW-qualified accountant in our network who handles contractor limited companies as their core work. Matching is free to you. The accountant you're matched with will quote their own fixed monthly fee upfront.
You'll recognise yourself in one of these.
The day-rate contractor
IT, management consulting, engineering, legal, interim — you're on day rates through a limited company and you want it optimised, not just filed.
The sole trader going limited
You've been sole trader and now the numbers say it's time. You want the incorporation, the conversion, and the ongoing accounts handled without gaps or tax mishaps.
The Ltd with a messy past
Your previous accountant was slow, expensive, or missing things. You're looking for a clean handover, a fresh salary/dividend plan, and someone who actually answers their email.
The high-earner contractor
You're pushing £150k+ per year through the company. You need careful planning on pensions, spouse shareholding, dividend timing, and the £100k-£125k personal allowance cliff edge.
From first call to everything handled.
- 1
60-second matching form
Tell us your situation — existing Ltd, new Ltd, or sole trader looking to convert. Rough day rate and whether you've got a spouse shareholder (or could). That's what we need to match you well.
- 2
Intro to a contractor specialist
Within one working day we'll introduce you to a qualified accountant in our network who runs contractor Ltd packages as regular work. Not a general-purpose firm dabbling in contractor work.
- 3
Initial planning call
The matched accountant models your take-home under different salary/dividend splits, pension contribution levels, and shareholding structures. You see the numbers before engaging. Free, no obligation.
- 4
Setup or handover
New Ltd: incorporation (£12 Companies House fee, same day), corporation tax / PAYE / VAT registration, software setup. Existing Ltd: professional handover with your previous accountant — typically 2-3 weeks, largely hands-off for you.
- 5
Ongoing — run the company properly
Monthly payroll and RTI, monthly bookkeeping, quarterly VAT (MTD), statutory accounts and CT600 at year-end, confirmation statement, directors' personal tax returns, and an annual salary/dividend re-optimisation. A fixed monthly fee covering every filing, meeting and email.
Fixed monthly fee, quoted upfront. No year-end top-ups.
Each accountant in our network sets their own fees and quotes them upfront. For reference, UK contractor Ltd packages typically run £95-£150/month for single-director companies, slightly more where there's a spouse shareholder (because it covers a second personal tax return). A good package covers the company, the director's personal tax return, VAT, payroll, annual accounts, CT600, confirmation statement, and all HMRC and Companies House correspondence.
Two-director companies (contractor + spouse shareholder) add a modest premium to the monthly fee but usually save £2,000-£4,000 a year in income tax for higher-earning contractors — paying for themselves many times over.
The matching service itself is always free to you. Accountants in our network pay us a referral fee only if they take you on. Look for a fixed monthly direct debit with no hourly billing and no year-end surprise invoices — that's the pricing model that works for contractors.
Tell us about your situation. We'll introduce you to an ACCA/ICAEW-qualified accountant in our network who handles this service.
Get matched with a contractor specialistFree to use. No obligation.
The hidden cost of a merely-compliant Ltd.
Here's what a badly-run Ltd looks like in real numbers. A contractor on £500 a day, working 220 days a year — £110,000 of revenue through the company. A cheap online filing service (£30/mo) handles the accounts and leaves the optimisation entirely to the contractor.
Scenario A — the default. The contractor pays themselves a £12,570 salary (personal allowance) and draws the rest as dividends. They don't use a pension. Their spouse doesn't hold shares. Net take-home after corporation tax, dividend tax and personal income tax: around £76,500.
Scenario B — properly optimised. Same £110,000 revenue. Salary set at the optimal figure (often higher than £12,570 once the £10,500 employment allowance is considered with a second employee on payroll). Spouse holds 25% shareholding, paid £8,000 a year in dividends — tax-free up to the dividend allowance and basic rate band. £20,000 company pension contribution — corporation tax deductible, no income tax hit. Expenses properly captured including home office, mileage, training, subscriptions. Net take-home plus pension value: around £84,000.
That's £7,500 a year. Every year. For the life of the company. The difference between a contractor-specialist accountant and a generic filing service is typically £60-£100 a month. The optimisation upside covers that fee roughly ten times over.
Going limited — when, how, and what it actually saves.
"When should I go limited?" is the single most-asked question from sole trader freelancers. The honest answer is that it depends on four things: how much profit you're making, how much you need to draw personally, your risk profile, and your clients' preferences.
The profit threshold (in practice)
Below about £30,000 of profit, a limited company rarely wins on tax alone — the extra admin doesn't pay for itself. Between £30k and £50k, it's marginal and depends on whether you can leave money in the company. Over £50k of sustainable profit, the tax advantages become meaningful. Over £80k they're decisive.
The "leaving it in" test
A limited company only saves tax if you don't immediately take everything out as dividends. The savings come from deferral — leaving profit in the company taxed at corporation tax (19-25%), then drawing it later via dividends, pension, or over several years. If you need to draw every penny every month, the tax saving largely evaporates.
The risk and client tests
If your work carries professional liability (consulting, advisory, construction, anything that could generate a claim), the limited liability protection of a Ltd is worth something independent of tax. If your clients want a Ltd — as many enterprise buyers now do — that's another reason.
How the conversion works
Incorporation itself takes a day. The handover from sole trader — transferring business assets cleanly, dealing with work-in-progress, registering for corporation tax, PAYE and VAT, notifying HMRC of the cessation of self-employment — takes two to three weeks. A competent contractor accountant handles all of it. You don't miss a day of client work.
Salary vs dividends — the optimisation that actually matters.
A limited company director pays themselves two ways: a salary via PAYE (deductible by the company as a cost, taxable on the individual via income tax and NI), and dividends (paid from post-corporation-tax profits, taxed at preferential dividend rates in the individual's hands). Getting the mix right is the single biggest annual decision.
The usual 2026/27 default
For a single-director company with no other employees, the standard optimum is a salary of £12,570 (the personal allowance) and the balance in dividends. No income tax on the salary, no employee NI up to the secondary threshold, and the salary is a deductible expense reducing corporation tax. Above the salary, the £500 dividend allowance is tax-free, then 8.75% up to higher rate, 33.75% above, 39.35% in the additional band.
When the default isn't optimal
If the company has more than one employee (including a spouse on payroll), the £10,500 employment allowance becomes available. That changes the calculation — a higher salary can become advantageous because employer's NI is covered by the allowance. Similarly if the director is approaching retirement and wants to maximise state pension contributions, or if they're already drawing a state pension, the optimum shifts.
Pension as the third lever
Often missed by contractors doing their own admin: employer pension contributions paid by the company are corporation-tax deductible, carry no income tax or NI hit, and don't count against the dividend allowance. A £20,000 pension contribution from a profitable contractor Ltd is effectively £20,000 of free money compared with drawing the same cash as dividends. Any decent contractor accountant models pension contributions in every annual plan.
The £100,000-£125,140 cliff edge
Anyone with adjusted net income between £100,000 and £125,140 loses £1 of personal allowance for every £2 of income — an effective marginal rate of 60%. High-earning contractors often cross the cliff without realising. Deferring dividends to the next tax year, or bumping a pension contribution, commonly keeps a contractor below the cliff and saves significant tax.
Contractor Ltd for freelancers across Harrow & NW London
Pick the area closest to you for local detail — or just book a call and we'll work out the rest.
Everything else you want to know.
Can't see your question? Book a free 15-minute call — we'll get you a straight answer.
How long does it take to set up a limited company?
Companies House incorporation is same-day in most cases (£12 fee). PAYE registration takes 1-2 weeks with HMRC. VAT registration takes 2-4 weeks. You can start trading through the Ltd from day one of incorporation — the matched accountant handles the HMRC registrations in parallel.
Can I move from my current accountant?
Yes, and it's painless. Your new accountant writes to your current one with professional clearance, they send over your records, and things pick up from there. Usually 2-3 weeks end-to-end. You don't have to be involved in the handover at all beyond signing the engagement letter.
What are director's responsibilities?
As a director you're responsible for ensuring the company files accounts on time, files the confirmation statement annually, pays corporation tax, operates PAYE correctly, keeps proper records, and maintains the statutory registers. A proper contractor package covers all the filings — your legal responsibility is to provide accurate information and sign what's put in front of you.
Can my spouse hold shares in my company?
Yes, and for higher-earning contractors this is one of the biggest legitimate tax-saving strategies available. If your spouse has unused personal allowance and dividend allowance, splitting dividends between you can save several thousand pounds a year in income tax. Subject to some anti-avoidance rules (the Arctic Systems case), which a specialist contractor accountant will navigate as part of setup.
What's corporation tax right now?
For profits under £50,000 the small profits rate is 19%. Over £250,000 the main rate is 25%. Between the two, a tapered marginal rate applies. Most single-contractor Ltds sit comfortably in the 19-22% range. Paid annually, 9 months and 1 day after the company's year end.
Do I need a business bank account?
Legally yes — a Ltd is a separate legal entity and must have its own bank account. Starling, Tide, and Mettle are the common recommendations for new contractor Ltds — free, quick to open, and integrate cleanly with most accountancy software. You'll need proof of ID, proof of address, and your Companies House incorporation confirmation.
What expenses can I claim through my Ltd?
The general test is 'wholly and exclusively for the purposes of the trade'. Fully allowable: equipment, software, subcontractors, training, travel to temporary workplaces, professional fees, mobile phone (company-contracted), pension contributions, insurance. Partially allowable: home office, personal phone used for business. Not allowable: entertaining clients (with narrow exceptions), ordinary commuting, anything with substantial personal benefit.
What's the £10,000 director's loan rule?
You can borrow up to £10,000 from your company interest-free without it becoming a taxable benefit. Beyond that, either HMRC's beneficial loan rate applies or the loan must be repaid within 9 months of year-end to avoid the section 455 tax charge (currently 33.75% of the outstanding balance). A good contractor accountant tracks director's loan accounts as part of monthly bookkeeping and flags it before it becomes a problem.
Do I need insurance through my Ltd?
Depends on your trade. Professional indemnity is essential for any advisory work. Public liability if you ever meet clients in person or work on their premises. Employer's liability if you employ anyone, even family members. IR35 investigation insurance (Qdos, Kingsbridge) is worth considering at around £200/year for contractors working outside IR35.
What happens if I close the company down?
Two main routes. (1) Striking off — cheapest, works if retained profits are under £25,000 and the company is clean. (2) Members' Voluntary Liquidation (MVL) — costs more (typically £1,500-£3,000) but qualifying distributions are treated as capital gains, usually under Business Asset Disposal Relief at 10% (or 14% from April 2026). For closing companies with £50k+ retained profit, MVL almost always wins. A specialist contractor accountant will advise on both routes when the time comes.
Is there a fee for this matching service?
No. The matching service is free to contractors and freelancers — always. The accountant you're matched with pays us a referral fee only if they take you on as a client. You pay the accountant directly whatever fee you've agreed with them for the work.
What freelancers usually book alongside contractor ltd.
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Learn moreLet's take this off your plate.
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