The world of business finance is a scary place for every new freelancer. The sheer amount of confusing paperwork and legal requirements can become completely overwhelming at times, particularly when you’ve got little experience dealing with HMRC and managing your own income.
When you’re busy trying to attract and maintain clients, worrying about your finances is probably the last thing you need. Indeed, this is why so many self-employed workers are seeking the advice and services of specialist contractor accountants, since these finance professionals will ensure you’re always compliant with modern tax laws and have a better handle on your assets.
Now that there are an estimated 4.8 million self-employed workers across the UK, the demand for these specialised financial experts is continuing to grow. Although you might assume they’re nothing more than an unnecessary expense to help fill out forms, accountants are becoming an essential long-term investment for all successful freelancers. But why?
Don’t Break Any Rules
For many freelancers, the fear of accidentally breaking tax legislation can become a constant source of serious anxiety. Depending on how your freelancing business is set up, you’ll need to worry about submitting Self-Assessment forms, complying with IR35, claiming allowable expenses and, ultimately, making sure you maintain a firm handle on all of your finances.
When you’re new to the world of freelancing and don’t have a complete understanding of the finances involved, there’s always an incredibly high chance of you missing something important and being handed a nasty surprise. In most cases, HMRC will hand out hefty fines to freelancers who fail to properly register their income, but more serious cases could actually lead to prosecution.
By dealing with an accountant who specializes in self-employment, however, you can make sure you’re always in line with modern tax laws and avoid any unexpected penalties. Not only will this provide you with much greater peace of mind, it also allows you to concentrate on doing what you do best—rather than wasting time looking into tax legislation.
Maximize Your Take-Home Pay
Since a contractor accountant will have complete control of your business finances, they’re in a fantastic position to help you maximize your take-home pay. As well as making sure you aren’t breaking any tax laws, a great accountant will also offer support and advice to ensure you’re saving as much money as possible.
A qualified accountant provides a level of expertise you just can’t find anywhere else, no matter how many accountancy blogs you’ve read in the past few weeks. They know the industry inside and out, and know exactly how you should go about claiming expenses and allowances. Since they’re able to legally maximise the profitability of your business, it’s not hard to see why contractor accountants have become such an important investment.
Receive Proactive Support
The real beauty of dealing with a contractor accountant is the fact they’ll provide you with valuable, proactive support. Instead of spending hours trying to find financial advice online, an accountant will update you with any changes to tax laws and regulations which apply to you, while you can always pick up the phone to lean on their knowledge if you have any queries.
In fact, many specialist accountants can even support you in getting set up as a business, advising you on the best working options for your own specific circumstances. Whether you set up as a sole trader, freelancer or limited company, an accountant can help you make the transition into self-employment and then play a key role in growing your business.
Improve the Way You Work
The majority of freelancers take the plunge into full-time self-employment because they want to improve the way they work. However, managing your own finances alongside a high workload can quickly become incredibly stressful (particularly when you’re struggling for time), and that promise of a better work-life balance seems like nothing more than an outright lie.
Fortunately, an accountant will remove much of the hassle involved with filing tax returns and submitting Self-Assessments, saving you a great deal of time and allowing you to focus fully on doing your job. Ultimately, this will make you much more productive and efficient in the way you work, helping you to improve the quality of results you’re producing and take your business to the next level.