Keep more of what you earn. Stay IR35-compliant. Get real clarity. Specialist support for IT contractors, freelancers, CIS workers and consultants. IR35 Contract Reviews Salary & Dividend Planning Limited Company Accounts Self Assessment & Tax Returns VAT & CIS Returns Fixed Monthly Fees
Many contractors come to us because they are wrestling with one or more of these challenges.
You invoice well but still get caught out by corporation tax, dividend tax and payments on account.
You are unsure whether your contracts sit inside or outside IR35 — and what a wrong call could cost.
Not sure how much to take as salary, how much as dividends, or how to time it tax-efficiently.
Emails take days to answer and advice only ever arrives at year-end — never when you actually need it.
Travel, equipment, home office, employer pension — legitimate claims you have never been told about.
Making Tax Digital, VAT, CIS and confirmation statements — deadlines you are scared of missing.
As an experienced accountant for contractors, AccTek is built differently. Most contractor accountants run you through a factory — junior staff handle the filings, queries take days, and tax planning happens once a year if at all. We give you a dedicated specialist instead.
A dedicated accountant who understands your work pattern, knows your goals and gives advice tailored to your situation — not generic templated returns.
As your dedicated IR35 accountant, every new contract is reviewed against HMRC’s IR35 indicators. If you receive a blanket inside determination, we prepare evidence-based challenges from your actual working practices.
We model your salary, dividends, pension timing and expenses each year to legally minimise your tax bill — typically saving £3,000–£8,000 a year.
From £19.99/month. No hidden charges, no hourly billing, no surprise invoices — your fee is agreed upfront and stays fixed.
Xero integration, live bank feeds and a client portal for documents. Email queries answered the same working day — not next week.
Digital record-keeping, quarterly submissions and software guidance included. Whether MTD ITSA applies now or from 2027, your setup is already compliant.
Nella is the AI assistant inside the AccTek Finance Lab. Message her like you'd text a colleague and she answers from your real, reconciled Xero numbers — in seconds, any time. She understands IR35, contractor tax, and UK limited company rules inside out, and she knows exactly where her job ends and your accountant's begins.
WhatsApp
Slack
AccTek Portal
ChatGPT
Real questions contractors ask — answered from your own live numbers.
Illustrative examples · Nella answers; your chartered accountant signs off.
“Switching to AccTek was the best decision I made for my limited company. Godwin reviewed my IR35 position within a week of signing up, found expenses I’d been missing for years, and my take-home went up by over £4,000 in the first year.”
James — IT Contractor, 2 years with AccTek
“What I value most is having someone who actually picks up the phone. My old accountant took days to respond to emails. With AccTek, I get same-day answers — and proactive advice I never had to ask for.”
Sarah — Freelance Consultant, 1 year with AccTek
“As a first-time contractor, I had no idea where to start. AccTek set up my limited company, sorted Xero, handled my first VAT return and walked me through everything. Genuinely painless.”
Daniel — CIS Contractor, 1 year with AccTek
Our contractor accountant fees are fixed and fully transparent — no hourly billing and no surprises. Every AccTek package includes a named chartered accountant, proactive tax planning, IR35 contract reviews, Xero setup and same-day email support. Your exact fee depends on your structure and turnover, so get a personalised quote in under two minutes.
From first contact to fully managed accounts in under two weeks — here is what the process looks like:
Most contractors we work with are switching from another firm — not starting from scratch. If your current accountant is slow to respond, charges by the hour, or only contacts you at year-end, you deserve better.
We catch up any outstanding filings from your previous accountant at no extra charge. If your year-end is approaching, we prioritise getting your accounts filed on time.
As specialist accountants for contractors across every sector, AccTek provides the support you need — whatever your engagement model. If you work through a recruitment agency, see our guide on how agencies affect your tax, IR35 and contract terms.
IR35 reviews, optimal salary and dividend planning, annual accounts and corporation tax returns.
Your dedicated freelance accountant for structure advice (Ltd vs sole trader), expense claims, MTD compliance and Self Assessment.
CIS registration, monthly returns, tax deduction reconciliation and year-end rebates.
Self Assessment for Uber, Deliveroo and platform income. Expense guidance and MTD setup.
AccTek integrates directly with your bank, Xero and reporting tools so your numbers are always current, reconciled and ready for decisions — not sitting in a spreadsheet you forgot to update.
Want a quick benchmark first? Check your contractor financial maturity score with our free CFMI checker — an instant read on your compliance, visibility, tax planning and resilience.
Click any section below to expand the full guide, or jump to our dedicated pages for deeper detail.
Contracting in the UK means navigating a web of tax rules that simply do not apply to permanent employees. Corporation tax rates, dividend planning, IR35 status, allowable expenses, employer NI obligations and Making Tax Digital quarterly reporting all interact — and getting any one of them wrong can cost you thousands of pounds a year or trigger an HMRC enquiry.
A generalist accountant handles annual accounts and tax returns. A specialist contractor accountant does that and proactively structures your affairs to minimise your tax bill legally, keeps you compliant with off-payroll working rules, and ensures you are ready for MTD before HMRC enforces it. The difference in take-home pay is typically £3,000–£8,000 per year for a contractor earning £60,000–£100,000.
At AccTek, we are chartered accountants who work exclusively with contractors, freelancers, landlords and small businesses. Every client gets a named accountant — not a call centre — and proactive advice tailored to your contracting structure.
The structure you choose determines how much tax you pay, how much admin you handle, and what legal protections you have. Here is how the three main options compare for 2026/27:
| Factor | Limited Company | Umbrella | Sole Trader |
|---|---|---|---|
| Tax efficiency | Highest — salary + dividends | Lowest — taxed as employment | Medium — income tax + Class 4 NI on all profit |
| Admin burden | Annual accounts, CT600, payroll, confirmation statement | None — umbrella handles everything | Self Assessment only |
| IR35 relevance | Must demonstrate outside IR35 | Always inside (already taxed as employment) | Rarely relevant |
| Optimal for income | £30,000+ | Short contracts or inside-IR35 roles | Under £30,000 |
| Corporation tax | 19% (small profits up to £50,000) | N/A | N/A |
| NI on salary | Employer 15% + Employee 8% (above thresholds) | Deducted by umbrella | Class 4: 6% / 2% |
For an in-depth side-by-side comparison with worked examples at every income level, see our dedicated umbrella vs limited company guide.
A contractor earning £75,000 through a limited company can pay themselves a salary of £12,570 (the personal allowance for 2026/27, meaning zero income tax and minimal NI) and extract the remaining profit as dividends taxed at just 10.75% at the basic rate. Compared to an umbrella, where the full £75,000 is taxed as employment income with income tax and NI, the limited company route typically saves £5,000–£10,000 per year.
Use our free Ltd company vs PAYE tax calculator to compare your take-home pay, or see our Ltd company vs sole trader calculator for a side-by-side breakdown. You can also compare permanent vs contract take-home, model CIS vs PAYE deductions, or work through our first-year contractor tax checklist. For a detailed walkthrough of the numbers, read our guide: limited company vs sole trader for consultants in 2026.
If you are a freelancer or consultant, our specialist team helps you pick the right structure from day one. Need to decide on VAT? Our VAT for contractors guide covers registration thresholds, scheme selection and common mistakes. Thinking of incorporating? Our step-by-step limited company setup guide covers everything from Companies House to your first invoice. Already trading through a limited company? We handle your annual accounts, corporation tax return, payroll and dividend paperwork so you can focus on the work.
Since the April 2021 off-payroll reforms, medium and large private-sector clients are responsible for determining your IR35 status and issuing a Status Determination Statement (SDS). Small private-sector clients still leave the determination to the contractor. Getting this wrong can result in backdated tax bills running into tens of thousands of pounds.
HMRC and the tribunals assess IR35 status based on three primary tests: substitution (can you send someone else to do the work?), control (does the client dictate how, when and where you work?), and mutuality of obligation (is the client obliged to offer work and are you obliged to accept it?). If all three point towards employment, the contract is likely inside IR35.
HMRC’s CEST tool (Check Employment Status for Tax) gives an indication but is widely criticised for producing “indeterminate” results and ignoring the substitution clause. A specialist IT contractor accountant reviews your actual working practices — not just the contract wording — and advises on defensible positioning.
For a comprehensive walkthrough of the three tests, off-payroll reforms and how to build a defensible IR35 position, read our full IR35 guide for UK contractors. Already determined inside? See our inside IR35 options guide for your next steps.
For the bigger picture on contractor finances — the six pillars of financial maturity, the most common mistakes and a 30/90/365-day roadmap — read the UK Contractor Finance Report 2026.
If you are concerned about HMRC loan scheme investigations or the loan charge, our detailed guide explains what you need to know about HMRC loan schemes and the loan charge in 2026.
After paying yourself the optimal salary, you extract further profits as dividends. For 2026/27, dividend tax rates are:
| Band | Rate | Threshold |
|---|---|---|
| Dividend allowance | 0% | First £500 |
| Basic rate | 10.75% | £12,571 – £50,270 (total income) |
| Higher rate | 35.75% | £50,271 – £125,140 |
| Additional rate | 39.35% | Over £125,140 |
Note that dividend rates increased by 2% from 6 April 2026 — the basic rate moved from 8.75% to 10.75%. Your corporation tax rate also matters: limited companies with profits up to £50,000 pay the 19% small profits rate, while those above £250,000 pay the 25% main rate, with marginal relief (~26.5% effective) in between.
A contractor billing £80,000 through a limited company, claiming £5,000 in allowable expenses, pays corporation tax of 19% on the £75,000 profit (£14,250), takes a £12,570 salary, and extracts the rest (£48,180) as dividends. Total tax and NI: approximately £20,800 — giving a take-home of around £59,200. Through an umbrella, the same £80,000 yields approximately £53,500 after tax and NI. The limited company saves roughly £5,700.
For the full breakdown of why £12,570 is optimal, the £5,000 alternative, pension extraction and the £100k personal allowance trap, see our director salary and dividend strategy guide for 2026/27. Run your own numbers with our Ltd vs PAYE tax calculator. For broader context on UK take-home pay, see our post on take-home pay after tax.
HMRC’s “wholly and exclusively” rule is the test: an expense must be incurred entirely for business purposes. Common contractor expenses include:
For a comprehensive list with HMRC references, read our ultimate allowable expense checklist for 2026/27. For the hidden savings most contractors miss — employer pensions, actual home office costs, trivial benefits and more — see our contractor expenses guide.
From April 2027, the threshold drops to £30,000, bringing significantly more contractors into scope. If you operate through a limited company only (no sole trade or property income), MTD ITSA does not apply directly to you — but if you also have rental income or a side freelance trade, it almost certainly does.
You must keep digital records of income and expenses (spreadsheets alone are not sufficient — you need MTD-compatible software), submit quarterly updates to HMRC (not full tax returns, but summaries of income and expenses for each quarter), file an End of Period Statement after your accounting year end, and submit a Final Declaration replacing the traditional Self Assessment return.
For a complete walkthrough, visit our MTD knowledge hub or read our targeted guide: MTD for freelancers. If you are a freelancer or sole trader, our MTD checklist for freelancers and sole traders walks through every step. For the broader picture including landlords, see the complete MTD 2026 guide.
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