Contractor advice grounded in the facts
Keep contractor finances properly separated
Contractors working through their own business need clear boundaries between business and personal transactions. We help organise invoices, expenses, bank activity and supporting evidence so the records can feed into company accounts and tax returns. Payroll and personal tax may also interact with the business position, depending on how you work and take income. We explain these links and identify information gaps before deadlines. Consistent records make it easier to understand available funds and support a review of allowable business costs.
Consider IR35 using the actual engagement
IR35 status cannot be assessed from a contract title alone. We consider relevant contractual terms and actual working practices, including control, personal service and the wider relationship between the parties. The result may affect how income is taxed and how payroll or company records should be handled. We ask you to provide the contract and a clear account of day-to-day arrangements so advice reflects the real engagement. Where needed, we can draw on specialist tax advisers for more complex status questions.
Frequently asked questions
What records should a contractor retain?
Keep invoices, contracts, bank records and evidence for business expenses, along with payroll and company information where relevant. We explain the records needed for your accounts, returns and any status review.
Is an IR35 decision based only on the contract?
No. The written terms matter, but actual working practices are also important. We review both and consider established status factors. An assessment should reflect the specific engagement rather than a general label.
How can IR35 affect contractor accounting?
IR35 may alter the tax and payroll treatment of engagement income. The effect depends on the status decision and arrangements involved, so we explain how it connects with invoicing, company accounts and personal tax.