Accountants for Consultants, Contractors and Freelancers
Our accountants for consultants help you keep more of what you earn without cutting corners. Limited company or sole trader, IR35 on every contract, salary and dividends, VAT and late-paying clients all affect your take-home pay. We work with management, IT, engineering and business consultants across Weston-super-Mare, Bristol, Bath and the rest of the UK, so your finances stay clear while you focus on your clients.
Built around consulting work
We know how day rates, retainers, project fees and gaps between contracts work, and how each one affects your tax.
IR35 checked properly
We look at each contract and how you really work, so you know where you stand before you sign.
Clear, practical guidance
No jargon. Straight answers on salary and dividends, what you can claim and how much to put aside.
Local and remote
Based in Weston-super-Mare, working with consultants across the South West in person and across the UK online.
Sole trader, limited company or umbrella?
The right set-up depends on your day rate, your clients and whether your contracts fall inside or outside IR35. There is no single answer. The wrong choice can leave you paying more tax than you need to, or paying to run a company that saves very little.
| Sole trader | Your own limited company | Umbrella company | |
|---|---|---|---|
| Typical for | Smaller projects, side consulting and your first year or two | Consultants on day rates or retainers working for business clients | Contracts that fall inside IR35, often through an agency |
| How you are taxed | Income Tax and Class 4 National Insurance through Self Assessment | Corporation Tax on profits, then a mix of salary and dividends | PAYE as an employee of the umbrella |
| IR35 | Does not apply. There is no company in between | Applies. Medium and large clients decide your status. With small clients, your company decides | Already PAYE |
| Admin | Self Assessment, records, payments on account, MTD quarterly updates | Company accounts, Corporation Tax, payroll, dividends, plus your own Self Assessment | Payslips. Check the umbrella's fee and holiday pay |
| Best when | Profits are modest and you want to keep things simple | Your contracts are outside IR35 and profits are high enough to make it worth the extra cost | The contract is inside IR35 and short term |
A note on IR35 and off-payroll working
Since April 2021, medium and large private sector clients have had to decide whether a contractor working through their own company is inside or outside IR35. The public sector has done the same since 2017. If the client is small, the decision stays with your company. From April 2026 the size limits went up, so more clients now count as small and more consultants are making their own IR35 decisions again. HMRC's Check Employment Status for Tax tool is a starting point, but the contract and how you really work matter most. Our accountants for consultants review both before you sign.
Salary, dividends and getting money out of your company
Salary and dividends in 2026/27
Most consultants with a limited company take a small salary and the rest as dividends. Your company pays Corporation Tax first: 19% on profits up to £50,000 and 25% on profits over £250,000, with a sliding rate in between. Dividends then carry their own tax. For 2026/27 that is 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% for additional rate taxpayers, after a £500 dividend allowance. Those rates went up by 2 points in April 2026, so plans that worked last year may need a fresh look.
Getting the salary level right
The best salary depends on whether you have other income, other employees or a partner in the business. We set it each year so you keep your National Insurance record and pay as little as the rules allow.
Pension contributions from your company
Paying into a pension straight from your company is one of the most tax-efficient ways to take money out. Contributions are usually an allowable cost for Corporation Tax and carry no National Insurance. They count towards your annual allowance, which is £60,000 for most people in 2026/27.
Your director's loan account
Money you take out that is not salary, dividends or expenses goes through your director's loan account. If it is still owed to the company nine months after the year end, the company can face an extra tax charge until it is paid back. We keep an eye on the balance so it never catches you out.
What consultants can claim
Our accountants for consultants see it all the time: most people under-claim because nobody has told them what counts, and a few claim things HMRC will not accept. Here is the short version.
Usually allowable
- Laptop, phone, software and subscriptions you use for work
- Professional indemnity and other business insurance
- Memberships of professional bodies on HMRC's approved list
- Training that keeps your existing skills up to date
- Travel to a client site that counts as a temporary workplace
- Company pension contributions
- A share of home office costs
- Business bank fees and accountancy fees
Needs care
- Travel on a contract that falls inside IR35. Tax relief on it is usually lost
- Travel to a client site you will work at for more than two years
- Taking clients out for meals or drinks. This is not allowed for tax
- Ordinary clothing, even if you only wear it for client meetings
- Anything you also use privately. Claim the business share only
VAT and the Flat Rate Scheme for consultants
You must register for VAT once your taxable turnover goes over £90,000 in any rolling 12 months. Many consultants register earlier because their clients are VAT registered businesses that can claim the VAT back, so it costs the client nothing.
The Flat Rate Scheme sounds simple, but most consultants spend very little on goods, which makes them a "limited cost business". That means a flat rate of 16.5%, which often leaves you worse off than standard VAT accounting. We work out which way saves you money. If you work for business clients outside the UK, UK VAT often does not apply to your fees at all, and we check that for each client.
What our accountants for consultants do
Every service from our accountants for consultants is on a fixed monthly fee, agreed up front, with a named accountant who knows your file.
Limited company set-up
We help you decide if a company is right, then set it up, register it with HMRC and open the right records from day one.
Company accounts and Corporation Tax
Year-end accounts, your Corporation Tax return and confirmation statement handled together, with no last-minute rush.
IR35 contract reviews
A plain-English review of each new contract and how you work, so you know whether it is likely to be inside or outside IR35.
VAT registration and returns
We decide with you when to register and which scheme to use, then file your VAT returns on time.
Self Assessment tax returns
Your dividends, salary and any other income brought together in one accurate Self Assessment tax return, with payments on account explained.
Making Tax Digital and quarterly estimates
MTD now applies to sole traders with gross self-employed income over £50,000, dropping to £30,000 from April 2027 and £20,000 from April 2028. We file the updates and tell you what to set aside.
Switching accountant
We contact your previous accountant, collect the records and pick up mid-year without you chasing anyone.
A simple, three-step way of working
No complicated onboarding and no unnecessary admin. Just a clear process designed to understand how you work, organise your finances and support you through the year.
Talk
A free, no-obligation call to understand your clients, your day rate, your contracts and how your records are kept today.
Plan
We agree the right structure and the right level of support, from a single Self Assessment to a company with payroll and VAT, on a fixed fee agreed up front.
Support
We keep your returns, IR35 checks and deadlines organised, send quarterly tax estimates and are on the end of the phone when a new contract lands.
Contractors, freelancers and interim managers
The same questions come up for anyone selling their skills by the day or the project: which structure to use, IR35, VAT and how to pay yourself. Our accountants for consultants also work with IT contractors, engineers, project managers, interim directors and freelance specialists.
Are you a hospital consultant or doctor doing private work? Our accountants for locum doctors page covers the NHS pension and the medical side.
Accountants for locum doctors and GPs
NHS pension forms A and B, IR35 on agency shifts, NI on several jobs and what locums can really claim.
Construction & tradesAccountants for builders and tradespeople
CIS deductions, VAT, vans and tools, and getting paid on time.
All sectorsSector-specific accountancy support
Every sector we work with, from healthcare and consultants to trades, hospitality and tech, in one place.
Questions consultants ask their accountant
Often, but not always. A company usually saves tax once your profits are steady and your contracts are outside IR35. If your work is inside IR35, or your profits are low, the extra cost and admin can outweigh the saving. We compare both on your real numbers before you decide.
If your client is a medium or large private business, or in the public sector, the client decides and must give you a status determination statement. If your client is small, your own company decides. The size limits went up in April 2026, so more clients now count as small.
Most consultants take a small salary and the rest as dividends. In 2026/27 dividends are taxed at 10.75% in the basic rate band and 35.75% in the higher rate band, after a £500 allowance. Company pension contributions are another tax-efficient option. We set the right mix each year.
Usually not. Most consultants spend very little on goods, so they count as a limited cost business and pay a flat rate of 16.5%. That is often more than you would pay under normal VAT accounting. We check which way works out cheaper for you.
Usually yes, if the site counts as a temporary workplace and your contract is outside IR35. Travel on an inside IR35 contract, or to a site you will work at for more than two years, normally cannot be claimed.
It helps. Accountants for consultants deal with IR35, salary and dividends and the Flat Rate Scheme every day, so they spot problems early. We also agree a fixed monthly fee up front, so you know exactly what you will pay.
Testimonials
What our clients say about us
Talk to our accountants for consultants
Tell us how you work and we will tell you, plainly, what structure and support makes sense. No obligation, no sales script.
Call: 01934 404000
Hours: Mon–Fri 09:00–17:00
Office: 505 Park Way, Worle, Weston-super-Mare BS22 6WA
You will be looked after by our UK tax team and meet the people who will actually do the work.
