their financial affairs assume that their accountant is completely compliant and ensures that the contractor’s company manages its accounts within the law.
But how can you check if the contractor accountant is compliant? Here are 5 checks you can use to make sure contractor accountants are compliant:
1: Choose an accountant that is regulated
Anyone can keep books, complete tax returns and visit our website file accounts and perform those tasks on behalf of a contractor limited company. But if you choose an accountant that is a member of and regulated by one of the four accounting professional bodies then you can be sure that in order to gain its membership the accountant must demonstrate a degree of professional competence and has to abide by the rules of the professional institute and are required to operate compliantly. Accreditation by a contractor industry body is a good indicator of compliance as these organizations rigorously audit their members or affiliates regularly.
2: Choose expert contractor accountants
Although contractor limited companies are small businesses, they have unique features and, most importantly, are subject to legislation that most other small businesses are not such as IR35 and the Managed Services Companies (MSC) legislation. If you choose a high street accountant that is not a specialist in contractor affairs, they will not understand the technicalities of the MSC legislation and undertake activities leaving them in breach of the rules and you possibly facing penalties.