Contractors and Freelancers - Horner Downey & Co.

Specialist accounting for Contractors and Freelancers

Contractors & Freelancers

Specialist Chartered Accountants for Contractors and Freelancers

£120 fixed monthly payment

We only charge a fixed annual fee (payable monthly by direct debit) for all our contractors and freelancers.

Your accounts are in good hands with us – we are Chartered Accountants which means we are fully insured and obligated to keep up to date with all new legislation or tax regulations that will impact on our clients.

Horner Downey & Co. are affordable, reliable and friendly specialists in contractors accounting and taxation, with over 50 years in business. We can help with your company registration, mortgage reference, tax advice and more. Sign up today for a fixed annual fee in easy payments of £120 +VAT per month.

Our Contractor and Freelance Accounting Services

We have over 50 years of experience as Chartered Accountants, working with a range of Freelancers and Contractors across the UK. We know that our clients place their trust in us, and we provide peace of mind that their accounts are being completed professionally and correctly.

Based at our office on the Wirral, our sector specific team at Horner Downey & Co. have worked with Freelancers and Contractors for many years. We provide all of our services in-house, including IR35 contract reviews and advice. We are a modern, dynamic accountancy practice aiming to provide the UK’s highest quality, best value accountancy support to Freelancers and Contractors.

For a fixed monthly payment of £120 per month (+VAT), you can get the benefit of our extensive experience and expertise – everything listed here is included in your fee!

Startup Support

If you are new to contracting, we can help guide you through everything that you need to know and do.

Company Registration

Registering a limited company is included in our fees – don’t pay extra for someone else to do it!

Registered Office

If you want us to, acting as your registered office is included in our price.

Contract Reviews

We can review your client contracts in house to ensure that you are complying with IR35 legislation. If you don’t know what IR35 is, don’t worry – we can fully explain what it is and what it means for you.

IR35 Investigation Report

If you are challenged by HMRC about your employment status under IR35 we will provide sound practical face to face advice and carry out your defence if needed at no additional cost.

Confirmation Statements

Preparing company confirmation statements and the submission of these returns to Companies House (subject to statutory filing fee).

Corporation Tax

Completing company tax review prior to preparing the company’s annual corporation tax return and submission to HMRC.

Personal Tax Returns

Completion and submission of Director’s Self Assessment Income Tax Return after conducting personal tax review to minimise your liability.

VAT

Completion of quarterly VAT returns, including for companies using the Flat Rate VAT scheme.

Payroll (PAYE)

Providing a payroll service to the company including submission of all monthly RTI returns.

Mortgage References

We provide mortgage references free of charge for all of our freelance and contractor clients.

Bookkeeping Support

Although we maintain your payroll and VAT records in house we can advise upon the recording of expenses such as mileage. Our service doesn’t require you to spend time logging on to portals or completing spreadsheets unless you want to!

Unlimited Advice

Unlimited advice on accounts and taxation matters during the year, including advice on taxation queries unrelated to your work such as rental income, capital gains or inheritance tax, all as part of your normal fee.

Chartered Accountants

We are members of the Institute of Chartered Accountants in England and Wales (ICAEW), so you get the reassurance of knowing that you have the services of a professionally qualified and extensively trained accountant and taxation adviser.

For a fixed annual fee comprising monthly payments of £120 (plus VAT), you can get the benefit of our extensive experience and expertise – everything is included!

Getting Started?

If you are new to contracting, administration and tax requirements can be daunting. We can guide you through everything that you need to know and help you get started.

We’ll talk you through your accounts and tax matters during the year, including advice on taxation services unrelated to your work such as rental income, capital gains or inheritance tax, all as part of our service.

Chartered Accountants

We are fully qualified, certified and insured, giving you the assurance that you are receiving the highest standards of accountancy practices.

Great Value

Unlike lots of other providers who have hidden extra charges, with us you’ll only pay a fixed annual fee (broken down into easy payments of just £120 + VAT per month) to provide all the accountant and tax support that you need. We will register your company for you, review your contracts for IR35, and then we’ll be on hand throughout the year for any questions you have.

No Hidden Extras

Unlike some accountancy packages, our fixed monthly fee includes all services and support. All of our contractors and freelancers pay the same amount and get the same great service.

Talk to one of our experts

What our clients say...

“As a Contractor, working on a Limited company basis, I have used the services of Horner Downey since April 2007.
I have found Horner Downey to be efficient, friendly and prompt in dealing with my financial affairs and for keeping me updated on any key tax, VAT changes etc. I would be happy to recommend them to anyone looking to use an Accountant for the first time, or for anyone looking to move to Horner Downey from another accountant.”

John Marsh

“Horner Downey I have found are people who know the meaning of efficiency, I really appreciate the friendly business relationship we have developed and find it a pleasure to work with people who show continuing patience and guidance.

Your support and cooperation have been invaluable to me and I look forward to continuing working with you over the years.”

Sue Percival

“Horner Downey has provided me with nothing but first rate support over the last 4 years. Their team are always professional, efficient and quick to respond to any of my queries. I have recommended their services on countless occasions and will continue to do so indefinitely. 5 stars!”

Oliver Cockerham

“I find Horner Downey & Co an absolutely top class company to deal with and have a high degree of trust and respect for their ability, based on the level of service I’ve received with regards to the running of my company. I can’t fault them and I can’t recommend them enough.”

Neil Pennington

“I moved to Horney Downey because I was fed up with dealing with different people every time I phoned up with a simple query. After seven years with them they have provided excellent personal service, accurate, helpful and with final accounts ready months before the required final tax deadline. As a Freelance Design Engineer of 45yrs working with accountants they are the best I have used.”

Edward Junger

Helpful Resources

Take a look at our wide range of resources to help you understand and fulfill your obligations as a Contractor or Freelancer.

Business Contractors Franchises Newsletters

Essential Employer Update 2025

Contractors Freelancers Tax

Private Sector Contractors – are you ready for IR35?

Contractors Freelancers

IR35 Changes from April 2020

IR35

IR35 legislation is an attempt by H.M. Revenue and Customs to tax a freelancer or contractor trading through his/her company as though they are an employee of the end client.

Your company is effectively ignored and PAYE/NI is assessed on 95% of the income. All freelancers or contractors need to be aware of this legislation as it is a potential “pit fall”.

IR35 is only relevant if it can be proved that you are a deemed employee of the end client. If it can be shown that you cannot be such an employee then IR35 cannot apply.

Proving that a worker is an employee is not the same as proving the worker is self employed, that is an entirely separate argument and not relevant to IR35. The decision whether a worker is or is not an employee is carried out by a review of the terms and conditions of the contract for services, and, the working practices.

We have extensive experience in determining employment status and to give IR35 advice and to carry out IR35 reviews.

Please be aware that In April 2020 ‘off-payroll’ rules will be extended to the private sector after being introduced in the public sector in April 2017.

Please do not hesitate to contact us should you require further information on IR35, off-payroll rules or an actual IR35 contract review.

S660A

Section 660a rules were originally introduced to prevent family members reducing their overall tax liabilities by gifting income or assets to lower rate tax payers within the family.

In respect of freelancers and contractors the “gifting” of income relates to company shares being split normally between husband and wife.

This allows the use of two personal allowances and two Income Tax basic rate tax bands before any family dividend income is taxed at the higher rate of Income Tax.

From H.M. Revenue & Customs point of view the wife’s dividend income has derived from her husband’s work i.e. from the shares the husband has “gifted” to his wife.

As such, H.M. Revenue & Customs may attempt to tax the wife’s dividend income as if it had been received by her husband. This would create further Income Tax and maybe interest to pay for the husband.

If you are a knowledge based worker and your spouse, parents or siblings own shares but do not work for the company, then it is possible that H.M. Revenue & Customs could enquire into the position.

Such enquiries are extremely rare, however, as a freelancer or contractor you need to be aware of the legislation.

VAT

The current compulsory VAT registration limit is £85,000. This level of income is often above that expected by many contractors or freelancers. However most contractors or freelancers volunteer for VAT registration using the flat rate scheme (FRS) regardless of whether their turnover is above the VAT registration limit.

Once registered for the FRS the company charges VAT on the invoice at 20% (e.g. £1,000 net plus VAT of £200 giving a total receipt of £1,200) but pays VAT every quarter back to H.M. Revenue and Customs at its FRS percentage (e.g. 15.5% X £1,200 meaning only £186.00 is repaid to H.M. Revenue and Customs). A “gain” is therefore made by the company when using the FRS.

The downside is that the company may not reclaim any input VAT, but this is normally insignificant for a freelancer or a contractor.

There is an exception when the company purchases capital items in excess of £2,000 (inclusive of VAT) in one transaction. In that situation the input VAT may be reclaimed.

If you spend a small amount on goods

You’re classed as a ‘limited cost business’ if your goods cost less than either:

2% of your turnover
£1,000 a year (if your costs are more than 2%)

This means you pay a higher rate of 16.5%. You can calculate if you need to pay the higher rate and work out which goods count as costs. Please feel free to contact us if you are unsure.

If you aren’t a limited cost business, you use your business type to work out your flat rate.

Below is a table of FRS percentages relevant to various professions (these rates apply from 4 January 2011):

Type	Rate
Business services not listed elsewhere	12%
Architect, civil and structural engineer or surveyor	14.5%
Computer and IT consultancy or data processing	14.5%
Management consultancy	14%

INSURANCE

As a provider of services via a limited company, it is important to have adequate business insurance in place – some or all of: professional indemnity, public liability and employers’ liability.

The majority of agencies require contractors to have appropriate insurance cover which will normally form part of your contract with them
If your actions lead to anything being damaged or someone being injured; or any advice you provide or work you complete results in a client losing money, a claim could be made against you. Having appropriate insurance cover could be what keeps you in business
Holding business insurance is also a key IR35 indicator, indicating to HMRC that you are operating as a legitimate business

At Horner Downey & Co we recommend that our limited company contractor clients have appropriate business insurance in place. It’s important that contractors safeguard themselves and their companies so we’ve partnered with experts Kingsbridge Contractor Insurance to make it easy for you.

The Kingsbridge insurance policy is specifically tailored to meet the needs of professional contractors and freelancers.

Here’s what Kingsbridge can provide;

Professional Indemnity covers you against claims involving accusations of professional negligence, making an error or omission, and giving bad advice which results in financial loss. It will provide cover for legal costs as well as any damages awarded against you.

Public Liability provides cover if someone is injured or property is damaged as a result of your actions. Whether you are working on your own premises or the premises of your client, you have a duty to protect anyone who might be affected by your activities.

Employers’ Liability provides protection against claims from employees. It is compulsory for almost all UK businesses. Regardless of your set-up, this is often insisted upon by clients who may require you to comply with a standardised contract.

01242 809316

chloe.phillips@kingsbridge.co.uk

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