Contractors & Professional Services Accountancy

Specialist accountants for contractors, consultants and professional service providers

The contracting and professional services sector has grown significantly in recent years, with more individuals choosing flexible working arrangements across IT, engineering, finance, consultancy and other specialist areas. But with this shift comes complexity — from IR35 considerations and varied income streams to managing expenses, VAT and the administrative demands of running your own limited company.

Contractors & Professional Services Accountancy

About Us

Specialist Accountants for Contractors & Consultants

With over 30 years of experience supporting contractors and professional consultants, we provide clear, compliant and sector-specific accountancy services that help you focus on your work while we handle the financial side with accuracy and care

Limited Company Setup & Management

IR35 Support & Status Reviews

Year-End Accounts & Tax Returns

VAT Advice & Registration

Digital Accounting & Bookkeeping

Payroll & Director Remuneration

Expense Planning & Allowable Costs

Business Planning & Cashflow Forecasts

Supporting Contractors to
Maximise Take-Home Pay

From IT contractors to financial consultants, we provide dependable accounting expertise that supports IR35 compliance, tax efficiency and growth. With specialist knowledge in limited company structures, VAT and contractor tax planning, we help you navigate the sector with confidence.

Maintaining Compliance

Stay fully compliant with all HMRC requirements

Reducing Liabilities

Strategic planning to minimise your tax burden

Protecting Long-Term Financial Wellbeing

Securing your financial future with expert guidance

Expert accounting for contractors and consultants

Specialist IR35 support, limited company management and contractor tax planning

0121 777 1200•info@rus.co.uk

1190A-1192 Stratford Road, Hall Green, Birmingham, B28 8AB

Why Contractors Choose Us

Over 30 Years Supporting Contractors

Three decades helping contractors across IT, engineering, finance and consultancy sectors with specialist accountancy, IR35 and limited company services.

IR35 & Limited Company Structure Specialists

Deep expertise in IR35 contract reviews, working practice assessments, HMRC defence and tax-efficient limited company structures for contractors.

Cloud-Based Real-Time Financial Management

Modern digital accounting solutions with Xero, QuickBooks and FreeAgent for instant visibility of expenses, invoicing and tax positions.

Proactive Tax Planning & Take-Home Pay Maximisation

Strategic dividend and salary planning, expense optimisation and cashflow management to maximise your take-home pay compliantly.

Client Testimonials

Hear from contractors and consultants we support across the UK

RUS has been managing my limited company for five years. Their IR35 advice gave me confidence to accept contracts worry-free, and their dividend planning has saved me thousands in tax. Highly recommended for any contractor.

David Foster

IT Contractor & Software Developer

Switching from umbrella to limited company seemed daunting until I found RUS. They set everything up, explained the tax benefits clearly, and handle all my accounts and VAT. Professional, responsive and genuinely helpful.

Sarah Mitchell

Engineering Consultant

Working across multiple contracts means complex finances. RUS keeps everything organised with cloud accounting, handles my quarterly VAT, and provides proactive tax planning. They understand contractors and make it all straightforward.

James Chen

Financial Contractor & Interim FD

Ready to optimise contractor tax planning?

Over 30 years of contractor accounting and IR35 expertise

0121 777 1200•info@rus.co.uk

1190A-1192 Stratford Road, Hall Green, Birmingham, B28 8AB

Contractor FAQs

Common questions about our contractor and consultant accountancy services

IR35 (also known as the off-payroll working rules) is tax legislation designed to identify "disguised employment" where contractors work through a limited company but HMRC considers them functionally equivalent to employees. If caught by IR35, you must pay income tax and National Insurance as if you were employed, losing many limited company tax benefits. The client now determines your IR35 status for medium and large organisations. We review contracts, assess working practices, advise on risk, and help you structure arrangements to operate outside IR35 compliantly where possible.

Most contractors earning over £30,000-£40,000 annually benefit from operating through a limited company due to lower overall tax rates through dividend and salary strategies. Limited companies also offer limited liability protection, professional credibility with clients, and easier expense management. However, they bring compliance obligations including Companies House filings, Corporation Tax returns and payroll. We model both scenarios for your expected earnings, advise on the most tax-efficient structure, and support company formation and ongoing administration if beneficial.

Contractors can claim allowable business expenses including travel to temporary workplaces (not regular offices), mileage if using personal vehicles for business, home office costs (proportion of utilities, rent/mortgage interest, council tax), professional subscriptions and memberships, equipment and software necessary for work, business insurance and accountancy fees, and training to maintain or update skills. Expenses must be wholly and exclusively for business purposes. We ensure you claim everything eligible, maintain proper records and maximise tax relief compliantly.

The optimal remuneration strategy typically involves taking a small salary (often £12,570 annually to utilise the personal allowance without triggering National Insurance) and extracting remaining profits as dividends taxed at lower rates (8.75%, 33.75% or 39.35% depending on total income). This minimises National Insurance contributions while maintaining entitlement to state benefits. However, optimal splits vary based on personal circumstances, pension contributions, other income and changes to tax rates. We review your situation annually and recommend the most tax-efficient extraction strategy.

You must register for VAT if your taxable turnover exceeds £90,000 in any 12-month period (2024/25 threshold). For contractors, this typically means your invoiced contract fees. VAT registration requires charging 20% VAT on invoices (which you pay to HMRC quarterly) but allows reclaiming VAT on business expenses. The Flat Rate Scheme offers simplified administration with lower effective rates for service-based contractors. Some contractors choose voluntary registration to reclaim VAT on significant purchases. We advise on registration requirements, optimal VAT schemes, and handle all submissions.

Contractors face cashflow challenges from contract gaps, delayed client payments and irregular income. We recommend maintaining 3-6 months' running costs as reserves, setting aside funds for quarterly VAT and annual tax payments, using invoice financing if experiencing significant payment delays, budgeting conservatively based on guaranteed contract length, and planning dividend withdrawals around confirmed income rather than invoiced amounts. We provide cashflow forecasting, tax reserve planning, and budgeting support to help you manage income variability and maintain financial stability between contracts.

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