Working as an IT contractor can be incredibly rewarding, not just financially but because of the wealth of new and existing technology that you’re exposed to each and every day.
What’s more is that by having a legitimate, well-run business which you’ll be able to trade through, you’ll significantly increase your business standing, potentially helping you to attract new clients and win contracts along the way.
In this guide, we’ll take a look at how you can set up your own IT contracting business.
Setting up as a Limited Company IT Contractor
First things first – you’re going to need to register your business with Companies House and that requires a company name. Some tips for picking a good company name include:
- Avoiding swear words, curse words and names which may be deemed offensive
- Avoiding names which sound very similar to other companies
Make sure to check out our video explainer on choosing a company name or alternatively, get in touch with our New Business team if you’d like to discuss what’s suitable and what isn’t.
Next up, it’s time for you to lock down a formal business address as you’ll need this as part of your Companies House registration. If you’re not in a position to take on your own premises, you can add a temporary office address, so you can begin receiving legitimate company documents. Registered office addresses are also available for business use.
You’ll also need to get your business bank account open so that your personal finances are kept separate from your business ones. FreeAgent will also allow you to connect your bank feed to your online account.
Once these initial tasks are out the way, it’s a great idea to knuckle down on building your client base, building your brand, marketing strategy and of course the all-important element of keeping your accounts firmly in order.
As an IT contractor, you’ll need an accountant in place who understands your industry and the unique financial demands that it faces on a day to day basis. For example, having access to clear explanations of the 24-month rule and IR35 can help to save you money whilst our additional benefits of FreeAgent and a dedicated accountant can help you to improve the efficiency of your tax payments.
How can we help IT Contractors?
At Gorilla Accountants, we understand how IT contractors operate. From remote jobs to long distance contracts, each IT contractor that takes us on as their accountant comes with a unique set of individual circumstance.
Our services include:
- Preparation of financial statements
- Business bank account
- Free subscription to online bookkeeping tool, FreeAgent
- Preparation and submission of VAT and Corporation Tax returns
- Tax planning advice
- Direct access to dedicated accountant via telephone, e-mail, face to face meetings and Skype
- Assistance with HMRC records checks
- Preparation of Companies House Confirmation Statements
Once you’ve appointed Gorilla Accounting, you’ll receive complete, unrestricted access to a dedicated personal accountant who will work with you to understand the intricacies of your business. They’ll be available throughout the week by e-mail, telephone, video conferencing and even face to face meetings, and the best bit is that there’ll never be any extra charges no matter how often you engage.
It all starts by letting us know that you’re interested in using us as your accountant. If you’re switching accountants, we’ll work with your existing accountant to retrieve all of the essential documents needed to get your company finances back on track.