Dhikr Accountants
Dhikr Accountants
Contractors and Freelancers FAQs
  • Who should consider our services?
    We support all contractors who provide their services through their own Limited Company. You could be working in Oil & Gas or in Financial Services or as a locum pharmacist, it doesn’t matter, what matters is that you offer your services through your own Limited Company.
  • What will my take home pay be?
    This depends on a number of factors. You would need to consider your turnover, flat rate percentage used, salary taken, other employees and what dividend amount you have taken. However to give you a guideline amount you can expect to achieve between 70-80% of the value of your contract. Our Contractor Calculator will provide you with an estimate based on your current day rate. When you come on board with us, we will be able to provide you with a more accurate figure as often as you like.
  • Do I need a business account?
    Yes, this is a must as your client/agent will only pay to an account in the name of the limited company. Most high street banks offer you the facility to apply for a business bank account online and most accounts are set up within a week of you applying.
  • Am I caught by IR35?
    IR35 is a complex piece of legislation and is constantly changing. We recommend that you have your contract and working practices reviewed by an IR35 specialist. Some Specialists are also able to offer IR35 insurance which covers you for representation should HMRC raise an enquiry on your status. We can review your contract for IR35 purposes and this is covered in your monthly contract with us.
  • Do I have to register for VAT?
    If your company has made sales of more than £83,000 in the last 12 months or you expect to increase this threshold in the next 30 days then it is compulsory for you to register for VAT. The Flat Rate Scheme has historically been lucrative as it provides additional profit, however for businesses in the first year of VAT registration it may still be tax beneficial as a 1% discount is available. Get in touch so we can review your case individually.
  • How is the VAT sorted out?
    When we register you for VAT, we will allocate four quarter end periods. You do not need to worry about anything, Dhikr Accountants will review your books and will prepare and submit your VAT return for you. All you need to do is arrange for a payment to be made to HMRC which can be made via bank transfer, however we recommend you set up a direct debit which will automatically collect any VAT due from your bank account once we have filed your return with HMRC.
  • When is my corporation tax return due?
    HMRC require all company tax returns to be filed 12months after the companies year end. However we always aim to file our client’s tax returns 6-9 months after their year-end.
  • What about my income tax return?
    All income tax returns for the period ending 05th April are due by the 31st January the following year. You will also be required to make payment by then, for contractors who exceed a certain threshold they are required to make a payment on account in July, don’t worry we will advise you of this.
  • What about expenses?
    HMRC state that expenses that have been incurred exclusively for the purpose of the trade are deductible expenses. See our expenses you can deduct page on our guidance of some of the common expenses. Also read our 24 month rule page on the potential restriction of claiming travel and subsistence incurred where you are travelling to a workplace which is no longer 'temporary'.
  • How do I take dividends & salary?
    We will let you know how much salary to take each month, and you simply transfer this from your business account to your personal account. Dividends are also paid out in the same way, although we recommend you let us know before you take a dividend so that we can advise you of your income tax liability (if any) on the dividend that you take.
  • Are there any hidden costs?
    We operate an honest and professional work ethic, we have therefore listed below some of the additional fees that you could incur:
    • Using Dhikr Accountants as your registered address.
    • To liquidate your company
    • File income tax returns for other shareholders.
    • Filing a more complex income tax return for yourself, i.e. if you need to report other gains, rental income etc.
    • Representing you should HMRC raise an enquiry into any of your tax affairs, unless it's a routine request for information from HMRC.
  • Minimum contract?
    We provide a rolling monthly contract as we understand personal circumstances can change. However if you are choosing to move Accountants, we would love to know why and what we could do to keep you. For the month that you are with us we will review all bookkeeping records and will file your VAT return if it is due in that month.

    However if you would like us to complete your company year-end accounts and corporation tax return, we ask that you have been a client of Dhikr Accountants for at least 6 months or have made 6 monthly payments.

© Dhikr Accountants is a trading name of Dhikr Accountants Limited

Company Number: 10500267. Place of Reg: England & Wales Registered Office: 36 Uxendon Crescent, Wembley, Middlesex, HA9 9TN
Tel: 07591 207278
Email: imran.anjum@dhikr-accountants.co.uk
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