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Contractor Accountant in Manchester: Clear on IR35, Calm at Year End

Freelancing should feel like freedom

You went contracting for control of your time, your rate and your work, not to spend evenings decoding HMRC guidance. Freelancers trying to get off the hamster wheel are exactly who we built Enso for.

What we do for contractors

  1. Limited company accounts and Corporation Tax.
  2. Payroll for your director's salary.
  3. Self Assessment, joined up with your company.
  4. Xero set-up and oversight.
  5. Plain-English IR35 support.
  6. Forecasting for gaps between contracts and tax bills.

IR35 in plain English

  • The rules make sure contractors working through their own company pay broadly what an employee would, if they'd otherwise be an employee.
  • Usually the client decides your status. For a small client outside the public sector, your own company decides.
  • The rules apply contract by contract.
  • The client should give you a status determination statement (SDS) with reasons.
  • If you're inside, the deemed employer deducts Income Tax and employee NICs and pays employer NICs.
  • Student loan repayments aren't deducted, so pay them through Self Assessment.
  • The rules are unlikely to apply if you're employed by an umbrella company. CEST can help with the determination.

Do / Don't for contractors

Do

  • Read every SDS and challenge reasons that don't match how you actually work.
  • Keep contracts and evidence of your working practices on file.
  • Put tax aside as you invoice.
  • Review your position whenever a contract starts or changes.

Don't

  • Assume one outside result covers every contract.
  • Use schemes that claim to get round IR35. HMRC warns they are avoidance.
  • Forget student loans on inside-IR35 income.
  • Leave your bookkeeping until January.
"Adam has been great being really flexible with my timetable - being able to meet up outside of working hours which has been really helpful for me." - Akse, Graffiti Artist

A question for you: do you know which of your current contracts is inside IR35, and who made that call?

FAQs

Who decides? Usually the client. For a small private-sector client, your company does.

Can I be inside and outside at once? Yes, it's contract by contract.

How am I paid if I'm inside? Tax and employee NICs are deducted at source. Student loans go through Self Assessment.

What about an umbrella company instead? The rules are unlikely to apply, but there are trade-offs to talk through.

Do you only work in Manchester? We're Manchester-based and work in the cloud.

Want a straight answer on your contracts?

Call or WhatsApp Adam on 0161 511 2143 or email adam@meetenso.co.uk.