Digital IT Contractor Accountants in London That
Keeps You Efficient, Compliant, and IR35 Ready
Specialist digital accounting for UK IT contractors. IR35 status guidance, limited
company accounts, dividend planning, and contractor expense management.
- Making Tax Digital Ready
- Fixed Monthly Fees
- CIMA Regulated
- Serving UK Clients Nationwide
Who This Service Is For
What's Included with Our Digital IT Contractor Accounting Services?
- WHY TDA
Why Choose TDA
FAQ
Frequently Asked Questions
IR35 is HMRC legislation designed to prevent ‘disguised employment’ — where a contractor provides services through a limited company but effectively works like an employee. If HMRC determines you are inside IR35, you pay tax at employment rates on your contract income, losing the tax efficiency of a limited company structure. For public sector and large private sector engagements, the end client determines IR35 status. For smaller private sector clients, the contractor’s own company makes the determination. We assess each contract and provide a written determination.
For contractors who are genuinely outside IR35, a limited company typically offers significantly better tax efficiency. You can pay yourself via salary and dividends, reducing National Insurance. An umbrella company is simpler to administer and appropriate for contractors who are inside IR35 or who want to avoid the administrative responsibilities of running a company. We advise on the right structure for your specific situation and contract arrangements.
Allowable contractor expenses include: home office costs (using the HMRC flat rate or actual cost method), business travel (mileage to client sites, not commuting), professional subscriptions and memberships, IT equipment used for work, training and professional development directly related to your contract work, and accountancy fees. Expenses must be wholly and exclusively for business purposes. We review and categorise your expenses monthly.
The exact figure depends on your day rate, whether you’re inside or outside IR35, and your chosen salary-dividend split. As a rough guide, a contractor outside IR35 earning £500 per day (circa £130,000 annual contract value) through a limited company might retain approximately 75–80% of contract income after tax and National Insurance. Significantly more than if taxed as an employee. We produce a personalised calculation for every new client.
If your company is dormant or inactive, you still need to file a dormant company accounts form with Companies House and a nil Corporation Tax return with HMRC. We handle this for all clients, including those between contracts, to ensure your company stays compliant and ready for your next engagement.