Who we helpIndustry guide

The contractor accountant who gets IR35 right.

IR35, dividends and year-end accounts handled by a specialist who knows how your day rate really works.

You win the contracts, we handle the rest. As a specialist contractor accountant for limited company contractors, we take IR35, payroll, VAT and your year-end accounts off your plate. Inside IR35, outside it, or weighing up an umbrella? We know the difference, set your salary and dividends sensibly, and keep you the right side of HMRC. Book a call with an accountant for contractors who understands the day-rate world, on one fixed monthly fee.

  • 4.9 Google · 63 reviews
  • CIMA-regulated
  • 30-day money-back
Calendar and planner on a desk
The problem

Why does a generic accountant get contracting wrong?

Most accountants are good with shops and trades. Contracting is a different world. Your money comes in as a day rate through a limited company, and the tax planning is not like a normal small business.

Get IR35 wrong, draw dividends the lazy way, or miss an expense, and you hand HMRC money you never needed to pay. Most people find out too late to fix it.

A specialist contractor accountant works the other way round. We know the day-rate model, the off-payroll working rules and the salary and dividends split, so we plan ahead instead of just filing last year. We do not only record your numbers, we improve them.

Tailored services

What do our contractor accounting services cover?

  • 01

    IR35 and off-payroll reviews

    We assess each contract and how you actually work, so you know whether you are inside or outside IR35 and what it means for your take-home.

  • 02

    Limited company contractor accounts and PSC

    Full year-end accounts, Corporation Tax and the Confirmation Statement for your personal service company, filed on time.

  • 03

    Salary and dividends

    We set a sensible director salary and handle the dividend paperwork, so you draw your profits the efficient way and stay compliant.

  • 04

    VAT and the Flat Rate Scheme

    Registration, quarterly returns and a check on whether the Flat Rate Scheme or standard VAT leaves you better off.

  • 05

    Contractor expenses

    Home office, equipment, travel between sites, training and more, all claimed correctly against your company.

  • 06

    Switching mid-contract

    Moving from an umbrella or another accountant? We handle the handover and your records so nothing drops between contracts.

Who we work with

Which contractors do you work with, and where?

We act for limited company contractors and freelancers right across the UK, working online, so where you live never changes the service or the fee. You get a contractor accountant UK wide, not only in London, and you keep the same named accountant wherever you trade.

From our base in Hammersmith, we are the contractor accountant London and UK-wide clients rely on, and you are welcome to meet us in person. Most clients never need to, because everything runs online.

Most of our clients are IT and tech contractors, the biggest group in the market. We also look after engineering, energy and consulting professionals. Here is a useful detail: most IT and tech contractors are labour-only, which makes them limited cost traders under the VAT Flat Rate Scheme (FRS), so the flat rate rarely beats standard VAT. As an IT contractor accountant, we run that comparison rather than assume.

IR35 and off-payroll working

How do I know if I'm inside or outside IR35?

IR35, the off-payroll working rules, stops people working like an employee while being paid like a company. It is the biggest single factor in your take-home pay.

Outside IR35, you run a real business. You pay yourself a small salary, take the rest as dividends, and claim your expenses. Inside IR35, most of your contract income is taxed like a salary, so the limited company advantage mostly disappears.

Your status is not your choice alone. It depends on how you really work: your right to send a substitute, who controls the work, and whether you carry business risk. For medium and large private-sector clients, the end client decides and must give you a Status Determination Statement (SDS). For small clients, you assess it yourself.

As your contractor accountant, we review each contract and how you actually work before you sign. Where the answer is borderline, we tell you plainly. We inform your decision, but only a proper review of your working practices can determine your status, so we never guess.

Your trading structure

Umbrella or limited company, which is better?

An umbrella company employs you and runs your pay through PAYE. It is simple, and for short or inside-IR35 contracts it is often the sensible, honest choice. You are taxed as an employee and you pay the umbrella fee.

Your own limited company, a personal service company (PSC), gives you control and, on outside-IR35 work, a more efficient way to take your income. The trade-off is more admin: year-end accounts, Corporation Tax, a Confirmation Statement and director payroll.

  • Umbrella usually wins for short contracts, inside-IR35 work, or when you want zero admin.
  • A limited company usually wins for longer, outside-IR35 contracts at a decent day rate.
  • Umbrella: taxed as an employee, one payslip, a fee to the umbrella each time you are paid.
  • Limited company: salary and dividends, real tax planning, more filing to stay on top of.

Your contractor accountant models both on your real day rate and contract, then tells you which one leaves you better off. If an umbrella is the better call, we will say so.

Your take-home pay

What does a contractor actually take home?

Most contractors are not caught out by the tax rate. They are caught out by the gap between the day rate they quote and the money that reaches their account after tax, National Insurance and their trading structure.

Illustrative example, 2026/27, outside IR35. You bill £350 a day for 180 days, so your company invoices £63,000. Take a director salary of £12,570 and £2,430 of business expenses, and £48,000 of profit is left. The company pays Corporation Tax at 19 per cent on that, which is £9,120, leaving £38,880 to draw as dividends.

Those dividends are taxed at the dividend rates, 10.75 per cent in the basic band and 35.75 per cent in the higher band, once you pass the £500 dividend allowance. On the same contract inside IR35, almost all of that £63,000 would be taxed like a salary, and you would keep less. These are illustrative figures to show the shape, not a quote.

Your contractor accountant runs your real numbers with you on a call. You can also try our salary and tax calculators for a quick estimate first.

Paying yourself

What is the best salary and dividend split?

Through your own company you do not just take a wage. The company pays Corporation Tax on its profit. You then draw money as a mix of salary and dividends.

A modest director salary keeps your National Insurance record going and is usually a cost the company can deduct. The rest comes out as dividends. Dividends are taxed differently from salary, and only after Corporation Tax is paid.

Get the split right and you keep more of your day rate, legitimately. Get it wrong and you either overpay tax or vote a dividend the company cannot support, which stores up trouble.

We set your salary, run your director payroll and prepare the dividend paperwork properly, so every payment is recorded the way HMRC expects. This is the day-to-day work of a good accountant for contractors.

Allowable expenses

What can contractors actually claim?

More than you might think, but only what is genuinely for the business. The rules tighten inside IR35, so claiming correctly matters.

  • A share of your home office costs
  • Equipment, laptops and software you use for work
  • Travel and subsistence to a temporary workplace
  • Mileage in your own car, at 55p a mile for the first 10,000 business miles, then 25p
  • Accountancy and business banking fees
  • Professional and public liability insurance
  • Training and subscriptions that keep your skills current
  • Pension contributions paid through the company

Travel is where people slip up. Mileage uses the Approved Mileage Allowance Payments (AMAP) rates above. A site also stops being temporary once you expect to be there for more than 24 months, the 24-month rule, and the travel claim then stops. Your contractor accountant checks each claim rather than waving it through, and keeps your VAT right on what you buy.

Day-to-day numbers

Which deadlines does a contractor have to hit?

Contracting runs on a rhythm of deadlines. VAT every quarter, payroll every month, a Confirmation Statement once a year, then your accounts and Corporation Tax after your year-end. Miss one and the penalties add up fast.

Your contractor accountant sets up your bookkeeping so invoices, expenses and receipts flow in as you go, not in a rush before each deadline. That keeps your VAT returns right and your numbers live.

If you have income outside your company, we handle your personal Self Assessment too, including the dividends you have drawn, so the whole picture ties up.

Making the move

Can I switch contractor accountant mid-contract?

Yes, and you do not have to wait for your year-end. Switching contractor accountant mid-contract is routine, and a good one makes it painless.

We contact your current accountant for professional clearance and your records, pick up your bookkeeping where it stands, and make sure no VAT return, payroll run or filing deadline slips during the handover.

You keep contracting as normal. We sort the paperwork in the background and confirm once everything has moved across cleanly.

Choosing an accountant

How do I choose a contractor accountant?

Not every accountant understands contracting, and the wrong one costs you far more than their fee. Before you sign up with anyone, hold them to these six things. We built Zmartly to pass every one.

  • A genuine IR35 specialist, not a generalist. Off-payroll status is the biggest risk to your take-home, and it needs someone who reviews contracts for a living.
  • One fixed monthly fee, with no charge for a phone call or an email, so you never worry about asking a question.
  • A named, qualified accountant you can reach, not a call centre and a different person each time.
  • A regulated firm. Zmartly is CIMA-regulated, and our accountants are qualified (ACMA, CGMA, ACCA, FCCA), so the advice you act on is accountable.
  • Cloud software they support properly, whether that is FreeAgent, Xero or QuickBooks, so your records stay Making Tax Digital (MTD) ready.
  • The ability to switch you over mid-contract, handling your old accountant and your records.

If someone cannot give you a straight answer on these, keep looking. We aim to be the accountant contractor forums quietly recommend, the specialist rather than the generalist.

What you get

What is included in our contractor accounting packages?

One fixed fee covers the whole cycle, with no surprise bill at the year-end. Every plan includes:

  • Year-end limited company accounts and your Corporation Tax return
  • VAT registration, quarterly returns and Flat Rate Scheme advice
  • Director payroll and your salary run
  • Dividend planning and the paperwork to draw profits properly
  • Your personal Self Assessment as a director
  • Ongoing IR35 support, with your status checked whenever a contract changes
  • Unlimited questions, answered by a qualified accountant who knows contracting

You get a fixed-fee contractor accountant and online access to your numbers, from £129 a month with a 30-day money-back guarantee. The tiers are below.

Simple, fixed fees

How much does a contractor accountant cost?

Most limited company contractors pay between £129 and £250 a month. That covers your accounts, payroll, VAT and the IR35 support that matters most.

No hourly rates. No surprise bills. No long tie-in. One fixed fee, a named qualified accountant who knows contracting, replies within 72 hours, and a 30-day money-back guarantee.

  • Essentials

    Startups and small companies that need essential compliance and year-end support without VAT or payroll.

    £129/month
    • Preparation of Company Year-End Financial Statements
    • Year End Corporation Tax Computation
    • Submission of CT600 to HMRC
    • Statement of Account submissions to Companies House
  • Premium Plus

    Growing businesses that need complete accounting services, VAT return management, and payroll handling.

    £250/month
    • Everything in Essentials
    • Quarterly VAT return calculation and submission
    • Payroll and benefits management
  • Enterprise

    Established businesses that want strategic mentoring, business planning, and a part-time finance director driving growth.

    £499/month
    • Everything in Premium Plus
    • Business mentoring
    • Part-time finance director
    • Business plan
Trusted by contractors

What Our Clients Say.

  1. I’ve had an excellent experience working with Zmartly. Harvey and the team are professional, responsive, and genuinely supportive. They explain things clearly, stay on top of deadlines, and always look for practical ways to save tax and improve…
    Google reviewer land4 success (chill feel good)
    land4 success (chill feel good)Verified Google review · 6 months ago
  2. I’ve used several accountants in the past, but hands down there is no one better than Harvey at Zmartly. He really understands exactly what advice you’re looking for and explains everything clearly and professionally. Nothing ever feels rushed…
    Google reviewer Heena
    HeenaVerified Google review · 4 months ago
  3. I started working with Zmartly Accountants after having serious issues with my previous accounting firm. They were missing deadlines, incorrectly calculating VAT, constantly late, and extremely difficult and frustrating to communicate with. Switching to Zmartly was a huge…
    Google reviewer Jorge Carballo Gomez
    Jorge Carballo GomezVerified Google review · 5 months ago
  4. I've had a terrible experience with multiple accountants. Zmartly have been incredible. If you do ecommerce / Amazon FBA you definitely need to go with someone who understands the complexities with it. Thanks to Harvey and his amazing…
    Google reviewer Sean Barrington
    Sean BarringtonVerified Google review · 6 months ago
  5. Its not easy to find accountants who understand ecommerce especially Amazon and these guys know Amazon very well. Always helps us with advice if they spot something we incorrectly. Super easy to speak with someone if you have…
    Google reviewer Darius Jaselskis
    Darius JaselskisVerified Google review · 6 months ago
  6. I’ve had an excellent experience working with Zmartly. Harvey and the team are professional, responsive, and genuinely supportive. They explain things clearly, stay on top of deadlines, and always look for practical ways to save tax and improve…
    Google reviewer land4 success (chill feel good)
    land4 success (chill feel good)Verified Google review · 6 months ago
  7. I’ve used several accountants in the past, but hands down there is no one better than Harvey at Zmartly. He really understands exactly what advice you’re looking for and explains everything clearly and professionally. Nothing ever feels rushed…
    Google reviewer Heena
    HeenaVerified Google review · 4 months ago
  8. I started working with Zmartly Accountants after having serious issues with my previous accounting firm. They were missing deadlines, incorrectly calculating VAT, constantly late, and extremely difficult and frustrating to communicate with. Switching to Zmartly was a huge…
    Google reviewer Jorge Carballo Gomez
    Jorge Carballo GomezVerified Google review · 5 months ago
  9. I've had a terrible experience with multiple accountants. Zmartly have been incredible. If you do ecommerce / Amazon FBA you definitely need to go with someone who understands the complexities with it. Thanks to Harvey and his amazing…
    Google reviewer Sean Barrington
    Sean BarringtonVerified Google review · 6 months ago
  10. Its not easy to find accountants who understand ecommerce especially Amazon and these guys know Amazon very well. Always helps us with advice if they spot something we incorrectly. Super easy to speak with someone if you have…
    Google reviewer Darius Jaselskis
    Darius JaselskisVerified Google review · 6 months ago
4.9
Google · based on 63 reviews
Common questions

Frequently Asked Questions

It turns on whether you'd be an employee if you worked for the client directly, judged on control, personal service (can you send a substitute?), and mutuality of obligation. For medium and large clients the client decides and must give you a Status Determination Statement; for small clients and many overseas engagements the responsibility stays with you and your company. We review the written contract and how you actually work, because HMRC looks at both.

Often not, since 2017. If your VAT-inclusive spend on goods is under 2% of turnover, or under £1,000 a year, you're a limited cost trader and must use the 16.5% rate, which leaves almost no FRS gain. Most consultants and IT contractors are labour-only and fall into this. We run the comparison on your real figures rather than assuming the old sector percentage still helps.

Typically a modest director's salary that still counts toward your state pension, topped up with dividends. Dividends above the £500 allowance are taxed at 10.75% in the basic band, 35.75% in the higher band and 39.35% above that, and they must come from genuine retained profit after Corporation Tax. We model your specific income each year so you don't overpay or vote an illegal dividend.

When your VAT-taxable turnover exceeds £90,000 in any rolling 12 months, or you expect to in the next 30 days. Some contractors register voluntarily below that to reclaim input VAT or look established to clients. We watch your rolling total so you register on time and avoid late-registration penalties.

Travel to a temporary workplace is allowable, but a site becomes permanent once you expect to spend more than 40% of your time there for over 24 months, after which the relief stops. You can claim 55p a mile for the first 10,000 business miles and 25p after, plus a reasonable home-office cost and overnight subsistence when staying away. We keep the records HMRC expects to see.

19% on profits up to £50,000, the 25% main rate above £250,000, and an effective rate between the two via marginal relief in between. Those thresholds shrink if you have associated companies, which catches contractors with more than one company, so we check that before filing.

Everything, on a rolling monthly basis with no long tie-in: bookkeeping, VAT, payroll, company accounts, Corporation Tax and your personal Self Assessment, with a named qualified accountant who replies within 72 hours. Pricing is fixed at £129, £250 or £499 a month depending on your needs, backed by a 30-day money-back guarantee.

Yes. You work with a named, qualified accountant who knows your contracts and your numbers, rather than a general inbox and a different person every time. You can email or call them directly, and your questions are included in the fixed fee rather than billed as extras.

We work with the main cloud platforms, FreeAgent, Xero and QuickBooks, set up for a contractor limited company so your invoicing, expenses and Making Tax Digital records stay in one place. If you already use one, we pick it up. If not, we recommend the right fit for how you contract.

Yes. A large share of our contractor clients are IT and technology contractors, alongside engineering and management consultants, creative freelancers and medical locums. The day rate and contract terms differ by sector, but the IR35 and limited company rules that decide your take-home are the same, and that is what we handle.

Yes. We are based in London but act for contractors right across the UK, working entirely online. Whether you contract in the City, elsewhere in the country or fully remote, you get the same fixed fee, the same named accountant and the same IR35 support.

Usually within a few days, and you do not need to wait for your year-end. We handle the professional clearance and records request with your old accountant, pick up your bookkeeping where it stands, and make sure no VAT return, payroll run or filing deadline slips during the handover. You keep contracting as normal.

Stop guessing. Stop overpaying. Let's sort your tax once and for all.

Zmartly Ltd · 12 Hammersmith Grove, London W6 7AP · 020 8175 5145 · [email protected]

CIMA-regulated. Qualified accountants (ACMA, CGMA, ACCA, FCCA).