Frequently Asked Questions

DOES IT MATTER WHAT INDUSTRY I WORK IN?

No. You could be a freelancer, a contractor working with temporary recruitment agencies, a so called ‘gig’ economy worker, a worker in the construction sector, a courier driver or even a small business employing staff. We can provide our services to you.

HOW DO I KNOW HOW MUCH TAX MONEY TO PUT TO ONE SIDE?

Once a month we will provide you with a summary of your business activity which will include all your sales and costs. On this summary we will provide a calculation of how much money to leave in your business account.

DO I NEED A BUSINESS BANK ACCOUNT?

Yes, you will need a separate bank account in your business name. Any high street bank can offer these to you, many of which allow you to apply online and can be set up within a few days. Better still, many banks offer free banking for a period of time, so there is no initial cost.

If you don’t wish to open a business bank account though, the alternative option is to register for a pre-paid card which requires no credit check and can be applied for online within a few minutes.

DO YOU OFFER ANY OFFSHORE SERVICES?

No we don’t. All business, partnerships and limited companies are registered in the UK.

HOW MUCH DOES YOUR SERVICE COST?

Like most accountants our services are charged on an annual basis, but we spread the cost across 12 monthly payments. We have three separate packages as follows:

PAYE: £36 plus VAT per month / £432 plus VAT per annum
Universal: £60 plus VAT per month / £720 plus VAT per annum
Premier: £100 plus VAT per month / £1,200 plus VAT per annum

Further charges will apply for additional advice, but this will be agreed in advance with you.

I OPERATE IN THE PUBLIC SECTOR. CAN YOU HELP ME?

Changes introduced to IR35 for contractors operating in the Public Sector in 2016 have had a profound impact on the contracting community. We can offer you accountancy support, but if you need the assistance of a ‘fee payer’ we can make an introduction to a company who can advise on this.

CAN YOU HANDLE THE MONEY FOR ME?

No we’re afraid we can’t. In order to comply with Managed Service Company legislation, it is very important that your business is paid directly by the company with whom you supply your services to.

CAN I CLAIM EXPENSES?

Yes, your company is able to offset certain allowable business expenses to help reduce the taxable profits. Expenses such as travel and subsistence are allowable, as well as the cost of our accountancy services too. A copy of expenses guidelines is available on our website.

HOW OFTEN WILL I BE PAID?

That depends on what you agree with your clients and customers. Certain industry sectors operate payments on a weekly or monthly basis. Other sectors might have other payment terms, such as 30 days.

WHAT IS IR35?

IR35 is a tax charged where an individual is working through an intermediary (for example, a personal service company or “PSC”) under terms and conditions which amount to employment, but paying less tax than an employee would. The idea of IR35 is to ensure that broadly the same tax is paid by employees and contractors who are working like employees. In the past HMRC have referred to this situation as ‘disguised employment’ but now it is usually called ‘off-payroll working’ by HMRC.

It is important to decide whether IR35 applies to your circumstances. HMRC carry out inspections of PSCs and if it is found that IR35 should have been applied, your PSC could be liable for unpaid tax, national insurance, interest and potentially penalties.

HOW DO I PAY MY TAXES?

Ibex will contact you in plenty of time to advice how much you need to pay out of your business account and where to pay it to. If you’re ever in doubt, please contact us and we’ll tell you what you need to do.

DO YOU OFFER INSURANCES?

No we don't. Many customers or clients though will insist that your business is covered with adequate Public Liability (PL) insurance. However if you need insurance, we can offer guidance on where best to obtain this on the most suitable terms.

WILL QUALIFIED ACCOUNTANTS BE ADVISING ME?

We draw from a range of experiences and qualifications in our specialist accounting team, so you know you’re always getting the right level of advice for the work at hand. We have a mix of qualified accountants, part qualified accountants and those who are qualified by experience. We can boast qualifications from the Institute of Chartered Accountants of England and Wales (ICAEW), the Association of Chartered Certified Accountants (ACCA) and the Association of Accounting Technicians (AAT).