Ten in-depth guides for UK contractor tax.
Long-form guides on the topics that move the take-home figure. IR35 status defence, the Ltd-versus-umbrella decision, the salary/dividend/pension mix, the Section 338 travel test, Section 455 on director's loans, MTD readiness, MVL on closing. Written for contractors, not generalists.
IR35 & Off-Payroll
IR35 reform from April 2021 shifted determination liability to the engager in the public and private sectors. Knowing the test, the appeal route, and the contractual defences is the difference between full take-home and 30%+ PAYE deductions.
Ltd vs Umbrella
The choice between operating through your own limited company and joining a PAYE umbrella reshapes take-home, control, and risk. The decision is not permanent but switching has costs and timing implications.
Tax & Remuneration
Tax efficiency for contractor-directors is layered. Salary versus dividends is the headline; pension contributions, trivial benefits, spouse income, RLP, and EV schemes compound the savings.
Allowable Expenses
The expense rules for UK contractors are nuanced. The 24-month rule, the wholly-and-exclusively test, and the difference between updating skills and acquiring new ones each have specific edge cases that materially affect deductibility.
Statutory Duties
A contractor director's statutory duties combine corporate, tax, and payroll obligations on a single-employee company. Each filing deadline is fixed; missing any creates compounding fines.
VAT Planning
VAT for IT contractors and consultants is dominated by the Flat Rate Scheme decision. The 16.5% limited cost trader rate is the trap most contractors hit; the alternatives are worth modelling.
HMRC Compliance & Disputes
HMRC compliance activity on contractors has risen materially since the IR35 reform. Knowing what triggers an enquiry, how to respond, and when to escalate to tribunal materially changes the outcome.
Wealth & Pensions
A contractor-director has wealth management options that an employee does not: company pension contributions at scale, SSAS commercial property investment, and structured treasury for retained profits. Each compounds across a contracting career.
Closing & Selling
Closing a contractor company is a tax-engineering decision. MVL plus BADR delivers materially lower tax than dividend extraction. The TAAR rule constrains returning to contracting after MVL.
Harrow Local
Harrow-based contractors operate within a specific local context: proximity to central London, local high-street economy, and cost differential versus the City. Knowing the local resources matters.
Reading is one thing. Getting it priced and filed is another. We match Harrow-area contractors with vetted IR35-aware accountants in 48 hours, free.