Who we work with

Accountants for contractors Limited company contracting, properly handled.

Contracting through a limited company has been a UK staple for decades — for IT specialists, engineers, project managers, interim executives, healthcare professionals working as locums and many others. The mechanics are familiar but the rules have tightened: IR35 reform has changed how many contractors operate, dividend tax rates have risen, and HMRC scrutiny of personal service companies has intensified. Fernside handles the contractor-limited-company package end-to-end for fixed monthly fees — accounts, Corporation Tax, payroll, dividends, Companies House filings — without the contractor-specialist firm price tag.

TL;DR — At a glance

We work with UK contractors using limited companies — IT, engineering, project management, interim consulting
Full limited company package: accounts, CT600, payroll, dividends, Companies House
Pricing from £125/month (single director) to £350/month (with employees or more complex)
We're realistic about IR35 — most contractor work today is inside-IR35 and we plan accordingly
Free 20-min call to discuss your contracting situation and timeline

Who we work with as contractors

Most of our contractor clients are operating limited companies (personal service companies / PSCs). Typical roles: IT contractors (developers, devops, security specialists, BAs, project managers, infrastructure engineers); engineering contractors (across mechanical, electrical, civil, oil & gas, automotive); interim executives (CFOs, CTOs, programme directors, COOs on 6-18 month engagements); management consultants working through their own company between agency contracts; and healthcare locums in roles where limited-company working is still common. Day rates typically £350-£1,200 and project lengths 3-24 months.

The IR35 reality in 2026/27

IR35 (the off-payroll working rules) has shaped the contractor landscape since 2021's public-sector reform and 2017's private-sector expansion. The practical reality today: most large engagers default to inside-IR35 and process payment via umbrella or PAYE; outside-IR35 work still exists but typically with smaller end-clients (under the small-companies exemption) or for genuinely independent contractors with multiple concurrent clients. We don't try to argue that everyone should be outside-IR35 — we work with the reality of your actual engagements. For inside-IR35 work via umbrella, your limited company may have very little activity that year. For outside-IR35 work, the limited company structure delivers its full benefit.

Salary and dividend optimisation for 2026/27

Most contractor PSCs take a low salary (£12,570 — the secondary NI threshold) plus dividends up to the basic rate band ceiling (£50,270 total income). With 2026/27 dividend rates (10.75% basic / 35.75% higher / 39.35% additional), the optimisation maths is tighter than it used to be. Three key levers: pension contributions from the company (fully Corporation Tax deductible, no NIC, often the best use of surplus profit); splitting income with a spouse who holds shares (legitimate provided the spouse has genuine ownership and the income reflects actual contribution or capital risk); retaining profits in the company for years when you can afford to defer extraction. We run these calculations annually as part of your year-end planning.

Managing a limited company between contracts

Contractor income is rarely steady. Between contracts you may have weeks or months with no invoice — but the company still has fixed costs (Companies House, accountancy, insurance, software subscriptions). Three practical approaches: build retained reserves during contracts so the company can self-fund through gaps; take a smaller monthly salary continuously so you have personal income even in gap months (uses your annual personal allowance fully); plan dividends around year-end rather than mechanically monthly, so they reflect actual annual position. We help structure this for your specific contract pattern.

Closing the company at the end of contracting

When you eventually move to permanent employment or retirement, the limited company can be wound up. Two main routes: Strike-off (free via Companies House — fine if reserves are under £25,000); Members' Voluntary Liquidation (MVL) for larger retained reserves — costs £1,500-£3,000 but allows distributions to be taxed as capital (potentially qualifying for Business Asset Disposal Relief at 14% rising to 18% from April 2026, vs dividend tax of up to 39.35%). For contractors with substantial reserves at end-of-contracting, MVL is usually the right path. We can advise and coordinate with a liquidator.

What we do for contractor clients

Growth (£125/month) is the typical contractor package: monthly payroll (single director), Corporation Tax return (CT600), annual statutory accounts, Companies House confirmation statement, dividend planning support, and year-round email support. Scale (£350/month) adds management accounts, cashflow forecasting, and active tax planning (useful for higher-day-rate contractors or those with multiple income streams). All packages include MTD VAT if you're registered, IR35 status awareness, and proactive year-end planning before the 31 March cut-off.

Where we work

Office in Woodford Green, London IG8. We work face-to-face with contractors across NE London and Essex (Woodford Green, Wanstead, Chingford, Buckhurst Hill, Chigwell, Loughton, Epping) and remotely with contractors across the UK — most contractor work is conducted via email, video and secure file exchange anyway. See all areas.

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Book a free 20-minute call. No pressure, no obligation, just a clear conversation about whether we're the right fit for your situation.

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Frequently asked questions

From the questions we actually get asked by people in your situation

If most of my work is inside-IR35 via umbrella, do I still need a limited company?

Possibly not. If you're 100% inside-IR35 and all income flows via umbrella PAYE, the limited company may be costing more than it's saving. We can review whether to keep the company dormant, strike it off, or maintain it for occasional outside-IR35 work that comes up. There's no one-size-fits-all answer.

Can I keep my limited company while in a permanent role?

Yes — but check your employment contract for restrictive covenants and conflicts of interest. The company can be kept dormant (no trading, but still filing confirmation statements and accounts) for minimal cost, ready to reactivate later. Many ex-contractors do this in case they return to contracting.

Can my spouse be a shareholder for income-splitting?

Yes, provided the arrangement is genuine: the spouse must hold actual shares with all the rights of a shareholder, and the dividend split should reflect their genuine ownership. The Arctic Systems case (Jones v Garnett, 2007) confirmed the legitimacy of spouse shareholdings, but HMRC scrutinises arrangements that look artificial. We can advise on a robust structure.

What's the most common contractor mistake you see?

Three things: not paying enough Corporation Tax 9 months after year-end (the deadline is before the return is even filed); missing the confirmation statement (annual to Companies House, easy to forget); and over-extracting dividends beyond available reserves, which creates 'illegal' dividends that become director's loans with possible Section 455 charges.

Should I make pension contributions from the company?

Almost always yes if you have surplus profits. Employer pension contributions are fully Corporation Tax deductible, attract no NIC, and the money grows tax-free in your pension. For higher-rate contractors with surplus after living costs, employer pension contributions are usually the most tax-efficient way to extract value.

Do you handle CIS for contractor subcontractors?

Yes — CIS (Construction Industry Scheme) is a separate regime for construction contracting, distinct from IT/engineering/professional contracting. See our CIS page if you're a construction subcontractor or contractor.