IT contractor accountants.
Inside or outside IR35.
Online across the UK, or in person if you’re near Oswestry. Accounts, Corporation Tax, VAT and director pay for IT contractors who run their own limited company — with IR35 reviewed properly on every contract, not assumed. One accountant who actually answers, and a fee agreed in writing before any work starts.
Inside or outside IR35: what actually reaches you.
Enter the day rate and the calculator shows the take-home under both treatments at 2026/27 rates — inside IR35 as deemed employment, outside IR35 through your own limited company.
Inside IR35
Outside IR35
2026/27 rates. Inside IR35 treats the day rate as an assignment rate: the fee-payer deducts employer’s National Insurance (15% above £5,000) before PAYE, which is how agencies and umbrellas quote — umbrella margin and the apprenticeship levy are not included. Outside IR35 assumes a sole-director company with no Employment Allowance, all profit after Corporation Tax drawn as dividends in the year, and no company pension contributions — which is usually where the gap widens. Personal allowance £12,570, tapering above £100,000; dividend allowance £500; dividend tax 10.75%, 35.75% and 39.35%. An estimate, not advice.
What Finstem does for an IT contractor company.
IR35 review
Every contract reviewed against the working practices, not just the paperwork, with the evidence kept on file in case HMRC asks.
Year-end accounts and the CT600
Statutory accounts and the Corporation Tax return from the same figures, reviewed with you and filed on time.
Salary and dividends
The split reviewed before the year end, while it can still change the tax — and confirmed in writing.
VAT and the Flat Rate Scheme
Whether the Flat Rate Scheme still pays once the limited-cost-trader rate applies, checked when you join and again on every return.
Questions from IT contractors.
Q1What is the difference between inside and outside IR35?
Inside IR35, HMRC treats the contract as employment for tax: the fee-payer deducts employer’s National Insurance from the assignment rate, then PAYE, and you take home what is left. Outside IR35, your company invoices the client, pays Corporation Tax on the profit, and you draw a salary and dividends. The calculator above shows both at 2026/27 rates.
Q2Who decides whether my contract is inside or outside?
Since April 2021, if your end client is a medium or large company they decide, and must give you a status determination statement. If the end client is small, your company decides. Finstem reviews the determination against the actual working practices either way, because a wrong answer costs money in both directions.
Q3Can I keep my limited company on an inside IR35 contract?
Yes. The contract can be paid to your company as a deemed payment with the tax already deducted, or through an umbrella. Neither makes the company pointless — it keeps your outside IR35 contracts, expenses and history in one place. Finstem handles the deemed payments in the accounts so nothing is taxed twice.
Q4I have one contract inside and one outside. Can you handle both?
Yes, and it is common. Each contract is treated on its own status. The accounts, payroll and self-assessment pick up the deemed payments from the inside contract and the company income from the outside one, so the year end reconciles and you are not taxed twice on the same money.
Q5Do I need to be near you?
No. Finstem works with IT contractors across the UK on cloud accounting software, with video calls and same-person support. If you’re near Oswestry we can meet in person, but nothing about the service depends on it.
Online across the UK.
In person if you’re nearby.
Most IT contractors never need to visit. Your records live in cloud accounting software, we talk by phone or video, and you deal with one accountant who replies within one working day — the personal service most online providers can’t offer. If you’re near Oswestry, meetings in person are there when you want them.
- Works anywhere in the UK — cloud software, online meetings, same-day replies
- Switching from another accountant takes one email
- You deal with the same accountant every time — not a queue
IR35 evidence on file
Status determinations, contract reviews and working-practice notes kept together, ready if HMRC asks.
Deemed payments handled
Inside IR35 income reconciled in the accounts and the self-assessment so it isn’t taxed twice.
Tax planning before the year end
Pay, dividends and pension contributions reviewed while they can still change the bill.
Talk to an accountant who actually answers.
Accounts, tax, VAT and IR35 for IT contractors working through a limited company — quoted in writing before any work starts.
“Always available when you need him, advice is really good. Helped my start-up business perfectly — wouldn’t have been able to do half the stuff if he wasn’t so attentive and helpful.”