Contractor Accountants in Manchester
Contractor accountants in Manchester can help you manage the large amounts of administration required when running a limited company. Not only will they keep your tax affairs in order, but they can also advise you on relevant legislation such as IR35 which could affect your business.
Manchester is fast becoming the second biggest technology hub in the UK, with many innovative tech businesses now relocating to the northwest city. In 2017 it was reported that Manchester's tech sector was worth £2.9bn to the economy, and that they had the largest agglomeration of digital jobs outside of London. Manchester also made it into the top 20 in the European Digital City Index for starting and scaling a digital tech business. The demand for contractors in Manchester continues to grow as the city's thriving tech sector drives their digital revolution forward.
The city’s three universities have attracted big names to set up shop there including LateRooms and Auto Trader, creating hundreds of new technology jobs. The likes of MediaCityUK, home to the BBC and ITV Granada, also continues to draw in tech talent, and Manchester Science Partnerships’ Central Campus alone is home to more than 170 companies in the life science, healthtech, biotech, ICT, digital and creative sectors.
The typical market rates for contractors in Manchester vary depending on your skill set, but as an IT contractor you can expect to take home a daily rate of between £375 and £450 on average. However, a Chief Technology Officer or IT Director contract could fetch you a daily rate between £800 and £900, and emerging IT contracting skills could earn you well over £500 per day.
There are pros and cons to contracting in Manchester. Some workers may be put off by lower contract rates than they may be able to get in London, however Manchester offers a low cost of living, and competition for contracts in the city is low when compared with the saturated London market. There are a wide range of opportunities for contractors in Manchester, which has a lively social scene and the buzz of a big city, but with the rolling hills of the Peak District on their doorstop.
With such a busy contractor market, demand for contractor accountants in Manchester is high. However, when you’re choosing between the range of contractor accountants in Manchester, you may first want to consider whether you need a local accountant at all.
Contractor accountants Manchester: Do you need a local accountant?
You may not necessarily need to work with contractor accountants in Manchester. It depends how you prefer to operate and the level of service you require from your contractor accountant, but you may not need to have face-to-face meetings with your accountant. Many contractors never require to meet their accountant but instead hire one that is the best fit for them.
Here’s a checklist to use when evaluating different contractor accountants in Manchester:
- Hire a specialist: you must hire a specialist contractor accountant who understands how your business operates and the nuances of the contractor industry, such as IR35.
- Check their qualifications: you must check that your contractor accountant is qualified. If they are, then the following initials are usually shown on their website or after their name: ACA, ACCA (for England and Wales) or ACAS (for Scotland).
- Look at the price and service offered: most contractor accountants charge a monthly fee for their services. Don’t be fooled by a seemingly good deal, but make sure you get the level of service you need for your business. Different contractor accountants will perform different duties.
- Ask about set up fees: if you need to form a limited company, ask if your contractor accountant will charge an additional fee for this.
- Ask for references and client lists: ask any contractor accountants if they have client references or a breakdown of the industries their clients work in. Again, it’s important to select an accountant with ample experience of the contractor market. Also, ask how long they have been in business to double check how established they are in the market.
- Accounting software: do you require your accountant to work with a specific type of accounting software? Is the price of software included in their accounting package or not? These are questions you will need to ask when looking for the right contractor accountant for you.
Contractor accountants Manchester: The pros and cons
There are pros and cons to choosing a contractor accountant in Manchester. These include:
Convenience and your relationship
If you choose an accountant who you can easily visit, you will be able to build a personal relationship with that accountant. It depends on how you want to work with your accountant.
Many contractor accountants offer an online portal to manage your financial affairs and a dedicated accountant to answer your queries. This can help you to remotely work with your contractor accountant. However, it depends whether you’re happier to discuss your business face-to-face or over the phone or email.
The fees of contractor accountants vary dramatically, depending on the level of service they offer - and their location. Contractor accountants in Manchester may actually charge less for their services than elsewhere in the UK, but make sure you compare the services offered carefully to get the best deal.
If you’re struggling to choose between contractor accountants in Manchester, then try reaching out to the contractor community and ask for personal recommendations. The ContractorUK forum is a good place, or you can speak to other contractors at your workplace.
It is advised to get a quote and list of services from a few different contractor accountants so that you can compare them. You can find a list of contractor accountants in the ContractorUK Directory.