Accountants for IT and Self-Employed Consultants

The money side of consulting

A consultant’s finances are mostly about structure: whether to trade as a sole trader or through a limited company, how each contract sits under the off-payroll rules, how to pay yourself, and how to keep the admin light enough that it does not eat your evenings. The numbers are simpler than a shop or a building firm, but the decisions carry real tax consequences, and they change as your income grows.

Hislop Business Solutions is run by Michelle Hislop, an AAT licensed accountant with more than 15 years in accountancy and over 8 years of hands-on payroll experience. You deal with Michelle directly, and you should never feel like you are bothering her with a question.

What we take care of

• Choosing and setting up the right structure: sole trader, limited company, or a mix over time.
• Bookkeeping and software you can run from a laptop anywhere, with invoicing and expenses in one place.
• Salary, dividends and the paperwork behind them, including the payroll for your own salary.
• Reading each contract for IR35 and off-payroll working, and explaining what the client’s determination means.
• VAT: whether to register, which scheme fits and the quarterly returns.
• Self Assessment, company accounts, Corporation Tax and Making Tax Digital.

Points that matter for contractors and consultants

Sole trader or limited company

At lower profits a sole trader keeps things simple; as profits rise a company can be more tax-efficient and is often expected by agencies and larger clients. The answer depends on your income, how much you need to draw, whether you have other income and how long you expect to contract. Our article on sole trader versus limited company covers the trade-offs, and we run the comparison with your own figures.

IR35 and off-payroll working

If you work through your own company, each contract is either inside or outside the off-payroll rules. For medium and large clients the client decides and, if the contract is inside, deducts tax and National Insurance before paying your company. For small clients the decision and the risk sit with you. We read the contract and the working arrangements, explain the position and make sure your accounts reflect it.

Paying yourself

Company owners usually take a modest salary through payroll and the rest as dividends, within the limits set each year by the dividend allowance and the tax bands. Getting the mix and the timing right, keeping dividend paperwork and not overdrawing the company are the everyday details we handle.

VAT, expenses and Making Tax Digital

Registration is compulsory above the threshold and optional below it; the flat rate scheme can help or hurt depending on your costs. Home office, equipment, software, training that updates your skills, travel and professional subscriptions are the usual allowable costs. Sole traders above the income thresholds also move into Making Tax Digital for Income Tax from April 2026.

Getting started

The first step is a free, no-obligation conversation about your business. We will suggest the right mix of support and a clear monthly price, and if you decide to go ahead we take care of the handover from your previous accountant or your spreadsheets. Book your free consultation or call 07510 914616.