Consultancy businesses range from a single specialist working through their own company to a firm with associates, employees and clients overseas. The accounting needs are similar at every size: clean records, accurate invoicing and VAT, accounts and tax returns filed on time, and advice before decisions are made rather than after.
Anewthing prepares the accounts and tax returns, runs payroll where there are employees, and advises on the questions consultants ask most often: how to pay yourself, whether to register for VAT and which scheme to use, how to treat expenses and home-working costs, and how to deal with clients in other countries.
Where you take on associates or subcontractors, or your clients ask about your employment status, Anewthing reviews the arrangements against the off-payroll working rules and helps you put the right contracts in place.
What’s included
- Advice on trading structure: sole trader, partnership or limited company
- Bookkeeping, invoicing and VAT, including the Flat Rate Scheme where it suits
- Statutory accounts and Corporation Tax returns
- Payroll for directors, employees and associates
- Self Assessment tax returns
- Reviews of consultancy agreements and subcontractor arrangements
How we work with you
Talk it through
Tell us what you need and how your records are kept.
Agree the scope and fee
You know what is included and what it costs before work begins.
Ongoing support
Deadlines and rule changes are raised with you before they become urgent.
Current rules at a glance
| VAT registration threshold | £90,000 of VAT-taxable turnover in a rolling 12-month period |
|---|---|
| Flat Rate Scheme | Available with VAT-taxable turnover of £150,000 or less; limited cost businesses use 16.5% |
| Corporation Tax | 19% small profits rate up to £50,000; 25% main rate over £250,000, with marginal relief between |
| Off-payroll working (IR35) | Applies engagement by engagement; medium and large clients decide status, otherwise your own company does |
Common questions
Do I need to register for VAT as a consultant?
Registration is compulsory once your VAT-taxable turnover passes the threshold in a rolling 12-month period, and can be worthwhile earlier if your clients are VAT-registered businesses. Services supplied to business clients outside the UK are often outside the scope of UK VAT, which Anewthing can confirm for your situation.
How is a consultancy different from contracting for tax?
For tax the same rules apply: what matters is the working relationship with each client. Consultants with several clients and genuine business risk are usually clearly in business on their own account, but a long engagement with one client can still fall within the off-payroll working rules.