Small and medium-sized businesses could save £2 billion a year in tax by utilising limited company contractors
That's according to new research showing that business owners can make big savings on National Insurance contributions by making use of self-employed contractors.
But the study from Unbiased.co.uk highlights that small firms need to be very aware of HM Revenue and Customs rules regarding the use of contractors.
The website derives the £2 billion figure from assuming that 15 per cent of higher rate taxpayers could transition to self-employed status. IR35 compliance
is vital, not only for businesses owners, but also for the contractors working for them, making accounting services all the more important.
Chief executive Karen Barrett says: "Tax is a vast and complex subject and it can be hard for business owners to find the time to understand how to optimise their tax status whilst also running their business day to day."