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74 per cent of contractors are paying too much tax

74 per cent of contractors are paying too much tax

According to a recent survey by online accountants My Accountant Friend, nearly two thirds of IT contractors could be paying too much tax.

The firm surveyed 300 IT professionals in the city of London to assess how they were managing their accounting and tax affairs.

Of those that took part in the survey, 74 per cent were either not paying themselves tax-efficiently based on their employment status or not claiming the expenses they should. 61 per cent of respondents were not sure when key tax payments are due and a further 57 per cent said that they do not fully understand how their end-of-year accounts have been produced or what the figures mean.

Not surprisingly, the subject of IR35 featured prominently with nearly 70% of respondents saying that they are still nervous about the possibility of an IR35 investigation, despite the government’s recent commitment to review it. Graeme Hart, Managing Director of My Accountant Friend, commented on the results of the survey:

“We expected many contractors to be a little apprehensive about their accounting and tax affairs. However, we were quite surprised by both how many people seem to be paying too much tax and the level of concern in some areas.”

According to Hart, My Accountant Friend now provides a number of guarantees around their services. He continued, “we promise to save people tax, increase their take-home pay and reduce the burden. Our online system automates the bookkeeping and provides real-time visibility of personal and corporate tax liability. ”

The firm is currently running a special World Cup promotion. Sign up before the 15th June and they will provide 2 months of accounting services completely free of charge. What’s more if England win, they’ll provide their services for FREE UNTIL 2011. More information can be found on the My Accountant Friend website.

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Image: In which I go insane in a sea of paperwork by Strawbleu™

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