Understanding key tax dates is essential for contractors and freelancers operating through limited companies in the UK. Missing a deadline can lead to penalties, cash flow issues, and unnecessary stress, especially when dealing with contract work tax and HMRC compliance. Whether you’re planning for the start date of the new tax year, checking when the end of the tax year falls, or wondering about corporation tax and dividend deadlines, this guide has you covered. We’ll also clarify common misconceptions around phrases like “when do you pay tax when self employed” and explain how tax works differently for limited company contractors. Let’s start with a clear overview of the key dates you need to know.   Table of Contents: Key UK Tax Dates Contractors Must Know When Is the Start and End of the UK Tax Year? Key Dates for Corporation Tax for Contractors Self Assessment Tax Return Dates for [...]

Issuing accurate and compliant limited company invoices is essential for contractors and freelancers operating through UK limited companies. A properly structured invoice not only helps you get paid promptly but also ensures you meet HMRC and VAT invoice requirements, reducing the risk of errors, disputes, or penalties. In this in-depth guide, Nexus Accounting explains exactly what an invoice is, what it should include, and what a professional limited company invoice looks like in the UK. Whether you invoice monthly, per project, or per milestone, getting the details right is critical for financial control and compliance nationwide. Let’s break down the essential elements every limited company invoice should include.   Table of Contents: What Is an Invoice and Why It Matters for Limited Companies Your Limited Company’s Legal Name and Address A Unique Invoice Number Invoice Date and Tax Point Client Details and Billing Information Clear Description of Services Supplied [...]

Setting up a limited company as a medical professional can be one of the most effective ways to manage income, tax efficiency and long-term financial growth. This guide is designed specifically for UK-based clinicians, including limited company locum doctors, locum vets, private healthcare professionals and vet nurses, who want to operate through a compliant and well-structured company. With increasing numbers of medical professionals moving into locum, private or contract-based work, understanding how limited company structures work, and how to set them up correctly, has never been more important. With support from a specialist accountant for private healthcare, you can avoid common pitfalls and ensure full HMRC compliance from day one. This article explains the entire process, from deciding whether a limited company is right for you, through to registration, tax responsibilities and ongoing compliance, so you can focus on clinical work while your finances remain under control. Below, you’ll [...]

If you run a UK limited company as a freelancer or contractor, deciding between a salary or dividends is one of the most important tax decisions you’ll make. The choice directly affects how much income tax, National Insurance, and overall take-home pay you receive each year. This guide from Nexus Accounting explains the dividend versus salary debate clearly and practically for limited company directors across the UK. We’ll break down the tax implications, benefits, risks, and common mistakes so you can pay yourself efficiently and compliantly. Before diving into the details, here’s a quick overview of what we’ll cover. Table of Contents: What Is a Salary for Limited Company Directors? What Are Dividends and How Do They Work? Salary Versus Dividend: What’s the Difference? Income Tax Rate for Dividends Explained How Contractors Typically Combine Salary and Dividends When Paying a Higher Salary Makes Sense Common Mistakes When Choosing Salary [...]

Starting your contracting journey in the UK is exciting, but understanding contractor National Insurance is one of the first hurdles for limited company contractors. This guide explains how NI works, who needs to pay it, and how it affects your salary, dividends, and overall taxes. Whether you’re managing your finances yourself or working with a specialist accountant, knowing the rules helps you stay compliant and plan efficiently. Read on to discover everything you need to know about National Insurance for contractors and how it can impact your take-home pay and future state pension. Get in Touch   Table of Contents: Should I Pay National Insurance as a Limited Company Contractor? National Insurance Class 1 Explained How to Pay National Insurance as a Contractor National Insurance & The State Pension Limited Companies and Employer vs Employee NI Why Choose Nexus Accounting? Do Limited Company Contractors Pay National Insurance? If [...]

Navigating HMRC IR35 inspections can feel daunting for UK limited company contractors, but understanding the process is essential for staying compliant and protecting your income. This guide explains what IR35 is, how inspections work, and what steps you can take to respond effectively. Whether you’re managing your accounts yourself or working with an expert IR35 accountant, knowing the rules helps you plan your salary, dividends, and contracts with confidence. Read on to discover everything you need to know about HMRC IR35 inspections, from the initial contact to potential penalties, so you can approach any review fully prepared. Get in Touch   Table of Contents: What is IR35? What Causes IR35 Inspections for Businesses? The Inspection Process How to Prepare & Respond Penalties for Non-Compliance Why Choose Nexus Accounting for IR35 Inspection Advice? What is IR35? IR35 is a set of UK tax rules that determine whether a contractor [...]