How to judge if your contractor accountant is doing a good job or not

A good contractor accountant doesn’t just help you avoid problems with HMRC and Companies House; they also help you to run your business efficiently, make sound financial decisions, and keep more of your contract earnings.

So, how do you know if your accountant is doing a good job? Here’s a comprehensive guide, tailored for limited company contractors.

Keep a tally of the ticks and crosses to see if your accountant is doing a good job!

They keep you 100% compliant – quietly and efficiently

A key part of your accountant’s job is to keep your company on the right side of HMRC and Companies House.

They should:

• File your annual accounts and Corporation Tax return well ahead of deadlines.
• Take care of your quarterly VAT returns (if registered).
• Process payroll, including RTI submissions.
• File your Confirmation Statement each year.
• Help you complete your Self Assessment and advise on any payments on account. Please note this is a personal expense, but it is often included for ‘free’ as part of your monthly fee.
• Help keep you compliant with IR35, where applicable (particularly if you’re working outside IR35 through your limited company).

See our list of typical accountant duties here.

You should never be surprised by a penalty, missed deadline, or urgent HMRC letter.

✔ You receive proactive reminders, your filings are done without stress, and nothing falls through the cracks.

✘ You’re finding out about deadlines the day before – or worse, after you’ve missed them.

They understand contractors, not just “small businesses”

The needs of contractors are very different from those of traditional small businesses. Your accountant should understand:

• IR35 and off-payroll working rules.
• The best ways to structure salary vs dividends.
• Flat Rate VAT scheme advantages (although many one-man bands are ineligible).
• The perils of the Managed Service Company (MSC) legislation.
• Home office expenses, travel claims, and other expenses a typical contractor will incur.
• The nuances of switching between umbrella and limited company structures.

✔ They offer tailored advice for contractors – not café owners or plumbers.

✘ You’re explaining IR35 to them, or getting vague advice like “you’ll need to speak to a tax specialist”.

They help you understand the numbers

You don’t need to become a chartered accountant yourself – but you do need to understand:

• How much profit is your company making?
• What retained profits are available to draw as a dividend?
• Your company’s tax liabilities and cash runway.
• When and why to set aside money for Corporation Tax, VAT, or personal tax.

A good accountant explains your monthly figures, year-end accounts, and any tax planning opportunities clearly, not in jargon.

✔ You feel confident and informed after every interaction.

✘ You avoid asking questions because the answers always seem confusing or rushed.

They’re responsive and easy to reach

You shouldn’t have to wait a week to get clarity on a dividend payment, a VAT issue, or a payroll question. Contractor life often moves fast – you need timely answers.

Some accountants even offer a guarantee to respond by the end of the working day (if a question has been received by a certain time).

✔ You have a named accountant or client manager who responds quickly – ideally within 24–48 hours.

✘ You’re stuck in a support queue, emailing “info@…” with no idea who’s dealing with your file.

Their pricing is clear and fair

Most contractor accountants offer a fixed monthly fee, and that’s good. But not all include the same things.

You should know if your fee includes:

• Year-end accounts
• VAT returns
• Payroll and P11D filing
• Your Self Assessment tax return (sometimes included for free, otherwise this is a personal expense)
• Access to accounting software (e.g. FreeAgent, Xero)
• Ongoing tax advice (not just form-filling)

✔ The fee structure is transparent, itemised, and stable.

✘  You’re paying extra for “standard” services – or discover surprise costs like “catch-up fees” when switching firms.

They add real value – beyond compliance

A top-tier accountant doesn’t just keep you legal – they make your company more efficient and more profitable.

Look for:

• Advice on tax-efficient profit extraction.
• Spotting opportunities to reduce Corporation Tax, such as contributing to a pension.
• Alerts on changes to legislation (e.g. IR35, MSC), and taxes (e.g. the recent Corporation Tax hike).

✔  Your accountant offers suggestions before you ask for them.

✘ You feel like they’re doing the bare minimum.

Is it time to switch accountant?

If you’ve been with your current firm for a while – or have never worked with anyone else – it can be hard to know when it’s time to move on.

Here are clear warning signs that your accountant may not be the right fit:

Repeated errors or missed deadlines

• You’ve been hit with HMRC penalties.
• Submissions have been late or incorrect.
• You’ve had to chase them about urgent filings.

Lack of contractor knowledge

• They don’t discuss IR35, salary/dividend strategies, or the MSC rules confidently.
• You’re unsure they specialise in limited company contractors at all.

Poor communication

• You’re waiting days (or weeks) for a reply.
• You feel like a number in a queue, not a client.
• You never hear from the same person twice.

High fees for low value

• You’re paying a premium rate but doing most of the work yourself.
• There are hidden charges, unexplained invoices, or unexpected “catch-up” costs.

You’re doing all the thinking

• You’re the one asking all the questions.
• You’ve spotted tax planning opportunities they’ve never mentioned.
• You don’t feel confident they’re “on it”.

✘ If two or more of these crosses apply, it’s worth reviewing your options.

Switching accountants is easier than many contractors realise – and a fresh start with a specialist firm could dramatically improve your experience and even save you money.

Thinking of switching? Here’s what to expect

Changing accountants is straightforward. Your new accountant will usually:

• Contact your previous firm to request a handover of records.
• Get authorisation from you to act with HMRC.
• Handle the transition with minimal disruption.

And no, you don’t have to wait until the end of your company’s financial year.

Find out more in our guide to switching accountants.

Final thoughts

A great contractor accountant does far more than tick boxes and file returns. They should give you confidence, peace of mind, and a clearer path to making the most of your limited company.

If your current accountant isn’t meeting these standards, don’t settle for second best. Switching to a contractor-focused, proactive accountant can make all the difference, financially and emotionally.