Contracting can be highly rewarding, but it’s easy to fall into traps that cost you money and time. Here are five of the most common accounting mistakes UK contractors make—and how to avoid them.
Not checking IR35 status properly
Assuming you’re outside IR35 without a contract review can leave you exposed to surprise tax bills. Always get a proper assessment.
Mixing personal and business finances
Using one bank account for everything might seem easier, but it makes bookkeeping a nightmare and can raise red flags with HMRC.
Missing deadlines
Late self-assessment returns or VAT payments come with automatic fines. It’s an easy way to lose money for no reason.
Not claiming all allowable expenses
Many contractors miss out on legitimate deductions—such as travel, equipment, and home office costs—simply because they don’t know what’s claimable.
Trying to do everything yourself
DIY accounting often leads to mistakes, missed tax relief, or even penalties. Getting professional help usually pays for itself.
Avoiding these mistakes comes down to having the right support. Our accounting services are designed specifically for contractors—letting you focus on the work, while we handle the numbers.
In need of accounting services? Get in touch!
