Industry SpecialistsInstitute of Financial Accountants (IFA)

Contractor & Professional Services Accountants in Glasgow

QA FinTax are specialist accountants for Glasgow contractors, consultants and freelancers. We handle what makes contracting different: your IR35 status, whether a limited company or umbrella suits you, and structuring your salary and dividends to keep your take-home as high as the rules allow.

Contracting can be far more tax-efficient than employment — or a compliance headache — depending on how it is set up. IR35 is the fault line, and the rules shifted again in April 2026. Whether you are an IT contractor, a management consultant, an engineer or any independent professional in Glasgow, we make sure you are trading in the right structure and paying no more tax than you have to.

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contractor accountant Glasgow — QA FinTax, Glasgow

The Tax Challenges Contractors Face

  • IR35 / off-payroll — is a contract inside or outside the rules?
  • Limited company versus umbrella — which leaves you better off
  • The most efficient split of salary and dividends
  • Claiming genuine business expenses correctly
  • Keeping compliant while running a company around a full workload

IR35 — Who Decides Your Status?

IR35 asks whether you are genuinely in business, or an employee in all but name. Who decides depends on your client’s size. It changed from April 2026, when the thresholds for a "small" company rose — though because the test looks at the previous financial year, most changes bite from April 2027.

Who determines your IR35 status
Your clientWho decides your IR35 status
Small private-sector client (meets 2 of: turnover ≤ £15m, balance sheet ≤ £7.5m, ≤ 50 staff)You (your own company)
Medium or large private-sector clientThe client
Public-sector clientThe client
From 6 April 2026 the small-company thresholds rose to £15m / £7.5m / 50 staff. Separately, new rules make agencies and end clients jointly liable for PAYE if an umbrella fails to operate it correctly.

Limited Company or Umbrella?

If your contracts are outside IR35, a limited company is usually the most tax-efficient route — you take a small salary and the rest as dividends. If your contracts are inside IR35, or you want zero admin, an umbrella may suit better. We model both for your day rate and tell you honestly which leaves you better off.

Salary and Dividends — the Efficient Split

Through a limited company you take a modest salary plus dividends. Dividend rates rose for 2026/27, so the sums are tighter than they were, but a blend still beats an all-salary approach for most contractors.

Dividend tax rates, 2026/27
BandRate
Dividend allowance (first £500)0%
Basic rate10.75%
Higher rate35.75%
Additional rate39.35%
Basic and higher rates each rose by 2 percentage points from 6 April 2026. We model your salary/dividend split against your actual figures.

The Services Contractors & Professional Services Businesses Need

Contractors & Professional Services in Glasgow — Frequently Asked Questions

IR35 (the off-payroll rules) tests whether you are genuinely self-employed or an employee in disguise. If a contract is caught, you pay broadly employment-level tax. Whether it applies, and who decides, depends on your contract terms and your client’s size — we review both.
If your work is outside IR35, a limited company is usually more tax-efficient. If it is inside IR35, or you want no admin, an umbrella can be simpler. We model both against your day rate so you can choose on the numbers, not guesswork.
Through a limited company, typically a small salary plus dividends. For 2026/27 dividends are taxed at 10.75%, 35.75% and 39.35% after a £500 allowance, so the optimal split is tighter than before but still usually beats all-salary. We calculate it for your income.
Genuine business costs — professional software and subscriptions, equipment, business travel, professional indemnity insurance, accountancy fees, and a proportion of home-working costs. The rules are stricter inside IR35, which is one more reason to get your status right.
Yes. From 6 April 2026 the "small company" thresholds rose (£15m turnover, £7.5m balance sheet, 50 staff), changing which clients must assess your status — though the prior-year test means most effects land from April 2027. New umbrella PAYE liability rules also apply from April 2026.

Official sources

Rates and thresholds are stated for the 2026/27 UK tax year and are for general guidance only. They are not a substitute for advice on your own circumstances.

Accountants who understand contractors & professional services

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