Bookkeeping for IT contractors and freelancers
Contractors usually work through a limited company, with a handful of large invoices, a small salary and dividends. The bookkeeping is simple in volume but unforgiving in detail.
- Flat £15 an hour
- No contract
- Qualified UK team
- Pay online in minutes
Bookkeeping for IT contractors and freelancers
Your price
4 hours at £15
£60
Set-up fee£0
ContractNone
Regulated firm
Qualified team
Qualified team
Certified advisor
ProAdvisor- FreeAgentSupported software
- 4.9 out of 5300+ Google reviews
The short answer
What does bookkeeping for IT contractors and freelancers involve?
Bookkeeping for IT contractors and freelancers means keeping invoices and payments from agencies or clients, director's salary and dividend records, expenses within HMRC rules and the rest of your records accurate and reconciled. At £15 an hour, a typical contract developer (about 30 transactions a month) needs about 2.5 hours a month, which is around £37.50.
What makes these books different.
Every sector has its own records and rules. These are the ones that matter for IT contractors and freelancers.
Few invoices, big sums
Each invoice matters. Payment dates, retained VAT and any agency fees need accurate records.
Salary and dividends
The director's pay mix affects tax and National Insurance, and dividends need proper vouchers and board minutes.
Flat Rate VAT
Many contractors use the Flat Rate Scheme. Contractors classed as limited cost traders pay 16.5%, so choosing and applying the scheme correctly matters.
IR35 evidence
Contract and engagement records help show whether off-payroll working rules apply to each client.
£15
an hour, flat
£37.50
a month for a typical contract developer
2.5h
of bookkeeping a month, about 30 transactions a month
0
contract, stop whenever you like
Records we keep for you.
- Invoices and payments from agencies or clients
- Director's salary and dividend records
- Expenses within HMRC rules
- VAT scheme workings
- Pension contributions
- Accountancy and insurance costs
Rules worth knowing.
Limited cost trader
A business that spends less than 2% of its turnover on goods, or under £1,000 a year, pays 16.5% on the flat rate scheme rather than its normal sector percentage.
Off-payroll working
For medium and large clients, the client decides employment status for tax. Small-client contracts leave the decision with your company.
Director's loan account
Withdrawals above salary and dividends sit in the loan account, and an overdrawn balance at year-end can trigger tax.
General information, not tax advice. Rules change, so check GOV.UK or ask your accountant. Last reviewed November 2026.
A typical month.
A contract developer with about 30 transactions a month, VAT registered. Here is the time it takes and what it costs.
- Core bookkeeping (Up to 30 transactions)1.5h
- Contractor (CIS / IR35) extras0.5h
- VAT-ready books (MTD)0.5h
Each month
£37.50
Where this sector is most common.
Using ONS business counts for 2026, technology and media is the biggest share of local businesses in these places. We serve all of them online.
- Cambridge39% of local businesses, 1.7 times the UK share, about 1,935 firms
- Kingston upon Thames33% of local businesses, 1.5 times the UK share, about 2,725 firms
- Aberdeen33% of local businesses, 1.5 times the UK share, about 2,485 firms
- Brighton and Hove33% of local businesses, 1.5 times the UK share, about 4,545 firms
- Kensington and Chelsea32% of local businesses, 1.5 times the UK share, about 4,175 firms
- Oxford32% of local businesses, 1.5 times the UK share, about 1,575 firms
Clients say it better than we do.
4.9300+ Google reviews of Accotax
“He took the time to explain every step of the process and made a complex situation much easier to understand.”
Hugo Alvarez
Google review of Accotax
“They take the time to understand how our business works and what our needs are.”
Mael Leboucher
Google review of Accotax
“Very prompt in responding to questions and patient with us even when we seem to be slow.”
Mansur Liman
Google review of Accotax
“The work was completed promptly, my tax return was successfully filed.”
Sergey M
Google review of Accotax
IT contractors and freelancers: your questions.
Is the Flat Rate Scheme right for a contractor?
It can reduce admin and sometimes tax, but limited cost trader status at 16.5% often removes the benefit. We can run both calculations from your actual figures.
Related sectors.
- Doctors, dentists and healthcare professionalsLocum and practice income, pensions and professional costs for healthcare professionals.
- Consultants and agenciesRetainers, time-based billing and subcontractor costs for consultancies and agencies.
- Coaches and tutorsCourse income, platform fees and VAT questions for coaches, trainers and tutors.
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