Contracting Clarified with our Team: Aline's Top Tips!

Are there specific types of expenses that contractors commonly process, and what best practices do you recommend when it comes to managing/monitoring your expenses?

Contractors typically claim portion of utility bills, mileage & subsistence for business travel, home office support expenses if working from home, and subscriptions to support their contract work. I always advise contractors to have a prompt and accurate record keeping of expenses in place – saving all receipts into a separate folder, or even better, the Icon Accounting App and portal can be used for this! Additionally, make sure to user the company bank account for all business-related transactions if you have a Personal Limited Company set-up.

Are there any expenses that contractors often overlook, but can be significant for tax relief?

Contractors often overlook the potential tax relief from benefits such as the small benefit exemption scheme and claiming your €1000 voucher through this, and the work-from-home allowance if you do work remotely.

What is the most common mistake you think contractors can potentially make regarding their finances? 

One thing I would see contractor may make the mistake of is to build up savings or allocating reserves for emergencies or unexpected circumstances, and not establishing a pension for long-term planning.

For new contractors, what steps or routines do you suggest they adopt to establish and maintain good financial habits throughout their contracting career?

Setting up a yearly financial budget, identifying necessary outgoing costs for business operations and in general really to minimize spendings are the recommended practices that I would suggest for contractors to put in place.

What advice would you give to someone just starting their contracting journey?

I would advise them to create a plan with the forecast for the year and goals that they would like to achieve, and also to speak to a financial advisor to help with their financial planning, Finally, I would suggest to always monitor the market to identify possible new opportunities to progress in their contracting journey and to expand their network.

How frequently would you recommend that contractors conduct a review of their setup to ensure it aligns with their career goals and facilitates continued growth?

Once a year, it’s important to create a business planning with the predictions and goals that they would like to achieve.

Are there any recent changes in tax regulations or industry trends that contractors should be aware of for optimal financial planning?

Contractors should be aware of recent changes in tax rate bands for 2024.

As a dedicated account manager at Icon Accounting, if there's one resource from our offerings that you consistently recommend to your clients in the contractor community, what would it be?

I consistently recommend Rockwell for financial planning and pension services to contractors!