Contracting Clarified with our Team - Sophie Gordon

What types of expenses do contractors typically claim, and what best practices would you recommend for managing them?

Contractors commonly claim expenses such as:

·         The e-workers relief or a percentage of light and heat as their utility bills

·         Mobile and internet bills – percentage of cost can be claimed for tax relief

·         Mileage to cover business travel

·         Pension contributions

My top tip - Stay consistent. We always recommend recording expenses monthly and uploading all receipts. Once we have them on file, you don’t need to worry about losing them later.

Are there any often-overlooked expenses that could offer significant tax relief?

Yes – and the main culprit is pensions. Many contractors don’t take full advantage of this powerful tax-saving tool. In addition, if you’re working from home, be sure to claim for items like desks, lamps, shelving, or ergonomic chairs – all of which can add up to significant relief over time.

What’s the most common financial mistake contractors make?

Not maximising pensions or claiming expenses properly. Some contractors just withdraw everything through payroll and miss out on efficient financial planning. If contracting long term and through your own company, it can be worth considering a company car, or future-proofing with different tax strategies, such as retirement relief. 

What habits should new contractors build early in their career?

Don’t ghost your accountant! Send in your bank statements and expenses regularly, and don’t be afraid to reach out to your account manager if you’re unsure. And make the most of our Knowledge Base, which is packed with ideas for allowable expenses and other helpful tips.

What’s your best piece of advice for someone starting their contracting journey?

Ask questions – it’s better than guessing or winging it. And there’s no harm in testing the waters with an Umbrella Company Solution first, to make sure contracting is a good fit for your lifestyle and goals.

How often should contractors review their setup to stay aligned with their goals?

Review your setup ahead of every contract renewal – whether you're with an Umbrella Company or have your own Personal Limited Company. That could be every 3, 6, or 12 months depending on the length of your current contract.

Are there any recent tax or industry changes that contractors need to watch out for?

At the moment, no major changes to worry about!

Finally, what’s one resource you always recommend to your clients?

Without hesitation, Sophie names two essentials: The Icon Accounting Portal, especially the Knowledge Base and Icon Chat, where contractors can get fast, reliable support.

Whether you're brand new to contracting or looking to sharpen your financial setup, Sophie’s advice makes it clear: success starts with staying informed, staying organised, and staying connected with your Icon Accounting team.