What's different about management consulting
Compared to contractors, independent management consultants typically:
- Run multiple concurrent client engagements (lower IR35 risk per engagement)
- Charge daily or fixed-fee project rates (mix of retainer, milestone, and success-fee structures)
- Have higher per-engagement values (£20K-£200K project sizes are common)
- Often have international or cross-border clients
- Sometimes engage subcontractors for specific deliverables
These dynamics mean management consultant accounting needs are closer to small-firm professional services than to contractor accounting. The right specialist treats them accordingly.
What a typical engagement looks like
- Annual statutory accounts and CT600 - filed on time, reviewed for tax planning opportunities
- Monthly bookkeeping and payroll - via Xero, FreeAgent, or QuickBooks
- Quarterly IR35 reviews for any engagements lasting over 3 months with the same client
- Director Self Assessment with dividend planning
- Pension contribution structuring - typically via company SIPP, up to £60K annual allowance
- VAT registration and quarterly returns if turnover above £90K
- R&D tax credit claims for genuine technological advancement work (rare for pure advisory, but worth checking)
Frequently asked questions
Can I claim subcontractor fees?+
Yes - if you engage other consultants or specialists for specific deliverables, those are allowable as cost of sales. You'd typically receive an invoice from each subcontractor; your accountant handles the bookkeeping treatment.
What about overseas client invoicing?+
For B2B services to overseas business clients, the place-of-supply rules generally mean no UK VAT. For B2C overseas clients, different rules apply. A specialist will handle the determinations and any related disclosures.
Tell us about your situation. We'll match you with the right specialist.
No fees, no obligation. We come back within 1 working day.