Here at Gorilla Accounting, we work with a lot of freelancers and contractors. During our time helping out with accounting and taxation, we’ve heard a whole range of questions that apply to most individuals going at it alone. We’ve decided to include a few of the most frequently asked questions we’ve encountered below – with all the answers you need!
- Do I Need Business Insurance?
When it comes to business insurance, there are two types we definitely recommend: ‘Professional Indemnity Insurance’ and ‘Public Liability Insurance’. Additionally, if you have employees, you may want to consider ‘Employers Liability Insurance’. We’ve partnered with Watson Laurie Insurance Brokers to provide all of these policies to our clients.
- Do I Need a Business Bank Account?
In the immortal words of the Churchill Dog: oh yes! As a limited company, the business will be a separate legal entity and the money made will belong to the company.
- Should I Be a Limited Company or an Umbrella Company?
This is one of the most popular asked questions we’ve ever received. Unfortunately, the answer is one only you can decide, but we’ve put together a guide to the factors that may determine your choice on our website.
- What Percentage of My Turnover Can I Take Home from My Limited Company?
The guideline percentage that you can take home from a limited company is around 70-80% of a contract’s value – a juicy figure, I’m sure you’ll agree. However, you have to keep in mind your flat rate percentage, allowable expenses, salary, pension contributions, dividends and much more. Check out our take home pay calculator to get a better picture.
- Do I Need to be VAT Registered?
Another extremely popular question, VAT registration is only required if you earn over £81,000 in any 12 month period. Despite this, at Gorilla Accounting we recommend applying below this threshold in order to take advantage of the flat rate VAT scheme, and for a number of other reasons detailed in our blog here.
