10 Recent Blog Posts https://gorillaaccounting.com/blog/ Shows a list of the 10 most recent blog posts. Dan & Ian's London Marathon 2019 https://gorillaaccounting.com/blog/dan-ian-s-london-marathon-2019 <p>Having watched the London Marathon 2018 and being suitably inspired, Dan asked Ian if he fancied entering the next marathon. For reasons still unknown, Ian said yes. Both Dan and Ian have their reasons for wanting to "run" 26.2 miles. </p><p>Dan has always tried to challenge himself. When he was younger, Dan played football for local youth academy. Dan eventually moved on to a more dangerous sport, Boxing. Dan has boxed for many years and credits it with helping him to retain his fitness despite enjoying a sweet snack or two.</p><p>Like Dan, Ian challenged himself when he was younger although he played more non-traditional sports like American Football. However, an injury at 23 forced him to stop playing. From there he ate through his twenties, ballooning to 16 stone. Aged 31, Ian decided he had enough of being compared to Harold Bishop, so he started the long journey to a normal BMI. Using the Couch to 5k app, he developed a love for running although true to form, his runs have tended to be non-traditional mud runs.</p><p>However, as everyone knows, if you are going to run the London Marathon, you need a reason to do it. So, Dan and Ian agreed that there was one charity to run for, and that is<a href="https://www.thefootprintsfoundation.co.uk/"> The Footprints Foundation.</a></p><p>The Footprints Foundation aims to tackle the problems and issues facing disadvantaged and vulnerable young and elderly people, and those people with significant health issues. Footprints aim to support through volunteering and hands on help rather than solely providing financial support. </p><p>Gorilla have been involved with The Footprints Foundation for many years, over the course of this association we have been able to see first-hand, the positive impact that fundraising has on the projects they are running. Support in any way is much appreciated and every little helps!</p><p>If you would like to make a donation in aid of Ian and Dan’s marathon run, then please visit our <a href="https://www.justgiving.com/fundraising/isabelle-iley">Just Giving page.</a></p> Tue, 19 Feb 2019 15:59:00 +0000 https://gorillaaccounting.com/blog/dan-ian-s-london-marathon-2019 How Contractors Are Making the Most of Technology https://gorillaaccounting.com/blog/how-contractors-are-making-the-most-of-technology <p>Technology is drastically changing the way we work, especially if you’re a contractor. You can work from home and still be able to easily communicate with your customers, while also being able to access a wealth of information with only a touch of a button. As <a href="https://gorillaaccounting.com/">contractor accountants</a>, we also use the best accounting and bookkeeping software on the market, so you can have your business admin in order at all times.</p><p>Because technology is increasingly important in the contracting world, it’s crucial that you know how to use it to your advantage if you want to succeed now and in the future. Are you making the most of technology? Take stock of how you utilise it in your business and consider whether you could be doing more.</p><h2>Contractors and Technology</h2><p>The number of self-employed workers in the UK has been consistently rising since 2001 and currently account for approximately 15% of the working population. 1.77 million people work as full-time contractors in the UK and the economic contribution of freelancers and contractors to the country is approximately £119 billion.</p><p>Self-employment has thrived due to the rise of technology, from Wi-Fi and cloud-sharing services to video call apps. The Policy development manager at the Association of Independent Professionals and the Self-Employed, Jordan Marshal, believes that ‘technology has made this all so much easier, whether finding work through online platforms or even being a “digital nomad” – travelling the world while doing remote freelance work.’</p><h2>Leave the Office Behind, Work Anywhere</h2><p>As a contractor, it’s highly unlikely that you’ll want to rent office space. Everything and everyone is connected through the Internet nowadays, so you don’t have to travel to a specific location to do your job or to give important documents to someone. You can interact with anyone, no matter where you (or they) are in the country or the world.</p><p>Technologies that allow video conferencing, such as Skype, have become crucial in today’s workplace. It helps you to communicate more efficiently with clients, vendors and suppliers. Email is also one of the primary methods of communicating with people as a contractor. Because of these and other technologies, communication has become more frequent and efficient.</p><p>In addition, flexible working will save you rent and commuting money and allow you to work in an environment where you and your projects can flourish.</p><h2 align="center"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-935756.jpeg" alt="pexels photo 935756" width="600" height="400"> </h2><h2>Improve Communication with Supply Chain</h2><p>Technology makes it easier to communicate with clients as well as with your supply chain. Contractors can make the most of technology by using it to optimise business processes, create better visibility within the supply chain, reduce operating costs and improve control over inventory.</p><p>Many supply chain technologies offer real-time data that is accurate and easy to access from anywhere, allowing you to make business decisions swiftly and decisively. Utilising technology instead of relying on pen-and-paper methods also ensures error-free shipping, accurate inventory and timely deliveries. This will not only improve your business’s reputation but will help you to expand it.</p><h2>Streamline Your Business’s Operations</h2><p>Technology makes contracting a lot easier and helps to streamline your operations. For instance, getting paid is so much easier and quicker when you rely on technology; applications such as PayPal mean you can send and receive money swiftly, even if you’re abroad at the moment of transfer. These types of technologies tend to be fast, reliable and safe, since both your personal and bank information are encrypted.</p><p>Furthermore, some business operations can be time-consuming and performed on a regular basis. You can consolidate these tasks into a single system and benefit from an automated – and much more efficient – way of working. This can range from workflows that automate processes to automatic billing email reminders to your customers.</p><p>Your customers will benefit from this, too. They’ll enjoy faster deliveries, more options and more competitive prices, as well as better services.</p><h2>Avoid Paperwork By Going Digital</h2><p>Another way that contractors are making the most of technology is by avoiding paperwork. Not only is this important in an increasingly eco-conscious society, but it can also help you to improve your business. Paperwork accumulates quickly and, unless you have an excellent filing and organising system, it can quickly get very confusing. This is especially true if you’re working on several different contracts at once.</p><p>Ask yourself if you really need the paperwork, what information you take from documents in hard copy format, or why they’re important for your job. If you believe you don’t actually benefit from paperwork, look at how you can have the same information in digital form. Document management solutions help contractors to operate in a more efficient manner by ensuring everything is in the same place – and within easy access.</p><p>And, of course, if you’re working from home, filing cabinets can actually take up valuable space. Going digital ensures that you don’t have to give up what little room you have to an ever-growing pile of paperwork.</p><p align="center"> <img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/computer-pc-workplace-home-office-159760.jpeg" alt="computer pc workplace home office 159760" width="600" height="400"></p><h2>Keep Track of Records and Documents</h2><p>By having all of your important business information on a digital platform, such as a cloud-based service, you also ensure that you never lose anything. You’ll know where the contracts you signed with your clients are, as well as billing information and documents vital to do your job. Your documents will all be in the same place but, more than that, they’ll also be safe. From disaster recovery to encryption, cloud storage offers great data security powered by up-to-the-minute technology that doesn’t typically become obsolete.</p><h2>Greatly Improve Your Productivity</h2><p>Technology helps contractors to stay ahead of the competition. From improving data capture and slashing turnaround times to reducing the need for manual processes and making information accessible to everyone, technology helps to increase the efficiency of your business.</p><p>This in turn will make you more profitable.</p><p>It doesn’t matter which industry you’re in either; you can certainly use technology to your advantage in one way or another. If you’re in construction, you may find drones or augmented reality incredibly useful, as well as safe and efficient; IT contractors are likely to benefit from mobile messaging apps to talk to clients; and locum vets can quickly check out the online job boards for a specific area by browsing the Internet on their mobile.</p><p>Technology plays an important role in reducing costs and time, so you’ll want to make sure you’re taking full advantage of it; project management tools, for instance, can help you to stay on track and organise your workload. Another example is if you have to travel to a client’s site; technology can help you to get there in the most efficient way by giving you the best driving routes and an estimate of the time that will take to reach your destination.</p><h2>Learn More About Your Clients</h2><p>Technology allows you to know more about your customers. Things like <a href="https://gorillaaccounting.com/blog/how-contractors-and-locums-can-make-the-most-of-social-media">making the most of social media</a> can give you a unique insight into your industry and your clients, which can then be used to make business decisions.</p><p align="center"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-859264.jpeg" alt="pexels photo 859264" width="600" height="400"> </p><p>If you’re still not taking full advantage of the technology around you, you may want to consider starting now. Instead of guessing what your clients want, which is little more than just a hunch and can easily backfire, study analytical data and use it to drive your business. For example, by researching your industry or analysing monthly visits to your website, you can learn which products or services are most in demand, making it easier for you to give your clients what they want.</p><p>In addition, if you’re targeting a particular demographic, you can quickly find out more about what makes people tick by researching them online, from their tastes to their lifestyles.</p><h2>Easily Find New Jobs</h2><p>As a contractor, you understand just how important it is to expand your client list, so that you don’t find yourself without any other prospects. Technology will help you to do this, since the way contractors search for jobs and are hired has changed immensely. You can search for a new contracting job by using your mobile phone, which was unthinkable just a decade ago. With countless job boards and job search apps literally at your fingertips, it’s easier than ever to connect contractors to recruiters or businesses.</p><p>LinkedIn is another extremely useful platform that all contractors should be aware of. This professional social network plays a major role in job searching and, with a strong profile, your next job could come to you without much effort on your part. LinkedIn allows you to keep an eye on what is happening in your sector at the moment, as well; every contractor knows it’s important to stay informed and relevant, so this ability to gain industry insights is absolutely crucial. With this platform, you can also get your CV seen by the right people and easily vet potential jobs and work environments.</p><p>Many job seekers, including contractors, want to be unique in order to stand out from the candidate pool. Technology allows you to be as creative as you wish, such as the ability to create your CV in different formats other than Word or PDF. In addition, technologies such as video allow you to interview for a job without having to leave the comfort of your home, which is especially useful if the potential client works very far away. This also means you can find a job in another country, if you so wish.</p><h2>You Can Market Your Business with Technology</h2><p>Businesses, even if a one-man-band, need a strong digital presence. While this used to be optional, it is now essential for success, especially when it comes to promoting yourself. The sky is the limit; create professional, eye-catching websites, use social media channels (like Facebook, Twitter, Instagram and LinkedIn) or blog about your latest news or showcase special offers. You can also run email marketing campaigns or do pay-per-click advertising, which will help you to reach a wider audience, generate leads and build long-lasting relationships with customers.</p><p>Make sure you have a digital marketing strategy in place, so that you can measure your performance against the goals you want to achieve. Otherwise, you risk missing out on big opportunities or wasting resources.</p><p align="center"> <img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/twitter-facebook-together-exchange-of-information-147414.jpeg" alt="twitter facebook together exchange of information 147414" width="600" height="400"></p><h2>Handle Your Accounts Online</h2><p>Without technology, you’d have to do everything manually, including your taxes. That wouldn’t be a very efficient way of conducting business, especially because you’d have more chances of making mistakes – and being fined by HMRC as a result. The current focus in the accounting world is therefore shifting towards widespread automation, which makes processes faster, more affordable and error-free. You can even quickly and accurately calculate your take-home pay by using our simple <a href="https://gorillaaccounting.com/contractor-tax-take-home-pay-calculator/">contractor tax calculator</a>.</p><p>Everyone here at Gorilla Accounting understands that, as a contractor, you want to spend your time and effort on running your business instead of on bookkeeping tasks. Furthermore, if accountancy isn’t part of your current skills base, you’d have to learn all about it while trying to grow your business – not a sustainable strategy.</p><p>This is why automation is key. Simply choose accounting software that accurately does all of the repetitive tasks you don’t want to do. We use <a href="https://gorillaaccounting.com/free-agent-book-keeping-software/">FreeAgent bookkeeping software</a> at Gorilla Accounting, which has always served us and our clients well.</p><p>With FreeAgent, you can keep on top of everything; manage your cash flow, send invoices, get bookkeeping reports, check your expenses, plan for tax season, prepare your self-assessment tax return, submit your VAT returns, and more. Being financially organised has never been easier with this cloud-based service, which has been voted the UK’s number one accounting software for small businesses. Used by contractors and freelancers alike, FreeAgent will let you run your business no matter where you are.</p><p>Almost every business requires the use of technology in one way or another, including contractor work. Whether you’re setting up a payment method or doing your taxes online, most contractors are dependant on technology to provide better products and solutions.</p><p>Talk to us to learn more about how our technology-driven services can make your day-to-day that much simpler and help you to grow as a contractor.</p> Tue, 19 Feb 2019 10:30:00 +0000 https://gorillaaccounting.com/blog/how-contractors-are-making-the-most-of-technology Making Tax Digital: What is It and What Do You Need to Know? https://gorillaaccounting.com/blog/making-tax-digital-what-is-it-and-what-do-you-need-to-know- <p align="center"> </p><p>The UK tax system is about to face one of its biggest changes: Making Tax Digital (MTD). But do you know how this will affect your business? Despite the importance of this initiative, many contractors are still unaware of what MTD is and how it will impact them.</p><p>As <a href="https://gorillaaccounting.com/">contractor accountants</a>, we believe in doing our part to help you come to terms with MTD and its implications. For this reason, we’ve put together a guide that will help you to navigate this new regulation and bring you the peace of mind of knowing that you’re prepared for everything.</p><h2>What is Making Tax Digital?</h2><p>Making Tax Digital was first announced in the 2015 Spring Budget, and it’s designed to transform the UK tax system for individuals and businesses. According to HMRC, this initiative will introduce digital record-keeping and make the tax system more effective, more efficient and easier for taxpayers. The goal behind MTD is to help the HMRC to become one of the world’s most digitally advanced tax administrations.</p><p>After 1<sup>st</sup> April 2019, businesses will no longer be reporting their taxes once a year, but quarterly. This initiative is a major change; some businesses already file their VAT every three months but will now also need to record every transaction digitally on MTD-compliant accounting software (cloud or on-premise).</p><p>All businesses with a taxable turnover above the VAT threshold (which is currently set at £85,000) will have to utilise MTD-compliant software to store financial records and submit VAT returns. If your VAT-registered business has a taxable turnover below the threshold, you’re not obligated to opt-in to Making Tax Digital, although HMRC encourages you to do so.</p><p>You will need to keep certain information as digital records, including your business name, place of business and VAT registration number. You will also have to ensure the software used will allow you to show the audit trail between primary records and the VAT return. Details on supplies you made and received will also be preserved. These digital records will have to be kept for up to six years, so it’s crucial that you don’t delete anything during this time period.</p><p>From April 2020, it will be mandatory to use software to submit income and corporation tax, not just VAT.</p><h2>Why is HMRC Implementing Making Tax Digital?</h2><p>The idea behind MTD is simple. Make the tax experience easier and better for everyone involved, from contractors and SME owners to HMRC.</p><p style="text-align: center;" align="center"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-840997.jpeg" alt="pexels photo 840997" width="600" height="400"></p><p style="text-align: left;" align="center"><a></a>Doing this leads to another important reason behind the implementation of Making Tax Digital: the current tax gap. By making taxes easier, the government is hoping to minimise the risk of not collecting tax. HMRC estimates it’s missing £9.4 billion in tax revenue due to errors or improperly filled submissions; by ensuring all returns are digitised, the government believes it’s possible to tackle this non-compliance. By 2023, HMRC hopes to retrieve £4.8 billion of uncollected taxes.</p><p>There are thousands of contractors, freelancers and SME owners who still keep paper-based records or use Excel spreadsheets to keep track of their expenses or invoices. This, of course, can cause serious mistakes, such as lost documents and misremembered information.</p><p>However, after April, this will change, and businesses won’t be able to store information on paper or Excel. This means you won’t be able to submit your VAT returns through HMRC’s website either; if you’re still using a basic spreadsheet or something similar, you need to look into switching to an MTD-compliant alternative as soon as you can.</p><h2>Benefits of Making Tax Digital</h2><p>While MTD may seem like a big change, there are several benefits to the implementation of this initiative.</p><p>Tax updates will happen in ‘real time’, allowing you to always be aware of where you stand tax-wise. This has been designed to help prevent errors and tax due, and the HMRC will collect and process this information throughout the year. You’ll know how much tax you owe without having to wait until the end of the year.</p><p>All of your tax information and transactions will also be in one place, making it easy for you to stay organised. The new system will also save you time; there will be less documentation to fill out, because HMRC will be up to date with certain information.</p><p>Communicating with HMRC will also be simpler and faster, with both the government and contractors having an overview of all taxes in the same place. You’ll have the chance to make key business decisions at the right time and will be in a better position to budget for tax liabilities, as well.</p><p>Another important factor of Making Tax Digital is that you can interact with HMRC at a time that suits you. Your digital account will be linked to the government’s system, allowing direct communication between HMRC and your business.</p><p>Making Tax Digital is also meant to reduce paperwork and streamline the recording process, so contractors will have a more accurate view of their taxes. This is likely to lead to increased productivity and performance.</p><h2>Concerns with Making Tax Digital</h2><p>From online shopping to online banking, digitalisation and technology are now an integral part of our daily lives; the next natural step is for taxes to be digitised, as well. However, while over 1.2 million UK businesses will be affected by Making Tax Digital, around 400,000 businesses don’t even know they need to file VAT returns through MTD-compliant software from April 2019. This means there is some confusion in regard to what is expected to happen in less than two months; if this confusion is not clarified as soon as possible, these businesses could face penalties.</p><p>Slow Internet speeds will also become an issue once Making Tax Digital has been implemented. Given that an <a href="https://www.ofcom.org.uk/__data/assets/pdf_file/0015/100761/UK-home-broadband-performance,-November-2016-Technical-report.pdf">Ofcom study</a> found that only one in four rural homes had access to broadband speeds of over 10 megabytes per second, it’s not difficult to predict the potential issues that may arise. Given that MTD will rely on connectivity, self-employed individuals and contractors will likely encounter difficulties when updating HMRC quarterly if their Internet speed is low</p><p style="text-align: center;"></p><p>Many people are also concerned about the timing of the initiative. MTD is expected to be implemented from 1 April 2019, but this is also the date the UK will no longer belong to the EU. While there is a transition period in place until 31 December 2020, if we leave with a deal, this will still mean that businesses and individuals will struggle to keep up with these changes. This time frame is, without a doubt, a challenge, especially because the system will still be in the pilot phase.</p><p>It’s also expected that some contractors or businesses will find it difficult to transition from paper-based processes to digital ones. By starting sooner rather than later, you’ll have time to adapt to the new changes.</p><h2>What About Non-Compliance with MTD?</h2><p>Once April 2019 arrives, you’re expected to comply with Making Tax Digital, if you have a taxable turnover above the VAT threshold. Those who do not comply will incur a default surcharge, which will be in place until April 2021; after this period, the surcharge will be replaced by points-based late-submission penalties and late payment penalties.</p><p>If the VAT liability is paid by the due date, no surcharge is payable for the first default. Just by itself, late submission of a return won’t result in a default. The amount of surcharge owed will be calculated as a percentage of the VAT that’s unpaid by the due date. The percentage for the first late payment during a surcharge period will be 2% of the outstanding VAT; this fee will progressively increase to 5%, 10% and 15% for further payments.</p><p>If you have what the government calls a ‘reasonable excuse’ for failing to pay in a timely manner, you may be able to avoid the surcharge by sorting out the issue without excessive delay. Because HMRC doesn’t have a list of reasonable excuses, they will operate on a case-by-case basis. However, it has to be something that stopped you from meeting this tax obligation on time but that you then took care to solve.</p><p>When it comes to the points-based system that will replace the default surcharge, the government has announced that a point will be awarded for every missed payment, independently of what it is (VAT or corporation tax, for example). The points will expire after a determined period of compliance. You will have to pay penalties when you reach a point threshold on your submission schedule: two points for annual submissions, four for quarterly and five for monthly.</p><p align="center"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-1569076.jpeg" alt="pexels photo 1569076" width="600" height="400"> </p><h2>What is the Making Tax Digital ‘Soft Landing’ Period?</h2><p>There are three rules at the core of MTD for VAT, which will be implemented with the new regulation in April 2019: your VAT records need to be kept digitally, your VAT returns have to be submitted to HMRC through MTD-compliant software, and if the software you utilise has several parts or solutions, these need to be digitally linked.</p><p>The ‘soft landing’ period, which was introduced early in the Making Tax Digital for VAT discussions, refers to the last rule. During the first 12 months after the implementation of MTD, HMRC will accept copy and paste of information as a digital link. This is meant to give time for businesses to update their systems by placing digital links between software programmes.</p><p><a href="https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat">According to the government</a>, a digital link is ‘an electronic or digital transfer, or exchange of data, between software programs, products or applications. The use of cut and paste does not constitute a digital link (except during the soft-landing period).’ It’s crucial that this time is spent switching to an MTD-compliant solution if you still haven’t done so.</p><h2>FreeAgent: The Importance of the Right Software</h2><p>In order to be MTD-compliant, the software you choose needs to be compliant, as well. Here at Gorilla Accounting, we work with FreeAgent, an accounting software that is on HMRC’s list of compatible suppliers of MTD for VAT.</p><p>In order to be compliant with MTD rules, the software you choose needs to be cloud-based. But what exactly does this mean? By being completely web-based, there is nothing to download, install or update, and you can access your information from your browser or smartphone. Security is key when handling financial data, and FreeAgent will keep your information safe and sound; you don’t have to be afraid of a computer crashing or accidentally deleting a very important file. All of your financial data is securely transferred to FreeAgent’s backup servers several times an hour.</p><p>With this software, you won’t have any hassle when submitting your returns; for the past eight years, FreeAgent has submitted digital VAT returns to HMRC on behalf of their clients, without a problem. You’ll able to track your expenses and income easily, and your transition to Making Tax Digital will be an easy and smooth one.</p><h2>Why Should You Hire an Accountant to Handle MTD?</h2><p>Just like with other big changes in legislation, it’s essential that you’re prepared for everything. Peace of mind is priceless and, by allowing an accountant to handle Making Tax Digital for you, you won’t have to worry about non-compliance. At Gorilla Accounting, our many years of experience in the financial sector and our vast knowledge of UK legislation allow us to adapt our practice to any changes made by the government.</p><p>By letting us handle everything, you have more time to focus on your business, instead of having to learn all of the ins and outs of MTD – or any other legislation, such as IR35. We also offer several useful tools you may want to take advantage of, like our <a href="https://gorillaaccounting.com/contractor-tax-take-home-pay-calculator/">contractor tax calculator</a>. By choosing us, you also get access to FreeAgent, which will make your life that much easier.</p><p align="center"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-196656.jpeg" alt="pexels photo 196656" width="600" height="400"> </p><p>With this fantastic bookkeeping tool, as well as Gorilla Accounting’s financial expertise to keep you compliant with all legislation, you can streamline and improve your business. Don’t wait for Making Tax Digital to come into effect – talk to us today, and we can help you get ready ahead of time.</p> Tue, 12 Feb 2019 12:30:00 +0000 https://gorillaaccounting.com/blog/making-tax-digital-what-is-it-and-what-do-you-need-to-know- Personal Tax Planning when operating through a limited company https://gorillaaccounting.com/blog/personal-tax-planning-when-operating-through-a-limited-company <p>For contractors that operate through a Limited company, it is likely to be the case that you will receive personal income from your company in the form of both salary and dividends.  As dividend tax rates differ from other forms of income, and the tax due is usually worked out after the tax year that the income is received, it is wise to invest some time in personal tax planning. </p><p>The benefit of having a personal tax plan is that you will know where you stand with your personal taxes before your self-assessment has been prepared, to potentially prevent any nasty surprises.  Additionally, proper personal tax planning can also ensure that you can utilise any tax free allowances and lower tax rates that may be available, when looking at the timing of paying a dividend to yourself, as a shareholder of the company.</p><p>As there are a number of things to consider, including how much other income you may have received, if you have any benefits or if you have made personal pension contributions, it would be sensible to seek the advice of an accountant or tax professional to review your personal tax position.</p><p style="text-align: center;"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw1MzVd/pexels-photo-921783-1.jpeg" alt="pexels photo 921783 1" width="600" height="535"></p><h2>2018/19 Dividend tax rates and allowances</h2><p>In the current tax year, every taxpayer, irrespective of income level, can receive £2,000 of dividends without incurring a personal tax liability – good tax planning ensures that this allowance is utilised to maximise the amount that is taken from the company free-of-tax. This is in addition to your personal allowance, some (but not necessarily all) of which is likely to have been used against your salary and/or other income.</p><p>Outside the dividend allowance, the rate at which dividends are taxed is dependent on the level of income received – for tax purposes, dividends form the top portion of your income and therefore all other income sources should be considered first before assessing the rate of tax that will be paid.</p><p>Dividends are then taxed at 7.5% in the basic rate (total up to £46,350), 32.5% in the higher rate (total income between £46,350 and £150,000) and 38.1% in the additional rate (total income in excess of £150,000). Note that if your personal income exceeds £100,000 then HMRC will reduce your personal allowance by £1 for every £2 of income, until completely withdrawn at an income of £123,700.</p><h2>Tax Planning</h2><p>As highlighted earlier, there are a number of things to consider when working out the tax that may be due on dividends.  With the tax year end approaching (5<sup>th</sup> April 2019 for the 2018/19 tax year) it can valuable time invested when considering looking at the timing of when dividends are paid.  For example, if you have un-utilised basic rate allowances remaining in the current tax year that are not used, these will not carry over to the next tax year.  As such, the timing of the dividend payment can be really important, as it could result in the tax due being at the higher rate (32.5%) rather than the basic rate (7.5%).</p><p>Here at Gorilla Accounting, we can review your personal tax position and provide feedback on the likely tax due and how you can best utilise any personal tax allowances in the tax year.  The is a service we provide in addition to the limited company service and is all included in the set monthly fee of £89 + VAT per month.</p> Wed, 06 Feb 2019 15:00:00 +0000 https://gorillaaccounting.com/blog/personal-tax-planning-when-operating-through-a-limited-company Life Insurance: Do You Have Adequate Cover? https://gorillaaccounting.com/blog/life-insurance-do-you-have-adequate-cover <p>According to Benjamin Franklin there are only two certainties in life - death and taxes.</p><p>Both subjects, but especially death we prefer not to think about, let alone discuss. It’s maybe therefore not that surprising that according to research from Direct Line, many families are not adequately protected. For example, only around 40% of the UK’s main income earners have enough insurance to repay the mortgage if they were to suddenly pass away, never mind other household costs.<i></i></p><p>You'll need life insurance if:</p><ul><li>You have any debt and you would like this to be repaid on death</li> <li>You have dependents who need to be protected if you were to die</li> <li>You are planning to take on debt or start a family in the future</li> </ul><h2>When is the best time to organise it? </h2><p>Life insurance premiums are based on a person’s age and health. The younger and healthier you are, the lower the cost and the easier it is to get insurance. Therefore (subject to affordability) it is usually advisable to put cover in place now, because in the future premiums are likely to be higher and any deterioration in your health may even exclude you from being able to get insurance.</p><p style="text-align: center;"> <img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-1574650.jpeg" alt="pexels photo 1574650" width="600" height="400"></p><h2>Do you know about Relevant Life Cover? </h2><p>If you run your own business, you can get help from the taxman to put your protection in place. Relevant Life Cover is a tax efficient way for an employer to provide life cover for an employee.</p><p>Premiums and any benefits paid are eligible for relief from:</p><ul><li>Income Tax</li> <li>Corporation Tax</li> <li>National Insurance Contributions</li> </ul><p>If you have existing plans in place but not written under Relevant Life terms it could be worthwhile reviewing to ensure you have adequate cover in place, that it’s set up at the lowest cost premium and it has been arranged in the most tax efficient manner possible.</p><p>At this point you may wish to consult with an Independent Financial Adviser who can help you to put a clear plan in place and recommend the most suitable arrangement for your circumstances.</p><p><a href="https://www.navigatewealthgroup.co.uk/">Navigate Wealth</a> are Independent Financial Advisers who offer advice on Pensions, Investments and Family Protection.  Richard Bamforth the firm’s Managing Director has over 30 years industry experience and is a Chartered Financial Planner, which is the highest recognised qualification in the industry.</p><p>If you would like to have a free initial discussion in relation to your protection needs or any other financial matter, please contact Richard or one of the team on 0345 340 9690 or email <a href="mailto:enquiries@navigatewealthgroup.co.uk">enquiries@navigatewealthgroup.co.uk</a></p> Thu, 24 Jan 2019 16:00:00 +0000 https://gorillaaccounting.com/blog/life-insurance-do-you-have-adequate-cover How Contractors and Locums Can Make the Most of Social Media https://gorillaaccounting.com/blog/how-contractors-and-locums-can-make-the-most-of-social-media <p style="text-align: left;" align="center">Due to the nature of their jobs, contractors and locums have to promote their business by themselves, since they don’t rely on a steady stream of work as a non-contractor does. This means going where the clients are. Utilising social media can make a world of difference when it comes to promoting yourself and your business; however, many contractors or locums are averse to spending time and effort on this kind of promotion, preferring instead to focus on their work.</p><p style="text-align: left;">Other contractors are unsure how to make the most of social media or their channels. Because we understand just how important it is for you to market yourself, whether you’re starting out your contracting journey or have a few years of experience already, we’ve compiled a few practical tips to guide you.</p><h2 style="text-align: left;">Can Social Media Benefit You?</h2><p style="text-align: left;">Social media can be hard work and, for contractors or locums who are just starting out, it can be a challenge to find the time to do it properly. And just like any other skill, knowing how to best use social media is a learning curve, and it can take a while to see the benefits. However, by investing in it, you are taking a two-pronged approach to your marketing: building relationships with clients and showing off what you can do.</p><p style="text-align: left;">Two years ago, at the beginning of 2017, the number of social media users in the UK was already more than 39 million. In 2018, 83% of adults were tweeting, Snapchating and ‘liking’ other pages (including businesses). At the moment, 37% of the global population (or 2.8 billion people) use social media. By 2022, it’s estimated that 42.88 million people will be active on social media on a monthly basis.</p><p style="text-align: left;">By not being on social media, you risk losing out on such a large pool of potential clients.</p><p style="text-align: left;">In order to choose contractors and locums, people need to find them. What are the most popular ways to find potential employees or clients? Most people would start by Googling it; search engines will offer them a lot of information, including your website and articles you’ve written. Word of mouth is still a popular way to find a contractor too, as are affiliations to associations, references and reviews. It’s worth mentioning that most people will want to know how much the work will cost them and will want to compare quotes before making a decision.</p><p style="text-align: left;">Social media combines all of the above in the same place, in a simple and effective manner.</p><p style="text-align: left;">Having said that, it’s also important that you ask yourself whether or not social media is for you. Can your business actually benefit from it? You should do it for the right reasons, not simply because everyone else is doing it. Service-based sectors tend to do really well on social media, and they use it as a means to reach consumers. If your customer base is not on social media, then it will likely be a waste of time to invest in it.</p><p style="text-align: center;"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-607813.jpeg" alt="pexels photo 607813" width="600" height="400"></p><p style="text-align: left;" align="center"> </p><h2 style="text-align: left;">The Best Platform for Your Business</h2><p style="text-align: left;">In order to start using social media to your advantage, consider which channel will be best-suited for you and your business. Who is using Facebook? What about Twitter or LinkedIn? For instance, more women use Pinterest than men, and LinkedIn is great for B2B companies. It’s important that you know who your target audience is so that you can make the right decision.</p><p style="text-align: left;">If your business is highly visual, Instagram or Pinterest may be the better options, as these platforms rely mostly on pictures and videos. Therefore, keeping in mind the type of business you’re running is also crucial.</p><p style="text-align: left;">By November 2018, the age group with the highest number of Facebook users in the UK was 20 to 29-year-olds; 5.3 million users were female and 5.4 million were male. By 2021, the number of users is estimated to rise to 41.37 million.</p><p style="text-align: left;">Instagram’s monthly users rose to 700 million in 2017 around the world; this is quickly becoming the preferred platform for a younger audience, with 18 to 34-year-olds accounting for 61% of all users. This platform has been introducing new dynamic marketing features, which has made it grow in popularity among contractors. In 2018, 48% of UK contractors were on Instagram.</p><p style="text-align: left;">Not every business invests in Twitter, preferring to focus on Facebook instead, since the latter is still in the lead when it comes to the number of active users. However, in the UK, the number of people using Twitter is set to increase to 13.2 million by 2021 – this network, therefore, should not be underestimated.</p><p style="text-align: left;">LinkedIn is considered the best platform for both businesses and professionals and, after hitting a billion global users in April 2017, it’s clear this is a key channel to promote your business, as well.</p><h2 style="text-align: left;">Take a Peek at Your Competitors</h2><p style="text-align: left;">One of the most important benefits of using social media is that it allows you to get an insight into what the competition is doing. Are they offering a service you’re not? Do they engage often with their followers? Do they do giveaways or competitions? You can improve your social media presence by keeping up with their accounts and taking hints from what they’re doing.</p><p style="text-align: left;">There are several ways to go about it. For instance, following, liking and subscribing to your competitors’ channels allows you to see the content they’re sharing, how they’re promoting themselves and how they’re building their brand. Take note of things such as the topics and subjects they’re discussing, the audience they’re targeting, the tone of voice they use and the pages they engage with.</p><p style="text-align: left;">Once you get this information, knowing what to do with it is just as important. What you always need to keep in mind is finding a way to be different from the competition. Now that you’ve seen what they do (and what is and isn’t working), generate unique and engaging content that will make people want to follow you.</p><p style="text-align: left;">Don’t copy your competitors’ content or marketing strategies – be inspired by them. This information will help you to forge relationships with others, be it the competition, potential partnerships or existing and potential customers.</p><p style="text-align: center;" align="center"> <img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-826349.jpeg" alt="pexels photo 826349" width="600" height="400"></p><h2 style="text-align: left;">Build Relationships</h2><p style="text-align: left;">Many contractors believe that all marketing efforts should immediately impact sales. However, social media is a different animal. Building relationships is a lot more important than trying to get sales, especially because that would drive away your audience – people know when they’re being sold to. Long-term customers will have a more meaningful impact on your business than people who simply make a purchase and never come back. But to obtain a following of engaged customers, it’s necessary to put in the time and energy to earn their trust.</p><p style="text-align: left;">Don’t go after quantity; it’s better to have a few engaged clients than thousands of followers who aren’t sure why they followed you in the first place. Reply to comments and questions in a genuine way, give a voice to customers by allowing them to air their grievances (and respond to them in a professional manner), be transparent and authentic, and provide great customer service.</p><p style="text-align: left;">Showing you care about your clients and their feedback will go a long way toward building long-lasting relationships. A positive side effect of building a loyal customer base is increased brand loyalty.</p><h2 style="text-align: left;">Show Everyone Your Skills</h2><p style="text-align: left;">Social media gives you the perfect medium to showcase what you and your business can do. Identify your strengths and don’t forget about your USP. Having a unique selling point can help you to offer services to clients that no one else can. Whether you’re sharing articles you’ve written on a specific subject or answering questions on Twitter, putting your knowledge base on display will maximise your exposure and allow others to see what you can do for them.</p><p style="text-align: center;" align="center"> <img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-265036.jpeg" alt="pexels photo 265036" width="600" height="400"></p><h2 style="text-align: left;">Improve Your R&amp;D</h2><p style="text-align: left;">How can you be sure that you’re creating and offering products or services that your customers are actually looking for? Traditionally, businesses had to rely on focus groups and surveys to learn more about what their clientele wanted; with the rise of social media, obtaining data that can help your research and development is as easy as checking out what your customers are saying.</p><p style="text-align: left;">You can learn more about your audience without having to make assumptions and hope for the best. You can also crowdsource new ideas. People love giving suggestions and opinions and, while you can’t act on everything, you can take some of the ideas and develop them into a product or service.</p><h2 style="text-align: left;">Top Tips to Growing Your Social Media Platform</h2><p style="text-align: left;">A one-size-fits-all platform doesn’t exist. Different channels will allow you to market yourself in different ways. They also offer a variety of benefits. For example, Instagram is great for brand awareness and growth, while Facebook makes it easy to connect with others. Below, you can find some tips on how to best utilise different platforms to your advantage:</p><h2 style="text-align: left;">Facebook</h2><p style="text-align: left;">Facebook remains the most popular platform, with 86% of small businesses preferring it above others. Because of this and the features it offers, Facebook is great for building relationships, since it allows you to easily connect to people you know (and to the people they know). Most individuals who connect with you have heard of your business and chosen to follow you, because they liked what they found.</p><p style="text-align: left;">To best utilise this network, make sure you’re sharing posts with helpful and engaging content, in order to create trust and relevancy. Because Facebook allows you to share real-time updates on work, you can easily do live videos, list your services, allow reviews of products, and more. Additionally, you can find out what interests your community and post relevant content to increase engagement.</p><p style="text-align: center;" align="center"> <img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCwzOTdd/pexels-photo-927629.jpeg" alt="pexels photo 927629" width="600" height="397"></p><h2 style="text-align: left;">Twitter</h2><p style="text-align: left;">Twitter is a fast-paced platform. Posting once a day is often not enough to break through the noise and stand out. Your posting frequency should be at least three times a day. However, Twitter is an incredibly useful channel for connecting to potential clients, starting conversations and finding out the most researched keywords by people in your sector of business.</p><p style="text-align: left;">Follow individuals, companies and businesses, share links to content you created, re-tweet other users’ useful posts and share photos of your products or behind-the-scenes moments. As a contractor or locum, being able to post special offers and prices, as well as news of upcoming events or product launches, is incredibly helpful in growing your business.</p><h2 style="text-align: left;">Instagram</h2><p style="text-align: left;">This channel is great for anyone seeking to share photos or videos of their work – an image is worth a thousand words, and Instagram has the ability to help contractors show it. Some people express themselves better with visuals, and you have the chance to tell the story of your brand this way. Another benefit is that it helps you to distinguish yourself from your competitors by making posts unique to your business.</p><p style="text-align: left;">You can follow people, post before-and-afters and showcase how people are using your products. You also have the opportunity to build relationships with people or companies even after the sale. Instagram is great for growing a brand, because users tend to interact more with companies on this network, compared to other channels. So, make sure you’re using it to its full potential. Explore all of the features Instagram offers and interact with your audience.</p><h2 style="text-align: left;">LinkedIn</h2><p style="text-align: left;">Whether you’re a freelancer, contractor or locum, you can benefit from LinkedIn. One of the most obvious advantages of using this platform is that it allows you to easily showcase what you can do, as well as your skills.</p><p style="text-align: center;" align="center"> <img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MzVd/pexels-photo-267351.jpeg" alt="pexels photo 267351" width="600" height="435"></p><p style="text-align: left;">And if you want to connect with other professionals or business owners in your sector, this network is the best choice. If you’re looking for work or advertising a job, LinkedIn can help you to achieve your goal by allowing you to join groups, create a company page for your business, participate in discussions and so much more.</p><p style="text-align: left;">To best use LinkedIn, ensure that you have filled out all of the relevant sections, such as education and previous jobs, which allows people to find you more easily. Add a profile picture too; it doesn’t have to be your photo, though photos tend to do better. You can upload any other image, as long as it’s professional. The key is to have people associate your brand and page with a specific image, so that they can remember and recall who you are.</p><p style="text-align: left;">Other key features of this network include the ability to request and display recommendations, join groups with similar interests and share relevant content with them, publish articles on LinkedIn Pulse (the channel’s blogging platform), and connect with potential clients and other contractors.</p><p style="text-align: left;"> </p><p style="text-align: left;">Social media makes it easier for customers to find you – and for you to show off your work and skills. As you expand your customer base and your business, you may require the services of <a href="https://gorillaaccounting.com/">contractor accounts</a> or <a href="https://gorillaaccounting.com/locum-medical-accountants/">locum accountants</a>. If that’s the case, we can meet all of your accountancy needs; let us know if you have any questions, and we’ll be happy to assist.</p> Wed, 16 Jan 2019 15:00:00 +0000 https://gorillaaccounting.com/blog/how-contractors-and-locums-can-make-the-most-of-social-media A Contractor's New Year’s Resolutions for 2019 https://gorillaaccounting.com/blog/a-contractor-s-new-year-s-resolutions-for-2019 <p>With every New Year, most contractors like to reflect on the past twelve months, looking back on their achievements and searching for ways to improve the services they offer. With 2019 ahead of you, you’ll want to focus on improving and growing your business, and we want to help you achieve this goal.</p><p>We have many years of experience within the contracting sector, so we’ve come up with a few New Year’s resolutions designed to help you have your best year yet.</p><h2>Spend More Time on Marketing</h2><p>Most contractors would prefer to spend their efforts and time on the day-to-day tasks of their business. However, marketing is a crucial step in growing a business, and many contractors end up neglecting it, either because they hate the process of finding new clients or are simply unsure of how to go about it.</p><p>In 2019, make it a resolution to invest in marketing as part of your regular routine. Promoting your business may not be as challenging as you believe, and the rewards will be more than worth it. While word-of-mouth is still important nowadays, devoting time to promoting your business via a website or social media is also key.</p><p>In order to further develop your brand, you may also want to attend more networking events in 2019, as well as conferences and other industry events that can help you to become more visible.</p><h2>Make the Most of Your ISA Allowance</h2><p>Throughout 2019, you have the opportunity to obtain tax-free income and gains with ISAs (Individual Savings Accounts), which makes for a great investment for higher rate taxpayers. For the 2018/2019 period, the maximum you can save in ISAs is £20,000 and the Junior ISA allowance is £4,260. Make the most of your ISA allowance this year; as <a href="https://gorillaaccounting.com/">contractor accountants</a>, we can help you if you’re unsure how to get the most from this allowance.</p><h2>Develop Your Existing Skillset</h2><p>Investing in yourself and developing your existing skills should be at the top of your list this year. Start out by working on your current skillset; and if you’re on the Standard Rate VAT, you can even claim VAT on training that updates these skills. You can also find out which skills are in high demand and work on obtaining them; one way of doing this is to check out industry-specific websites or forums to spot a trend or need.</p><p align="center"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-461077-1.jpeg" alt="pexels photo 461077 1" width="600" height="400"> </p><p>Continuous professional development is especially important in fast-paced industries, such as IT, where you have to keep on top of current technologies and changes. Doing this will help you to remain marketable.</p><p>Of course, don’t forget to add your new skills to your CV or LinkedIn, so that any existing and potential clients are able to see what you can do for them. The more you can do, the more you can charge as well, since you’re enhancing qualities that make your business more attractive.</p><h2>Check Your Dividend Allowance</h2><p>Many things changed for contractors in April 2018, including the dividend allowance. While before you were entitled to £5,000, the tax-free allowance is now down to £2,000. This means that, if you have used your full personal allowance, you can only draw £2,000 before starting to pay dividend tax. In the 2018/2019 tax year, for dividends of over £2,000 that fall in the basic rate, you will pay 7.5% tax; if the dividend falls in the higher rate bracket, you will have to pay 32.5% tax; for figures above £150,000, the tax rate is 38.1%.</p><h2>Achieve Better Work-Life Balance</h2><p>For many contractors, it can be a challenge to get the right balance between life and work, especially if you’re still growing your business. However, while hard work is important for getting new clients and continuing to grow your business, it’s also important to have some downtime, as well. After all, many people choose the contracting life precisely because they can be their own boss and are allowed to take a holiday whenever they want.</p><p>On the other end of the spectrum, it can also be very easy to use too much downtime. Enjoying the flexibility offered by contracting means reaching a good balance, so make sure you maximise work, while giving yourself a break, as well.</p><p align="center"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-1497394.jpeg" alt="pexels photo 1497394" width="600" height="400"> </p><h2>Ensure You’re Protected</h2><p>As a contractor and business owner, having a plan in place is crucial. You have financial obligations in your life, be it a mortgage or family dependents, so you’ll want to protect yourself when it comes to claims made against you. You also want to make sure these obligations are addressed in the event of injuries that may prevent you from working.</p><p>Professional indemnity will cover compensations that you may have to pay if a client makes a claim against you for negligence. It often also covers any legal fees you may incur. If you damage your client’s property by accident, or even cause injury to someone, having public liability insurance will cover potential legal fees and compensation. Employers’ liability is also required of almost all businesses in the UK; however, this has the advantage of allowing you to hire a substitute to finish your work if you’re not able to.</p><p>As the owner of a limited company, you’ll want to seek Directors’ and Officers’ liability as well, which can protect you if your business is accused of financial mismanagement, law breaches or health and safety failures.</p><h2>Submit Your Tax Return on Time</h2><p>The end of January will come faster than you think. Make sure you’re ready to submit your self-assessment tax return to HMRC before the midnight deadline on the 31st of January. It is recommended that you file your tax return as soon as possible; you can submit it after the start of the new tax year and after you received your UTR unique code and log-in details from HMRC. Filing late will incur fines.</p><p align="center"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw1MzVd/pexels-photo-921783.jpeg" alt="pexels photo 921783" width="600" height="535"> </p><p>If you miss the deadline, you will automatically have to pay a £100 fine, whether or not you actually owe tax. If you fail to submit the self-assessment form by the end of April, HMRC will impose an additional £10 daily fine for the next three months, so your penalty will rise to £1,000. You will then incur further fines after six and twelve months if you still haven’t submitted your self-assessment. These penalties may be based on the amount of tax you owe if this is a large figure. Of course, you will also be charged interest for any unpaid tax.</p><h2>Plan for Retirement</h2><p>It’s never too late to start preparing for retirement, so look into putting a plan in place in 2019, if you haven’t yet. While you may feel bogged down in work, it’s still important to look ahead, not only to your next contract but also to the distant future. Retirement may feel like a low priority now, but with the average lifespan increasing, it’s also likely that you may end up having a lengthy retirement.</p><p>If you don’t have a strategy, it will be impossible to know whether you’ll be able to retire at the age you want and enjoy your desired lifestyle. Speak to a professional who can help you to plan your pension, including any tax implications, so you can just relax and focus on your business.</p><h2>Be Aware of the 2019 Loan Charge</h2><p>Disguised employees continue to be targeted by HMRC. With the new 2019 Loan Charge set to come into effect in April of 2019, contractors who have opted into disguised schemes in the last twenty years may face big penalties. This tax charge is already controversial, given that it will give license to punish contractors retroactively, dating back to 1999 if they’re still outstanding on 5 April 2019.</p><p>Disguised remuneration schemes are tax avoidance arrangements that, according to the government, cost the Exchequer hundreds of millions of pounds a year. By being paid in the form of loans instead of ordinary remuneration, and thereby avoiding income tax and National Insurance contributions, these contractors have been able to earn twice as much as the average UK taxpayer.</p><p>This new policy, which is set to raise £3.2 billion for the Exchequer, started because of IR35, since many limited company contractors joined disguised remuneration schemes to avoid breaking IR35 rules. It will affect those who are using these schemes and haven’t repaid their loans or signed a contract for settlement with the HMRC by 5 April 2019.</p><p>Up to 50,000 people are believed to be affected by the Loan Charge, with 65% of them working in the business services sector, such as IT consultants.</p><p>The loan schemes many contractors chose to enter are considered dubious by the Loan Charge but aren’t illegal; many involved provided the full and accurate picture of their tax details when they joined, which is why this use of the schemes is considered tax avoidance, not evasion.</p><h2>Work Only with the Right Clients</h2><p>There can be a tendency to accept any kind of contractor work, especially if you’re still establishing your business. However, it’s also important to choose only the best clients for you. There’s no use in working with an individual or company if you feel aggravated or stressed – by becoming a contractor, you have gained the right to pick who you want to work with and for, so make it a New Year’s resolution to choose the customers who best suit your business model.</p><p style="text-align: center;"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-323503.jpeg" alt="pexels photo 323503" width="600" height="400"></p><p style="text-align: center;"> </p><h2>Increase Your Rates</h2><p>The start of a new year is also the perfect moment to take stock of the amount of money earned during the past twelve months. Did you reach the figure you set out to earn? With the cost of living rising all the time, your wages should reflect that; increasing your rates is the obvious answer to see a rise in earnings.</p><p>Many contractors are hesitant to do this, because they fear a loss of clients after a price increase. However, this is not often the case; you will be surprised by how many customers will stay on even with a price change. Should you have a client who only chooses your services if they’re cheap, then you probably won’t want to work with that customer in the long-term anyway.</p><p>While it can be daunting at first to change your service rates, the truth is that if you’re good at what you do, you should be compensated accordingly.</p><h2>Get Organised</h2><p>Make sure you organise your finances in 2019, too. Many contractors keep records in different locations or simply don’t have a system in place to keep everything in order, which makes it easy to misplace documents. This is a big obstacle when the time comes to send invoices or do taxes.</p><p><a href="https://gorillaaccounting.com/free-agent-book-keeping-software/">FreeAgent</a>, our cloud-based accountancy software, can help you to stay organised by storing all of your records in the same place. From bank transactions to receipts, and providing a real-time overview of your accounts, you will never lose anything again with this bookkeeping software. FreeAgent can be used on your computer or as a mobile app, offering the flexibility you need as a contractor.</p><p> </p><p>The world of finance can be confusing without the right advice or support. At Gorilla Accounting, we can help you to keep your New Year’s resolutions by offering great accounting solutions for contractors. Discover more about <a href="https://gorillaaccounting.com/our-services/">our services</a> and what you get when you choose us by browsing our website. Contact us to discuss your requirements, and we’ll be on hand to help you grow your business in 2019.</p> Fri, 11 Jan 2019 10:30:00 +0000 https://gorillaaccounting.com/blog/a-contractor-s-new-year-s-resolutions-for-2019 Avoid Self-Assessment Mistakes with These 5 Invaluable Tips https://gorillaaccounting.com/blog/avoid-self-assessment-mistakes <hr><p>Completing a self-assessment is the bane of a lot of <span style="text-decoration: underline;"><a href="http://gorillaaccounting.com/about-us/who-gorilla">contractors</a></span>’ lives; on top of taking a lot of time, there are often many common mistakes made which can either result in having to start again or a receiving a fine.</p><p>Read through our advice below to prepare yourself for your next self-assessment and avoid those pesky errors!</p><h2>Remember to Pay</h2><p>This has to be the first thing we talk about, even though it’s the last thing you need to do. More individuals than you may expect complete their self-assessment…and then do nothing. It’s easy to assume that everything’s done now, but you do actually have to arrange the payment to <span style="text-decoration: underline;"><a href="http://gorillaaccounting.com/blog/hmrc-poor-service-hiring-drive">HMRC</a></span> yourself – whether it’s by direct debit or cheque. Be sure to finish this step to avoid any late fees or criticism from HMRC.</p><h2>Keep a Record of Everything</h2><p>This will make your life so much easier when it comes to self-assessment time, but is something so few contractors, freelancers and business owners do right. Keep a clear and easy to follow record of every piece of expenditure, every wage or dividend – anything to do with money! When it comes to filling in your self-assessment, you’ll find having everything to hand (preferably on a spreadsheet) speeds the process up and prevents any panicked searches for bank statements.</p><p style="text-align: center;"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-210663.jpeg" alt="pexels photo 210663" width="600" height="400"></p><h2>Check the Figures</h2><p>Check your record keeping and ensure that the figures entered onto the tax return match the actual amounts in your records.  Any errors could result in you under or over declaring your income and taxes.</p><p>You will be responsible for ensuring that the correct amounts are declared to HMRC.</p><h2>Read the Questions</h2><p>Just like an exam back at school, be sure to read the questions and make sure you know exactly what the form requires of you. If you provide the wrong information, it could mean you have to re-do the whole thing or you could be declaring the wrong amount of tax/profit etc. Always be sure before you do anything.</p><h2>Use an Accountant</h2><p>Of course the best way to avoid all of the headaches involved with self-assessment forms is to simply <span style="text-decoration: underline;"><a href="http://gorillaaccounting.com/our-services/Contractors-Freelancers-Accountancy-Services">hire an accountant</a></span>. They have the professional knowledge to understand what is required and have often done it hundreds of times before. Still remember to keep a record of everything though – it’ll make their life a lot easier!</p><p>If you want to complete your next self-assessment on time and correctly, consider asking an accountant for help. <a href="http://www.gorillaaccounting.com/contact-us/general-enquiries">Contact Gorilla Accounting</a> for expert advice and professional assistance, and avoid any mistakes!</p><p> </p> Wed, 09 Jan 2019 14:00:00 +0000 https://gorillaaccounting.com/blog/avoid-self-assessment-mistakes Ultimate Guide to Forming a Limited Company https://gorillaaccounting.com/blog/ultimate-guide-to-setting-up-a-limited-company <p><a href="https://gorillaaccounting.com/setting-up-a-limited-company/">Setting up a limited company</a> can be daunting for even the savviest of individuals, and rightly so, as it will be the company name you are trading under . You’ll obviously want to get all the information right to avoid future complications.</p><p>Fear not, though; having set up thousands of limited companies over the years, we at Gorilla Accounting thought it would be useful to put together the ultimate guide to setting up a limited company, utilising our vast experience on the subject. So, sit back, grab yourself a cuppa and relax, as we take you through everything you’d ever need to know about setting up your limited company.</p><h2 style="text-align: center;"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-1120345.jpeg" alt="pexels photo 1120345" width="600" height="400"> </h2><h2>What is a Limited Company?</h2><p>Before we get into the details of setting up a limited company, it’s important to understand exactly what one is. In essence, a limited company is a type of business that is registered at Companies House and is completely separate from its owners, that can enter into contracts in its own name whilst being responsible for its own finances and liabilities. This structure means that the liability of each shareholder within the limited company is only limited to their individual investment, which is known as their limited liability.</p><p>A limited company can be owned by one or more shareholders and managed by one or more directors; the same person can be the director and owner.  </p><p>As the limited company is an entirely separate entity from yourself, it will require a business account. The total monies held in the business account will belong entirely to the business and will only become yours once it has been paid into your personal account.</p><p> </p><h2>Benefits of Operating Through a Limited Company</h2><p>There are numerous benefits to operating through a limited company, whether you are a <a href="https://gorillaaccounting.com/sole-trader-accountants/">sole trader</a>  or looking to start a business, here are just a few of the benefits you can expect to see once you set up your limited company:</p><ul><li>Easy to grow – if your business does expand, you’ll find it is very easy to issue shares and take on employees by using a limited company.</li> <li>Tax efficiency – rules surrounding company taxation mean that you are able to keep more of your income through a limited company set up.</li> <li>Limited liability – if your limited company runs into financial difficulties, you are only liable up to the amount you have invested in the company. It’s also worth noting that your personal belongings cannot be taken if your limited company does become insolvent.</li> <li>Expenses – utilising a limited company gives you the ability to claim a whole host of expenses which can be used for corporation tax, which ensures you take more of your money home. You can find out more about the expenses you can claim by checking out our <a href="https://gorillaaccounting.com/self-employed-expenses/">guide to expenses</a>.</li> </ul><p> </p><h2>Setting Up a Limited Company</h2><p>Before you can set up a private limited company, you’ll need to register this with Companies House, this is known as ‘incorporation’. To do this, you’ll need the following:</p><ul><li>A company name</li> <li>An address for the company</li> <li>At least one director</li> <li>At least one shareholder and details of the company’s share structure</li> <li>Your <a href="file:///C:/Users/SQ-1/Downloads/thisismoney.co.uk/money/investing/article-3590466/The-Treasury-raked-2BN-sale-personalised-number-plates-s-profit-too.html">Standard Industrial Classification of Economic Activities code</a> (SIC) – this simply identifies what your company does.</li> </ul><h2>Choosing a Company Name</h2><p>The first step on your journey to creating a limited company is choosing a company name. This may sound simple, but ensuring you choose a company name that hasn’t already been taken by someone else, and that encapsulates your services perfectly can be a tall order. Take your time on this as your limited company name cannot be too similar to another company’s name or trademark, as someone may make a complaint. </p><p>It’s also worth noting that your limited company name must usually end with either ‘Ltd’ or ‘Limited’ and cannot be offensive in any way.</p><p>You can check if your company name is available by visiting the <a href="http://wck2.companieshouse.gov.uk/wcframe?name=accessCompanyInfo">Companies House website</a>.</p><h2>Company Address</h2><p>It’s vital that you supply a valid address where official communications can be sent to your limited company. The address must be a physical address in the UK and must be in the same country that your company is registered in; for example, if your limited company was formed in Scotland, you must have a registered office address in Scotland. The address you provide could be your home address or the address of the person who will manage your Corporation Tax.</p><p>You are able to use a PO Box for your official communication, but you must still provide a physical address and postcode as part of the process.</p><h2>Appoint Directors</h2><p>In the case of setting up a private limited company, you must have at least one director. The role that the director of your limited company takes on is that of being legally responsible for the running of the company and ensuring that company accounts, finances and reports are properly prepared.</p><p>In order to be eligible to become a director for a limited company, you must be at least 16 years of age and not be disqualified from being a director.</p><p>If you become a director of your limited company, it’s worth knowing that your name will be publicly available on Companies House along with your correspondence address. If you choose to use your home address as your correspondence address, you can ask Companies House to remove it from the register following your limited company being set up.</p><p>If you are looking to start a limited company, you can appoint a secretary who will take on some of the director’s responsibilities. However, if you are setting up a private limited company, you do not need to appoint a secretary.</p><h2>Shares and Shareholders</h2><p>The vast majority of limited companies that are formed are ‘limited by shares’, which means they’re owned by shareholders, who have certain rights. With private limited companies, there is usually only one shareholder, who will also be the director of the company. If you are the only shareholder within a limited company, you will own 100% of the company.</p><p>If you were to have more than one shareholder within your limited company, the price of each individual share can be of any value that you determine. It’s advised that you choose a low share value (for example around £1) to limit the shareholders’ liability to a reasonable amount. If the limited company was to become insolvent, the shareholder will be required to pay for their shares in full.</p><p>When you register your limited company, you will need to provide information about the shares within the company; this is known as a ‘statement of capital’. Included in the statement of capital is the following:</p><ul><li>The number of shares of each type that the limited company has and their total value, which is known as the company’s share capital. For example, if a company issues 1000 shares at £1 each, the limited company has a share capital of £1000.</li> <li>The name and addresses of all shareholders. If you are the only shareholder, then you’ll only need to provide your name and address.</li> </ul><p style="text-align: center;"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-1028727.jpeg" alt="pexels photo 1028727" width="600" height="400"></p><h2>Memorandum and Articles of Association</h2><p>During the process of applying to create your limited company, you will need to ensure a memorandum of association and articles of association are correctly filled out.</p><p>The memorandum of association is a legal statement which needs to be signed by all initial shareholders agreeing to form the company. If you are setting up the company individually, you’ll only need your own signature on this document. You are able to use a <a href="https://www.gov.uk/government/publications/give-notice-of-subscribers-company-with-share-capital">memorandum of association template</a>; once your company has been registered, this cannot be updated.</p><p>The article of association is a document which is agreed by shareholders, directors and the company secretary regarding the written rules about running the company. Again, if you are the sole director and owner of the limited company, this only need be agreed by yourself.</p><p>You are allowed to use a standard article of association for ease, or you can write your own articles which your company will abide by. However, if you choose to write your own, you will not be able to register your company online. </p><h2>Register Your Company</h2><p>You’re almost done by this point; if you have filled in all of the information that has been mentioned above, you have everything you’ll need to start your very own limited company.</p><p>You can choose to register online, but only if the following apply to your limited company:</p><ul><li>it is limited by shares</li> <li>It uses the standard article of association or ‘model articles’, rather than an article of association written by yourself.</li> </ul><p>If your limited company does meet these criteria, you can apply for your limited company to be formed online. The cost of setting up your limited company comes in at £12 and can be paid by debit or credit card or via a PayPal account online. Once you have paid the fee, you can expect your limited company to be registered within 24 hours.</p><p>If your limited company is unable to be formed online, you will have to register your company by post using an IN01 form. Postal applications take between 8 and 10 days to process and are subject to a charge of £40 which should be paid by a cheque made out to ‘Companies House’.</p><p>If you are in a hurry and need your company to be registered the same day, you’ll need to get your application to Companies House by 3pm and pay a £100 fee. The envelope you use must be marked with ‘same day service’ in the top left-hand corner, too.</p><p>It’s also worth noting, that if you choose not to use ‘Limited’ in your company name, you must register your company by post.</p><p>Once you have officially registered your limited company, you’ll receive a ‘certificate of incorporation’, which confirms that the company legally exists and shows your unique company number and the date of formation.</p><h2>Register for Corporation Tax</h2><p>You’ll need to register for Corporation Tax within 3 months of starting to conduct business – this could include anything from buying, selling, advertising, renting a premises or employing someone.</p><p>In most cases, you will be able to register for Corporation Tax online. To do so, you’ll need to enter your company’s 10-digit Unique Taxpayer Reference. This will be posted to the company address you included in your application within 14 days of the company being registered with Companies House.</p><p>When registering for Corporation Tax, you will need to provide HM Revenue and Customs with the following information:</p><ul><li>Your company’s unique registration number</li> <li>The date you started to conduct business</li> </ul><p>Following this, HMRC will let you know what the deadline is for paying your Corporation Tax, and you will need to file a Company Tax Return, even if you make a loss or have no Corporation Tax to pay.</p><p>If you register for Corporation Tax late, you could be handed a penalty or fine.</p><p style="text-align: center;"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCwzNDVd/pexels-photo-938965.jpeg" alt="pexels photo 938965" width="600" height="345"></p><h2>How Gorilla Accounting Can Help You</h2><p>If you are looking for someone to create your private limited company for you, then look no further than Gorilla Accounting. We offer a comprehensive Company Formation service, which includes Share Certificates, Statutory Books, VAT Registration and a Business Bank Account, all for just £50 + VAT. As expert <a href="https://gorillaaccounting.com/">contractor accountants</a>, the team here at Gorilla Accounting will be on hand to help you through every step of the process to ensure you have a stress-free limited company set up. Once your limited company has been created, we are also on hand to provide you with any assistance you require, such as with taxation and <a href="https://gorillaaccounting.com/outsourcing-payroll-for-business/">outsourcing payroll</a>.</p> Mon, 07 Jan 2019 09:00:00 +0000 https://gorillaaccounting.com/blog/ultimate-guide-to-setting-up-a-limited-company Hiring Your First Employee? What You Need to Know https://gorillaaccounting.com/blog/hiring-your-first-employee-what-you-need-to-know <p>When contractor work starts piling up, you may consider hiring someone to help you out. Hiring your first employee is an important and rewarding milestone as a director of a limited company, because it shows that your business is growing.</p><p>You will be handing over responsibility for part of your business to someone else, and you also need to know your duties and obligations. Taking on an employee is a big deal, but Gorilla Accounting are here to help. We have many years of experience as <a href="https://gorillaaccounting.com/">contractor accountants</a>, so you can just relax and let us deal with the paperwork side of your business.</p><p style="text-align: center;"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCwzODFd/pexels-photo-630839-1.jpeg" alt="pexels photo 630839 1" width="600" height="381"></p><h2>Do You Want to Do it Yourself?</h2><p>This is one of the first things you need to consider. Advertising a position doesn’t have to be very expensive if you’re doing everything yourself but, if you choose to go through a recruitment agency, they may request up to 20% of your employees’ first-year salary to find the right candidate for the job. However, agencies exist for a reason, and you shouldn’t discard this idea at first glance; this is a good option if you’re very busy and don’t have time to research, advertise and interview applicants. They’ll do everything for you, without you having to stress about recruitment, which can take some time.</p><p>If you choose to do it all without the help of a recruitment agency, you can advertise the role on websites that are specific for that purpose or on social media, such as LinkedIn. This network can be extremely helpful when it comes to sorting out potential employees successfully; after all, with so many people showcasing their qualifications and skills, LinkedIn is a treasure trove of qualified staff you can choose from when you decide to go ahead and hire.</p><h2>Have a Good Job Description</h2><p>The job description is a key element of recruitment and can make or break your process. You need to be clear about the type of person you want to hire, the skills they should have and how much you can pay them.</p><p>When deciding how much you want to pay your new employee, keep in mind that you need to at least meet the national minimum wage requirements. In the current 2018-2019 period, the minimum hourly rate for employees who are over 25 years old is £7.83. Additionally, you’ll want to consider the local rate for staff with the same skills and amount of experience.</p><p>To have a comprehensive job description, add the job title, a summary of what the position is, key duties and responsibilities, salary, hours and location.</p><h2>Set Up Interviews and Screen People</h2><p>Recruiting your first employee can be a time-consuming and complex process, but it’s certainly a necessary one in order to know if you’re getting the right candidate. After advertising the job where your target audience is, which is usually only online now, it’s time to start comparing CVs and covering letters and calling in people for interviews. Make sure your questions are prepared in advance and be ready to answer any queries the candidates may have about your business or the position.</p><p>After you finish your wave of interviews, refer to your notes and make a fair judgement based on the candidate’s CV, skills and experience.</p><h2>Perform Employment Checks</h2><p>Once you’ve narrowed down your candidates and selected your applicant, it’s important to check whether he or she has the legal right to work in the UK. You may have to pay up to £20,000 per employee if they aren’t allowed to work in the country, so it’s crucial that you always verify this.</p><p>Most times, this is the only check you’ll have to do. However, if you work in a field which requires you to check a candidate’s criminal record (for example, working with vulnerable people or in the security sector), you may need to apply for a Disclosure and Barring Service (DBS) check. Certain roles, like childcare, may require more extensive checks.</p><p>By requesting a basic check, you will know if your applicant has unspent convictions or conditional cautions. A standard check adds reprimands and final warnings to the list. If you want an enhanced check, you’ll be able to see all of the above, plus any information held by local police that may be relevant to the position. You can also request an enhanced check with a barred list, which tells you if someone is on the list of people barred from the role.</p><h2>Register as an Employer with HMRC</h2><p>You have to register as an employer with HMRC up to four weeks before you start paying your new employee. It will be your responsibility to deduct income tax and National Insurance from your staff’s pay; each employee that you hire must have a National Insurance number and pay NI contributions to qualify for certain benefits, such as state pension.</p><p>Of course, even if you’re just paying yourself as director of your limited company, you still need to register with HMRC. Keep in mind that it typically takes up to five days to get your employer PAYE reference number and that you can’t register more than two months before you start paying employees.</p><h2>Get Employment Insurance</h2><p>You have to obtain employers’ liability insurance as soon as you become an employer; this is a law requirement and not optional, and you can be fined £2,500 every day you are not properly insured. This insurance will protect your business from claims made by your employee (or employees) who may have fallen sick or become injured at your workplace. Your policy must cover you for at least £5 million.</p><p>You may not have to get employers’ liability insurance if you only employ a family member or staff that is based abroad. If you don’t display your insurance certificate or refuse to make it available to inspectors, you could be fined £1,000.</p><h2>Your Employee Must Have a Contract</h2><p>Every member of your staff needs to be provided with an employment contract that outlines their rights, responsibilities and working conditions. While this doesn’t need to be a formal written document, it has to contain explicit and implicit terms of employment.</p><p>Before bringing in new staff, think about the type of contract you require – for instance, permanent or fixed-term? Which one will answer your needs the best? There are a few key elements that every contract should have, such as the job start date, the role, the workplace address, the hours they will have to work, their wages and when they get paid, holiday entitlement and probation periods. Make sure you’ve covered everything in your contract and issue it on time.</p><p>You must also send a written statement of employment to your employee if you’re employing staff for more than one month. This document will give the applicant the terms and conditions of employment and needs to be provided within two months of starting work.</p><p style="text-align: center;"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-1089549.jpeg" alt="pexels photo 1089549" width="600" height="400"></p><h2>Enrolling Staff in Workplace Pension</h2><p>New legislation means that all employers have to enrol their employees into a workplace pension if they’re over 22 years old, earning more than £10,000 a year or regularly working in the UK. Therefore, it’s important that you check if you need to automatically enrol your staff into a scheme. When it comes to eligible staff, you need to provide it as soon as your first employee start working for you. This is known as your ‘duties start date’.</p><p>If your employee or employees become eligible because of a change in age or wage, then you need to enrol them into your pension scheme and write to them within 6 weeks of the day they meet the necessary requirements.</p><h2>Keep Accurate Records</h2><p>When you run a limited company, you are required by law to maintain accurate tax records for six years, so they need to be safe, secure and easy-to-access. Our accounting software, <a href="https://gorillaaccounting.com/free-agent-book-keeping-software/">FreeAgent</a>, will be able to do this for you, so you don’t need to worry about it. You can monitor the financial and tax status of your business in real time.</p><p>But tax records aren’t the only thing you need to maintain for this period of time. You also need to keep records of money received or spent, any debts, assets owned by the company, who you bought goods from and who you sold to, and so on. You are required to keep records about the company itself as well, which includes details of directions, shareholders, results of votes, promises to repay loans, mortgages and transactions.</p><p>If your records are lost, stolen or destroyed and you’re incapable of replacing them, then you must:</p><ul><li>Tell your Corporation Tax office immediately</li> <li>Include this information in your Company Tax Return</li> <li>Try to recreate them the best you can</li> </ul><h2>Know Your Obligations</h2><p>As an employer, you have certain tax and employment responsibilities for your employees, depending on the contract they have, as well as their employment status. The several types of employment agreements, from full-time to freelance and consultant, will determine these obligations. One thing to consider is legislation that ensures your employee gets time off, such as holidays. Talk to HMRC or make sure to get professional advice from a company specialising in contractor accountancy, so you are aware of all your responsibilities before you hire your first employee.</p><p style="text-align: center;"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCwzNzRd/pexels-photo-1050298.jpeg" alt="pexels photo 1050298" width="600" height="374"></p><h2>Know the Rights of Your Employees</h2><p>It’s equally important to understand the right of your staff, who are legally protected under employment laws. If you don’t meet your employees’ rights, they are entitled to seek compensation, so you want to be well versed on the subject before taking on staff. There are two main types of employee rights: statutory and contractual. The first refers to the rights given to an employee by the law, while the second are the ones given by the employment contract.</p><p>These rights are vast and cover issues like wages, working hours, maternity and paternity leaves, flexible work and discrimination.</p><h2>Will You Incur Extra Costs?</h2><p>Another thing to consider, besides the normal costs associated with hiring an employee, is whether you will have to move to a new premise upon taking on staff. If you’re just starting out as the director of your own limited company, it’s likely that you’re operating from home; if this is the case, then you may want to move to a new location instead of offering a spare room in your home to your new employee. You may also find it difficult to get specific insurance coverage on a domestic property.</p><p>Renting office space somewhere will incur costs that you have to consider before making the move, such as rent and utility bills, so you’ll want to make sure that you’re ready to take this step.</p><h2>What if Things Don’t Work Out?</h2><p>In an ideal world, after undergoing the recruitment process, dealing with HRMC and making sure you have a good contract, your new hire would be the best decision you ever made; however, sometimes things just don’t work out. It’s natural to get disheartened or sad if your new employee has to be made redundant or fired, or if they quit.</p><p>Circumstances change, and you may find that you can’t actually afford or need your employees, or that they simply aren’t the best fit for the job. Dismissing an employee is perhaps the most challenging area of employment legislation – someone who is unhappy about the way they were let go may decide to make a complaint against you or take your company to a tribunal. Typical reasons for employment tribunals vary from disagreements over wages to discrimination.</p><p>These are just some of the most important things to consider before hiring your first employee. This is a big decision and all the pros and cons need to be addressed before you make a commitment. No matter where you are in your career, whether you’re just <a href="https://gorillaaccounting.com/setting-up-a-limited-company/">setting up a limited company</a> or hiring your first employee, we’re always on hand to help you take care of your finances at Gorilla Accounting.</p><p>You can make use of our <a href="tps://gorillaaccounting.com/contractor-tax-take-home-pay-calculator/">contractor tax calculator</a> today to find out your take-home pay or get in touch with our friendly team, who will be more than happy to help you expand your business.</p> Fri, 04 Jan 2019 15:30:00 +0000 https://gorillaaccounting.com/blog/hiring-your-first-employee-what-you-need-to-know