10 Recent Blog Posts https://gorillaaccounting.com/blog/ Shows a list of the 10 most recent blog posts. Everything You Need to Know About Locum Vets Accounting https://gorillaaccounting.com/blog/everything-you-need-to-know-about-locum-vets-accounting <p>Over the past few years, many veterinarians have turned their back on permanent jobs in favour of locum work (currently, there are approximately 20,000 employed and self-employed vets in the UK). For many, the decision to go locum stems from a desire for flexibility, improved work-life balance and to develop their skills in diverse settings.</p><p>However, as accountants that work closely with locum vets, we understand that most locums are unsure whether they are doing their accounts correctly.</p><p>Without a good deal of experience navigating the world of accountancy, it can be challenging to know exactly what you’re doing. With our comprehensive guide to locum vet accounting, we aim to give you a helping hand and remove the stress of worrying about your business’ finances.</p><h2>Can You Claim Expenses?</h2><p>When working as a locum vet, you may be entitled to claim business-related expenses to offset your tax liabilities, whether you operate through an umbrella company or as the director of your own limited company. These expenses include the ones that can be deductable for corporation tax, which will result in more money for you. You can use our <a href="https://gorillaaccounting.com/contractor-tax-take-home-pay-calculator/">contractor tax calculator</a> to calculate your take-home pay.</p><p>As a locum vet, you may be able to claim expenses on travel, veterinary equipment, insurance and training, just to mention a few. There are likely a wide array of expenses you may be entitled to claim, so check with a professional who can either give you the right accounting advice or do the accounting for you, if you prefer to just focus on growing your business.</p><h2>Do You Need Insurance?</h2><p>You’ll want to ensure that you’re protected against claims, so seeking insurance cover is an important step when working as a locum vet. Some practices may offer insurance while you’re working for them but, if this is not the case, you’ll want to take out public liability insurance cover, in the event that a client or the public is personally injured or suffers property damage due to your work.</p><p>Even if the practice does offer insurance, you may want to consider all the pros and cons of being covered by it. The main advantage is that you won’t pay for it. The downside is that a claimant may wait until the locum period is over to make a complaint against you; if this happens, you won’t be covered by the practice anymore and could end up being sued and having to pay huge legal bills. So, if you’re concerned about being found liable for claims made after you’ve left the practice, you may find it worth it to take out professional indemnity insurance cover.</p><h2>Does IR35 Apply?</h2><p>IR35, or ‘intermediaries legislation’ was first introduced in 2000 as a way of deterring contractors from working as disguised permanent employees and benefitting from tax advantages by working through an intermediary, which could be a limited company.</p><p>This legislation is often criticised for being confusing and too complex, so it’s important to get the best <a href="https://gorillaaccounting.com/what-is-ir35-advice/">IR35 advice</a>; after all, this can affect the way you work and pay taxes. IR35 only applies if you’re working through an intermediary – if you’re a sole trader, you are likely safe.</p><p>IR35 will determine how you can take funds from your limited company. If your contract is outside IR35, you can choose a tax-efficient salary and declare dividends from the business’ profits; on the other hand, if you’re caught by IR35, you’d have to pay normal tax and National Insurance contributions.</p><h2>What About Your Pension?</h2><p>This is an important question that many locum vets wonder about.  If you’re a locum vet and operate through a limited company, you may have to organise a private pension arrangement. You can fund your pension through the limited company and benefit from the corporation and personal tax by doing this. If you’ve chosen to work as a sole trader, then you have to contribute to a personal pension scheme, but you will likely be able to claim tax relief when it comes to your annual tax return.</p><p>Pensions are a key subject when it comes to doing locum work, so it’s crucial that you do your research and seek professional advice on how best to proceed.</p><p align="center"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/accountant-accounting-adviser-advisor-159805.jpeg" alt="accountant accounting adviser advisor 159805" width="600" height="400"> </p><h2>Getting Paid as a Locum Vet</h2><p>There are several factors influencing the take home pay of locum vets in the UK. Typically, the closer you are to London, the higher the day rate will be, and practices will pay differing rates, depending on how prosperous the area is. And it goes without saying that experience also matters; the more experience you have as a locum vet (not just in terms of years but also in regard to the diversity of work you do), the more attractive you’ll be and the more you can expect to be paid. Average locum vet rates can range from around £200 to over £250 a day, depending on these factors.</p><p>How can you ensure that you get paid for the locum work you perform? How does it all work? Simply put, the practice that hires you is the one who pays you; there are, however, different ways that this money can reach your account.</p><p>Recruitment agencies don’t typically have a payment service, but they can help you to get paid correctly and on time. So, if you’re using a recruitment agency, you may find that they can ‘put pressure’ on the practice to ensure your payment process is going smoothly and that there are no mistakes or delays. You’ll determine how you wish to get paid in your contract. If you’re using an umbrella company, however, you can let them handle your contracts (or you can outsource this to a lawyer or accountant).</p><h2>How do You Pay Taxes?</h2><p>Every time you earn money as a locum, you have to pay taxes on it. The amount of taxes paid, as well as how and when you pay them, will depend on the operations structure you choose. The most tax-efficient way is to set up your own limited company, as you can maximise your earnings by retaining a large part of your wages.</p><p>These savings come from your National Insurance contributions and expenses that can be claimed. When you set up a limited company, you become a shareholder in the business and can pay yourself a part of the profit. This is called a dividend, and you will not pay National Insurance on this. When it comes to your expenses, as we’ve seen above, you’re allowed to claim a range of expenses by owning a limited company, such as accountancy fees and pieces of equipment. You pay corporation tax, of course, which is still set at a fixed rate of 19%.</p><p>As a sole trader, if you make over £11,850 in profit (for 2018/19), you have to pay a 20% tax rate; this figure rises to a huge 40% if you make over £46,350 of annual profit. If you choose to register as a sole trader, you have to let the HMRC know that you’re working for yourself in the first three months of being in business. You also have to pay tax on all profits, pay National Insurance contributions and file a self-assessment tax return every year. You can start off as a sole trader, if you choose, and then upgrade to a limited company later.</p><p align="center"><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-461077.jpeg" alt="pexels photo 461077" width="600" height="400"> </p><p>If you don’t do locum work often, you may want to pay tax via Pay As You Earn (PAYE), which means your taxes are already deducted when you receive a payment. A lot of practices actually prefer this option, as their employees will likely also be set up via PAYE. An umbrella company can be an efficient solution if you do occasional locum vet work.</p><p>You simply need to submit your timesheet and your rates, and the umbrella company will receive the money from the practice, make tax deductions, take a fee and then give you the rest. This is the best option if you don’t want the hassle of dealing with taxes when you rarely do locum work.</p><h2>How to Set Up a Limited Company as a Locum Vet</h2><p>There are several advantages to operating through a limited company, such as tax efficiency (your take-home pay will likely increase), limited liability which protects your personal assets in the event of insolvency and freedom to run your business the way you want to.</p><p>As <a href="https://gorillaaccounting.com/">contractor accountants</a>, we can help you to form a limited company. This process is completely new for many locums, but we’ve done it a thousand times before at Gorilla Accounting and can help you to achieve your goal.</p><p>The first thing you need is a company name. You can choose any name you like that isn’t already in use; to make sure you have a unique name, check its availability at Companies House. You also need a business account, since the limited company is a separate entity. This is extremely important; should your company be sued or go into debt or liquidation, your personal assets will always be safe.</p><p>You may have to register for VAT as well, even though you may not need it for most of your locum work; knowing whether or not to charge VAT will depend on the type of jobs you do, so you’ll want to seek advice from someone who specialises in locum accountancy. However, you will have to register for VAT if you earn more than £85,000 (figure for 2018).</p><p>The process of setting up your own limited company is fairly quick, and at Gorilla Accounting, we can even have it done on the same day. This means your company will be up and running in no time, allowing you to start conducting business immediately.</p><h2>How Can Gorilla Accounting Help?</h2><p>Once you set up your own limited company, you may wonder what comes next.</p><p>As soon as your business is ready to go, your focus should shift to managing your finances. Because this can be such a complex and time-consuming task that never seems to end, you’ll want to leave it to an accountant who can help you pay your taxes on time, avoid incorrect paperwork and fines, and even legal action.</p><p>Since most people are attracted to locum work due to the flexibility it offers, we give you the option of managing your finances on the move with our <a href="https://gorillaaccounting.com/our-services/online-bookkeeping-software/">FreeAgent</a> bookkeeping solution, which can be found in our all-inclusive packages. This software lets you upload receipts, monitor your bank balance and receive tax notifications from any connected device.</p><p> </p><p style="text-align: center;"><div class="media leftAlone"><iframe width="480" height="270" src="https://www.youtube.com/embed/rAZrJal6wMI?feature=oembed" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen=""></iframe></div> </p><p> </p><p>We also offer other services in our packages. We can manage your business accounts effectively, submitting your financial statements, preparing and submitting your tax returns, HMRC record checks and liaising with Companies House, as well as preparing and submitting quarterly VAT returns.</p><p>Having a dedicated accountant means you’ll have all of your questions answered and your business finances streamlined. We can be your accountancy partner from just £85 + VAT per month (or, if you prefer, you can pay 12 months upfront and get 10% off your total fees).</p><p>Locum accountancy is not a simple subject and requires a lot of research and expertise. At Gorilla Accounting, we offer a host of accountancy services and professional advice that you can benefit from as a locum vet. From helping you set up a limited company to ensuring you’re making the right pension contributions, we take the hassle out of dealing with your business accounts and out of submitting your tax returns. This allows you to focus on the thing that matters most: your work.</p> Wed, 12 Dec 2018 16:00:00 +0000 https://gorillaaccounting.com/blog/everything-you-need-to-know-about-locum-vets-accounting Introducing Ping Finance – the Commercial Finance Consultant for Contractors https://gorillaaccounting.com/blog/introducing-ping-finance-the-commercial-finance-consultant-for-contractors- <p><strong>Ping Finance is a savvy commercial finance consultant which takes a modern approach to source finance for contractors, businesses and property investors alike.</strong></p><p>We can help with invoice finance, buy-to-let mortgages and unsecured business loans. For contractors, the most common financial solution is invoice finance which instantly advances the cash that’s tied up in your outstanding invoices – getting you paid now, rather than in 30, 60 or 90 days.</p><p>We can save you time and money by searching for the best deal on your behalf. We do not charge you a fee for our services and there’s no obligation to accept any offers we obtain for you – so why not see what’s available? </p><p>To find out more information about Ping Finance, you can <a href="https://pingfinance.com/?utm_source=link&amp;utm_medium=BlogPost&amp;utm_campaign=GorillaAccounting">visit our website here</a>.</p><h2>What is invoice finance?</h2><p>Invoice Finance is used to advance funds which are tied up in owed invoices. Rather than having to wait days to receive payment, you’ll typically receive this in as quick as 24 hours, depending on the lender.</p><p>Invoice Financing is split into <a href="https://pingfinance.com/what-is-invoice-financing-how-it-works/">two categories</a>, so there’s Invoice Factoring and Invoice Discounting. Invoice factoring will allow you to receive funds fast, but the main difference is that the company will chase the invoices for you.</p><p>The difference with invoice discounting is that you will be responsible for chasing up the invoices with the customer. Invoice financing is appropriate for businesses who need to ensure regular cash flow. If you’re unsure as to if this is right for you, get in touch and we’ll take a look at your situation in more detail. </p><h2>Searching for a lender</h2><p>We know that businesses come in all shapes and sizes which is why it’s important to work with a specialist. Our comprehensive panel of lenders can help in many situations. At Ping Finance, you’ll have one point of contact, your dedicated account manager, who will be part of the journey from start to finish. Furthermore, we can save you time and effort by managing the whole process for you, from completing the application to negotiating with lenders.</p><p>Through our experiences with Gorilla Accounting, we know what you should look out for when searching for a lender. Our services cost you nothing and you’re under no obligation to accept any offers we obtain for you - so why not see if there’s a better solution out there?</p><p>Ping Finance helps Contractors like you to source finance, whether that be property finance, invoice finance, or unsecured business loans.</p><p>Ran by experienced lenders and entrepreneurs, the firm is regulated by the FCA and holds itself to the highest standards, so you can be confident you’re in safe hands. Boasting a comprehensive panel including banks, specialist lenders, asset-based lenders, P2P lenders, and equity providers to name a few – we are confident that they can find the right solution for you.</p><p><strong>If you’d like more information on how we can help you, please email Matt Robinson on Matt.Robinson@pingfinance.com or call 0330 058 2330. Don’t forget to quote ‘Gorilla Accounting’. </strong></p> Tue, 27 Nov 2018 11:30:00 +0000 https://gorillaaccounting.com/blog/introducing-ping-finance-the-commercial-finance-consultant-for-contractors- 11 Sure-Fire Negotiation Tips Every Contractor Should Know https://gorillaaccounting.com/blog/11-sure-fire-negotiation-tips-every-contractor-should-know <p style="text-align: left;" align="center"><strong>The freelancer and contractor industry is still growing in the UK – this is excellent news to contractors, especially with the uncertainty of Brexit and the future of free movement) still unclear. </strong></p><p style="text-align: left;" align="center">There are around 2 million self-employed professionals in the country, and 1.77 million of them are full-time contractors. Whether you’re considering joining these contractor ranks or have been contracting for some years now, there’s something that remains true no matter what: as a contractor, one of the most important things you’ll ever do is negotiate deals. If you have a negotiation coming up, whether you’re going to start a new contract or want to renew an existing one, knowing how to get the best deal – and rate – is key.</p><p>Below, we discuss the importance of improving negotiation skills and we also offer tips to help you understand your value and how you can negotiate better. As <a href="https://gorillaaccounting.com/">contractor accountants</a>, we are confident that these tips will help you to maximise your earning potential, while ensuring that your potential clients still want to work with you.</p><h2>1. Always Do Your Research</h2><p>Before jumping into a negotiation, you’ll want to take the time to research every single aspect of the job. It’s worth learning as much as you can about a prospective client, such as the unique features of the role and how much they pay on average. Review the client’s website, any press releases or articles they may have, or learn more about the person you’ll be talking to through a LinkedIn search. The more you learn, the better.</p><p>This research should also tell you whether the job is a good fit for your skills. You may find that your current skills are not up to par with the role, or simply that your skill set is not suitable for the job, because it’s not what you usually do. By going in prepared, you’ll be more equipped to discuss what can be achieved and what can’t, as well as how much you should accept in terms of rates. </p><p><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCwzOTld/startup-photos4.jpg" alt="startup photos4" width="600" height="399"></p><h2>2. Know Your Target Audience</h2><p>It’s equally important to understand the point of view of your potential client. What do they want to achieve by hiring you? What are their expectations, and can you meet them? Conducting a negotiation with the right attitude of ‘us’, instead of ‘me versus them’, will help you to empathise with the client and understand where they’re coming from and what their needs actually are. The best negotiators truly listen to their clients and understand their pain points and key issues, so they can then formulate an appropriate solution. When talking to a client, therefore, it’s better to actively listen rather than trying to dominate the conversation.</p><h2>3. Assess Your Worth</h2><p>Many contractors feel uncomfortable broaching the subject of money, but it’s crucial that you know your value before you even start negotiating a rate with a potential client. Be aware, for example, of any rare skills you may have or how many years of experience you have in the industry. It’s a lot easier to promote yourself to a client if you know what you’re capable of. And when you know your worth, you also have more confidence to ask for more money. Not everyone believes they’re worth more than the asking rate, but it’s worth remembering that if a prospective client requires your help, they already believe you’re the right person for the job.</p><h2>4. Don’t Concede to Everything</h2><p>You don’t have to say ‘yes’ to everything. If you’re not aware of your worth as a contractor or lack confidence in your skills, you may fall into the trap of negotiating by constantly conceding to your potential client’s demands. They may continue to push boundaries by making unreasonable requests, if they know you’re likely to cave. If you have to concede or compromise on something important, make sure that you get something in return. A negotiation is just that – both sides have to be able to benefit from a contract. </p><p><a></a><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCwzOTld/pexels-photo-1181716.jpeg" alt="pexels photo 1181716" width="600" height="399"></p><h2>5. Negotiating a Rate</h2><p>Every project will have a salary range, so pin it down as much as you can before going in. For instance, you can look up industry guides and search for relevant news and mentions of wages. It’s also important to keep in mind that rates will vary depending on where you or your client are.</p><p>Most contract vacancies in the UK are concentrated in the South of the country and the regions with the highest rates tend to be Greater London, including the capital, the South East and the South West. In London, for example, it’s not unheard of for contractors to charge up to £300 an hour; however, such a figure is not likely to be found further north.</p><p>You’ll find that rates also vary from sector to sector, with industries like finance offering some of the country’s highest rates. And, of course, your circumstances will also play a role when it comes to negotiating a salary. If the economy is strong and you have several contract offers, you can say ‘no’ to jobs you’re not too keen to accept (or attempt to get a higher rate). The more options you have, the more your bargaining power grows.</p><p>A good strategy to start a salary negotiation is to be the first one to suggest a number, as that will become the one everyone will keep referring back to. So, know how much you want and lead with it. A great rule of thumb tends to be to aim as high as you possibly can and then expect to reach a compromise on the rate you really want.</p><p>However, some contractors do not like to be the first ones to mention a figure in a negotiation. They are wary of offering a number that is either too low (whereby they’re underselling themselves) or too high, which can cause a potential client to lose interest in their services.</p><p>It’s all about finding the strategy that works for you and that you feel more comfortable with.</p><h2>6. What’s Your Lowest Rate?</h2><p>You may consider a lower rate to be off the table, as you’re not willing to accept a low wage in return for your services; however, it’s still important to be aware of the lowest number you’re prepared to accept. After all, you don’t want to end up accepting a figure you’re not happy with, so setting a base limit you’re comfortable with will help you to keep the negotiation on track, ensuring you never take on a job for less money than you intend.</p><p>When coming up with your cut-off point, always take your living and commuting expenses, as well as other day-to-day costs into consideration.</p><p><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCwzOTld/pexels-photo-1311518.jpeg" alt="pexels photo 1311518" width="600" height="399"></p><h2 style="text-align: left;" align="center">7. Timekeeping is Important Too</h2><p>This may not be the first thing that comes to mind when you’re looking to negotiate a contract or your rates, but time can sometimes make or break a deal. You’re probably tired of hearing that time is money, but there’s a lot of truth to that. When you’re a contractor, every minute counts, as you could be making money elsewhere on another contract. Time is therefore of the essence for contractors, when coming up with a deal that both parties are happy with.</p><p>In addition, the longer a deal drags, the more likely it is that something will come along and derail it. Promptly make your research and learn how much you’re prepared to accept from a contract; this doesn’t mean you have to rush a negotiation and concede on points you’re not comfortable with. You should always take your time in order to ensure that you get the best deal out of the negotiation process; however, do keep in mind that there may be moments where time is not your friend.</p><h2>8. Stay Ahead of the Game</h2><p>Industries change all the time, and the same is true for systems, rates, processes and technologies. You want to keep ahead of any potential changes that can affect the way you do your job, so it’s essential to be aware of current and future trends. You’ll want to continually develop your skills in order to not only become better at your job but also gain more leverage when it comes to negotiating higher pay rates. There are many ways you can achieve this, such as by attending important industry conferences and seminars and by signing up for training programmes.</p><h2>9. You Can Negotiate More than Just Money</h2><p>It’s easy to forget sometimes that you can negotiate other aspects of the job when talking to a potential client, not just your rates. For example, you may be able to negotiate deadlines, payment for shipping or supplies, more flexible working hours and the option of working from home. When it comes to negotiating, don’t focus on one thing – every detail is important. Depending on your field or task, you probably have a long list of items that could be discussed and compromised on, so always go into a negotiation with those things in mind. </p><h2><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-1181533.jpeg" alt="pexels photo 1181533" width="600" height="400"></h2><h2>10. Always Have a Professional Attitude</h2><p>It goes without saying that you should always maintain a professional attitude throughout the whole negotiating process. The last thing you want is to burn bridges, even if your proposal didn’t have the outcome you wished. While you may not be considering it at the moment, you can never rule out the possibility of working with a potential client in the future; by staying friendly and respectful, you will help to nurture future relationships.</p><h2>11. Working Through an Agency or Directly with Client?</h2><p>There are several different ways to approach a negotiation, depending on the type of business you have. Are you working through an agency or do you contract directly for your client?</p><p>When contracting through an agency, you have to discuss the matter with them first. First of all, they will probably have more experience and more knowledge of other contractors’ rates, meaning they are likely better prepared to argue on your behalf.</p><p>Additionally, if you work through a recruitment agency, they will probably be remunerated by taking a percentage of your hourly or daily rate, while trying to get the best deal. Some contractors prefer to utilise an agency, as it can help them to avoid any gaps between contracts; others prefer not to work through an agency, seeing as they will take a cut that can be as high as 60% in some cases.</p><p>Should you opt to work with a recruitment agency, it’s important that you’re clear with the instructions you give them. Typically, they will be well informed but, should that not be the case, they may also be unaware of how important your skills and experience are; by not arming the recruiter with these crucial pieces of knowledge, you risk losing out on the best deal.</p><p>If you work directly with a client and will be negotiating with them, then you’ll be fighting your corner by yourself without the support of a recruitment agency. It’s therefore key that you outline your proposal and offer any necessary evidence to defend your position. The aim is to make a strong business case as to why you deserve a higher rate; a good way of proving this is by showing them examples of past work and how it benefited the organisations you previously worked for. </p><p><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-1109543-1.jpeg" alt="pexels photo 1109543 1" width="600" height="400"></p><p><strong>At Gorilla Accounting, we know just how important it is for you to get the best deal possible when negotiating with a client. So, in addition to our negotiation tips, we can also help you calculate your take-home pay with our <a href="https://gorillaaccounting.com/contractor-tax-take-home-pay-calculator/">contractor tax calculator</a>. We have years of experience and knowledge in the industry; if you wish to learn more about our accountancy services, don’t hesitate to ask us any questions.</strong></p> Thu, 22 Nov 2018 11:00:00 +0000 https://gorillaaccounting.com/blog/11-sure-fire-negotiation-tips-every-contractor-should-know Limited Vs Umbrella: Which Should You Choose? https://gorillaaccounting.com/blog/limited-vs-umbrella-which-should-you-choose- <p style="text-align: left;" align="center"><strong>As a contractor, you can set up a business as a limited company or opt to operate under a PAYE umbrella company. Deciding between the two, however, can be a challenge for many contractors; both present advantages and downsides, depending on your business and experience as well as how long you intend on contracting and how much time you want to spend on paperwork.</strong></p><p>As <a href="https://gorillaaccounting.com/">contractor accountants</a>, we understand just how important it is that you pick the right structure for your business, which is why we’ve put together a guide to help you make an informed choice.</p><h2>What is a Limited Company?</h2><p>We start by defining what a limited company actually is. Simply put, if you operate through this structure, you become a company director, joining the ranks of approximately 1.8 million trading limited companies registered in the UK. A limited company is a separate legal entity that can be formed even if your business is a one-man band – as the director, you’re responsible for legal, financial and statutory decisions, submitting annual accounts to Companies House (the registrar of companies in the country) and you’re responsible for meeting your HMRC tax deadlines.</p><p>With a limited company, the company’s assets and liabilities are separate from your personal finances. This means you’re legally liable for its debts only to the extent of the amount of capital invested. You can pay yourself a salary and draw the rest in the form of dividends, which are not subject to National Insurance contributions, this will depend on individual circumstance.</p><p>Another important subject to consider when operating through your very own limited company is IR35. If you’re caught by IR35, you’ll lose most of the tax benefits of working as a limited company. You can read more about this regulation and how it affects you by checking out our recent article: ’<a href="https://gorillaaccounting.com/blog/what-is-ir35-and-why-should-you-be-aware-of-it-">What is IR35 and why should you be aware of it?</a>’</p><h2>Pros and Cons of a Limited Company</h2><p>Because each case is unique, there are several pros and cons to operating through a limited company. It can be a challenge to know whether this structure is for you, so take a look at some of the advantages limited companies offer to see if it would apply to you and your business:</p><ul><li><strong>Tax-efficiency</strong> – limited companies can be the most tax-efficient structure, especially when compared to an umbrella company, in which your entire salary is taxed via PAYE. When working through a limited company, you will take home anything between 75% to 80% of your contract pay; if you opt for an umbrella company, this value is more between 60-65%. As a contractor operating through a limited company, you have access to the flat rate VAT scheme. Our <a href="https://gorillaaccounting.com/resources/contractor-tax-take-home-pay-calculator/">take-home pay calculator</a> can help you to find out how much you’d take home as a limited company owner.</li> <li><strong>Flexibility</strong> – you have a great deal of flexibility by operating through your very own limited company.</li> <li><strong>Control</strong> – limited companies offer more control, given that the director of the business controls all the transactions, the invoicing, the salary and dividend amount, and the bank account. You don’t have to deal with third parties to get your income, as is the case if you choose umbrella companies. A contractor accountant can easily help you deal with this aspect of running your very own limited company.</li> <li><strong>Faster payment</strong> – because you have direct control, payment and administrative processes are faster; that is, of course, if all transactions are dealt with efficiently.</li> <li><strong>Limited liability</strong> – because limited companies are separate legal entities, your personal assets are always protected. Should the company suffer financial difficulties or have to close, you don’t have to worry about your personal assets being taken to pay outstanding debts.</li> <li><strong>Long-term contracts</strong> – limited companies are the best choice if you’re considering taking on long-term contracts.</li> <li><strong>Professional image</strong> – owning a limited company conveys a more professional image, which can be extremely helpful in certain contracting fields.</li> <li><strong>Easier to claim expenses</strong> – you can also claim a wider range of expenses. These include costs that you incur while running your business, like equipment or business travel. You must be able to clearly outline all of your expenses as the director of a limited company. </li> </ul><p><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0NTBd/pexels-photo-265661.jpeg" alt="pexels photo 265661" width="600" height="450"></p><p>While there is a world of benefits in choosing to operate through a limited company, there are also some disadvantages, such as the following:</p><ul><li><strong>Suited for higher paying contracts</strong> – if you are working lower-earning contracts, an umbrella company may be more suited for your business.</li> <li><strong>More paperwork</strong> – one of the main downsides of choosing a limited company is the amount of administration and paperwork that can arise; this is especially true when it comes to late filings or payment penalties. Not only can this become a hassle for many company owners, but it also takes up a lot of their time.</li> <li><strong>Increased responsibility</strong> – directors are in charge of everything; while that gives them a great deal of control, it also means they have a responsibility to keep on top of day-to-day issues like invoicing, ensuring all forms are filed correctly by their due dates and more.</li> <li><strong>Need for accurate records</strong> – when you own a limited company, you need to take care of all administrative duties that come with running your own business, such as keeping accurate records of goods that have been purchased and sold, information of any debts the company may have, details or all incomings and outgoings and assets owned by the business.</li> <li><strong>Lack of privacy</strong> – for many, this is one of the major disadvantages of doing work through their limited company. After all, as the director of a limited company, you have to submit details to Companies House, which will become public record, meaning anyone can access them. You do have the option to use a registered office address, as offered by Gorilla Accounting.</li> </ul><h2>What is an Umbrella Company?</h2><p>The number of umbrella companies operating in the UK has grown over the past few years.</p><p>Contrary to when you set up your own limited company, you become an ‘employee’ when you join an umbrella scheme. This means you’re neither the director of your own company, nor do you have the responsibilities that come with it. You receive a salary after tax, National Insurance and expenses have been deducted; there are usually other pre-agreed fees, as well as the fee you pay the umbrella scheme.</p><p>The umbrella provider takes care of all accountancy, administration and taxation matters, while you only need to complete a timesheet and forward it to the umbrella company, who then invoices the end client or agency on your behalf. You receive your payment once the client has paid the umbrella company. </p><p><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MTBd/pexels-photo-1204649.jpeg" alt="pexels photo 1204649" width="600" height="410"></p><h2>Pros and Cons of an Umbrella Company</h2><p>Just like with limited companies, there are several benefits to choosing an umbrella company as your business structure, including the following:</p><ul><li><strong>Short-term contracts</strong> – Umbrella companies are better options for short-term contracts, when you’re just starting out as a contractor and are unsure whether or not you want to own a business. After all, you don’t want to go through the costly and time-consuming process of forming a company only to have it dissolved after finding out it’s not for you. Therefore, this is a low-risk and temporary solution for those who are still testing the waters.</li> <li><strong>Hassle-free</strong> – if you don’t want to take on any form of administration or paperwork, umbrella companies are best-suited for you, as they offer a hands-off approach. This includes dealing with VAT returns, payroll matters and company accounts. Everything is deducted before you receive your money as well, so you can have the peace of mind of knowing that you have no further taxes to pay.</li> <li><strong>Time-saving</strong> – limited companies consume a lot of your time with the sheer number of administrative tasks that need to be performed accurately and on time; on the other hand, umbrella company schemes are quick and simple to use, as the company handles it all for you.</li> <li><strong>No self-assessment</strong> – you don’t have to complete a tax return form unless you earn untaxed income in addition to your earnings from the umbrella company.</li> <li><strong>No legal duties</strong> – as an employee of the company, you don’t have any legal duties to keep in mind. This can free you to focus on your job instead of having to worry about anything else.</li> </ul><p>There are also some disadvantages associated with choosing an umbrella company. They include:</p><ul><li><strong>Lack of representation</strong> – contractors are unable to represent themselves as they would if they were running their own business.</li> <li><strong>Higher costs</strong> – one of the main downsides of using an umbrella company is that it can be more expensive. Everything the umbrella company does for you – such as client invoicing or administration costs – will have an associated fee or a bulk fee.</li> <li><strong>Less control</strong> – you have to give up a lot of control when you join an umbrella company, as you won’t be running your own company; you’ll simply use the company as a service to process transactions, while someone else is in charge of all of your paperwork. While many individuals are perfectly fine with this, and even prefer it, others may not be. This is why it’s important to analyse both structures in order to make the right decision.</li> <li><strong>PAYE </strong>– contrary to owning a limited company, operating through an umbrella company will mean that you’ll be paying more tax and PAYE when using an umbrella company due to the Managed Service Company legislation.</li> </ul><p><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCwzMzdd/pexels-photo-380773.jpeg" alt="pexels photo 380773" width="600" height="337"></p><h2 style="text-align: left;" align="center">Umbrella or Limited: Which Company is Right for You?</h2><p>The simple answer is, it depends. Each case is different, so your decision to set up your own limited company or join an umbrella company is contingent upon how you want to conduct business and with whom.</p><p>While you may have little control over your business with an umbrella company, you don’t have as much paperwork and administrative matters to handle, such as chasing payments and negotiating with clients. This type of business structure is likely the best option, if you are new to contracting and are still unsure whether it’s what you want to do long-term.</p><p>If you want to work with several clients and are confident that you’ll want to continue contracting, then a limited company is best-suited for you. You may have more administrative tasks to take care of, but you also have a lot more control over your company. By being the director of your own limited company, you’ll also be able to structure the way you pay yourself.</p><p>Before making a decision, it’s crucial that you seek professional advice. We specialise in providing accountancy for freelancers and contractors operating through a Limited Company or Umbrella Company.  </p><p><strong>What’s more, at Gorilla Accounting we also ensure that you get services with no extra charges or hidden fees; you only have to pay a one-set fee. Letting us take care of everything as you grow your business means more peace of mind for you. </strong></p> Tue, 20 Nov 2018 10:30:00 +0000 https://gorillaaccounting.com/blog/limited-vs-umbrella-which-should-you-choose- IR35, April 2020 and the private sector reform https://gorillaaccounting.com/blog/ir35-larsen-howie-and-the-private-sector-reform <p><strong>Finally, after a long period of if's and but's around the IR35 reform in the public sector, Philip Hammond announced in his Budget speech</strong><a href="https://gorillaaccounting.com/%5bsitetree_link,id=117%5d"></a><strong> that the IR35 reform will indeed, as expected by many, be rolled out into the private sector</strong>.</p><p>Larsen Howie, the <a href="https://gorilla.larsenhowie.co.uk/">IR35 Review specialists</a> talk you through their take on the Autumn Budget statement, in particular - the IR35 reform. </p><p>Whilst this could be viewed as unfortunate news for contractors working on engagements in the private sector, one slither of hope is that the changes are not due to take effect until April 2020, and then - only to contracts where the end client is a “medium or large business”. </p><p>The Chancellor further<a href="https://gorillaaccounting.com/blog/autumn-budget-2018-ir35-in-the-private-sector"> confirmed in his speech</a> that the planned reforms which will be rolled out to the private sector will mirror the public sector – which itself <a href="https://gorillaaccounting.com/resources/ir35-guide-contractors/">underwent reform</a> in April 2017. The basic logic of having one set of rules rather than two running side by side is sound, but further questions are yet to be answered as the controversial move goes against professional and marketplace advice. </p><h2>What can we expect in April 2020?</h2><p>The Chancellor stated that private sector IR35 changes will be applicable to all businesses except “the smallest 1.5m”. As defined by the Companies Act 2006, a “medium or large business” is as follows:  </p><p>Companies Act 2006, c.46, Part 15,</p><p><i>“381.</i></p><p><i>(3) The qualifying conditions are met by a company in a year in which it satisfies two or more of the following requirements—</i></p><p><i>1) Turnover (not more than £10.2m)</i></p><p><i>2) Balance Sheet Total (not more than £5.1m)</i></p><p><i>3) Number of Employees (not more than 50s)”</i></p><p>Making approximately 1.5 million small businesses exempt from the IR35 changes leaves room for uncertainty throughout the supply chain. </p><p>The public sector changes caused unrest and a risk-averse approach from businesses making IR35 decisions with little to no training on IR35. In the build-up to April 2020, in order to avoid the same behaviour, providers like us are able to help educate and assist with IR35. To determine IR35 status as a contractor, <a href="https://gorilla.larsenhowie.co.uk/">via our range of IR35 contract review offerings</a>.</p><h2>Educate and upskill on IR35</h2><p>Without playing a guessing game, evidence would suggest that blanket assessments are likely to become more common. We don’t believe that the changes announced in the recent budget will increase IR35 compliance in the private sector, as expected by HMRC. Whilst compliance can always improve and is, without doubt, a good thing, it needs to be done fairly and proportionally.</p><p>The working practices for each contractor vary and it is this that HMRC places great reliance upon proving. Risk-averse, blanket inside IR35 decisions cannot be allowed to be made, and each determination must be made on its own facts and merits. The public sector is its own judge, jury and executioner, but the private sector will be a different animal to deal with. </p><p>As a means of avoiding the reform, you may find emerging firms promising contactors 85% plus take home pay. As always, if it sounds too good to be true, it will be, and whilst the short-term gain is great, the long-term won’t be so rosy. We encourage contractors to stay away from anything of this nature - HMRC has form in aggressively taking retrospective action on anything they consider illegal.</p><p>In terms of what HMRC are doing to prepare, well they have confirmed that they will continue to work with organisations to improve their Check Employment Status Test tool (CEST). Sounds great, but for a system that is acknowledged to omit MOO (Mutuality Of Obligation) because it “is deemed present in every contract” (a point HMRC have constantly been beaten on in tribunals), cannot be relied upon. Experts including Larsen Howie raise serious doubts over the technology’s accuracy and legitimacy which is placing contractors inside of IR35. This makes taking an alternate view on your IR35 status imperative.</p><p>The conclusion – don’t wait. Educate and upskill on IR35, understand your position, who and where the financial liabilities rest for an incorrect determination, and make sure the supply chain knows this too.</p><p><strong>For more information on IR35, get in touch with Gorilla Accounting who will put you in touch with us. We offer a <a href="https://gorilla.larsenhowie.co.uk/">discounted service</a> to all clients of Gorilla Accounting. If you have any questions, please use our contact form or call 0330 024 0406. </strong></p> Thu, 15 Nov 2018 11:00:00 +0000 https://gorillaaccounting.com/blog/ir35-larsen-howie-and-the-private-sector-reform What is IR35 and why should you be aware of it? https://gorillaaccounting.com/blog/what-is-ir35-and-why-should-you-be-aware-of-it- <p style="text-align: left;" align="center"><strong>As a contractor, understanding IR35 and what it means is crucial for your business. Also known as ‘intermediaries’ legislation’, IR35 first came into effect on the 6<sup>th</sup> of April of 2000 and is designed to prevent contractors from working as disguised permanent employees and benefitting from tax advantages by working through an intermediary, such as a limited company.</strong></p><p style="text-align: left;">Getting the best <a href="https://gorillaaccounting.com/resources/gorilla-guides/what-is-ir35/">IR35 advice</a> is key. At Gorilla Accounting, we aim to help you navigate this complex – and often confusing – legislation to ensure you don’t get caught in it. Our ultimate IR35 guide below can help you to gain a deeper understanding of this subject and why you need to know all there is to know about it.</p><h2>What is IR35?</h2><p>Firstly, it’s important to know exactly what this tax legislation is in order to know if and how it can impact you. The legislation can be boiled down to a simple question: are you a full employee or a genuine contractor?</p><p>IR35 was implemented to fight tax avoidance by workers who are supplying services via an intermediary, like a limited company, but who would be considered an employee if this intermediary wasn’t used. These ‘disguised employees’ are not considered self-employed by the HMRC and are to be taxed the same as a permanent employee.</p><p>Before this legislation was introduced, a self-employed worker was able to provide services to clients as a one-man limited company, receiving a large part of earnings and dividends but saving on National Insurance and tax deductions.</p><h2>Controversy surrounding IR35</h2><p>This tax legislation, named after the Inland Revenue press release that announced the Government’s plans to come down on ‘disguised employment’, is just as controversial today as it was back in 2000. IR35 has been opposed by several bodies since its inception. After all, HMRC doesn’t make it easy to tell contractors and employees apart, so there are a variety of questions you need to ask yourself in order to gauge your status. There is also no definitive rule to IR35, which further complicates your assessment.</p><p>One of the most famous and fiercest opponents is the IPSE, a contractor and freelancer representative group; the organisation sought a judicial review of the legislation in early 2001. Although the group lost the appeal, many businesses continue to argue against IR35 to this day, believing that its rules are unfair and too ambiguous to provide any concrete certainty. </p><p><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCw0MDBd/pexels-photo-935863.jpeg" alt="pexels photo 935863" width="600" height="400"></p><p>Combatting the legislation has proven fruitful for some. The HMRC recently lost an IR35 case, after an IT contractor fought against a £27,000-plus tax bill successfully; interestingly, the same contractor won another IR35 case back in 2004. So, while the HMRC has won several cases since 2000, so have taxpayers.</p><p>There are, however, many arguments in favour of IR35, as well. These include:</p><ul><li>It’s unfair for two workers performing the same tasks to pay different rates of income tax and national insurance if there’s no difference between working arrangement. The legislation can help to even the field.</li> <li>In order to avoid paying the correct income tax and national insurance, some workers will leave on Friday as an employee and return on Monday to do the same job as a hired consultant; these “Friday to Monday” cases can be prevented via IR35.</li> </ul><h2>Who can be affected by IR35?</h2><p>It helps to know who exactly can be impacted by the IR35 legislation. After all, you may think you are inside IR35 but find out you aren’t; or vice-versa. Until very recently, only contractors were responsible for establishing their IR35 status. After 2017, reforms in the public sector meant the following:</p><ul><li>Hirers can determine the IR35 status of contractors.</li> <li>Agencies are responsible for deducting tax from contractors’ pay.</li> <li>Agencies risk being liable for unpaid tax and penalties if the worker is inside IR35.</li> </ul><p>Intermediaries are typically defined as limited companies, personal services companies or partnerships. However, IR35 rules may also be enforced when working through intermediaries that are abroad or in construction, when working with a spouse or partner, and when working for a charity.</p><p>The HMRC estimates that the IR35 reform in the public sector has generated £410 million in additional revenue for the Treasury so far and that almost 86% of contractors have been affected by it.</p><h2>Are you inside IR35?</h2><p>How do you know if you’re inside the legislation?</p><p>IR35 is determined through several acknowledged status tests based on historical case law which are applied to your written contract and working practices.</p><p>If you’re a contractor, freelancer or consultant who’s in business on your own account, then IR35 won’t apply to you. It’s still important to be aware of the legislation and any potential changes to it, of course, since you may have to prepare a defence if the HMRC wishes to investigate.</p><p>If you, on the other hand, possess the same benefits, responsibilities, and control as a permanent worker, then it’s highly possible that you’re inside IR35. </p><p><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCwzOTld/pexels-photo-1028726.jpeg" alt="pexels photo 1028726" width="600" height="399"></p><p>There are several pointers you can keep in mind to check whether or not you’re a self-employed contractor and are inside IR35, such as the following:</p><ul><li>Control – are you under the direct control and supervision of your client? A contractor is not supervised like an employee is.</li> <li>Substitution – are you allowed to provide a substitute if you’re unable to work? If not, then HMRC would consider this to be an indicator of a contractor of employment.</li> <li>Mutuality of obligation – are there any expectations of future contract work after the current one expires? A self-employed contractor will work on a specific project that they’ve been contracted to do but there should be no further expectation of work by either side.</li> <li>Provision of equipment – do you use equipment provided by the client or do you use your own? Contractors generally possess their own equipment, while employees will have all major pieces of equipment and facilities provided by their employer.</li> <li>Payment – self-employed people are usually paid by the job and not by a fixed hourly/daily rate.</li> <li>Doing other work – this is a major pointer in determining whether or not someone is an employee; if a contractor has the right to work for other clients, then they’re self-employed.</li> <li>Being in business – contractors typically have their own website and business insurance, which employees do not.</li> <li>Contract termination – notice periods are reminiscent of an employee-employer relationship, so IR35-friendly contractors tend to not have them.</li> <li>Financial risk – if a contractor does something wrong, they have to correct that mistake at their own cost and should not be paid for the additional work.</li> </ul><p><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCwzOThd/pexels-photo-1056551.jpeg" alt="pexels photo 1056551" width="600" height="398"></p><h2 style="text-align: left;" align="center">What does it mean to be inside IR35?</h2><p>The idea behind IR35 is to prevent individuals from acting and being treated as employees of a company when they aren’t. After all, doing so would mean they’d have the right to all the benefits and tax breaks that employees under limited companies are entitled to.</p><p>If you’re found to be within IR35, you will have to pay income tax and National Insurance Contributions (NICs) as if you’re employed. This will have a significant financial impact; being caught in this tax legislation may reduce your net income by up to 25%, costing you thousands in additional income tax and NICs. If you’re in the public sector, you can only claim on a limited number of expenses and won’t be entitled to the HMRC’s 5% expense allowance.</p><p>In addition, IR35 can look at the last six years and analyse your past contracts as well; if the legislation applies, then you incur penalties and interest, in addition to more income tax and NICs.</p><p>These are just some reasons why it’s important to be aware of IR35 and how it can impact your finances.</p><p>If you’re caught by IR35 and deemed to have the same responsibilities or benefits as a permanent employee, your earnings for a specific job are also considered the same as a full-time worker. You’ll have to pay a ‘deemed payment’ at the end of the tax year to account for any deductions or NICs that a permanent employee would have paid. If you’ve paid enough in national insurance contributions and PAYE, then it may not be required that you make this payment.</p><p>Many people worry that they’re doing something illegal by being caught by the legislation; however, this couldn’t be further from the truth. Being caught by IR35 is considered tax avoidance, not tax evasion, which is illegal. The ambiguity and uncertainty that the legislation offers are likely not of any help if you’re worried about it; a professional adviser will be able to help you navigate this tricky issue, answer any questions you may have and put your mind at ease.</p><h2>How should you operate as a contractor?</h2><p>Because there’s a lack of clarity when it comes to IR35, it can be a challenge to decide which operating structure to choose. If your assignment is considered to be inside IR35, then working under an umbrella company may be the most tax-efficient path; this isn’t always true, as it will depend from case to case. </p><p><img class="leftAlone" title="" src="https://gorillaaccounting.com/assets/Uploads/_resampled/ResizedImageWzYwMCwzOTdd/Hand-Shaking2.png" alt="Hand Shaking2" width="600" height="397"></p><p>Higher paid contractors, for instance, may find it more beneficial to operate through a limited company. And even if your contracting job falls within IR35, you may still choose to operate as a limited company; if you have contracts outside of the legislation, they can be put through the limited company.</p><p>Seeking the services of a company that specialises in contractor accountancy can help you to figure out how to operate. A <a href="https://gorillaaccounting.com/resources/take-home-pay-calculator/">contractor tax calculator</a> is also a useful tool to know your take-home pay.</p><h2>Change is coming – IR35 in the private sector</h2><p>As expected, during the Autumn Budget 2018 statement, Chancellor Phillip Hammond stated that IR35 is coming to the private sector, as well. The changes will be introduced in April 2020. After that date, the responsibility of confirming the IR35 status will shift from the employee to the agency or end client; if the employee is caught by IR35, the agency or end client will also be accountable for tax and national insurance deductions.</p><p>These new changes will only be applied to medium or large organisations, while small ones will be exempt. The Chancellor said: “The off payroll working rules – known as IR35 – are designed to ensure fairness so that individuals working side by side in a similar role for the same employer pay the same employment taxes.”</p><p>How can contractors and freelancers prepare for the upcoming IR35 reform in the private sector? Even though all the details still haven’t been fleshed out, there are several ways you can start preparing, such as:</p><ul><li>Taking the <a href="https://www.gov.uk/guidance/check-employment-status-for-tax">HMRC IR35 test</a>, which will allow you to assess your current business practices.</li> <li>Auditing your work practices after the HMRC’s test results; this will allow you to analyse how IR35 changes may affect your business and how to solve potential issues.</li> <li>Seeking expert advice, such as through <a href="https://gorilla.larsenhowie.co.uk/?__hstc=45629947.22a621d74327b796eb2c0eb162848d4f.1541765333472.1541768454165.1541773707307.3&amp;__hssc=45629947.4.1541773707307&amp;__hsfp=3940508650">Larsen Howie</a>. Before you make any changes, you may want to get professional advice to ensure that you’re on the right path. Likewise, if you’re still unsure whether or not you’re compliant with IR35, finding a company that specialises in this and other work legislation will help.</li> </ul><h2>Gorilla Accounting can help</h2><p>If you’re worried about IR35, especially with the new looming reform, you’re not alone. Many contractors struggle to understand all the ins and outs of this legislation, which can be perplexing. However, the basics of IR35 legislation should be understood by every contractor in the UK since its rules can seriously impact your take-home pay if you get caught in it. It’s important, therefore, to seek advice from professional contractor accountants who specialise in IR35 and all its ramifications.</p><p>Gorilla Accounting are here to answer all of your IR35-related questions. We can help you to protect yourself against IR35 and help you to mitigate the risk of being selected for an investigation. We can put you in touch with an <a href="https://gorillaaccounting.com/blog/introducing-larsen-howie-the-ir35-review-specialists-">IR35 review specialist</a> who offers a discounted service to all Gorilla Accounting clients. </p><p><strong>As a contractor, peace of mind is important in running your business, so we aim to take the stress away from paying taxes. Talk to our expert team of <a href="https://gorillaaccounting.com/">contractor accountants</a> and we’ll be more than happy to help with any questions you may have; and will deal with any tax-related queries for you.</strong></p><p> </p> Mon, 12 Nov 2018 11:00:00 +0000 https://gorillaaccounting.com/blog/what-is-ir35-and-why-should-you-be-aware-of-it- Meet us at the London Vet Show 2018! https://gorillaaccounting.com/blog/meet-us-at-the-london-vet-show-2018- <p> </p><p><strong>The London Vet Show is one of the world's most established veterinary exhibitions, bringing together thousands of vets from across the industry into an action-packed two-day event.</strong></p><p>Last year's exhibition saw more than 5,000 visitors descend on London's ExCel Centre, representing more than 20% of the entire UK veterinary population.</p><p>This year, Gorilla Accounting will be joining <a href="https://simplylocums.co.uk/#/search">Simply Locums</a> at the event, providing one-to-one accountancy consultations and financial advice to those working in the veterinary industry.</p><p>We’ll be sending along <a href="https://www.linkedin.com/in/richard-hepburn-97b118113/">Operations Director</a>, Richard Hepburn, and <a href="https://www.linkedin.com/in/neil-wright-4626011/">Sales Manager</a>, Neil Wright, ensuring that visitors have access to specialist accountancy advice from Gorilla Accounting.</p><p>Richard will be taking bookings in the lead up to and at the event, with fifteen-minute slots available throughout. These free consultations are a fantastic opportunity for <a href="https://gorillaaccounting.com/accountants-veterinary-surgeons-practitioners/">locums</a> to ask any questions about accountancy, tax planning and ongoing financial strategies. </p><p>Take a look at Richard's video below for more information on Gorilla Accounting's appearance at the London Vet Show.<br><br><div class="media leftAlone"><iframe width="679" height="382" src="https://www.youtube.com/embed/mr6WGAQxeC0?feature=oembed" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen=""></iframe></div></p><h2>Who Are Simply Locums? </h2><p>Simply Locums offer an accessible, easy to use platform designed to match locums with their perfect job. They aren't a recruitment agency – instead, they provide a forum-based community for veterinary practices and locums to engage as and when needed.</p><p>Rather than driving candidates into unwanted roles, their aim is to connect vets, nurses and practices together for the betterment of the industry as a whole. </p><h2>Why do locums need an accountant?</h2><p>Operating as a locum is an incredibly flexible, varied and rewarding way to enjoy your career as a vet, however, it does come with added financial responsibilities that you may not have come across as a permanent employee.</p><p>The first challenge is deciding whether to operate under an <a href="https://gorillaaccounting.com/resources/gorilla-guides/limited-or-umbrella/">umbrella or limited company</a>, both have their advantages and disadvantages. Working under an <a href="https://gorillaaccounting.com/our-services/gorilla-payroll-umbrella-company-contractor-freelancer/">umbrella company</a> closely matches the business conditions you'd be under as a traditional employee. All of your taxes will be deducted at source; however, you won't benefit from the tax advantages that can come with running a limited company. </p><p>If you decide to go down the <a href="https://www.youtube.com/watch?v=bDDQfwjia5A">limited company route</a>, you'll need to incorporate the business with Companies House whilst setting up all necessary insurances, business bank accounts, shareholder agreements and more. This can be as time-consuming as it is confusing, however, accountancy firms like Gorilla Accounting will be able to do all of this for you as part of our service.</p><p>As a locum, your accountant will take care of your business tax affairs, as well as providing ongoing advice when you need it. The peace of mind that comes with having a professional to turn to when you need them most can be invaluable when setting up a business.</p><h2>The London Vet Show</h2><p>The London Vet Show has been running since 2009 and has grown in visitor numbers by a whopping 400% since launch. This multi-award-winning show is run in conjunction with the <a href="https://www.rvc.ac.uk/">Royal Veterinary College</a> and the <a href="https://www.bva.co.uk/">British Veterinary Association</a>, making it a must-attend show for anyone in the industry. </p><p>It offers an excellent learning environment with a myriad of sponsor-led workshops, networking seminars and countless opportunities for business growth. There are already more than 200 inspirational speakers appearing at the two-day event, delivering over 1,000 hours of the very latest advances in the veterinary industry. </p><p>This year, more than 450 vendors will be gracing London's ExCel Centre, showcasing ground-breaking technology, techniques and products to help UK vets continue to offer only the best to their clients.</p><p><strong>To book an appointment with Richard Hepburn at the London Vet Show, please email richard.hepburn@gorillaaccounting.com or get in touch on 0330 024 0406. For more information about our all-inclusive accountancy package for Locum Vets, <a href="https://gorillaaccounting.com/our-services/contractor-freelancer-accountancy-services/">see here</a>. </strong></p> Wed, 07 Nov 2018 10:00:00 +0000 https://gorillaaccounting.com/blog/meet-us-at-the-london-vet-show-2018- Why does a Locum Vet need an Accountant? https://gorillaaccounting.com/blog/why-does-a-locum-vet-need-an-accountant- <p><strong>Working as a locum vet has an array of financial and lifestyle advantages but making the decision to operate through an umbrella company or as a limited entity can have huge repercussions on your earnings. </strong></p><p>In this blog, we'll take a closer look at how locum vets function under an umbrella company, as well as the financial benefits that come with using a professional accountant to structure an independent, limited business.</p><h2>Umbrella or Limited?</h2><p>Working as a locum vet under an <a href="https://gorillaaccounting.com/our-services/gorilla-payroll-umbrella-company-contractor-freelancer/">umbrella company</a> means that you'll be treated in a similar way to an employee. All you'll need to do is submit regular time sheets, and the umbrella company will deduct all the relevant taxes on your behalf before paying you. </p><p>Alternatively, you could choose to become the director of your own limited company, putting you in complete control of your business operations. You'll be able to balance salary and dividends to determine National Insurance contributions, claim for certain business expenses and have a company that operates separately to your own finances.</p><p>Going down the limited company route might seem daunting at first, but an experienced accountant can help you to navigate your business and reap the rewards of running your own limited company.</p><h2>Business Incorporation</h2><p>No matter what sector you're operating in as a locum, you'll first need to incorporate your limited company. If you're using an accountant, they’ll be able to help <a href="https://www.youtube.com/watch?v=YUD3u6xumQs">register your business</a> with Companies House, as well as setting up a <a href="https://gorillaaccounting.com/our-services/bank-accounts-contractors-freelancers/">business bank account</a> and advising on relevant insurances.</p><p>Even as a locum, you'll typically need professional indemnity insurance to safeguard against any legal action for negligence or poor advice, so it's essential that you've got this in place from launch.</p><h2>Tax Management</h2><p>Once your limited company is up and running, now's the time to focus on managing your business finances. Your accountant will help to ensure that taxes are paid on time, avoiding the hassle of incorrect or incomplete paperwork, expensive late fines and possible legal action. </p><p>As a locum, being able to manage your business finances on the move is a massive plus, giving you the freedom to upload receipts, monitor your bank balance and receive tax notifications from any connected device. <a href="https://gorillaaccounting.com/our-services/online-bookkeeping-software/">FreeAgent</a> does exactly this and it’s included in our all-inclusive package.</p><p>Every business is different and there'll be plenty of unique challenges that you'll come against during your time as a locum vet. Having an experienced financial professional on hand to answer any questions can make a big difference as a business owner. Your accountant will understand the detailed intricacies of your business, helping to improve the efficiency and effectiveness of your finances.</p><p>The route you decide to take will ultimately be down to your own individual circumstances, but seeking the advice of a professional accountant can help you to get the most from the veterinary services you offer.</p><p>Gorilla Accounting offers an all-inclusive accountancy service for locum vets, from limited company incorporation through to your annual tax returns. We've helped locums from across the medical and veterinary industry to create, manage and grow their businesses with a simple pricing plan of just £85 + VAT per month.</p><p><strong>Find out more about how Gorilla Accounting can help your locum business by <a href="https://gorillaaccounting.com/contact-us/general-enquiries/">contacting a member of the team today</a>.</strong></p><p><strong> </strong></p> Mon, 05 Nov 2018 11:00:00 +0000 https://gorillaaccounting.com/blog/why-does-a-locum-vet-need-an-accountant- Autumn Budget 2018 - IR35 reform extended to the private sector https://gorillaaccounting.com/blog/autumn-budget-2018-ir35-in-the-private-sector <p> </p><p><strong>The Autumn Budget statement was unveiled by the Chancellor of the Exchequer, Philip Hammond, earlier this afternoon. </strong></p><p><strong><div class="media leftAlone"><iframe width="679" height="382" src="https://www.youtube.com/embed/jn-YeByCv8U?feature=oembed" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen=""></iframe></div></strong></p><p>The government, as expected, implemented changes to the way IR35 status is determined for workers in the private sector. See below for a summary of the announcements that may affect you as a contractor:</p><h2>IR35 – Private Sector </h2><p>As expected, the Chancellor announced that rules surrounding <a href="https://gorillaaccounting.com/what-is-ir35-advice/">IR35</a> will be brought in line with public sector bodies. The changes will be introduced in April 2020.</p><p>The changes mainly involve shifting the responsibility of confirming the IR35 status from the worker to the agency or end client engaging the worker. If the worker is caught by IR35, the agency or end client will also be responsible for operating and calculating the tax and national insurance deductions as they would for employees.</p><p>With the changes coming in April 2020, we hope that this gives businesses and individuals time to prepare.</p><p>The changes will only apply to those end clients or agencies who are medium or large organisations and HMRC will provide guidance ahead of the implementation. Small organisations will be exempt, which minimises the administration cost. </p><p>In summary, in relation to the IR35 reform, Philip Hammond, said:</p><p><span>"The off payroll working rules - known as IR35 – are designed to ensure fairness, </span>so that individuals working side by side in a similar role for the same employer pay the same employment taxes.</p><p><span>"Last year, we changed the way these rules are enforced in the <a href="https://gorillaaccounting.com/ir35-guide-contractors/">Public Sector</a>, b</span>ut widespread non-compliance also exists in the private sector. </p><p><span>"So following our consultation, we will now apply the same changes to private sector organisations as well, b</span>ut after listening carefully to representations made during the consultation, we will delay these changes until April 2020 and we will only apply them to large and medium-sized businesses."</p><h2>Personal Allowance and Higher Rate Threshold</h2><p>The Chancellor also announced that from April 2019, the personal allowance will increase to £12,500 from £11,850 and the higher rate threshold will increase to £50,000 from £46,350. This is one year earlier than planned and the rates will stay the same for the 2020-21 tax year. </p><p>These changes are expected to bring nearly one million fewer higher rate taxpayers than in the 2015-16 tax year.</p><h2>Entrepreneurs' Relief</h2><p>To qualify for Entrepreneurs Relief, the minimum period to meet the relevant qualifying conditions has increased from 12 months to 24 months.</p><p>The change will be effective from April 2019 and the rate will stay the same at 10%.</p><p>To tackle the misuse of Entrepreneurs Relief, from 29<sup>th</sup> October 2018, shareholders must also be entitled to at least 5% of the distributable profits and net assets of a company. This is, in addition, the current requirements of having at least 5% share capital.</p><p>The Chancellor said, </p><p>" I have received representations that I should abolish Entrepreneur’s Relief and put the savings towards funding our NHS commitments, but I do not believe we can have sustainable public services unless we have a dynamic economy.</p><p>"And encouraging entrepreneurs must be at the heart of our strategy, so I will retain the Entrepreneurs Relief,  but to ensure it is going to genuine entrepreneurs, I will extend the minimum qualifying period from 12 months to 2 years.</p><h2>Employer's NI – Employment Allowance</h2><p>There will be changes to the Employment Allowance from 2020.  However, as the relief is aimed at helping small to medium-sized businesses, the annual allowance of £3,000 will be removed for employers with employer NI contributions of at least £100,000 in the previous tax year. </p><p>This will mean that 99% of micro-businesses and 93% of small businesses will still qualify for the annual allowance if they have at least 1 employee.</p><p>Philip Hammond said,</p><p>"The Employment Allowance was introduced to incentivise businesses to take on employees, but at a flat rate of £3,000 per employer, it does not provide any real incentive for larger employers.</p><p>"So, from April 2020, we’ll target it at small and medium businesses with an Employer NICs bill under £100k a year."</p><h2>VAT Registration Threshold</h2><p>The government has confirmed there was no clear evidence for reform in relation to the design of the VAT registration threshold.  The chancellor has therefore confirmed that the VAT threshold will remain at £85,000 for a further 2 years until April 2022.  </p><p>The Autumn Budget statement continued as follows,</p><p>"We’ve explored all avenues to address the cliff edge effect of VAT registration, but our options are restricted by EU law.</p><p>"We will continue to work on this issue as our future VAT regime becomes clear over the years ahead."</p><h2>Other Points </h2><ul><li> <p>The rate of Corporation Tax remains unchanged and this is due to reduce to 17% in 2020.</p> </li> </ul><ul><li> <p>The Annual Investment Allowance will increase from £200,000 to £1m from 1<sup>st</sup> January 2019 to 31<sup>st</sup> December 2020. </p> </li> </ul><p>For a full run-down of the main headlines from the Autumn Budget Statement 2018, <a href="https://www.youtube.com/watch?v=jn-YeByCv8U&amp;t=12s">view our YouTube Autumn Budget Summary</a>, presented by Emily Caster, Accountant at Gorilla Accounting. </p><p><strong>If you have any questions about the Autumn Budget Statement, please <a href="https://gorillaaccounting.com/contact-us/general-enquiries/">get in touch</a> with a member of the Gorilla Accounting team on 0330 024 0406.</strong></p> Mon, 29 Oct 2018 18:00:00 +0000 https://gorillaaccounting.com/blog/autumn-budget-2018-ir35-in-the-private-sector Introducing Larsen Howie, the IR35 Review Specialists https://gorillaaccounting.com/blog/introducing-larsen-howie-the-ir35-review-specialists- <p><strong>At Gorilla Accounting, we're always looking to offer the very best service to our clients.</strong></p><p><a href="https://gorillaaccounting.com/what-is-ir35-advice/">IR35</a> is a big point of interest in the contracting sector right now. This government legislation has been designed to clamp down on disguised employment, these are the people who for all intents and purposes are employed but take advantage of contractor tax benefits. </p><p>Whilst it's easy to appreciate why IR35 was introduced, it has been a minefield for many contractors who are now unsure as to whether they fall under the definition of an employee or not. </p><p>HMRC has taken steps to simplify this process for contractors by creating the '<a href="https://www.gov.uk/guidance/check-employment-status-for-tax">Check Employment Status for Tax'</a> tool (CEST) online, however it only seems to have led to further confusion with 15% of users receiving inconclusive results. </p><h2>What does this mean for Contractors? </h2><p>With HMRC putting a big onus on IR35, they want to see that companies have made a viable, proactive effort to ascertain their status, and it's for this reason that Gorilla Accounting has decided to work with <a href="https://gorilla.larsenhowie.co.uk/">Larsen Howie</a>.</p><p>The team at Larsen Howie have an extensive background supporting contractors throughout the financial sector, from professional business insurances, legal protection and more.</p><h2>How can Larsen Howie help my business?</h2><p>This rapidly growing service now specialises in providing in-depth IR35 reviews to contractors, helping you to accurately determine your true employment status in the eyes of HMRC. This valuable information can have huge repercussions for your future tax planning as well as impacting on the direction of your business. You may ultimately decide to change your working habits to preserve your contractor status or look at switching permanently to an employed position.</p><p>By undertaking a thorough review with an IR35 professional, you'll have demonstrated to HMRC that you've taken reasonable steps to understand your correct status. It's also advisable to look at regular refresher reviews to ensure that you don't fall inside IR35 and lose your ability to claim contractor benefits.</p><p>There are four different types of IR35 contract reviews available from Larsen Howie – Assessment, Full Review, Refresher and Convert. Each one has been designed to cater for different contractor scenarios and they each include services such as: </p><ul><li>Overall inside/outside opinion</li> <li>A succinct list of essential changes</li> <li>Agency and end client liaison</li> <li>Highlighting required insurances</li> <li>Comments on each applicable contract clause</li> <li>Guidance on legislation for extending contracts</li> <li>Guidance on switching to contracting</li> <li>Working practices review</li> </ul><p>Each option is available with a standard five business day turnaround or a next day express service depending on the urgency of your query. You'll even be able to upload documents online direct to their consultants to help expedite the review process. Larsen Howie offer discounted IR35 reviews to Gorilla Accounting clients, please get in touch for more information. </p><p><strong>For more information on Gorilla Accounting's partnership with Larsen Howie or to register your interest in appointing us as your accountant, <a href="https://gorillaaccounting.com/general-enquiries/">contact a member of the team today</a> and find out how we can add value to your business.</strong></p> Mon, 29 Oct 2018 10:00:00 +0000 https://gorillaaccounting.com/blog/introducing-larsen-howie-the-ir35-review-specialists-