10 Recent Blog Posts https://gorillaaccounting.com/blog/ Shows a list of the 10 most recent blog posts. Our Top 5 Posts of 2017 https://gorillaaccounting.com/blog/our-top-5-posts-of-2017- <p><strong>It has been a busy 2017 for the Contracting Community. First came the snap election, then came the IR35 reform in the public sector, then the Autumn Budget 2017, and consequently the IR35 consultation which will consider whether the reform should be rolled into the private sector. </strong></p><p>It’s a long list. In anticipation of 2018, we look back at the most viewed blog posts of 2017 which feature public reaction to the IR35 reform, top tax saving tips, and a profile on Gorilla Accounting’s latest line of recruits.</p><h2>Government responds to calls to scrap IR35 changes</h2><p>Prior to <a href="https://gorillaaccounting.com/resources/ir35/">IR35 changes</a> coming into play in April 2017, an online petition received over 25,000 signatures urging to cancel the measure. Despite the uproar from IPSE, the Independent Professionals and Self-Employed Association, and a number of Contractors and Freelancers opposing the measure, the reform was enforced.</p><h2>Spring Budget 2017 – What Contractors need to know</h2><p>We rounded up the fiscal announcement which introduced the dividend allowance cut. As of April 2018, the tax-free dividend allowance has been reduced from £5000 to £2000. Amongst the measures, the VAT threshold was increased to £85,000 and an increase in Class 4 NIC was announced, which was later scrapped.</p><h2>Gearing up for Charity -  3 days, 318 km, £10,000</h2><p>Members of the Gorilla Accounting team headed on a 3 day, 318km cycling challenge which started and ended in Kirkby Lonsdale to raise funds for Bolton Lads and Girls Club and Wigan Youth Zone. The total raised came to £10,481 (including gift aid), and 50% of the funds were donated to each of the OnSide Youth Zone Charities. </p><h2>Meet our New Recruits – from Judo Artist to Prosecco Queen, Part 2</h2><p>Following a successful recruitment campaign, we took on board a Marketing Executive to expand our existing, in-house marketing team. Danielle Bynoe is a Judo Artist, often found on horseback or on the Judo mat.</p><h2>Why Every Contractor Needs a War Chest</h2><p>A War Chest is an essential tool for Contractors or Freelancers as it allows them to fall back on a pot of emergency money if they were to experience a gap in employment or unplanned leave. It functions as a reserve fund for times when money may be low, helping you sustain your standard of living. </p><p>Catch up with the Gorilla Accounting blog to read up on the above blog posts which have been ranked the most read for 2017.</p><p><strong>Gorilla Accounting is a specialist accountancy firm exclusively for Contractors and Freelancers operating through a Limited Company or Umbrella Solution. If you would like more information, get in touch with our New Business Team by calling 0330 024 0406 or email info@gorillaaccounting.com.</strong></p> Tue, 12 Dec 2017 09:00:00 +0000 https://gorillaaccounting.com/blog/our-top-5-posts-of-2017- Looking back at 2017 – What changed for Contractors? https://gorillaaccounting.com/blog/looking-back-at-2017-what-changed-for-contractors- <p><strong>As we step into December, we look back at 2017 to recognise </strong><strong>how the employment rights, entitlements and status of the self-employed progressed throughout the year. Here’s our round-up: </strong></p><h2>November 2017</h2><p>The Autumn Budget 2017 took place on Wednesday 22nd November, and what was expected to be a bold event for Contractors and Freelancers, turned out to be quite mellow as just a minimal amount of measures actually affected Contractors and Freelancers.</p><p><strong>-</strong> <strong>Personal Tax</strong><br>As of April 2018, the Personal Allowance will increase to £11,850 and the Higher Rate Threshold will rise to 46,350.</p><p><strong>- Indexation Allowance</strong> <br>This is applied when calculating gains on investments which are held by companies. This will be frozen as of 1st January, which brings the Corporate Tax system in line with Personal Tax for Capital Gains.</p><p><strong>- VAT Threshold Consultation</strong> <br>The threshold which currently stands at £85,000 will remain the same until April 2018. However, as it is the highest in the OECD, a consultation will be held to draw together a future design.</p><p><strong>- Making Tax Digital</strong> <br>This measure has been pushed back to April 2019 for VAT registered businesses whose turnover exceeds the threshold of compulsory registration.</p><p><strong>- IR35 Reform in the Private Sector</strong> <br>Despite no mention of the IR35 reform to be rolled into the private sector, the red book which was released shortly after the announcement said otherwise. The IR35 Private Sector Reform will be subject to a consultation, this will be published during 2018.</p><h2>October 2017</h2><p><strong>- New Small Business Commissioner steps into role</strong> <br>Paul Uppal has been appointed as Small Business Commissioner, a newly established role which provides dispute resolution with larger-scale businesses.</p><h2>July 2017</h2><p><strong>- Release of the Matthew Taylor Report</strong> <br>The report on Modern Employment Practices puts forward recommendations to introduce a new term; ‘dependent contractor’, which replaces the term ‘worker’. Taylor argues that this proposed definition better defines casual working in this modern era.</p><p>Taylor also proposed sick pay and holiday pay for dependent contractors.</p><p><strong>- Auto-Enrolment Pension Scheme</strong> <br>Royal London and Aviva unveiled plans in relation to an auto-enrolment pensions scheme for the self-employed. It was proposed for the annual tax return to be used to default the self-employed into making contributions into their pension.</p><p><br><strong>- Self-employment and gig-economy inquiry report released by Parliamentary Committee</strong> <br>The report recognises that “it is clear that current ways of categorising workers are creaking under the weight of the changing economy,” and suggests that this should be changed.</p><p>The report also campaigns against a lack of protections for gig workers, recognising a need for change.</p><h2>March 2017</h2><p><strong>- Spring Budget Announcement</strong> <br>The tax-free Dividend Allowance threshold was reduced to £2000, from £5000, as of April 2018. <br>The VAT threshold increased to £85,000 from April 2017.</p><p><strong>Gorilla Accounting is a specialist accountancy firm exclusively for Contractors and Freelancers operating through a Limited Company or Umbrella Solution. If you would like more information, get in touch with our New Business Team by calling 0330 024 0406 or email info@gorillaaccounting.com.</strong></p> Thu, 07 Dec 2017 14:00:00 +0000 https://gorillaaccounting.com/blog/looking-back-at-2017-what-changed-for-contractors- In the Spotlight: Rights of Deliveroo Drivers https://gorillaaccounting.com/blog/in-the-spotlight-rights-of-deliveroo-drivers- <p><strong>In light of a landmark case won by employees of Deliveroo, who are now classed as self-employed, the online food delivery company is being hit with criticism about its employment practices – which now faces a reshuffle, as reported by <a href="https://www.engadget.com/2017/12/06/deliveroo-uk-sickness-accident-insurance-bikmo/">Engadget</a>.</strong></p><p>Deliveroo riders using cycles, motorcycles and scooters now have access to ‘industry-leading’ cycle insurance at a discounted rate of £1.86 per week, in a step forward to provide protection for its riders.</p><p>Injured riders or those recovering from illness will be able to claim '75 percent of their average weekly earnings for up to 26 weeks. The average amount will be based on their gross income — before tax and national insurance — in the 12 months prior to the claim.”<br><br>The <a href="https://gorillaaccounting.com/blog/deliveroo-riders-are-self-employed-tribunal-rules">tribunal case</a> which concluded the argument that Deliveroo riders are actually self-employed, and not workers, means that those riding for Deliveroo will not be eligible for statutory employment rights such as National Minimum Wage, Holiday Pay, Sick Pay and Paternity/Maternity Pay, etc.</p><p><strong>The policy also offers riders the following:</strong><br>- £2,500 Yearly Medical Expenses Cover <br>- £2,000 Dental Repair Cover <br>- £700 Jury Service Cover <br>- £200 Phone Damage Cover, caused by an accident <br>- £1,500 Overnight Hospital Stays Cover (£750 for Family Members)<br>For 65p per week, they will also be able to take out Public Liability Insurance.</p><h2>Changing Face of Self-Employment Protections</h2><p>As gig economy numbers grow, it’s essential that employment law is reassessed and improved to suit the working behaviour of today. When the Freelancer and Contractor Services Association (FCSA) conducted a <a href="https://gorillaaccounting.com/blog/above-all-the-benefits-freelancers-want-sick-pay">survey</a> to gauge what benefits Freelancers valued above all – the answer was sick pay.</p><p>The findings were released in time for the Matthew Taylor report which features an in-depth analysis of the tax system, and a list of employment rights which should be introduced for the self-employed, including an auto-enrolment pensions scheme.</p><p>The full Matthew-Taylor report can be found <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/627671/good-work-taylor-review-modern-working-practices-rg.pdf">here</a>. <br><br><strong>Gorilla Accounting is a specialist accountancy firm, exclusively for Contractors and Freelancers operating through a Limited or Umbrella Company. If you would like more information, get in touch with our New Business Team by calling 0330 024 0406 or email info@gorillaaccounting.com.</strong></p><p> </p> Thu, 07 Dec 2017 09:00:00 +0000 https://gorillaaccounting.com/blog/in-the-spotlight-rights-of-deliveroo-drivers- Why an accounting revolution is what you’re looking for https://gorillaaccounting.com/blog/why-an-accounting-revolution-is-what-you-re-looking-for- <p><strong>At Gorilla Accounting, we use FreeAgent’s cloud-based bookkeeping software to change the face of accounting for Contractors and Freelancers.</strong></p><p>We recently posted a special feature on <a href="http://www.bqlive.co.uk/north-west/2017/12/01/news/why-cloud-accounting-is-the-revolution-you-asked-for-29231/">Business Quarter</a> which got us thinking – how can we continue to revitalise the accounting process and make managing your finances even easier.</p><p>As the director of a limited company, you’re <a href="https://www.gov.uk/running-a-limited-company">legally responsible</a> for filing the necessary paperwork. You are required to:</p><p>- follow the company’s rules, shown in its articles of association</p><p>- keep company records and report changes</p><p>- file your accounts and your Company Tax Return</p><p>- tell other shareholders if you might personally benefit from a transaction the company makes</p><p>- pay Corporation Tax</p><p>- register for Self Assessment and send a personal Self Assessment tax return every year</p><p>Even though you may hire an accountant for handling your financial paperwork, the legal responsibility will lie with you, including filing the company record’s, accounts and performance. If you fail to meet these criteria, you could be on the receiving end of a hefty fine.</p><h2>FreeAgent – what you need to know</h2><p>Our reasoning behind partnering with FreeAgent is that they innovatively use technology to simplify a process – which we admit, can be quite bland if you’re not a fan of juggling with numbers.</p><p>So, what’s<a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/online-bookkeeping-software/"> FreeAgent</a>? It’s a cloud-based bookkeeping tool which provides a real-time view of your accounts from anywhere in the world. You’ll be able to integrate your transactions by linking to your bank-feed, and there’s a helpful app.</p><p>Ed Molyneux, Managing Director of FreeAgent, <a href="http://www.bqlive.co.uk/business-professional-services/2017/11/15/news/meet-the-md-ed-molyneux-of-freeagent-28915/">told Business Quarter</a>,</p><blockquote> <p>“Our mission is to make people feel in control of their day-to-day business accounts, relax about tax and work more effectively with their accountants.”</p> </blockquote><p><strong>If you would like to try a free demo of FreeAgent, get in touch with our New Business team</strong> <strong>by calling 0330 024 0406 or email info@gorillaaccounting.com.</strong></p> Fri, 01 Dec 2017 09:00:00 +0000 https://gorillaaccounting.com/blog/why-an-accounting-revolution-is-what-you-re-looking-for- Confirmed: Consultation on rolling out IR35 reforms in private sector https://gorillaaccounting.com/blog/confirmed-consultation-on-rolling-out-ir35-reforms-in-private-sector- <p><strong>There was no mention of the IR35 reform to be rolled out in the private sector in the Autumn Budget announcement, but soon after the Chancellor concluded his speech, the red book disclosed that a consultation has been penciled in to discuss whether the private sector roll-out should go ahead or not.</strong></p><p>The controversial measure has drawn criticism from its stakeholders and IPSE, as the government intends to crack down on tax avoidance.</p><p>The government reformed Intermediaries Legislation, (also known as IR35) earlier this year for contractors working in the <a href="https://gorillaaccounting.com/resources/ir35/">public sector</a>. The <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/661480/autumn_budget_2017_web.pdf">Autumn Budget red book</a> states that,</p><p>“Early indications are that public-sector compliance is increasing as a result, and therefore a possible next step would be to extend the reforms to the private sector, to ensure individuals who effectively work as employees are taxed as employees even if they choose to structure their work through a company.”</p><p>The document explains that in a bid to tackle non-compliance in the private sector, a consultation will be held which will take into account external research already commissioned by the government, which is due to be published in 2018. </p><h2>IR35 Reform – What’s the Verdict?</h2><p>Minutes from the <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/655721/IR35_Forum_Minutes_-_17_July_2017.pdf">July IR35 reform</a> show that there were concerns over lower rates of pay for contractors working in the public sector.</p><p>“Members raised anecdotal suggestions that contractors are seeing lower pay rates when engaged by the public sector to reflect the additional tax cost to the public-sector engager, for example employers NIC and apprenticeship levy.” </p><p>A valid point raised by our Operations and Technical director, Craig McCall, states that,</p><p>“It is hard to see that Private Sector businesses that engage with the flexible workforce will respond to the changes in the same way as the Public Sector has, they are less likely to tolerate project delays or increased costs and more likely to change the contractual relationship or working practices of those that they engage with to minimise disruption to their operations.” </p><p>The full LinkedIn article which discusses the future of IR35, written by our Operations Director can be found <a href="https://www.linkedin.com/pulse/ir35-changes-private-sector-craig-mccall/">here.</a></p><p><strong>Gorilla Accounting is a specialist accountancy firm, exclusively for Contractors and Freelancers operating through a Limited or Umbrella Company. If you would like more information, get in touch with our New Business Team by calling 0330 024 0406 or email info@gorillaaccounting.com.</strong></p> Wed, 29 Nov 2017 09:00:00 +0000 https://gorillaaccounting.com/blog/confirmed-consultation-on-rolling-out-ir35-reforms-in-private-sector- Rounding up the Autumn Budget 2017 https://gorillaaccounting.com/blog/rounding-up-the-autumn-budget-2017- <p><strong>On Wednesday 22<sup>nd</sup> November, the Chancellor of the Exchequer, Philip Hammond, announced the Autumn Budget – what was expected to be a ‘bold, make it or break it’ announcement, quickly turned into a somewhat mellow event for Contractors and Freelancers.</strong></p><p>There were no drastic measures announced which changes the way Contractors operate, but here’s everything you need to know about the Budget announcement, presented by our very own New Business Manager, Craig Whelan.</p><p><div class="media leftAlone"><iframe width="480" height="270" src="https://www.youtube.com/embed/KLOXfMoADUM?feature=oembed" frameborder="0" gesture="media" allow="encrypted-media" allowfullscreen=""></iframe></div></p><h2>Personal Tax</h2><p>From 6th April 2018, the Personal Allowance will increase to £11,850, and the Higher Rate Threshold will increase to £46,350. The starting rate threshold for savings will remain at £5,000. Although the Dividend Allowance was not mentioned in this Budget, it is scheduled to reduce from £5,000 to £2,000 from 6th April 2018.</p><h2><strong>National Insurance</strong></h2><p>As previously announced, the government has decided not to proceed with increases to Class 4 NI, paid by the self-employed.</p><h2><strong>Corporation Tax</strong></h2><p>The rate of Corporation Tax will remain at 19%, as previously planned, in 2018. However, Indexation Allowance which is applied in calculating gains on investments held by companies will be frozen from 1st January, bringing the Corporate Tax system in line with Personal Tax for Capital Gains.</p><h2><strong>VAT</strong></h2><p>Despite speculation ahead of the Autumn Budget, the VAT registration threshold will remain at £85,000 for a 2-year period from April 2018. However, a consultation is expected on the future design of the threshold in view of the fact that this is the highest in the OECD.</p><p>The Office of Tax Simplification <a href="https://gorillaaccounting.com/blog/first-review-on-simplifying-vat-is-published-"><strong>published its first review</strong></a> on Simplifying Tax. The review considers three key aspects:</p><ul><li>The issues and impacts involved if the VAT registration threshold were either higher or lower than at present.</li> <li>Administrative changes which could help businesses, advisers and HMRC better achieve their common aim of easing friction points in the system.</li> <li>The extent to which the definitions of the types of supply which are currently relieved from VAT create complexity for businesses and administration.</li> </ul><p>Findings from the report can be found <a href="https://gorillaaccounting.com/blog/first-review-on-simplifying-vat-is-published-">here</a>.</p><h2><strong>Making Tax Digital</strong></h2><p>Making Tax Digital will commence on April 19 for VAT Registered businesses whose turnover exceeds the compulsory VAT registration threshold. The scope of MTD will not be widened until it's proven to work.</p><h2><strong>Employment Status/IR35</strong></h2><p>Despite speculation leading up to today’s Budget, there was no mention of <a href="https://gorillaaccounting.com/resources/ir35/">IR35</a> in the Chancellor's speech, however, the red book referred to a consultation which is due to be published during 2018. We would not anticipate any changes resulting from the consultation to be announced until the next budget (this time next year) or to take effect until April 2019.</p><p><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/661480/autumn_budget_2017_web.pdf?__hstc=45629947.67caeabbc9200e9dbbf563dd43ed5881.1511189094544.1511372333168.1511436778050.11&amp;__hssc=45629947.29.1511436778050&amp;__hsfp=3972063869">The full Autumn Budget can be found here</a>.</p><p>Despite a bold and bruising Spring Budget 2017, it’s fair to say that the Autumn Budget announcement was a mellow event for Contractors and Freelancers across the UK.</p><p><strong>Gorilla Accounting is a specialist accountancy firm, exclusively for Contractors and Freelancers operating through a Limited or Umbrella Company. If you would like more information, get in touch with our New Business Team by calling 0330 024 0406 or email info@gorillaaccounting.com.</strong></p> Thu, 23 Nov 2017 09:00:00 +0000 https://gorillaaccounting.com/blog/rounding-up-the-autumn-budget-2017- Autumn Budget 2017 – What to expect https://gorillaaccounting.com/blog/autumn-budget-2017-what-to-expect <p style="text-align: left;" align="center"><strong>The second budget of the year will take place on Wednesday 22<sup>nd</sup> November, when Phillip Hammond will set out the financial plans for the coming year.</strong> We’ve rounded up key factors Contractors and Freelancers should look out for. </p><p>Along with speculation around the IR35 public sector reform to be rolled into the private sector, there are a handful of measures that could be announced which could affect the way contractors and freelancers operate.</p><h2>Let’s Talk Umbrella</h2><p>As party policies unfolded in the run-up to the election, the Labour party stated in their manifesto (<a href="http://labour.org.uk/wp-content/uploads/2017/10/labour-manifesto-2017.pdf">page 51</a>) that they would clamp down on ‘bogus self-employment’ by,</p><p>“Banning payroll companies, sometimes known as umbrella companies, which create a false structure to limit employers’ tax liabilities and limit workers’ rights.”</p><p>Umbrella companies contribute in excess of £3bn in NIC and tax to the Exchequer, and an estimated 450,000 workers use Umbrella payroll services.</p><h2>Backtracking on NIC Increase</h2><p>In the <a href="https://gorillaaccounting.com/blog/spring-budget-2017-what-contractors-need-to-know">Spring Budget 2017</a>, Hammond announced that Class 4 National Insurance Contributions (NIC) will be increased from 9% to 10%, but this measure was later scrapped.</p><p>With cheers all around, the mist hasn’t quite set as there’s always the possibility that Hammond could make another U-turn and reinforce the NIC increase.</p><p>The last budget which was announced under the leadership of David Cameron pledged not to increase taxes and National Insurance for the self-employed, but it was later announced that the increase will take place.</p><p>Following disagreement from MPs and a significant section of the public, Hammond decided not to proceed with the change after all, but there’s always the possibility of a U-turn on a U-turn. </p><h2>Matthew Taylor Report</h2><p>The <a href="https://gorillaaccounting.com/blog/rounding-up-the-taylor-report-for-the-self-employed-">Matthew Taylor report</a> on <i>Modern Working Practices</i> put forward key recommendations, such as an auto-enrolment pension scheme for the self-employed, along with a new ‘dependent contractor’ status.</p><p>The recommendations put forward by the Matthew Taylor report are subject to approval from the House of Commons. Taylor’s team developed the term ‘dependent contractor,’ which proposes to replace the current term ‘worker’.</p><h2>Scrapping Corporation Tax Cut</h2><p>Due to our planned departure from the European Union, a cut to Corporation Tax was proposed to attract businesses to the UK, and incentivise those that are currently operating in the UK to remain. </p><p>In the 2016 budget announcement, the Government announced that the corporation tax rate will be reduced from 20% to 17% by 2020.</p><p>There may be a possibility that this may be reversed as the Organisation for Economic Co-operation and Development (OECD) referred to this as a ‘<a href="https://www.reuters.com/article/us-britaineurope-tax/tax-haven-route-wont-work-for-post-brexit-uk-oecd-says-idUSKCN0ZJ0MG">generous ruling’</a>, stating that it opens up post-Brexit UK to becoming a ‘tax haven’.</p><p>The Centre for Tax Policy and Administration advises developed nations on tax policy and analyses the effect of this on the political climate.</p><h2>Reducing VAT Threshold</h2><p>The Office of Tax Simplification (OTS) published its <a href="https://gorillaaccounting.com/blog/first-review-on-simplifying-vat-is-published-">first report</a> on VAT, suggesting a range of proposals which can help simplify VAT by reassessing thresholds. </p><p>The report which was presented to parliament found that the UK has the highest VAT threshold of £85,000 in the EU, where the average threshold is around £25,000.</p><p>As a result of this finding, Hammond could be expected to reduce the VAT threshold so that more businesses could be required to register for VAT.</p><h2>Don’t miss our 60-second round-up</h2><p>Philip Hammond will make the Autumn Budget statement on 22<sup>nd</sup> November at 12:30pm, which is based on key figures released by the Office for Budget Responsibility (OBR).</p><p>We’ll be releasing a 60-second round-up video which sums up the Autumn Budget for Contractors and Freelancers. Stay tuned through our social media for more details.</p><p>Follow us on <a href="https://twitter.com/GorillaAccounts?lang=en">Twitter</a>, <a href="https://www.facebook.com/gorillaaccounting/">Facebook</a> or <a href="https://www.instagram.com/gorillaaccounting/">Instagram</a>.</p><p><strong>Gorilla Accounting is a specialist accountancy firm, exclusively for Contractors and Freelancers operating through a Limited or Umbrella Company. If you would like more information, get in touch with our New Business Team by calling 0330 024 0406 or email info@gorillaaccounting.com.</strong></p> Tue, 21 Nov 2017 09:00:00 +0000 https://gorillaaccounting.com/blog/autumn-budget-2017-what-to-expect Deliveroo riders are self-employed, tribunal rules https://gorillaaccounting.com/blog/deliveroo-riders-are-self-employed-tribunal-rules <p><strong>A landmark case has ruled that delivery riders for food delivery start-up, Deliveroo, are actually self-employed and not workers; the long-running battle has concluded in favour</strong> <strong>of Deliveroo, and against the IWGB union which represents Deliveroo drivers.  </strong></p><p>The Central Arbitration Committee (CAC) which resolves workplace disputes has found in favour of the meal-delivery app, Deliveroo, confirming that their drivers are not workers, and therefore not eligible for worker’s rights, such as National Minimum Wage and holiday pay.</p><p>The Independent Workers Union of Great Britain (IWGB) which represents gig economy workers, including <a href="https://gorillaaccounting.com/blog/the-uber-effect-extend-minimum-wage-to-gig-economy-">Uber</a> and Deliveroo riders, put forward that Deliveroo riders are workers, and as a result, should be able to claim recognition from unions.</p><h2>Freedom to decline jobs</h2><p>The CAC said, “the central and insuperable difficulty for the union is that we find that the substitution right to be genuine, in the sense that Deliveroo have decided in the new contract that riders have a right to substitute themselves both before and after they have accepted a particular job.”</p><p>This refers to the Deliveroo practice that riders are able to swap shifts, providing they are able to find a replacement driver, and therefore cannot be classed as workers.</p><p>The decision hinged on the fact that riders are able to accept and reject particular jobs that they are allocated. </p><p>Dan Warne, director of Deliveroo, said, “this is a victory for all riders who have continuously told us that flexibility is what they value most about working with Deliveroo.</p><p>“As we have consistently argued, our riders value the flexibility that self-employment provides. Riders enjoy being their own boss – having the freedom to choose when and where they work, and riding with other delivery companies at the same time.”</p><p>The news comes just days before MPs began the process of seeking the introduction of new rules which aim to give gig economy workers more protections during working life, including Uber drivers and Deliveroo riders.</p><p> </p><p><strong>Gorilla Accounting is a specialist accountancy firm exclusively for Contractors and Freelancers operating through a Limited Company or Umbrella Solution. If you would like more information, get in touch with our New Business Team by calling 0330 024 0406 or email info@gorillaaccounting.com.</strong></p><p><strong> </strong></p> Mon, 20 Nov 2017 09:00:00 +0000 https://gorillaaccounting.com/blog/deliveroo-riders-are-self-employed-tribunal-rules Legal action launched against NHS over IR35 reviews https://gorillaaccounting.com/blog/legal-action-launched-against-nhs-over-ir35-reviews- <p><strong>The Independent Health Professionals Association (IHPA), the voice for locum and independent health professionals have launched action against the NHS over their implementation of the IR35 reform.</strong></p><p>The association which represents a large portion of locums in the UK has taken a stance against the way the NHS has been assessing locum workers to see if they’re outside IR35, or caught under <a href="https://gorillaaccounting.com/resources/gorilla-guides/what-is-ir35/">IR35</a>.</p><p>They have launched two legal campaigns, for which they are fundraising £45,000 to operate. The <a href="https://www.crowdjustice.com/case/unfair-ir35-blanketing/">crowdfunding page</a> titled ‘unfair IR35 blanketing’ has raised just less than £5000, but the IHPA have announced that the action will go ahead regardless of whether the target is met.</p><p>They have run tests on several NHS trusts to gather evidence on how locums are being treated in relation to IR35.</p><p>The IHPA has said, “the vast majority of locum workers in the NHS are deemed to be inside IR35, irrespective of the circumstances of their contract. NHS bodies are simply ignoring guidance that has been issued by NHS Improvement.”</p><p>The NHS has been accused to have been using a blanket approach towards determining IR35 status.</p><p>“This blanket imposition resulted in a loss of earnings to locum doctors, nurses and allied health professional of about 30% - 50%.  </p><p>“We are taxed in the same way as our permanent colleagues without the benefits, including pension rights and sick pay, and without the ability to offset many thousands of pounds in liabilities that we incur, whereas permanent colleagues do not, in relation to travel, subsistence, accommodation, indemnity insurance, etc.”</p><p>A <a href="https://gorillaaccounting.com/blog/10-5k-crowdfunding-campaign-to-challenge-ir35-thrashes-target">similar campaign</a> was previously led by Mike Gibson, over the way IR35 status is determined.</p><h2>What is the Public Sector IR35 Reform?</h2><p>The public sector IR35 reform came into effect on April 6, 2017, as confirmed in the <a href="https://gorillaaccounting.com/resources/autumn-statement-2016/">2016 Autumn Budget Statement</a>.</p><p>It is intended to prevent what is known as ‘disguised employment’, where an individual that would otherwise be an employee is engaged via a limited company (an intermediary) and receives the tax benefits normally associated with this structure.</p><p>The proposed changes put the determination of IR35 status into the hands of the Public-Sector Body, rather than the hands of the contractor, as it was previously. In addition to moving status determination to the hands of the engager, the 5% allowance was also removed.</p><p>The <a href="https://gorillaaccounting.com/blog/autumn-budget-2017-we-ve-got-the-date-">Autumn Budget 2017</a> will take place on 22<sup>nd</sup> November, when Philip Hammond, Chancellor of the Exchequer will announce his financial plans for the coming year.</p><p> </p><p><strong>At Gorilla Accounting, we offer one all-inclusive package for just £85 + vat per month, which fulfils all your essential personal and business needs. For</strong> <strong>more information, get in touch with our New Business Team on 0330 024 0406 or email <a href="mailto:info@gorillaaccounting.com">info@gorillaaccounting.com</a>.</strong></p><p> </p> Thu, 16 Nov 2017 09:00:00 +0000 https://gorillaaccounting.com/blog/legal-action-launched-against-nhs-over-ir35-reviews- First Review on Simplifying VAT is published https://gorillaaccounting.com/blog/first-review-on-simplifying-vat-is-published- <p><strong>The Office of Tax Simplification (OTS) has published its first report on Value Added Tax (VAT) and presented to parliament a range of proposals which can help simplify VAT by reassessing the thresholds and the Administration of VAT.</strong></p><p>It was announced at the Autumn Budget 2016 that a simplification review into the VAT system was requested. The report took into account the experiences of businesses, advisers and others who deal with VAT and it took into account any ideas they have on simplifying the system.</p><p>This tax which annually raises around £120bn is based on a complex structure, with the UK having the highest threshold of £85,000 in the EU, where the average is £20,000.</p><p><strong>The review considers three key aspects:</strong></p><ul><li>The issues and impacts involved if the VAT registration threshold were either higher or lower than at present.</li> <li>Administrative changes which could help businesses, advisers and HMRC better achieve their common aim of easing friction points in the system.</li> <li>The extent to which the definitions of the types of supply which are currently relieved from VAT create complexity for businesses and administration.</li> </ul><h2>VAT Threshold</h2><p>As the UK has the highest VAT threshold, it is evident that this discourages businesses from maximising their full potential, which then adversely impacts economic growth. The report gathers evidence which shows that businesses intentionally reduce business activity to avoid hitting the higher threshold. </p><p><strong>Reducing -</strong> The report discusses lowering the threshold which will then bring a few thousand businesses under the band, requiring them to register, which will then increase their compliance costs.</p><p><strong>Increasing -</strong> If the threshold is increased by a small amount, for example, £2,000, approximately 12-15,000 fewer businesses would be required to register. This would also contribute to some administrative savings for the companies.</p><p>The <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/657213/Value_added_tax_routes_to_simplification_web.pdf">report continues to discuss</a> how significantly changing the threshold could also affect these businesses, as well as reducing the administration costs.</p><p><strong>At Gorilla Accounting, we offer one all-inclusive package for just £85 + vat per month, which fulfils all your essential personal and business needs. For</strong> <strong>more information, get in touch with our New Business Team on 0330 024 0406 or email </strong><strong><a href="mailto:info@gorillaaccounting.com">info@gorillaaccounting.com</a>.</strong></p> Wed, 15 Nov 2017 09:00:00 +0000 https://gorillaaccounting.com/blog/first-review-on-simplifying-vat-is-published-