10 Recent Blog Posts https://gorillaaccounting.com/blog/ Shows a list of the 10 most recent blog posts. Locum Doctors: are you in danger of being caught by IR35? https://gorillaaccounting.com/blog/locum-doctors-are-you-in-danger-of-being-caught-by-ir35- <h2>What is IR35?</h2><p><strong>HMRC has been described by some as being focused on eradicating tax avoidance from limited companies and umbrella companies being used to disguise employees as locum workers.</strong></p><p>The way in which individuals falling within the Intermediaries Legislation, known as IR35, is <a href="https://gorillaaccounting.com/resources/ir35/">reported in the public sector</a> has been recently changed, which has had consequences for some locum doctors working for a public-sector body. </p><p>It is therefore important to understand a little bit about whether you are in or outside of IR35 to ensure you have, and continue to pay, the correct amount of tax – to avoid any nasty surprises to your take home pay.</p><p>Previously, locum doctors would have been required to tell HMRC that they were inside IR35, which would have meant paying employee level tax and national insurance rates. However, a change made in April 2017 meant that the onus was on the public-sector client, agency or third party that pays contractors their fees. </p><h2>Do you fall into IR35?</h2><p>IR35 legislation is not well defined in relation to what circumstances would define you as falling into IR35. If you contract work through an agency or through a limited company, then it is important to check if you fall into IR35 legislation. The British Medical Association has published some guidance on how HRMC assesses whether your locum working status falls into IR35<a href="http://gorillaaccounting.com%20https"> here</a>.  </p><p>This shift in liability for declaring whether a contractor falls into IR35 status currently only applies to the public sector, which affects work in NHS trusts. At the time of writing, this does not yet affect the private sector.</p><h2>What happens if I fall into IR35?</h2><p>By falling in to IR35 means that it will affect your rate of pay which will be reduced as tax and NI contributions will be deducted by the client you are providing services for, at standard employment rates. Unfortunately, despite paying what is likely to be a significant increase in tax, you will still not receive the protective benefits of a standard employee. It is advised that you seek professional advice to help determine your current status in relation to IR35.</p><p>Clearly, it is important to understand IR35 and how the changes in responsibility to declare this in the public sector may affect your rate of tax. It is also important to understand these changes as HMRC could be rolling out the changes to the private sector, which may affect doctors who are currently outside IR35.</p><p><strong>As a Gorilla Accounting client, we will be able to put you in touch with a specialist IR35 advisory firm. Get in touch with your accountant or call our New Business team on 0330 024 0406. </strong></p> Tue, 24 Apr 2018 14:00:00 +0100 https://gorillaaccounting.com/blog/locum-doctors-are-you-in-danger-of-being-caught-by-ir35- Locum doctor pension benefits when operating through a limited company https://gorillaaccounting.com/blog/locum-doctor-pension-benefits-when-operating-through-a-limited-company <h2>What is a pension?</h2><p>A pension is a tax-free wrapper for savings in which you can accrue money up until your retirement where it can be drawn down. This means that you can add up to a certain amount per year into your pension and earn interest tax-free up to the maximum lifetime allowance.</p><p>You are taxed when you draw down your pension in retirement, but the significant reason for using a pension is to ensure you receive the maximum return on any investment interest you earn whilst your money is being stored, which allows your money to compound at a faster rate. </p><h2>How does money go into my pension?</h2><p>Most employees will automatically have pension contributions deducted from their wages after national insurance deductions, with many also receiving a contribution from their employers. When coupled with the state pension, accrued from national insurance contributions, many retirees have sufficient money to draw down at retirement for their living expenses. The personal contribution can be altered depending on the employee’s preferences.</p><p>Now, for sole traders, the situation is different, as you would need to set up and invest in a pension yourself or with the help of a professional advisor. One of the additional benefits of holding a pension occurs for individuals who are working through a limited company.</p><h2>Limited Company Pensions</h2><p>There are a number of different tax liabilities when you run your own business such as the need to pay corporation tax - and you may need to charge VAT depending on your clients and the nature of your work. However, you can claim some of these costs back, creating some tax savings. Additionally, depending on how you draw your income, you may have lower national insurance contributions.</p><p>Further to any potential tax efficiency benefits, owning your own business means you can decide how to use your income in a more flexible manner. This can include ensuring your pension pot is sufficiently full before retirement, allowing you to more accurately determine how much you can sustaidrawdownw down in later life.</p><h2>How to add to my pension using a limited company</h2><p>With owning your own business, you can decide to sacrifice some of the money you would otherwise have taken out of the company and use it to go into your pension pot before paying any taxes on it, over and above any personal contributions, which would still be exempt from income tax.</p><p>This means you could also deduct pension contributions from your overall profit. This means you could effectively utilise more of your earnings before tax, to build up your pension pot relatively quickly. You may have spotted that employees would also have the choice to increase their pension contributions, but they would still need to pay their national insurance contributions from any invested money, whereas contributing through your limited company would not incur this additional tax. </p><p>Your ability to add further contributions from the business income to top up your personal pension means that you can usually invest a significant amount more into your pension than would otherwise have been possible as an employee.</p><h2>I am a locum doctor, should I set up a limited company?</h2><p>This is very dependent on your individual circumstances, so it is best to receive professional advice, which we offer with our accountancy services. We can advise on whether a limited company could help you with not just your pension contributions, but also your tax planning. We can help you with setting up a limited company in a tax efficient way that may improve your take-home pay, and we can help you take the hassle out of submitting your tax returns.</p><p><strong>Get in touch with Gorilla Accounting to find out more by calling 0330 024 0406 or email <a href="mailto:info@gorillaaccounting.com">info@gorillaaccounting.com</a>. </strong></p> Tue, 24 Apr 2018 13:50:00 +0100 https://gorillaaccounting.com/blog/locum-doctor-pension-benefits-when-operating-through-a-limited-company Setting up a limited company as a Locum Doctor or GP https://gorillaaccounting.com/blog/setting-up-a-limited-company-as-locum-doctor-or-gp <p><strong>Setting up a limited company as a Locum Doctor or GP is likely a daunting prospect as you’ll require some in-depth understanding of business law and financial management.</strong></p><p>Good practice management will increase the ability of your business to survive over the long term. This starts with good financial planning, which can be made easier by running your business through a limited company.</p><h2>Company structure</h2><p>It will certainly be important to consider the legal structure of your company in order to be as tax efficient as possible. You could choose to run your practice as a sole trader, limited liability partnership (LLP) or as a limited company. It would be advisable to speak to a specialist medical accountant that can effectively understand your needs and offer the most appropriate accountancy services and advice about your future company’s structure.</p><p>Acting as a sole trader would mean earning money directly and paying the appropriate amount of taxes on your earnings. This may be less efficient than running your practice through a separate business structure depending on your circumstances. The added benefit of operating through a separate business structure can also help limit your personal liability against legal issues affecting the business, as a limited partnership or business acts as a separate legal entity. </p><p>An LLP would require at least two partners to set it up, whereas a limited company can be set up with just one individual. A limited company may also provide you with more flexibility in terms of your finances and this can make it easier for any succession planning you may be interested in for the future of your business. It is best to discuss this with an accountant to determine the most effective structure for you to work under. If you decide that a limited company is for you, then there are some steps you’ll need to take in order to register the company with Companies House.</p><h2>Setting up a limited company</h2><p><strong>Choosing a company name</strong></p><p>Once you’ve decided a limited company is for you, then you will need to register your new legal entity. Firstly, you need to choose a name for your business. This tends to be a short name that you can create that has to adhere to some basic regulations, which can be identified on the Companies House website or read our <a href="https://gorillaaccounting.com/blog/contractor-guide-naming-your-limited-company-">contractor guide</a>. Your company name will then automatically end with either Limited or LTD. You can look for current company names to check the availability of your created company name <a href="https://beta.companieshouse.gov.uk/company-name-availability">here</a>.</p><p>Incorporating your limited company</p><p>This process can be carried out online on the Companies House website; however, due to the complexity of share structures, VAT, corporation tax and PAYE registration, it is highly advisable to seek advice from a specialist accountant. This is something we can help you with to ensure your company and its structure are correct from the get go, reducing the risk of any problems in the future. </p><p><strong>Accounting</strong></p><p>After your company is incorporated, you will be given a registration number. This will allow you to set up a business bank account, which you are legally required to do to cater for business income and expenses. You will also want to ensure you have payment methods and accounting software sorted to help you keep track of your finances. A good accountant can suggest suitable accounting software based on your needs and using an accountant to prepare your accounts will likely save you a lot of time and expense.</p><p><strong>At Gorilla Accounting, we provide an all-inclusive service for a single monthly fee that can save you valuable time that can be spent on your business. You can see our package <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">here</a> or you can contact us for more information by calling 0330 024 0406.</strong></p> Tue, 24 Apr 2018 13:45:00 +0100 https://gorillaaccounting.com/blog/setting-up-a-limited-company-as-locum-doctor-or-gp Bookkeeping for contractors: The risks of going DIY https://gorillaaccounting.com/blog/bookkeeping-for-contractors-the-risks-of-going-diy <p><strong>Bookkeeping is a legal necessity for all businesses, with contracting businesses being no exception. Beyond it being a legal requirement, it is a very useful way to keep important company financial data together, ready for formal financial reports. If carried out well, good bookkeeping can help save a lot of time and stress.</strong> </p><p>As you would expect, a limited company has to retain more information than Sole Traders, nevertheless, it is important to understand basic bookkeeping and decide whether this is something that can be done ‘in-house’ or whether you would rather hire a professional to take care of it for you or your company.</p><h2>What is bookkeeping?</h2><p>Bookkeeping is the process of keeping records of a company’s financials. This fundamentally involves keeping a record of income into the business, expenditure out of the business, and of any assets and liabilities held by the company. Expenditure also includes keeping records of company expenses that can be claimed back. Although this explains the basic principles of bookkeeping, there is likely to be some learning required if you have never dealt with company bookkeeping before. However, with a little time, it is entirely possible to do your own bookkeeping or for your limited company. HMRC actually provide free training to help small businesses owners, helping them stay compliant.</p><h2>The risks of DIY?</h2><p>Although it is possible to maintain the business records yourself, there are some risks to be aware of. We have highlighted some of the potential dangers you could face by diving unprepared into managing your own bookkeeping.</p><p>1)     Administrative errors</p><p>Although in essence bookkeeping can be relatively straightforward for small businesses, the volume of transaction in and out of the business can soon create an environment where items can be accidentally overlooked. It is important to ensure that for companies that income or expenditure is recorded at the time it is accrued as opposed to when it is paid. Any administrative errors that may be missed could look suspicious, so it is obviously worth ensuring everything is perfect before it is submitted. Poor bookkeeping can be accurate but contain insufficient information leading to headaches later on for submission of the company accounts. This certainly shouldn’t put you off though, as there are plenty of software packages that incorporate bookkeeping capabilities to help remove some of the potentials for human error.</p><p>2)     Prioritisation</p><p>It is likely that you would rather spend time bringing income into your business and keeping it running smoothly. This could mean administrative tasks get pushed to the bottom of your priority list and something more important can always be justified to prevent completing your bookkeeping duties at regular intervals. This can lead to a buildup of information that needs to be captured, which can subsequently lead to loss of supporting documents like receipts and administrative errors. This can obviously be mitigated if you are well organised and stick to a strict schedule of updating your ‘books’ – or you may even enjoy doing it!</p><p>Once again, further peace of mind could be had by appointing a specialist accountancy firm.</p><p>3)     Time cost</p><p>A general assumption could be that DIY bookkeeping is cheaper as you don’t need to exchange cash for the service to be carried out by someone else. However, this may be counterintuitive depending on how long it actually takes you to complete in-house. There is the obvious time cost for the use of your time, which could potentially be better spent bringing income into the business. To further compound this, it is likely that you will be significantly slower at creating and arranging the necessary spreadsheets in comparison to a highly experienced bookkeeper or accountant. Additionally, you might find the whole process stressful, which may be enough of a justification alone to have your bookkeeping reviewed or outsourced to a professional. </p><p>4)     Education</p><p>You are going to need to understand the process enough to ensure you produce compliant spreadsheets. This could be difficult to juggle at the same time as running or starting a contracting business. There may also be the need to learn different types of software that you are using to report your data on, which could also increase the potential for information to be lost or mistakes to be made.</p><p>Despite some of the potential risk you could face from carrying out the bookkeeping for yourself or your limited company, it is important to be aware of your basic financial situation so that you understand the financial health of your business. If you are interested in understanding the fundamentals of your company finances and are happy to learn and make time to update your ‘books’ little and often then DIY may be the best solution for you. If you are the opposite and simply want as little to do with this process as possible, then it might be time to find yourself an accountant who can take up this task.</p><p><strong>At Gorilla Accounting, we offer an <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">all-inclusive accountancy package</a> for just £85 + vat per month. If you would like more information on this, call 0330 024 0406 or email <a href="mailto:info@gorillaaccounting.com">info@gorillaaccounting.com</a>. </strong></p> Tue, 24 Apr 2018 13:15:00 +0100 https://gorillaaccounting.com/blog/bookkeeping-for-contractors-the-risks-of-going-diy How an umbrella company might work for you https://gorillaaccounting.com/blog/how-an-umbrella-company-might-work-for-you <h2>What is an umbrella company?</h2><p>An umbrella company or PAYE umbrella is a company that acts as an employer to contractors whilst they work as independent contractors on fixed term contracts.</p><h2>How does it work?</h2><p>1)     Form a contract</p><p>Once a contractor has secured a contract, the <a href="https://gorillaaccounting.com/our-services/gorilla-payroll/">umbrella company</a> creates and signs a contract with the associated recruitment agency. The contractor will also sign a contract of employment with the umbrella company that means that they will be employed by the umbrella company.</p><p> </p><p>2)     Submit working hours</p><p>After completing blocks of work, timesheets are sent from the contractor to the umbrella company and recruitment agency to determine wages.</p><p> </p><p>3)     Receive wage</p><p>The umbrella company will invoice the recruitment agency, which will bill the end client for the work completed by the contractor. This money is then paid through PAYE with the appropriately deducted tax and National Insurance.</p><h2>What are the main benefits?</h2><p><a href="https://gorillaaccounting.com/resources/gorilla-guides/limited-company-or-umbrella-company/">Compared to running a limited company</a>, working under a PAYE umbrella company means that you can avoid some of the administrative work involved with incorporating a company and increasing your legal obligations. You’ll be able to simply concentrate on completing the project to a high standard. This is especially true if contracts are short term as there would be an additional time cost when setting up a limited company. As an employee, you could also benefit from some employment rights.</p><h2>What is the main disadvantage?</h2><p>Working under an umbrella company is usually the answer for those caught under IR35 legislation, which can have a significant impact on take-home pay. As you will be working under another company, you may lose some of your decision-making power.</p><h2>IR35 implications</h2><p><a href="https://gorillaaccounting.com/resources/gorilla-guides/what-is-ir35/">IR35</a> is legislation used to determine if you should be classified as an employee for tax purposes. Unfortunately, there is no clear-cut answer to whether you would find yourself in or outside of IR35 as it would depend on the contract and arrangements with the client, so you would need to seek advice from an IR35 specialist.</p><p>If your contract is found to be within IR35, you will only be able to draw down a salary using PAYE so using a PAYE umbrella solution could be the most suitable choice. If you are not classified as inside IR35, then setting up a limited company may help to maximise your income. You can speak to one of our experts about the available options and we can help advise on the best route forward for you.</p><p>Once again, IR35 is dependent on the client and project so seek professional advice for each new contract to determine your position. You can assess whether the project is financially viable and whether the terms can be tweaked for a better outcome.</p><h2>Is a PAYE umbrella right for you?</h2><p>It is best to determine your IR35 status for each contract by seeking expert advice. Then you can discuss which option is the best for you financially with your accountant.</p><p><strong>If you would like to discuss your options with Gorilla Accounting, get in touch through <a href="mailto:info@gorillaaccounting.com">info@gorillaaccounting.com</a> or call 0330 024 0406.</strong></p><p> </p><p> </p> Tue, 24 Apr 2018 12:45:00 +0100 https://gorillaaccounting.com/blog/how-an-umbrella-company-might-work-for-you How to find the best contractor accountants https://gorillaaccounting.com/blog/how-to-find-the-best-contractor-accountants <p><strong>Thinking about how to choose the best accountant is not just about finding someone with exceptional knowledge of accounting practices.</strong> The relationship between you and your accountant can also have an impact on the success of your financial wellbeing.</p><p>As a self-employed contractor, a specialist accountancy firm will be able to help with your professional finances. You may even have begun trading through a limited company, but an accountant specialising in the field will be able to help potentially maximise your take-home pay.</p><p>Contracting can be stressful and you don’t want to have to learn years worth of accountancy techniques just to ensure you maximise your income. You are probably not wanting to deal with the accountancy admin beyond some of the fundamental business financial figures either.</p><p>Luckily, this is something that a specialist accountant can manage for you for a monthly fee, helping you maximise your income and reduce the administrative burden of compiling your accounts. This may even be something you are already doing. However, with all of the available choices in the market, finding an accountant that best fits your needs may feel like an overwhelming task. So, we’ve put together some questions to ask yourself that could help objectively find the best contractor accountancy firm for your limited company.</p><h2>Do they understand your needs?</h2><p>This could be an easy trap to fall into. There are so many accountancy service providers you could choose from and a great number who would likely be happy to take care of your business accountancy needs. Your needs as a contractor are specific and choosing an accountant without significant experience or knowledge of contractor accounting may not be the most suitable for you. You want a specialist contractor accountant who has a wealth of experience helping other individuals and businesses just like yours to ensure you maximise your take-home pay.</p><p>A specialist contractor accountant will also likely understand the significance of key legislation that can have an impact on your take-home pay, such as IR35. And their awareness of such compliance issues means that they may also have good contacts with individuals and companies that can provide suitable legal advice in these areas. </p><h2>What additional services do they include?</h2><p>On the face of it, this should be an easy question to answer as many firms will advertise what they offer on their websites or at the very least when you call. This can help you decide if they meet your expected requirements before you make a decision. You will be able to assess this for yourself and compare between companies. There are a number of standard services you would expect from your accountant, but some additional perks you could look out for are:</p><ul><li>Do they provide you with a dedicated accountant?</li> <li>Will you receive support when you need it?</li> <li>Will you get a same day response?</li> <li>Is the package inclusive of bookkeeping/accountancy software?</li> </ul><h2>Cost</h2><p>You certainly don’t want to compromise on paying for an excellent accountant, as the difference between a good and bad accountant could cost you in the long term. At the same time, you want to ensure you are getting a fair price for the services you are receiving. There may be different services included in a monthly package from different service providers. It is, therefore, useful to assess each package and determine its value. This could again be a very objective measure for you to directly compare different accountancy firms and their offerings, but it is best to take into account your answers to the other questions provided here to develop an overall view of the best package for your needs.</p><h2>Technology</h2><p>Although you might like a face-to-face meeting now and again, you may be too busy for that on a regular basis. This means that it could be easier for you to update your bookkeeping online and save any receipts to a cloud-based service without having to save physical copies, such as <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/online-bookkeeping-software/">FreeAgent</a>. Accounting software can now streamline the process of keeping your cashbook up to date and enable you to track your expenses more easily. You ideally want an accountancy firm that provides some form of modern online/mobile accounting facility, as these will likely make things much more convenient for you. Not only this, but they will help ensure your accountant has all the necessary files and pieces of data on hand when generating financial documents.</p><p>As part of our all-inclusive accountancy package, we offer access to <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/online-bookkeeping-software/">FreeAgent</a> which is trusted by over 60,000 small businesses. </p><h2>Relationships</h2><p>Just as a great accountant can understand your specific needs and give tailored advice and services, your experience could also be as equally negative if you have an accountant who doesn’t communicate well and that you just don’t seem to align with. You want someone who understands your needs, has the expertise to help you and who you can trust to get the job done, making sure any decision is in your best interest. After all, they will be helping you with legally required documents that need to be correct so a trusting relationship with your accountant is crucial.</p><p>Whether you are a new contractor or have had an accountant for many years and are just looking to switch, remember to take your time to understand exactly what you want from your accountant and to weigh up the options before making a decision.</p><p><strong>At Gorilla Accounting, we offer our all-inclusive accountancy package for just £85 + vat per month. For more information, get in touch with our New Business team by calling 0330 024 0406 or email <a href="mailto:info@gorillaaccounting.com">info@gorillaaccounting.com</a>.</strong></p><p><strong> </strong></p><p> </p> Tue, 24 Apr 2018 12:30:00 +0100 https://gorillaaccounting.com/blog/how-to-find-the-best-contractor-accountants Choosing a business bank account: what to look for as a sole trader https://gorillaaccounting.com/blog/choosing-a-business-bank-account-what-to-look-for-as-a-sole-trader- <h2>Do you need a separate business bank account for your business activities?</h2><p>Although it is not a requirement to have a separate<a href="https://gorillaaccounting.com/our-services/bank-accounts-for-contractors/"> business bank account</a> for sole traders, it can make life much easier, and it can certainly make tax returns and national insurance contributions easier to determine. Opening a business bank account is also good practice for sole traders looking at registering a limited company in the future, as a separate bank account then becomes a legal requirement. </p><h2>Why open a business bank account?</h2><p>Business bank accounts allow sole traders and small businesses to keep track of business finances, and helps them identify the correct values to be reported for VAT returns (for VAT registered businesses), corporation tax and any national insurance obligations. This can be a significant help towards the business accounting process for small businesses and sole trader businesses, helping to ensure accurate year end account information. The separation of your accounts can also make it easier for accounting professionals to accurately assess your business financials for future planning purposes.</p><h2>Choosing a business bank account</h2><p>Similarly to personal current accounts, there are a number of business bank accounts available to choose from many different providers, which typically offer a range of services and associated monthly fees. If you <a href="https://gorillaaccounting.com/limited-company-application/">sign up</a> with Gorilla Accounting, we are able to help with the application process with <a href="https://gorillaaccounting.com/our-services/bank-accounts-for-contractors/metro-bank-business-account/">Metro Bank</a> and <a href="https://gorillaaccounting.com/our-services/bank-accounts-for-contractors/cash-plus/">Cashplus</a> who offer preferential rates to Gorilla Accounting clients. </p><h2>What to look for</h2><p>It is just as easy to search for business bank accounts as it is for personal current accounts, and you can use a variety of search engines or comparison websites with your search. Comparison websites generally give you a breakdown of the monthly account fees, turnover limits and interest rates available for the reviewed accounts. These sites will provide a brief overview of the main comparative account features, but it is definitely worth delving deeper into each account to assess whether it is going to be the best option for you over the long term. As business accounts can take time to set up, it is worth taking extra care upfront to save you any additional hassle in the future.</p><h2>Introductory period</h2><p>Ideally, you don’t want to be paying for your business bank account until you have a regular income and this is certainly achievable for a short period when looking for accounts with traditional banks. You will need to look for introductory offers that provide a free banking period, which can delay the need to pay a monthly fee for periods of up to two years. These deals only tend to be available for new businesses, but as a sole trader you may be able to apply for such accounts. Just be careful to ensure that your free period doesn’t then lead onto a comparatively expensive monthly account fee, which could actually end up costing you more over a long period. Although most business bank accounts do charge, the fees for sole traders could likely be very low.</p><h2>Branch, phone or internet only accounts</h2><p>An important feature to look out for with your new bank account is whether it enables you to internet, telephone and branch based banking services or whether you only get access to a limited range of services. Free or cheaper banks accounts tend to be more online based banking so if you are wanting to interact with your account through a local branch, then this is something you need to check for in advance. <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/online-bookkeeping-software/">FreeAgent</a> will also typically allow you to connect your bank feed to your account.<a href="https://support.freeagent.com/hc/en-gb/articles/115001222744-Which-Bank-Feeds-does-FreeAgent-support-"> See the full list of supported banks here.</a></p><h2>Business advice and services</h2><p>If you decide to operate under a limited company and then set up your new account, you may find help from a business manager very helpful. Some accounts provide you with a dedicated business account manager in your local branch who can offer basic business advice, which may be well worth the small monthly fee. At Gorilla Accounting, we also provide 24/7 access to FreeAgent as part of our services. If you’re after an accounts package, then this is definitely a feature to look out for.</p><h2>Ease of application</h2><p>Setting up a new account can be a bit of a hassle. You will usually be required to provide identification documents such as passport photographs, utility bills, driving license copies and a handful of signed contract forms. As mentioned previously, we will be able to assist with the application process for Metro Bank and Cashplus. </p><p>We understand that determining whether you need a separate bank account and trying to understand which account might be best, can be difficult. Our new business team will be able to help you with your accountancy needs by helping you navigate through these decisions.</p><p><strong>By <a href="https://gorillaaccounting.com/limited-company-application/">signing up</a> to Gorilla Accounting, you’ll have access to a sole trader accountant who can help you understand how to manage your money and select a bank account for your specific needs. Get in touch with a member of our New Business team by calling 0330 024 0406.</strong></p><p><strong> </strong></p> Tue, 24 Apr 2018 12:00:00 +0100 https://gorillaaccounting.com/blog/choosing-a-business-bank-account-what-to-look-for-as-a-sole-trader- Could you claim these tax-deductible expenses as a Locum Dentist? https://gorillaaccounting.com/blog/claim-these-tax-deductible-expenses-locum-dentist <p><strong>Many locum dentists choose to operate through a <a href="https://gorillaaccounting.com/resources/gorilla-guides/limited-company-or-umbrella-company/">Limited Company structure</a> as this can make business and financial sense.</strong> </p><p>Even in cases of self-employment, there are a number of expenses that can be claimed against general work-related costs. A locum dentist operating through a limited company could claim further expenses relating to additional business operating costs.</p><p>Without a fair bit of experience navigating through the world of expenses, it may be difficult for you to know exactly what you can claim for. This can leave dentists not claiming for all of their allowed expenses, which can be unfavourable to a small business and it is something that can be avoided with some expert know-how. Even better news is that professional accounting fees are also tax-deductible expenses. </p><p>We’ve compiled a guide to some example claimable expenses, which can give you a helping hand just in case there are some expenses you haven’t been claiming for, or simply didn’t know you could claim for. It is important to get expert advice as each circumstance is different, which could affect if an expense is claimable. Here is a general list of common expenses for locum dentists operating through a limited company:</p><h2>Dental Equipment and Uniforms</h2><p>There is a lot of equipment needed for you to operate successfully and many of these can be deducted as business expenses if they are essential to completing your job and running your business. These items could include dentistry consumables, specialist equipment and more general items such as computers.</p><h2>Training</h2><p>You could claim for any courses or training materials you pay for, as these costs can mount rapidly if you are continually updating your knowledge and skillsets.</p><h2>Travel</h2><p>Travel costs associated to business activities may also be deducted in many cases, so it if worth keeping receipts for everything and learning about your entitlements from your accounting professional.</p><h2>Insurance</h2><p>Depending on your circumstance and the type of insurance purchased, practice insurance costs may be deductible, which over the long term could save you a hefty sum.</p><h2>Legal and Professional</h2><p>As we mentioned earlier, your accountancy fees are allowable business expenses as long as they are related directly to the business, but these are not the only professional fees that you can claim back. Legal fees and other professional fees may be deductible when they are solely associated with business activities.</p><h2>Subscriptions</h2><p>Subscription costs to professional bodies can be deducted as expenses such as the British Dental Association (BDA).</p><h2>General business</h2><p>There are a number of general business costs such as marketing and sales costs, for e.g., business cards, along with utility and loan interest costs that may be deductible.</p><p>This list certainly isn’t exhaustive and there are likely a whole host of expenses you may be entitled to claim for. We know this isn’t the simple answer you may have wanted but getting help to ensure you are claiming for your full entitlement of expenses can help save you wasted money.</p><p><strong>For more information, <a href="https://gorillaaccounting.com/assets/download/Gorilla-Accounting-Limited-Company-Guide4.compressed.pdf">read our Limited Company guide</a>, suitable for Locum Dentists.</strong></p><p>Remember that the ability to claim for certain expenses depends on the nature of your employment status or company legal structure so it is important to talk to specialist dental accountants who can help you accurately assess your situation.</p><p>We have worked with dentists from all over the country by helping them determine what expenses can be claimed for based on their individual circumstances. <strong>If you are interested in understanding how we could help you reclaim your full entitlement of expenses, get in touch with our New Business team on 0330 024 0406.</strong></p><p> </p><p> </p> Tue, 24 Apr 2018 10:00:00 +0100 https://gorillaaccounting.com/blog/claim-these-tax-deductible-expenses-locum-dentist 4 ways to efficiently use your architecture business cash https://gorillaaccounting.com/blog/4-ways-to-use-architecture-business-cash <p><strong>Although this seems like a far cry from real life, income from large projects could lead to a buildup of cash in a business.</strong></p><p>This storage of cash inside a company can be great for hedging against future periods of slow income, as it can provide a steady personal income during weaker periods, also known as a <a href="https://gorillaaccounting.com/blog/why-every-contractor-needs-a-war-chest">war chest</a>.</p><p>You may want to extract some of this cash or put it to better use whilst it is stuck in the business. There are a number of options that can be used to help extract cash from your architectural company, with one of the most commonly stated solutions being to use a mixture of salary and dividend payments. Further to this, it could be tax efficient to contribute some of the money to a pension.</p><p>However, there are options to ensure that any money retained in a company is still working hard for the business. <strong>4 potential options to help deal with excess business cash are outlined below:</strong></p><h2>Leaving it alone</h2><p>Leaving money in the business and doing nothing has the advantage of being particularly safe as the money is unlikely to be lost and it stays in an easily accessible state for times when it is needed. Although this sounds like a great option, inflation could erode the relative value of this surplus cash over longer periods – that is to say, as the cost of goods increases over time, you would need to use more of your stationary cash to purchase them if it is only earning little to no interest. </p><h2>Savings account</h2><p>As with your personal cash, you could portion some of the extra money into a specific business savings account. This could help ease the strain caused by rising prices and help reduce the loss of purchasing power of your cash. This option is still quite safe and easy to implement, whilst allowing your cash to be accessible in case it is needed (although you may lose your interest payments if you take the money out before an allotted period). However, the success of this method depends on the interest rate on offer as ultra-low interest rates mean that very little interest may accrue on the account balance, and therefore the cash may be better served elsewhere. </p><h2>Bonds</h2><p>An alternative saving method could be to use the cash to purchase bonds that generally have higher interest rates than standard business savings accounts. The tradeoff here is that the money will usually need to be tied up for a specific time period, which reduces your ability to access the money at short notice.</p><h2>Shares</h2><p>A further option that could really put your money to good use is to invest in some stocks or shares. This would mean purchasing public company shares or funds of shares as investments, in the hopes of seeing a return on investment (ROI). Therefore, this could be inherently riskier than using a savings account or investing in bonds, and it would likely require specialist advice and knowledge to implement successfully.</p><p>It is also important for investing not to become the main business activity as this could change the nature of the business. The tax implications of investing through a limited company are different to personal investing so it would be crucial to speak to a specialist advisory firm to ensure you invest in the most tax-efficient way.</p><p>If you do have excess business cash and want to further your understanding of what to do with this, then don’t hesitate to contact us to learn more about our services for architects and their businesses. It is important for any business to seek expert advice on how to efficiently utilise your cash.</p><p><strong>As a client of Gorilla Accounting, we can forward you on to a specialist provider. Get in touch in with your accountant or call 0330 024 0406. For more information, <a href="https://gorillaaccounting.com/assets/Top-Tax-Tips-Gorilla-Accounting.pdf?utm_source=Prospects&amp;utm_medium=email&amp;utm_campaign=LCG_EC_Automation_3&amp;utm_source=Gorilla+Accounting+-+Website+-+Guide+Downloads&amp;utm_campaign=bde24e52f6-EC_LCG_1217_Auto_Emails_3&amp;utm_medium=email&amp;utm_term=0_06f19a3deb-bde24e52f6-">download our free Top Tax Savings Tips guide</a>.</strong></p><p><strong> </strong></p><p> </p> Tue, 24 Apr 2018 09:00:00 +0100 https://gorillaaccounting.com/blog/4-ways-to-use-architecture-business-cash Basic Bookkeeping Guide for Locum Doctors & GP's https://gorillaaccounting.com/blog/basic-bookkeeping-guide-for-locum-doctors-gp-s <p><strong>GP’s and Locum Doctors, like other small businesses, require adequate accounting records to remain compliant with the <i>Companies Act 2006</i>, which enforces the need to maintain a record of day-to-day income and expenditure, as well as company assets and liabilities.</strong></p><p>Therefore, it is essential to understand what pieces of information need to be recorded and to create systems that capture and maintain this data.</p><p>We have noted some basic bookkeeping terms that are useful to understand and can help you keep track of your business finances. This consistent capture of your company financials can help to keep you adherent to the law and make it easier to calculate the financial health of your business. Here are 4 useful bookkeeping terms and metrics to keep track of:</p><h2>Cashbook</h2><p>You will need to keep track of money going in and out of your company on a regular basis – this list is known as the cashbook. This can be a simple spreadsheet that outlines your incoming and outgoing cash as well as some further details about the transactions such as transaction values, descriptions, dates, references numbers and accounting codes. Supporting documents for these transactions are also important. It may be useful to list expenses paid with physical cash on a separate spreadsheet to help keep track of any petty cash used in the business.</p><p>It is important to note that in most circumstances, incorporated businesses will need to use accruals accounting, meaning cashbook entries are acknowledged when they arise as opposed to when they are paid. This applies to income and expenditure.</p><h2>Expenses</h2><p>Keeping track of your expenses regularly will help ensure you are able to claim back everything you are entitled to. Software and phone applications can be useful here by allowing you to capture this information as soon as you pay for expenses, meaning you aren’t trying to keep track of receipts for long periods of time.</p><h2>Bank Reconciliation Statement</h2><p>A bank reconciliation statement is another useful item to help towards your bookkeeping efforts. As there may be time differences, income and expenditure from the business bank account and perhaps additional unexpected charges, it is useful to check bank statements against the cashbook. This can be achieved by creating a bank reconciliation statement, which can be a simple spreadsheet matching items listed in the cashbook to the business bank account. Petty cash can also be reconciled, as it is easy to forget about small amounts of cash that have been spent.</p><h2>Assets and Liabilities</h2><p>It is useful to keep track of the assets and liabilities to help with the end of year financial statements. This can include physical assets, such as company-owned computers and specialist equipment, as well as assets such as outstanding income owed by patients or clients.</p><p>There are other pieces of information that can be useful to keep track of on a regular basis that will ultimately help compile your end of year statements. However, it is best to seek expert advice to ensure you are capturing all useful information for your particular medical practice. </p><h2>What is available to help with bookkeeping tasks?</h2><p>Moving into legally enforceable obligations related to your company may sound daunting but there is an abundance of help available. </p><p>There are numerous software packages available that can help you organise your financial metrics and record your bookkeeping data. Some of this software has accompanying mobile apps that further help you capture incoming and outgoing costs, which can hopefully help make the bookkeeping process much easier. HMRC also provides free information to help you understand the legal requirements related to your business financials along with workshops to ensure you can fulfil your responsibilities.</p><p>In addition to the mentioned resources, you may wish to have a bookkeeper carry out your bookkeeping services and have them assessed throughout the year by professional accountants for additional peace of mind. Your accountant can also advise on your businesses specific needs.</p><p><strong>As part of our <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">all-inclusive accountancy package</a>, you’ll receive your own dedicated accountant and 24/7 access to online bookkeeping software, FreeAgent. Contact our team to learn how we can help you by 0330 024 0406or email <a href="mailto:info@gorillaaccounting.com">info@gorillaaccounting.com</a>. </strong></p> Tue, 24 Apr 2018 01:00:00 +0100 https://gorillaaccounting.com/blog/basic-bookkeeping-guide-for-locum-doctors-gp-s