10 Recent Blog Posts https://gorillaaccounting.com/blog/ Shows a list of the 10 most recent blog posts. Osborne’s finance scheme for small businesses – looking fruitless? https://gorillaaccounting.com/blog/osborne-s-finance-scheme-for-small-businesses-looking-fruitless- <p><strong>A loan scheme set-up to offer more lending opportunities to small businesses has come off to a ‘dismal’ start after it was revealed that just 230 businesses had been helped with finance through the scheme which launched in November 2016, as reported by <a href="https://www.thetimes.co.uk/article/osborne-loan-scheme-has-dismal-start-9ftl865pz">The Times</a>.</strong></p><h1>A lending boost for start-ups</h1><p>George Osborne, former chancellor of the Exchequer, established the scheme which gave out less than 4 million in finance during the nine-month period that it has been active.</p><p>Just 3% out of the 8100 businesses referred by Banks to alternative finance providers have used the scheme, which brings into question the viability of Osborne's plan. On the other hand, it’s safe to say that it’s still early days which means that the best results may be around the corner.</p><p>Osborne's plan requires 9 leading UK banks including, Royal Bank of Scotland (RBS), Lloyds, Barclays and HSBC to refer companies rejected for loans to “one of three online finance portals that refer alternative lenders to peer-to-peer platforms and independent asset finance providers.”</p><p>These above four heavyweight Banks account for 80% of loans issued to small businesses.  </p><p>Stephen Barclay, economic secretary to the Treasury, told The Times: “Over 200 businesses from beauticians to forklift truck training firms have received the money they need to grow and we expect this number to increase.” </p><h1>The struggle to secure finance</h1><p>Small businesses can often be turned down for loans due to a number of factors:</p><p>-       <strong>No proven track record</strong></p><p>If your business is new – you’ll have no financial history which will make it harder for the Bank to approve your application.</p><p>-      <strong> Cash flow</strong></p><p>As a start-up, you’ll be required to allocate funds towards building your business from scratch. This includes purchasing resources, equipment, and software which can prove quite costly for the first year of your accounting period, meaning that cash flow will most likely be low.  </p><p>-      <strong> Low credit score</strong></p><p>If you have a low personal credit score, this will hinder your chances of getting a business loan as it shows the lender that you may be too high risk. This will give the lender an indication of how much profit is made, your current business debt and the state of your financial health.</p><p>The British Business Bank estimated that around 100,000 small to medium business loans are rejected each year, showing an increasing need for a scheme such as the one introduced by Osborne.</p><p> </p><p><strong>At Gorilla Accounting,</strong> <strong>we offer an</strong> <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">all-inclusive accountancy</a><strong> </strong><strong>package for Contractors and Freelancers</strong> <strong>for just £85 plus vat per month.</strong> <strong>If you have any questions, get in touch with a member of our New Business Team by calling 0330 024 0406 or email</strong> <a href="mailto:info@gorillaaccounting.com"><strong>info@gorillaaccounting.com</strong></a><strong>.</strong></p><p> </p><p> </p> Thu, 17 Aug 2017 09:00:00 +0100 https://gorillaaccounting.com/blog/osborne-s-finance-scheme-for-small-businesses-looking-fruitless- It’s time for a tax rethink, say the self-employed https://gorillaaccounting.com/blog/it-s-time-for-a-tax-rethink-say-the-self-employed <p><strong>Since the general election, the self-employed have been bruised by a handful of measures such as the <a href="http://www.contractoruk.com/limited_companies/limited_company_dividends_guide_april_2018.html">tax-free dividend allowance cut</a> and the public-sector IR35 reform. There are a few perks on the horizon such as the <a href="https://gorillaaccounting.com/blog/plans-to-help-self-employed-roll-in-pension-savings-">auto-enrolment pensions scheme</a>, but what about a fairer tax system?</strong></p><p>Recent research conducted by Qdos Contractors found that 63% of contractors that were surveyed want Government to focus on rethinking the tax system to make it fairer.</p><p>Going back to the General Election 17 run-up, IPSE, Self-Employed and Freelancer Association, recommended in their <a href="https://www.ipse.co.uk/sites/default/files/documents/policy/IPSE%20Manifesto%202017.pdf">manifesto</a> that the government should carry out a strategic review of the tax system for the self-employed. They wrote:</p><p>“Misjudged policies around IR35, National Insurance and Making Tax Digital have all rightly attracted criticism, as they have hit the self-employed. The government needs a more strategic approach to considering how modern working practices can be addressed in the tax system.”</p><p>“This should include a comprehensive review chaired by an independent expert,” which leads us to the <a href="https://gorillaaccounting.com/blog/rounding-up-the-taylor-report-for-the-self-employed-">Matthew Taylor report</a> which received a mixed response.</p><p>Taylor touches the base of this topic in his review by stating that he believes that “treating different forms of employment more equally in the tax system would be fairer, more economically efficient and support better quality work.”</p><p>This follows concerns made by Taylor that the tax difference between the self-employed and employees is too big, leaving room for ‘disguised employees’ to reap the tax benefits.</p><h1>Survey Findings </h1><p>-       15.5% supported the recommendation that a minister for Freelancers and Contractors should be appointed.</p><p>-       10% want Government to make getting a mortgage easier for Contractors and Freelancers. As a self-employed professional, you will take on work as it comes along which means that payment will be made on an ad-hoc basis, making it difficult to secure a mortgage.</p><p>-       7% want Government to incentivise pensions for the self-employed</p><p>The Tory – DUP coalition government which was formed in June was predominantly economically geared but the self-employed were out of this focus. Growing concerns such as these have been reflected through <a href="https://www.ipse.co.uk/news/freelancers%E2%80%99-confidence-plummets-lowest-level-record">IPSE’s latest research</a> which found that Contractors’ confidence sunk to its lowest since the index was established in 2014.</p><p>Government policy and Brexit have been blamed for ‘pessimism and uncertainty’, just two months after IPSE research found that <a href="https://gorillaaccounting.com/blog/why-are-freelancers-happier-than-regular-employees-">freelancers are happier than employees</a>.</p><p>The following months will bring the future of the self-employed into perspective as the coalition government braces its full power and as the Brexit deal is introduced in greater detail.</p><p> </p><p><strong>At Gorilla Accounting, we offer our</strong> <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">all-inclusive accountancy</a> <strong>for just £85 plus vat per month. If you have any questions, get in touch with a member of our New Business Team by calling 0330 024 0406 or email</strong> <a href="mailto:info@gorillaaccounting.com">info@gorillaaccounting.com</a><strong>.</strong></p><p> </p> Wed, 16 Aug 2017 09:00:00 +0100 https://gorillaaccounting.com/blog/it-s-time-for-a-tax-rethink-say-the-self-employed Part 2: From amateur to professional freelancer https://gorillaaccounting.com/blog/part-2-from-amateur-to-professional-freelancer- <p><i>This blog is part of a two-part series, <a href="https://gorillaaccounting.com/blog/part-1-from-amateur-to-professional-freelancer-">read Part 1: From amateur to professional freelancer.</a></i></p><p>The move from amateur to professional may have negative connotations attached to it as it labels you as a ‘beginner’ or ‘first-timer’, but experience gathered from past projects can quickly brush off any doubt clients may have. The first step to building an online reputation is to create a website that is a reflection of you – it will be the first impression that you make.</p><p>Secondly, it’s time to seek testimonials. We’ve rounded up methods that you can use to gather reviews, as well as some top tips which will help market yourself as accomplished in your field.</p><h1>1)   Ditch the ‘enthusiast’ strategy</h1><p>First things first, by painting yourself as a ‘hobbyist’, it communicates that you’re passionate, but <a href="https://gorillaaccounting.com/blog/5-tips-to-make-your-side-business-boom-while-employed-">it’s your side-line career</a>. It shows that you’re enthusiastic, but that you’re not a pro. It’s time to market yourself as a seasoned expert in your field, but how? That takes us to the next step…</p><h1>2)    Prove your track record</h1><p>An aspect which speaks for itself and shouts that you’re the freelancer for the job is the testimonials section of your portfolio, it’s how you can prove your track record. By featuring this on your site, it’s an accessible way to inform prospects of your past experience.</p><p>It’s becoming standard practise to double social media platforms as a home for reviews. There’s the LinkedIn recommendations feature which could work to your advantage when connecting with industry business figures.  </p><p>You can use FB reviews, Google Reviews, and even set-up google alerts or use specialist software to keep track of mentions of your brand name, such as through <a href="https://mention.com/en/">Mention</a>.</p><h1>3)   Your website is a reflection of you</h1><p>The quality of your work should be showcased through your website, and in terms of first impressions – your website will be the main contributor towards this.</p><p>In relation to website copy, it’s important to triple check this as the first judgement made against/or in favour of you will typically be made through your website.</p><p>The <a href="https://www.nngroup.com/articles/how-long-do-users-stay-on-web-pages/">Nielsen Norman Group</a> found that “users often leave web pages in 10-20 seconds, but pages with a clear value proposition can hold people’s attention for much longer.”</p><p>“To gain several minutes of user attention, you must clearly communicate your value proposition within 10 seconds.”</p><div> <p class="lede">This shows that in order to effectively communicate with clients, give them the essential information that they need within the first 10 seconds of accessing your website.</p> <p class="lede">In terms of building your <a href="https://gorillaaccounting.com/blog/how-to-market-yourself-as-a-modern-contractor">online presence</a> which can help fuel traffic to your website, it could be worth establishing a business profile. Read our guest blog for Startacus on <a href="https://startacus.net/culture/how-start-ups-can-generate-business-through-facebook#.WYwtXXeGNTb">how start-ups can generate business through Facebook</a>.</p> <p class="lede"> </p> </div><p><strong>At Gorilla Accounting,</strong> <strong>we offer an</strong> <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">all-inclusive accountancy</a><strong> package for Contractors and Freelancers</strong> <strong>for just £85 plus vat per month.</strong> <strong>If you have any questions, get in touch with a member of our New Business Team by calling 0330 024 0406 or email</strong> <a href="mailto:info@gorillaaccounting.com"><strong>info@gorillaaccounting.com</strong></a><strong>.</strong></p><p> </p> Fri, 11 Aug 2017 09:00:00 +0100 https://gorillaaccounting.com/blog/part-2-from-amateur-to-professional-freelancer- Part 1: From amateur to professional freelancer https://gorillaaccounting.com/blog/part-1-from-amateur-to-professional-freelancer- <p>The line between working as an amateur gig worker to working as a fully-fledged, professional freelancer may seem quite thin, but there are a handful of indicators that show if you’ve hit the next level. As an amateur, you’ll be accustomed to being recognised as a hobbyist that’s paid on an ad-hoc basis. </p><p>The leap between amateur to professional can be justified by the commercial nature of your work. Question yourself - is your skill a commodity? Can you provide an established service? Do you have a financial strategy in place?</p><p>We’ve rounded up few steps to help outline the development from amateur gig worker to established freelancer:</p><h1>1)   You are what you earn</h1><p>As a freelancer, contractor or even an employee, it’s standard practise to measure work-life value by what you earn. If you’re an IT developer, the time and manpower spent on a single project is likely to vary, which means that the pricing will change for each client that you take on.</p><p>The first step is to research and then use these findings as a starting point. Be sure to tailor this rate to yourself which means taking note of your qualifications, expertise and actual experience.</p><p>You’ll also need to consider overheads – this means accounting for the expenses associated with running a business. There’s office space, marketing, equipment, software, broadband, internet, and project management resources etc.</p><p>Whilst calculating this, ensure to establish what should be billable and non-billable, e.g. if you’re due to carry out administrative tasks such as running an inventory or installing new software, these are typically classed as non-billable.</p><p>Read our <a href="https://gorillaaccounting.com/blog/interview-ipse-freelancer-of-the-year-2017-finalist-adam-smith-">interview with IPSE Freelancer of the Year 2017</a> Finalist, Adam Smith, as he discusses his top money-saving tips.</p><h1>2)   Setting a standardised procedure</h1><p>At this stage, <a href="https://gorillaaccounting.com/blog/making-the-jump-researching-your-market-">you’ll still be testing the waters</a> which means that you’ll be establishing a procedure as trade comes along.</p><p>By setting up a standardised procedure, you’ll have a process in place which will essentially mark the journey that your client will undertake. So, there’s the initial consultation, progress reports, and the final review which will form the basic structure of your service.</p><h1>3)   Going Limited or Umbrella</h1><p>There are a number of platforms that will allow you to offer your services as a freelancer, such as Upwork and Freelancer. However, two popular options chosen by freelancers are running through a <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">limited company</a> or selecting an <a href="https://gorillaaccounting.com/our-services/gorilla-payroll/">umbrella company</a> which essentially functions as a payroll service.</p><p>As the director of a limited company, you will be responsible for the day to day running of the Ltd company, including submitting statutory financial records.  This option is often the most tax efficient way but this depends on the length of the contract.</p><p>By joining an umbrella service, the freelancer will essentially become an employee of the umbrella company. This will mean that you will be taxed at source which means that the umbrella company will automatically send your tax and national insurance to HMRC before making payment to you. To explore both options, read our <a href="https://gorillaaccounting.com/resources/gorilla-guides/limited-company-or-umbrella-company/">Umbrella Vs Limited Company guide</a>.</p><p> </p><p><strong><i>This blog is part of a two-part series-<a href="https://gorillaaccounting.com/blog/part-2-from-amateur-to-professional-freelancer-"> Part 2: From amateur to professional freelancer</a></i></strong></p><p class="p1"><strong>If you would like to discuss which operating structure is suitable for you, get in touch with a member of our New Business Team by calling 330 024 0406 or email <a href="mailto:info@gorillaaccounting.com">info@gorillaaccounting.com</a>.</strong></p> Wed, 09 Aug 2017 09:00:00 +0100 https://gorillaaccounting.com/blog/part-1-from-amateur-to-professional-freelancer- 4 perks Contractors wish for, that employees have https://gorillaaccounting.com/blog/4-perks-contractors-wish-for-that-employees-have- <p><strong>The upsides of being a contractor, (the autonomy, individuality, and directorial duties), often outweigh the downsides of contracting, (volatile income and minimal employment package), but which benefits do contractors wish for that employees have?</strong></p><p>Recent changes such as the <a href="http://www.contractoruk.com/limited_companies/limited_company_dividends_guide_april_2018.html">cut to tax-dividend allowance</a> which is set to be whittled down to £2000 from £5000, and the <a href="https://gorillaaccounting.com/resources/ir35/">IR35 public-sector reform</a> raises the stakes for contractors – but it’s also the social aspects that can influence the decision on whether to take the leap into contracting, or stick with fixed employment.</p><p>The Matthew Taylor report touches on the lack of benefits that are on offer for contractors, but the government’s recent plan to introduce an <a href="https://gorillaaccounting.com/blog/plans-to-help-self-employed-roll-in-pension-savings-">auto-enrolment pensions scheme</a> for the self-employed is a clear stride forward.</p><p><strong>Here’s our round-up on perks contractors wish for:</strong></p><h1>1. Food Galore</h1><p>It’s an element that’s often overlooked as it becomes instilled in everyday routine – the obligatory coffee round. <a href="http://www.officedepot.com/cm/collections/coffee-breakroom-management">Office Depot</a> have worked out that ‘if there are 12 staff members in your office, and each of those people drink between two and four cups of coffee a day, you can safely assume that you need to brew between 168 and 336 cups per week.’</p><p>As a work-from-home-contractor, the obligatory coffee round is an element you most probably won’t be accustomed to. The stroll to the workplace kitchen is like the light and the end of the tunnel, there’s always unexpected treats waiting for you. However, a work-from-home contractor can always have full autonomy over their own home kitchen which means unlimited everything, including tea and coffee.</p><p>Let’s not forget the work canteen, if you’re lucky enough to be employed by a company with a canteen, you’ll be all too familiar with the happiness the weekly specials bring you. Now that’s an element that raises the bar against home lunches.</p><h1>2. Workplace Celebrations</h1><p>There’s the annual Christmas party, the bi-monthly, post work get-together, and the long string of birthdays that are always happening. If you’re a veteran contractor, you may be invited to workplace dinners, but it’s an aspect that the social butterflies of the contracting world could feel empty without. </p><p>On the other hand, many may feel grateful to never feel obliged to attend such events, packed with awkward anti-social moments and office politics – ever again.</p><h1>3. Financial Benefits</h1><p>In 2016, the growing army of self-employed professionals delivered £255 billion to the UK economy which means that it’s all too important to provide protections for them, ensuring that the appeal remains.</p><p>IPSE, the Self-Employed &amp; Freelancer Association, urge in their <a href="https://gorillaaccounting.com/blog/general-election-2017-what-s-in-it-for-the-self-employed-">2017 general election manifesto</a>, A Contract with the Self-Employed, that the government should provide fair parental benefits to self-employed workers and an auto-enrolment pensions scheme.</p><p>Matthew Taylor extends his concern on employment protections that are not currently on offer for the self-employed, such as the national minimum wage, sick pay and holiday pay.</p><h1>4. Social Setting</h1><p>It’s clear that with fixed employment comes long term exposure to human interaction, and in some cases – colleagues for life.  The social aspects of contracting can appear quite bleak, but it’s possible to flip this over by using coworking spaces. <a href="https://gorillaaccounting.com/blog/freelancer-blues-saying-no-to-loneliness-">Read our blog on Freelancer Blues</a>, and how using coworking spaces is the answer.</p><p>There are 4.8 million self-employed professionals in the UK which means that one in seven of the workforce are flexible workers, which shows that it’s becoming an increasingly attractive option. </p><p>Contractors typically earn a higher rate of pay which usually counterbalances employee perks, and recent figures show that <a href="https://gorillaaccounting.com/blog/why-are-freelancers-happier-than-regular-employees-">Freelancers are actually happier than regular employees</a>.</p><p>If you are thinking of taking the leap into contracting, it’s worth noting that the treatment of flexible workers is ever changing, taking strides forward every year.</p><p> </p><p><strong>At Gorilla Accounting,</strong> <strong>we offer an</strong> <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">all-inclusive accountancy</a><strong> package for Contractors and Freelancers</strong> <strong>for just £85 plus vat per month.</strong> <strong>If you have any questions, get in touch with a member of our New Business Team by calling 0330 024 0406 or email</strong> <a href="mailto:info@gorillaaccounting.com"><strong>info@gorillaaccounting.com</strong></a><strong>.</strong></p><p> </p><div><hr><div> <div id="_com_1"> <p> </p> </div> </div> </div> Fri, 04 Aug 2017 09:00:00 +0100 https://gorillaaccounting.com/blog/4-perks-contractors-wish-for-that-employees-have- Freelancer Blues: saying no to loneliness https://gorillaaccounting.com/blog/freelancer-blues-saying-no-to-loneliness- <p><strong>As any form of self-employed professional, Contractor, Freelancer or Worker, you’ll be all too familiar with the term ‘freelancer blues’, or you’ll at least recall the feeling of anxiety and uncertainty that climbs over you during particular times of your working life.</strong></p><p>It’s time to pull the blanket over these feelings and let these out in the open.</p><h2>Loneliness doesn’t dodge Freelancers</h2><p>Call it a career choice that’s a schism from conventional employment, or a successful, independent working model; loneliness still exists in freelancing. Working as a full-time employee traditionally means that you’re heading to a fixed workplace, working with a fixed team, abiding by a fixed routine.</p><p>Working as a freelancer typically means that you’re your own goal-setter, working impromptu (for some), detached from the social components that come with permanent employment. It usually means that there’s no lunch room where you can bump into colleagues, and there’s no coffee run to undertake in the hope to spark conversation.  </p><p>If you’re a work-from-home IT contractor, you could be developing a website from the comforts of your own home, commonly communicating with your end client through email – or having no need to communicate at all, which then leaves you prone to feeling lonely.</p><p>If you step out of your own home, yes you can head to the gym, a café, or park – but where can you find a social setting that’s equivalent to the one that exists in full-time working?</p><h2>Is co-working the remedy for loneliness? </h2><p><a href="http://www.huffingtonpost.com/amanda-schneider/the-future-of-coworking_b_8950140.html">The Huffington Post</a> quoted Rahul Prakash, a partner at co-working space provider, Hatch Today, who said, “The word co-working won’t be a word in the future, it will probably just be the way we work.”</p><p>Co-working spaces have been designed to encourage social interaction in a casual setting, with the opportunity to rent-a-desk and use shared facilities, almost like a nomadic lifestyle. </p><p><a href="https://www.academia.edu/31907421/Managing_community_Coworking_hospitality_and_the_precarious_future">Researchers</a>, Melissa Gregg and Thomas Lodato, said that such workers are seeking “relief from the emotional demands of the corporate office,” hence the growing number of people renting such spaces.</p><p>As the number of self-employed rises, 'workplace hubs' as referred to by IPSE, or 'co-working spaces' should also see a rise in demand. As well as soothing the feeling of loneliness, such spaces act as 'an incubator for start-ups', encouraging 'the self-employed to use these collaborative workspaces'. As the future welcomes this way of working, the self-employed will be able to enter a community, while overcoming the feeling of isolation. </p><p>As the future welcomes this way of working, the self-employed will be able to enter a community while overcoming the feeling of isolation. </p><p> </p><p><strong>At Gorilla Accounting,</strong> <strong>we offer an</strong> <strong><a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">all-inclusive accountancy</a> package for Contractors and Freelancers</strong> <strong>for just £85 plus vat per month.</strong> <strong>If you have any questions, get in touch with a member of our New Business Team by calling 0330 024 0406 or email</strong> <a href="mailto:info@gorillaaccounting.com"><strong>info@gorillaaccounting.com</strong></a><strong>.</strong> </p> Wed, 02 Aug 2017 09:00:00 +0100 https://gorillaaccounting.com/blog/freelancer-blues-saying-no-to-loneliness- 3 Reasons Why Contractors are Leading The Way https://gorillaaccounting.com/blog/3-reasons-why-contractors-are-leading-the-way- <p><strong>In terms of career preferences, contracting has <a href="https://gorillaaccounting.com/blog/freelancing-on-the-rise-in-london-">risen to the ranks</a> during the last decade, taking the overall number of self-employed professionals in the UK to 4.8 million, and their economic contribution to £255 billion, but why the popularity?</strong></p><p>Firstly, the perks and upsides of running a limited company can improve productivity, a point highlighted in <a href="https://gorillaaccounting.com/blog/rounding-up-the-taylor-report-for-the-self-employed-">Matthew Taylor’s Review of Modern Working Practices</a>. It may also be the autonomy, the freedom of choice, or the opportunity to break the glass ceiling that makes the career path so popular.</p><p>Here’s our three point round-up:</p><h1>1. Autonomous to the core</h1><p>As the director of a limited company, you’ll be responsible for the day-to-day running of your business, you’ll govern your own affairs, and you’ll practically be your own boss – a job not for the faint hearted. If you’re not keen on being tied down to a job description, and you’re all for feeling a sense of satisfaction for every contract you score– Contracting may be the way to go.</p><h1>2. Workplace Wisdom</h1><p>A positive working environment can breed a good work culture, after all - the best ideas are usually born in the most peculiar of places, this article by <a href="https://fizzle.co/sparkline/great-ideas">Fizzle</a> backs up my point exactly.  <a href="http://www.huffingtonpost.com/amanda-schneider/the-rise-of-coworking_b_8382042.html">Huffington Post</a> also refers to the 2020 Intuit Report which says, “Imagine a world where companies motivate and manage employees who never set foot in their corporate office,” which is where they think the workplace ethic is heading towards.</p><p>As a contractor, you can decide where you want your workplace to be, whether this may be a coworking space or your home – the decision is yours. <a href="https://gorillaaccounting.com/assets/download/Gorilla-Accounting-Limited-Company-Guide3.pdf">Download our updated Limited Company guide</a> to find out how you can claim back expenses for using your home as an office. </p><h1>3. Breaking the glass ceiling</h1><p>What’s a glass ceiling? It’s defined as ‘an unacknowledged barrier to advancement in a profession, typically used for women, but there’s no doubt that it also applies to men, as pointed out by the <a href="http://www.huffingtonpost.co.uk/nick-clements/glass-ceilings-for-women-_b_5681116.html">Huffington Post</a>.</p><p>As the Director of a Limited Company, you’ve taken the first step towards shattering the glass ceiling above you as you’re the head of your own business. On the other hand, the real challenge may be trying to secure a contract in a gender-stereotyped sector. The bottom line is that as a contractor, there is no hierarchy which is pretty much a perk in itself.</p><p> </p><p><strong>At Gorilla Accounting,</strong> <strong>we offer an</strong> <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">all-inclusive accountancy</a><strong> package for Contractors and Freelancers</strong> <strong>for just £85 plus vat per month.</strong> <strong>If you have any questions, get in touch with a member of our New Business Team by calling 0330 024 0406 or email</strong> <a href="mailto:info@gorillaaccounting.com"><strong>info@gorillaaccounting.com</strong></a><strong>.</strong></p><p> </p><p> </p> Fri, 28 Jul 2017 09:00:00 +0100 https://gorillaaccounting.com/blog/3-reasons-why-contractors-are-leading-the-way- IR35 challenger campaign details road to possible HMRC legal action https://gorillaaccounting.com/blog/ir35-challenger-campaign-details-road-to-possible-hmrc-legal-action- <p> </p><p><strong>An IT contractor set on challenging the <a href="https://gorillaaccounting.com/resources/ir35/">IR35 reform</a> has fleshed out plans for a potential legal battle against HMRC for ‘preventing LTD company contractors from fulfilling their business directorship duties’, as reported by <a href="http://www.computerweekly.com/news/450423205/IR35-reforms-IT-contractor-fleshes-out-details-of-potential-HMRC-legal-challenge"><i>Computer Weekly</i></a>.</strong></p><p>The highly controversial measure prompted mixed emotions from contractors as illustrated by the <a href="https://gorillaaccounting.com/blog/ir35-reform-challenges-public-sector-contractors-">CW jobs survey</a>, but on the other hand, it was welcomed by a handful of industry professionals.</p><p>Mike Gibson, Managing Director of Ethical Consulting, set-up a Just Giving page in a bid to raise <a href="https://gorillaaccounting.com/blog/10-5k-crowdfunding-campaign-to-challenge-ir35-thrashes-target">£10.5k to challenge the IR35 reform</a>, which soon surpassed the target. </p><p>Mr Gibson said that when IR35 status is wrongly classified as under IR35, HMRC could be accused of preventing limited company contractors from fulfilling directorship duties, as set out in the Articles of Association.</p><p>Gibson told Computer Weekly, “The Articles of Association describe how I’ll run the business and describe what it will do, and IR35 frustrates me from doing that because it tells me I’m not allowed to be a company director, I’ve got to be an employee.”</p><p>“The question is; are [HMRC] frustrating my ability to be a director of a company that is legally constituted under English law through their implementation of IR35?”</p><p>Mike Gibson, and Andrew Merritt-Morling, an Entrepreneur, banded together to enlist Michael Paulin, tax barrister, who will undertake the analysis work to find grounds to battle HMRC, either through the legal route, or an alternative option. </p><p>IR35 legislation, also known as the off-payroll rules, came into force in April 2017.</p><p>The measure lays out that the IR35 status of public sector contractors will be determined by the public-sector body, not the contractor. If the contractor is deemed be inside IR35, they will be taxed at source liked an employee would, but without the employment rights.</p><p>IPSE, the Self-Employed &amp; Freelancer Association, urged in their General Election 2017 manifesto, <a href="https://gorillaaccounting.com/blog/general-election-2017-what-s-in-it-for-the-self-employed-">A Contract with the Self-Employed</a>, that the IR35 reform should not be implemented to the private sector.</p><p>It has also been reported that the IR35 change has contributed to the <a href="https://gorillaaccounting.com/blog/ir35-reform-challenges-public-sector-contractors-">public-sector IT decline</a>, but the Government have backed their decision by stating that the changes are intended to “improve fairness in the tax system by ensuring that individuals are not able to sidestep employment taxes or NICs by working through a PSC.”</p><p> </p><p><strong>At Gorilla Accounting,</strong> <strong>we offer an</strong> <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">all-inclusive accountancy</a><strong> package for Contractors and Freelancers</strong> <strong>for just £85 plus vat per month.</strong> <strong>If you have any questions, get in touch with a member of our New Business Team by calling 0330 024 0406 or email</strong> <strong><a href="mailto:info@gorillaaccounting.com">info@gorillaaccounting.c</a>om.</strong> </p> Fri, 28 Jul 2017 09:00:00 +0100 https://gorillaaccounting.com/blog/ir35-challenger-campaign-details-road-to-possible-hmrc-legal-action- IR35 reform challenges public sector contractors https://gorillaaccounting.com/blog/ir35-reform-challenges-public-sector-contractors- <p>Changes to IR35 regulation in the public sector have contributed to IT contractors being driven out as more than two-thirds face a pay-cut, a survey by <a href="https://www.cwjobs.co.uk/blog/ir35-the-end-of-contracting/">CW Jobs</a> found.</p><p>The <a href="https://gorillaaccounting.com/resources/ir35/">IR35 public-sector change</a> which was enforced at the beginning of this tax year was quick to stir up controversy within the Contractor community.</p><p>The changes are intended to “improve fairness in the tax system by ensuring that individuals are not able to sidestep employment taxes or NICs by working through a PSC,” however, research found that IR35 changes in the public sector have led to 71% of the IT contractors surveyed (1,100) to be left with a reduced income.</p><p>One-third decided to entirely avoid work offered by the public sector.</p><p>The measure intends to tackle ‘disguised employment’, ensuring that two people carrying out the same job are paying the same taxes as each other.</p><p>There has been skepticism around the <a href="https://gorillaaccounting.com/blog/government-responds-to-calls-to-scrap-ir35-changes">effectiveness of the measure</a> as IPSE, the Self-Employed &amp; Freelancer Association, forecasted prior to the legislative reform that more than half of the 26,000 Contractors and Freelancers in the public sector would exit their contract if they were caught by IR35.</p><h1>The Domino Effect</h1><p>As a result of the change, IT contractors are exiting from the public-sector, resulting in IT projects hosted by public-sector bodies to suffer.</p><p><a href="https://www.v3.co.uk/v3-uk/news/3014158/public-sector-ir35-changes-driving-contractors-out-suggests-survey">V3</a> reported that the measure was expected to raise more money for the Treasury, but the consequential domino effect now means that in order to tackle the decline, the public-sector may have to raise the rates of IT contractors or recruit more permanent members of staff. </p><p>"IR35 has clearly had a huge impact and it is really worrying to see IT contractors leave the public sector in their droves,” said Dominic Harvey, director of CW jobs.</p><p>“We are now facing a perfect storm of a brain drain from the public sector, questions over future project delivery, and an increase in fees from those contractors choosing to stay put: all are a real cause for concern."</p><h1>What’s the reform? </h1><p>The measure now means that if a contractor chooses to work for a public-sector body, the IR35 status will be determined by the public-sector authority– rather than the contractor.</p><p>This will include “deducting any necessary employment taxes on payments to the individual’s company.”</p><p>This brings into question why a self-employed professional should be taxed similarly to an employee, but without the employment rights.</p><p>The tax reform triggered <a href="https://gorillaaccounting.com/blog/10-5k-crowdfunding-campaign-to-challenge-ir35-thrashes-target">a crowdfunding campaign</a> to challenge the legislation reform, and soon raised more than the initial target of £10.5k.</p><p>IPSE urges in their <a href="https://gorillaaccounting.com/blog/general-election-2017-what-s-in-it-for-the-self-employed-">General Election 2017 manifesto</a>, A Contract with the Self-Employed, that IR35 legislation should not be implemented to the public sector.</p><p> </p><p><strong>At Gorilla Accounting,</strong> <strong>we offer an</strong> <strong><a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">all-inclusive accountancy</a> package for Contractors and Freelancers</strong> <strong>for just £85 plus vat per month.</strong> <strong>If you have any questions, get in touch with a member of our New Business Team by calling 0330 024 0406 or email</strong> <a href="mailto:info@gorillaaccounting.com"><strong>info@gorillaaccounting.com</strong></a><strong>.</strong></p> Fri, 21 Jul 2017 09:00:00 +0100 https://gorillaaccounting.com/blog/ir35-reform-challenges-public-sector-contractors- Rounding up the Taylor Report for the self-employed https://gorillaaccounting.com/blog/rounding-up-the-taylor-report-for-the-self-employed- <p>The long-awaited <i>Taylor Review of Modern Working Practices</i> was officially published last week, putting forward recommendations for the self-employed, including an auto-enrolment pension scheme, and a new ‘dependent contractor’ definition.    </p><p>Theresa May appointed Matthew Taylor, Head of the RSA, to chair a report into the employment practices of the self-employed. An <a href="https://gorillaaccounting.com/blog/self-employment-and-gig-economy-inquiry-report-released-by-parliamentary-committee">inquiry report by the Work and Pensions Parliamentary Committee</a> recently recognised that, “it is clear that current ways of categorising workers are creaking under the weight of the changing economy.”</p><p>The report which analyses the labour market and <a href="https://gorillaaccounting.com/blog/the-uber-effect-extend-minimum-wage-to-gig-economy-">platform based business models</a>, such as the one followed by Uber, attempts to recommend measures to improve quality of work, and the flexibility that self-employment brings.</p><h1>Dependent Contractor </h1><p>Taylor’s team have developed the term ‘dependent contractor,’ which proposes to replace the current term ‘worker’. This is to create a clearer boundary between the genuinely self-employed and dependent contractors (workers).</p><p>A worker, or ‘dependent contractor’, is not an employee, or self-employed professional – it’s somebody who adopts a casual form of working. Taylor says in the report,</p><p>“The status of ‘dependent contractor’ should have a clearer definition which better reflects the reality of modern working arrangements, properly capturing those more casual employment relationships that are on the increase today – an individual who is not an employee, but neither are they genuinely self-employed.”</p><p>This report calls for a fairer relationship between the worker and firm, making it easier to differentiate dependent contractors from the genuinely self-employed. Taylor proposes that Dependent Contractors should be entitled to rights such as <a href="https://gorillaaccounting.com/blog/above-all-the-benefits-freelancers-want-sick-pay">sick pay</a>, and holiday pay.</p><h1>Auto-Enrolment Pension Scheme </h1><p>A <a href="https://gorillaaccounting.com/blog/why-the-self-employed-could-be-under-pensioned-when-hitting-retirement">recent report</a> conducted by IPSE, Association of Independent Professionals and the Self-Employed, recently found that 37% of IPSE members do not have a pension, while 16% don’t save for retirement at all. This contributes to growing concerns that the self-employed could be left under-pensioned when hitting retirement.</p><p>Taylor calls on Government to explore auto-enrolment for the self-employed in order to help them save for retirement “which could generate a step change in the way that self-employed people save for their future.”</p><p>Prior to the release of the Taylor Report, and shortly after the Government confirmed plans to provide an <a href="https://gorillaaccounting.com/blog/plans-to-help-self-employed-roll-in-pension-savings-">auto-enrolment scheme</a> for the self-employed, Royal London and Aviva published in depth plans into how the scheme would work.</p><p>Steve Webb, former pensions minister, said, “The self-employed would have a suggested 4 per cent net (plus tax relief from the government) added to their tax calculation.”</p><p>It was proposed that the annual tax return would be used to default the self-employed into making pension savings.</p><h1>Minimum Wage</h1><p>Matthew Taylor proposes that employers will be required to prove that their workers are able to earn above the minimum wage, in order to keep pace with competitive business models and to implement a form of protection for gig-economy workers.</p><p>The recommendations made in the Taylor report will be up for discussion in the House of Commons, but Theresa May will need cross-party support to enforce what she decides to put forward to MPs.</p><p><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/627671/good-work-taylor-review-modern-working-practices-rg.pdf">The full Taylor Report can be found here.</a></p><p> </p><p><strong>At Gorilla Accounting,</strong> <strong>we offer an</strong> <a href="https://gorillaaccounting.com/our-services/contractor-accountancy-services/">all-inclusive accountancy</a><strong> package for Contractors and Freelancers</strong> <strong>for just £85 plus vat per month.</strong></p><p><strong>If you have any questions, get in touch with a member of our New Business Team by calling 0330 024 0406 or email</strong> <a href="mailto:info@gorillaaccounting.com">info@gorillaaccounting.com</a><strong>.</strong></p> Tue, 18 Jul 2017 09:00:00 +0100 https://gorillaaccounting.com/blog/rounding-up-the-taylor-report-for-the-self-employed-