Frequently Asked Questions Answered by Gorilla Accounting

Who are Gorilla Accounting services for?

IT Contractors, Management Consultants, Finance Professional, Freelance Journalists, Oil & Gas Contractors, Pilots, Engineers and Locums. Our specialist freelance and contractor accounting solution is designed for most individuals who provide services through their own Limited Company.

Umbrella or Limited Company?

There are a number of factors that will determine whether an Umbrella or Limited company is better for you. Please see our Umbrella vs Limited Company free contractor guide for more information, or contact us to discuss in more detail.

What percentage of my turnover can I take home from my Limited Company?

The guideline percentage that you can take home from a Limited company is around 70-80% of the contract value. Please note that you need to consider your turnover, flat rate percentage, allowable expenses, chosen salary, pension contributions as well as your personal tax liability on dividends. Please see our 'take home calculator’ for an estimate or contact us if you would like an accurate percentage.

Do I need Business Insurances?

We recommend that you obtain ‘Professional Indemnity Insurance’ and ‘Public Liability Insurance’. If you have additional employees you’re likely to require ‘Employers Liability insurance’. We have partnered with Kingsbridge who will be more than happy to discuss your requirements and recommend appropriate insurance products.

Do I need a business bank account?

Yes. You will require a business bank account as the limited company is a separate entity from you. We have partnered with Metro Bank and Cashplus who can offer a business account to ensure that you experience a streamlined, hassle free application process. For more information, please get in touch with a member of our New Business Team on 0330 024 0406, or email info@gorillaaccounting.com.

Am I inside or outside the IR35 regulation?

To identify whether you are inside or outside IR35 you would need to have your contract and working practices reviewed by a specialist. Please see our ‘IR35’ free contractor guide for further information or try our ‘IR35 calculator’.

Do I need to be VAT registered?

If your turnover is below the current threshold (£81,000) in any 12 month period then no, however you could benefit from voluntarily registering. Being registered for VAT also gives you access to the Flat Rate Scheme which can provide the business with additional profit (more profit = more dividends!)

When is my VAT due?

VAT is due quarterly following registration (you will be given your VAT quarters once registered). The team here at Gorilla Accounting will prepare and submit your VAT Returns on your behalf, all you are required to do is pay any liability due however, HMRC can take this payment by Direct Debit meaning one less thing to worry about!

What are my responsibilities?

It is your responsibility to keep your bookkeeping up to date using the quick and easy online software, maintaining this is vital as it will ensure you maximise your tax efficiency.

When are my company accounts due to be filed?

Normally your Accounts will be due for filing 9 months after your company’s year-end. This may change if you’ve made any changes to your company year-end in the period.

When is my company corporation tax return due to be filed?

Your Corporation Tax Return is due 12 months following your company year-end however we always file your Corporation Tax Return with the Accounts we have prepared i.e. up to 9 months after the year-end.

When is my personal tax return due to be filed?

As a company director you are required to complete a personal tax return each year. Both payment and submission will be due by the 31st January after the end of the tax year.

What expenses can I claim?

So long as the ‘expenses’ are wholly, exclusively and necessarily for the running of the business they are allowable. Travel to and from work are also allowable expenses under the 24 month rule if you are working at a temporary workplace.

How do I withdraw funds?

Your company will pay you both salary and dividends. These are simply paid as transfers from the company into your personal bank account.

How many dividends can I take?

Dividends are paid out of the profit available in the company. You can take all of this profit should you choose to however it is likely that this will not be the most tax efficient amount. We will always provide you with the most tax efficient and estimate your tax liability should you wish to take more out of the company.

Can Gorilla Accounting provide advice on pensions?

We are not regulated to advise on pensions, however we have partnered with Kingsbridge who will be more than happy to find you the best product for your situation.

Are there any hidden costs?

No, everything for the day to day running of your business is taken care of and you have unlimited support via email, phone, face to face meetings and Skype calls. The only additional fees you will incur are for using us as your registered office, mortgage references, to close your company and if you require additional tax returns for other shareholders. Click here to see what our all inclusive package includes.

Is there a minimum term contract for Gorilla Accounting services?

You are not tied in to any contract and there are no exit fees if you choose to leave Gorilla Accounting.

Do I have to pay full fees if I only trade through my company for part of the year?

We can reduce your fees if you do not trade for part of the year to help you manage your finances. Please note there may be a balancing charge to prepare your Accounts at your year end if you trade for part of the year.

FAQs