HMRC yesterday launched a pilot of an Alternative Dispute Resolution service for SMEs, which aims to reduce to need for tribunals during HMRC’s compliance checks. The scheme, which was trialled last year and saw 60% of disputes either fully or partially resolved, involves independent facilitators who work with both HMRC and business owners to ensure a quick and fair outcomes for both parties.
Ubiquitous online payment service PayPal has found itself in hot water again this week for shutting down a charity drive being run by comedy website Regretsy in order to buy disadvantaged children Christmas presents. According to the eBay-owned company, Regretsy was incorrectly using PayPal’s “Donate” button, and in response has frozen their account, ordered them to refund all donations and is, naturally, hanging onto its processing fee.
Did you see the BBC Panorama programme last week, All Work and No Pay? As the National Minimum Wage increased to £6.08 on 1st October 2011 (for workers aged 21 and over) Panorama discovered that many British workers are still being paid much less than the law states
There has been a lot of talk about Groupon recently as they prepare to go public in the US. Officially recognised as the “fastest growing business ever”, Groupon has attracted an audience of hundreds of millions of bargain hunters, all looking to take advantage of time-limited local deals, which Groupon source through small businesses.
Money is a very emotive subject. Money is also very psychological. We each choose how we spend our money. The more one earns the more one theoretically could and should save. The same is true of spending. In both cases, it is all relative.
For the last few weeks the good people at Her Majesty’s Revenue & Customs have been running a VAT registration amnesty (called the VAT Initiative) for those earning above the VAT registration threshold who have not yet registered. We’ve written about the scheme before, but as the amnesty comes to an end in just 10 days, we thought it might be a good time for a reminder.
Although some freelancers may find it more difficult to obtain a good credit card than a full-time employee, there’s a lot of disinformation flying around about freelancers and credit cards. Here we’ll bust three common myths.
Could the real reason for the delay in UK businesses receiving tax payment reminder letters be that HMRC ran out of paper?
After being blasted for their performance in 2010 in a report from the Treasury select committee, HMRC Chairman Mike Clasper has issued a public apology, and has pledged that the taxman’s performance in 2011 will be radically improved.
The decision by the Payments Council to not abolish cheques has been welcomed by small businesses who were concerned that no alternative viable payment system has been proposed.
Rachel Soothill | Legal,Technology
A free online tool has been launched to help small-businesses comply with employment regulations, including recruitment, discipline, grievance procedures and the Working Time Directive. Developed by ACAS, who aim to improve employer-employee relations, the Modern Workplace tool lets employers assess their management techniques and offers practical advice on maintaining good employment relations.
According to research by payment behemoth Bacs, Britain’s small and medium businesses are being bent over the proverbial barrel by large corporates, who continue to be the worst offenders in terms of prompt payments. According to Bacs, half of the UK’s SMEs have suffered late payments – the average payment period being a staggering 52 days.
New research has revealed the spending habits of the men and women of the UK, and the results make for interesting reading. The study revealed that millions around Britain are squireling money away without the knowledge of their partner, but for very different reasons.
Although this does not relate to you, our honest and straight-laced freelance readers, we thought we would just fill you in on the latest HMRC initiative designed to bust the tax dodgers. Following their “amnesty for all” announcement HM Revenue & Customs have now unveiled a new tax evasion unit that offers reduced penalties for those who come clean on undeclared income.
TimothyTim | Guides,Lifestyle & Time out
Didn’t we take over a bunch of banks? Didn’t the government promise on bended-knee that they would not let the rich irresponsible cretins in “the city” screw us again, at least until we had time to get our collective lipstick on?
Those of you on a flat-rate VAT scheme are in for a treat – a small treat, but a treat nonetheless. A recent tribunal ruling has deemed that HMRC charging VAT on interest gained through bank balances and savings is illegal, meaning that the practise will cease, pending a possible appeal from HMRC.
Of course we’re not talking about you. We know the Freelance Advisor readership are bastions of honesty, purity and fiscal responsibility. We just thought we’d let you know anyway, so you can warn your less-scrupulous friends about HMRC’s latest clampdown.
A little while ago the UK’s incumbent Franken-government announced the introduction of the New Enterprise Allowance (or NEA for acronym fans), a scheme to provide a £2,000 grant, small business loan and expert guidance to unemployed people looking to start their own businesses.
If you read our office chairs guide recently and were suddenly gripped by the desire to upgrade your current seating, we may have found just the thing for you!
Jon Norris | Guides,Resources,Technology
Software comes in many different flavours these days. The majority, from Microsoft, Apple and the like, is closed source – meaning the developers don’t release the source code their software is based on, which helps them protect both their intellectual property and bottom line. A growing percentage of software, however, is Open Source, meaning the developer releases the source code for anybody to poke around in and change as they see fit, and, most importantly for you and I, the software is almost always free.
Working job-to-job and contract-to-contract is all well and good. But if you want to build a business you’ll need to find some cash.
Christian Nellemann, founder of XLN Telecom, shares some of his experience on how you could get your business off the ground financially.
As the dust settles after the June Budget Financial Planning Expert Paul Cleworth give us some good news for contractors.
TODO: Is a review of salary levels with your accountant requried?
In case you missed George Osbourne’s Emergency Budget here are the highlights for Freelancers:
The PCG’s continued lobbying of Tory top-brass has finally paid off in a firm commitment to a review of IR35 legislation by a future Conservative government.
The Conservative Party made the landmark announcement today that IR35 will be reviewed as part of an overall review of small business taxation should they win the General Election in May.
In a letter today to Chris Bryce, PCG Chairman, the Shadow Business Minister, Mark Prisk MP said that due to PCG’s strong representations to him and to Shadow Treasury Ministers “a Conservative Government would undertake a fundamental review of small business taxation matters, including IR35.”
Freelance Advisor and Associate Director of Contractor Mortgages Made Easy, Taj Kang, surveys how the mortgage market is looking for contractors and freelancers.
Are some clients more trouble than they’re worth? Freelance information consultant Joanna Ptolomey reminds us that, when time and attention are your most precious asset, and time is money, not all clients are the same.
Her simple steps can help bring some balance back into your books and your business.
If you have read our guide to the expenses freelancers can claim the following guide gives some in depth information on how to claim your business expenses.
Michael Rose | Getting a Job,Money
Negotiating yourself the best rate possible is crucial to your financial success as a freelancer or contractor. However, it is also one of the most daunting prospects if you have never done it before.
This guide outlines a few things to think about when trying to secure yourself the best deal.
One the most frequently asked questions when people start contracting or freelancing is ‘how much should I charge?’
As well as knowing what other contractors in your field charge you can also apply following factors to work out a rate of pay.
Successful long term investment is not just about buying low and selling high. Stock markets rise and fall, and share prices are vulnerable to everything from political news to the weather. Trying to find your way around – particularly during times of high volatility and uncertainty – can feel like negotiating a minefield.
So how can we make sense of such a confusing world? It is probably time to go back to basics – stock markets may rise and fall, but the rules of sensible investment remain constant. Wealth Matters’ Paul Cleworth gives us the low down.
In conjunction with PCG, Wealth Matters have been running a number of Contractor Seminars this year. When it comes to investing they’ve found quite a few questions keep repeating themselves among the 250-strong contractors in the audience. Today Wealth Matters’ Director Paul Cleworth answers these questions for a wider contractor audience.
Master-moaner and freelance freedom-fighter Malvolio takes a look at Tax and Employment Benefit Trusts (an alternative to Umbrella Companies that promise up to 25% more in your pocket).
Are these tax schemes a good idea for freelancers and contractors looking to earn a little more? Are they good for the UK?
Got a great accountant but lousy software?
Or great software but an accountant who wants everything in Excel spreadsheets?
Crunch Managing Director Darren Fell explains why choosing an all in one accounting solution can save you a lot of time and hassle when it comes to your year-end.
The PCG is a non-profit organisation that fights the freelance corner by lobbying government for better tax and regulation and promoting fair and ethical behaviour among recruiters. It also provides a host of tools and knowledge to its members to help them handle tax and regulatory matters properly.
PCG insider Charlie Bradburn tells us why they could be your greatest ally if you were ever to suffer a tax investigation and how their help-line can help you feel more at ease when confronted by a letter from the HMRC.
Small business owners working from home should make sure they are claiming tax relief, an accounting firm says.
Target Chartered Accountants says business owners who work from home can claim several tax benefits, including mortgage interest.
In this economic climate there are few letters which are worse to receive than a letter saying that your client has gone into administration or bankruptcy owing you money. But the number of these letters being sent out is on the increase. As a freelancer or contractor you will rank behind the banks, the Revenue and employees for payment and the prospect of getting money out of a company at this stage is remote at best. How then to stop your debts going bad?
Kasey Brunt | Getting a Job,News
HM Revenue & Customs (HMRC) has released a series of online video guides to help businesses and start-ups understand their tax requirements. The guides cover a variety of topics, including VAT, corporation tax and PAYE. They also cover areas such as importing and exporting, keeping accurate records, and things to consider when employing other people. [...]
The Institute of Chartered Accountants in England and Wales (ICAEW) has launched a guide to help businesses plan downturn survival strategies. The “Eight ways to survive the downturn” guide, which can be downloaded at www.icaew.com, aims to provide businesses with practical help and topics to help them through the credit crunch. The guide includes information [...]
A leading business organisation says small firms are still having trouble accessing finance, despite Government lending guarantees. The Forum of Private Business (FPB) says its members have reported they are still unable to access finance from banks, despite the Government implementing schemes such as the Enterprise Finance Guarantee, designed to help small businesses access bank [...]
Small businesses go green Small businesses are ‘going green’ in a bid to save costs, an expert says. Erica Russell, a sustainable business advisor from Business Link, said many small companies were adopting recycling methods and using low-energy applications in an effort to cut down on costs. “When switching off your lights could save you [...]
Tax burden hurts small business HIGH taxes are hitting UK small businesses hard, new research has found. About 16 per cent of small business’ outgoings is spent on tax, according to financial business information firm Creditsafe. This means tax is the third biggest expense for most small businesses, freelancers and contractors, behind wages and investment [...]
FEMALE business owners remain optimistic despite the economic crisis, a survey has revealed. The business risk survey, undertaken by the Chubb Group of Insurance Companies, found 58 per cent of female business owners believe their business will grow in 2009. And 13 per cent said they would take their business to an international level in [...]
With gloomy forecasts and images of screens full of flashing red numbers dominating the newspages we’ve been keeping a eye on what the state of the economy means to freelancers and contractors. And it’s not all bad news! Today Freelance Advisor and Web Marketing Consultant Leif Kendal gives us three reasons why freelancing might actually be a very good option during a recession.
The Professional Contractors Group (PCG), which represents UK freelancers and contractors, has warned the Government against “heavy-handed action” which would remove tax relief on expenses. The warning particularly concerns freelancers who work through ‘umbrella companies’ which oversee the offering of a number of freelancers’ services on large or long-term contracts. “PCG supports the presence of [...]
“I’m busy earning as a freelancer, but what about all those Pension plans?” It’s a common freelance problem. You’re hard at work earning money from contracts, but you also know you need to keep an eye out for when you’ll be less busy earning. In this new Financial Management series, Senior Pensions & Retirement Consultant [...]
Your frequently asked questions – about CV’s, Pay, Pensions, Freelancers, Working Parents, Dismissal, Redundancy, Fixed Term Contracts, Resigning, References, Bullying.
See this advice on chasing late payments.
Asking for a pay/rate rise is not a comfortable thing to do, and there is no ‘right’ way to do it. However, whatever your situation is, you must prepare for a conversation about your pay….. read on for more advice.
Accounts and Audit Manager Michael Riazi helps freelancers and contractors find the advice they need. Last month Michael gave some great advice on how to find an accountant that is right for our freelance business – this month he gives us ten things we should ask on our first meeting. Before you choose an accountant… [...]
Andy talks to Darren Fell of Freelance Advisor, about some techniques for working out what you should be charging. Topics Covered: The role of networking; Online resources; Finding the perfect price point according to your skill; Selecting the rate you can afford; Strategies for getting started in pricing; Pricing for big clients; Price negotiating tips.
today’s current climate it is essential to choose every aspect of your freelance business dealings carefully. This applies not just to your clients and suppliers but also to your professional advisors – especially a good accountant.
The right accountant will meet all your business accountancy needs, from the preparation of accounts and dealing with tax matters, but also helping your company or business grow in the future.
Part 2 of an interview with Steve Crouch of SRC Chartered Accountants. Here Steve tells us about the types of expenses freelancers can claim such as those associated with working from home and some more general things to look out for. Topics Covered: The expenses a freelancer can claim; Expenses associated with working from home; [...]
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