Tax

September 9: Tax planning event for freelancers and contractors

Mel Dixon | Events

For the UK’s freelancers and contractors these are uncertain times. With fears rife of a double dip recession and the scrutinous IR35 legislation coming under intense scrutiny, it’s difficult for micro-businesses to know exactly where they stand.

The latest tax planning seminar for freelancers and contractors, hosted by financial planners Wealth Matters, will offer a timely, in-depth insight into all the big issues facing your business. But be quick, it’s coming up very soon.

Are HMRC going soft?

Mel Dixon | News

Well that’s the question being asked after it was announced that HMRC would adopt a new strategy in dealing with tax disputes.

Instead of taking a ‘black and white’ approach, resulting in court proceedings or no action at all, they will look to be more pragmatic in seeking agreements with individuals.

GAAR – the alternative to IR35?

Mel Dixon | Accountancy & Tax

For a long time now there’s been much talk of the drawbacks and benefits of IR35. Well, mainly the drawbacks. But what of the measures that could potentially replace the complex and largely ineffective legislation?

One option which has been spoken about recently, involves the creation of a new General Anti-Avoidance Rule known by its acronym GAAR.

Government’s PR initiatives reveal tax collecting priorities

Mel Dixon | Accountancy & Tax,News

Last week the Government announced a 52% cut in the amount spent on advertising and marketing, leading to 287 redundancies.

One of the few Government campaigns to escape the axe was the HMRC’s ‘paying business taxes’ series of adverts which surely reveals a determination to ensure that businesses don’t escape their tax paying responsibilities. Freelancers and contractors should be on their guard.

IR35 brought back to basics

Mel Dixon | Accountancy & Tax

IR35 has been the bane of many of a contractor since it was introduced back in April 2000. Recently the controversial legislation has been garnering much media attention after the coalition government promised to review it as part of their plans to simplify the tax system for businesses.

This makes it a good time to ask: what exactly is IR35?

The value of VAT for freelancers and contractors

Mel Dixon | Accountancy & Tax

VAT is defined by HMRC as “a tax that’s charged on most goods and services that VAT-registered businesses provide in the UK.”

The question is: when should you be VAT registered? And why? It’s time for a no-nonsense overview to provide some answers…

UK is ‘an excellent place to set up business’

Mel Dixon | Accountancy & Tax

So far, so good. That seems to be the business community’s general view regarding the coalition government.

In a recent newspaper article, award-winning entrepreneur and freelancer’s friend, Darren Fell, gave his views on why he thinks now is a great time to start a business in light of recent tax changes.

Office for Tax Simplification launches

Mel Dixon | News

It’s good news for UK contractors after the coalition government’s launch of the new Office of Tax Simplification. The body will be tasked with making the tax system in the UK less complex, which will include a review of IR35.

The swift launch suggests that the government is looking to change the tax system sooner rather than later.

Budget Advice for Contactors: Review your salary with your accountant

Paul Cleworth | Accountancy & Tax

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?

Emergency Budget: will IR35 come to the fore?

Mel Dixon | Accountancy & Tax

In May, the newly formed coalition government wasted no time in making all the right noises regarding the stress inducing IR35 ‘disguised employment’ legislation. Through a combination of squawks, growls and shrill cries they promised to “review IR35, as part of a wholesale review of all small business taxation, and seek to replace it with simpler measures…”

The question is: can we expect any statements of substance regarding the legislation in the upcoming emergency budget?

Free Tax Planning seminar for freelancers

Michael Rose | Events

July 20, 2010

A free event is being held at the Cumberland Hotel in London to help freelancers and contractors get informed about the financial issues that affect them. This will include a discussion of pensions, tax-planning, mortgages and investment among other things

Tories will review IR35 if they win election

Michael Rose | News

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.”

How does the budget affect freelancers and contractors?

Michael Rose | News

The PCG’s John Brazier and Brookson’s Martin Hesketh respond to Alistair Darling’s budget.

How will the changes affect you and your business?

Time to think seriously about the VAT deadline

Michael Rose | Accountancy & Tax,News

The deadline for online VAT returns is drawing close. As from April 1st this year, it becomes mandatory to file online.

Businesses that do not comply with the new online regulations will face a fine from HMRC.

Read the full story on Contractor Accountants

Don’t Forget: VAT is moving online

Michael Rose | Accountancy & Tax

From April 2010, if you have an annual VAT exclusive turnover of £100,000 or more, you will have to do your VAT returns online and pay any VAT due electronically.

But don’t worry, it’s the same form and just as secure as doing it on paper.

If you haven’t already, you’ll need to register for an online account at least 7 days before you do your VAT return. All the help and advice you may need about registration and online services can be found by visiting HM Revenue & Customs’ online services demonstrator: businesslink-online.hmrc.gov.uk/login

‘Start Up Diaries’ HMRC video series, one year on

Michael Rose | Resources

HMRC Start Up Diaries

The latest installment of HMRC’s [Start Up Diaries][] is now available to view online, offering freelancers, contractors and small business owners a unique insider’s view into setting up and running a new business.

VAT is moving online

Michael Rose | Accountancy & Tax

From 1 April 2010, if you have an annual VAT exclusive turnover of £100,000 or more you will have to submit your VAT returns online and pay your VAT electronically. Also, if you register for VAT from 1 April 2010 onwards, you’ll have to file online from the start, whatever your turnover.

Ltd Company: Detailed information on the expenses you can claim

Darren Fell | Accountancy & Tax

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.

Have you registered with HM Revenue & Customs to do your tax online?

Michael Rose | Accountancy & Tax

The Self Assessment online deadline is fast approaching – if you still need to do your Tax Return you must do it online by 31 January

If you’re using HMRC Online Services for the first time, you will have to register for an online account. You will then be sent an Activation Code within 7 days to activate your account.

Freelance Questions: “How do I set up a Limited Company?”

Michael Rose | Accountancy & Tax,Starting Out

Setting up a Limited Company is one of the smartest way to get paid for your work. With a Ltd you get to define your brand, own everything you do, run your business in the most tax-efficient way and pitch for work you wouldn’t be able to get as a sole-trader.

Some people, usually the folks at Umbrella companies, will tell you that setting up a company is costly and complicated but with low-cost solutions out there it’s a no-brainer.

Freelance Financials: A taxing future for contractors?

Paul Cleworth | Financial & Insurance

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.

Freelance Comment: A Taxing Problem

Malvolio | Accountancy & Tax

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?

Accountancy News: Crunch continues to cause ripples

Michael Rose | Accountancy & Tax,News

The specialist freelancer and contractor-focused accountancy world is hotting up as Crunch continues to cause ripples in the sector. It’s been a busy month for Crunch with the news that the all-in-one online accountancy service has received investment from Bebo co-founder Paul Birch and Skype chairman Michael van Swaaij. Combined with news of an award [...]

Avoiding Accountancy Hell: Two steps to Accounting Heaven!

Darren Fell | Accountancy & Tax,Guides

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.

Podcast #16: Steps to Accountancy Heaven

Andy White | Podcast

Darren Fell covers the correct steps to setting up your accounting system. Step 1: Find the good accountant Step 2: Make sure you like their software

#16: Steps to Accounting Heaven [27:49m]: Play Now | Play in Popup | Download

Freelance News: PCG exposes the truth of IR35′s tiny tax take

Michael Rose | Accountancy & Tax,News

The PCG, the association that represents freelancers and contractors in the UK, has revealed the exact amount of money raised by the Government’s IR35 tax regulation rules.

Following a request under the Freedom of Information Act to HMRC, asking just how much tax revenue IR35 raises for the exchequer, PCG have found that between tax years 2002/03 and 2007/08, IR35 directly raised just £9.2 million. This equates to an average of around only £1.5 million per tax year – a tiny sum in Governmental terms.

Freelance Resources: Essential Tax Guide

Michael Rose | Accountancy & Tax,Resources

If you’ve read the tax overview and know what to expect this guide gives you a simple to understand guide to Self Assessment, National Insurance contributions, VAT, employing others (PAYE) as well as some of the help you can get in the form of Allowances, reliefs, incentives and Tax credits.

Essential reading if you’re starting out and struggling to understand tax and self-employment.

How to: handle your tax and legal affairs so they don’t come back and bite you

Charlie Bradburn | Financial & Insurance

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.

Freelance Resources: Tax… the basics

Michael Rose | Accountancy & Tax,Resources

To help launch our new Resources section we’ve teamed up with Business Link and the HMRC: Over the next few months we’ll be offering the latest advice, guidance and short videos from the people who know.

If you’ve recently gone self-employed or are thinking about working for yourself this first PDF guide will give you an overview of initial questions you might be asking yourself when planning on starting a business.

Freelance News: Tax relief for home workers

Kasey Brunt | Accountancy & Tax

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.

Freelance News: HMRC releases online tax help videos

Kasey Brunt | Managing Business,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. [...]

Freelancer News: Taxing times

Kasey Brunt | Accountancy & Tax

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 [...]

Income Tax and National Insurance Contributions

Lesley Furber | Employment

For up to date details of Income Tax and NIC rates for Employees, Workers and Freelancers read this article.

Podcast #5: Five things you always wanted to ask your accountant – part 1

Andy White | Lifestyle & Time out,Podcast

Part one of an interview with Steve Crouch of SRC Chartered Accountants. Steve answers questions on such things as salaries, dividends, section 660, IR35 and VAT. Topics covered: Limited company verses sole trader; Taking a small salary with big dividends; Section 660 – profit share between spouses; Consideration to IR35; When to register for VAT; [...]

#5: Five things you always wanted to ask your accountant - part 1 [19:08m]: Play Now | Play in Popup | Download

What is IR35?

Darren Fell | Accountancy & Tax

Heard of it? Most have but still it manages to send a shiver or two down the spine of even the most newbie contractor or freelancer who’s not quite sure! So what actually is it? Well essentially it’s the Inland Revenue’s (HMRC) definition of ‘self employment’ and it’s designed to catch those who are contracting [...]

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