Over-50s lead freelance boom

Here at Guildfordaccountants Sherwin Currid, we read with interest a report about a rise in UK freelancers. A study has discovered that there are more new freelancers in the over 50s segment. The people in this demographic number over two thirds of new freelancers, and the rise took place between the first quarter of 2008 and the final quarter of 2013.

It has long been assumed that freelancers are young workers. However, young people may not have the resources to start their own companies, or the on the job expertise that many clients seek when hiring workers. While this gives a glimmer of hope to people who find themselves out of work as they reach retirement, it underscores the dire situation that young people face today. Only around 5 per cent of 18 to 24 year olds are self-employed, compared to more than a third of those aged 65 and above.

In other news, some people have called for greater protection for freelancers (of all age demographics), while noting that current unions may not be able to adequately represent these workers. For instance, it would be very difficult to arrange a strike among freelancers, especially if they were spread among several unions.

The need for some kind of representation of freelancers' rights becomes more urgent amid predictions that the self-employed will soon be a larger group than civil servants. One commentator, freelancer Joel Dullroy, noted the vulnerability of freelancer workers to the same pressures that affect paid employees, and it certainly seems that freelancers could be at a greater risk of financial insecurity. Having a special body that could negotiate better working conditions specifically for freelancers would take into account their particular needs, and produce a united front for collective bargaining.

Of course at our Guildford accountants, we are always open to the concerns of freelancers, and we are happy to discuss any financial worries that you might have.

Editor’s Note: Sherwin Currid (http://www.sherwincurrid.com/) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.

£565 million more bagged from small traders by HMRC

Amid longstanding reports of more aggressive action by HM Revenue & Customs against small traders, it will surprise few clients of Guildford accounting firms like Sherwin Currid (http://www.sherwincurrid.com) to read that the taxman gained an extra £565 million in revenue from small and medium-sized enterprises last year, according to figures obtained by an adviser. The statistics showed a 31 per cent boost in additional yield from investigations into the tax compliance of small firms, compared to the previous year.

It is part of a trend of HMRC taking a harder line on small businesses since it was told by chancellor George Osborne in 2010 to draw in a further £7 billion annually from compliance activity. Since then, the tax authority has established around 40 separate task forces, to enable long and thorough investigations into individuals and businesses. These specialist groups have already gathered a total exceeding £60 million, amid reports that one task force with responsibility for tackling fast food industry non-compliance has accrued £25 million alone.

Certainly, the figures are a strong signal to small trader clients of Guildford accountants that they are bearing the brunt of the taxman's crackdowns. Although much of the media's focus has been on large corporations using such practices as profit-shifting to lessen their tax liability, HMRC's tougher stance on smaller businesses has attracted fewer headlines. Another indication of this hardened approach is the expectation that a tax force dedicated to the South Wales tourism industry, set up in July, will raise about £2.5 million.

HMRC was recently granted new powers enabling it to assess every UK business's credit and debit card payments to expose those traders failing to disclose all of their income, with individuals and businesses having also been named and shamed for a failure to pay tax. However, small firms' relative lack of resources compared to the larger companies makes them more susceptible to reporting and accounting errors, and the situation is no different for small traders in Guildford. Not all of them can easily afford the best quality accountants in Guildford, increasing the chances of mistakes in their tax returns and other paperwork.

Such a lack of time, money and expert help also minimises small firms' room for manoeuvre in HMRC negotiations, should they be accused of underpayment. The best advice that can therefore be given to the UK's smallest businesses is to prepare well and think ahead. The HMRC's ever-growing yield from small traders is the clearest indication yet that they must keep their tax affairs in order - or face the consequences. With its personalised and friendly service from its well-qualified Guildford accountants, Sherwin Currid (http://www.sherwincurrid.com) is well-placed to assist small firms in the local area to operate more tax-efficiently.

Editor’s Note: Sherwin Currid (http://www.sherwincurrid.com) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.

Procrastinators must pay heed to Self Assessment deadline

Among the many things that sole traders across the UK will spend their January doing, one of the most urgent for many of them will be completing and submitting their Self Assessment Tax Return. With a deadline of 31 January for the submission of returns relating to the most recently ended tax year, many firms will now be contacting Guildford accountants, like those of Sherwin Currid (http://www.sherwincurrid.com), for that vital late guidance. 

However, HM Revenue & Customs (HMRC) continues to derive great financial benefit from the many such businesses that still contrive to miss the deadline. The present penalty system is a deliberately harsh one aimed at averting this issue, with £100 fines being imposed for late filing even if eventual payment is complete and accurate. This is followed, for those that continue to fail to pay over the following three months, by daily £10 fines running up to £900. The absence of payment six months after the deadline triggers an additional £300 or 5% penalty, depending on which is higher. Should a year pass, a further penalty of £300 - or 100% of the owed tax - is imposed. 

For all of the technological changes that have taken place over the years relating to the Self Assessment process, the weakest part of the chain remains the simple fallibility of human beings. Procrastination ahead of the deadline remains widespread, even with the aforementioned penalties in place and a HMRC 'find inner peace' advertising campaign appealing to the sense of relief felt by taxpayers after getting such an important task done. Time and time again, our own tax accountants in Surrey find themselves being contacted in droves by sole traders who simply haven't taken advantage of the great amount of notice given to them. 

A small pilot is taking place this year of taxpayers being sent lost or forgotten email or password details by email instead of physical post. Developments like these, however, may only further will people into a false sense of security. It's also worth remembering that HMRC will need to have been given your email address in the past for even this new feature to work. As always in life, there is simply no substitute for personal responsibility and thorough preparation. 

If you are yet to complete your own Self Assessment Tax Return, then we would urge you to gather together and scrutinise the relevant paperwork without delay. There are queries that may arise now that you still have time to contact an informed tax accountant in Surrey about. Get in touch with Sherwin Currid (http://www.sherwincurrid.com) now if you are one of the many affected individuals who are still required to take action.      

Editor’s Note: Sherwin Currid (http://sherwincurrid.com/) is represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Please direct all press queries to Louise Byrne. Email: louise@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.

Keep clients satisfied for repeat business

It was Henry Ford who said that "you can't build a reputation on what you are going to do", which is advice that the clients of Sherwin Currid's (http://www.sherwincurrid.com) small business accountants in Surrey really should heed. That's because even with the best-sorted business plan, fundraising and accountancy arrangements in place, a freelance or small business will still suffer if it does not work continually to please clients.

Repeat business is so important for any company that may make use of one of our Guildford accountants, so you would be well advised to put the needs of the client first. All of the signs need to be that you will complete assignments time and time again, and to the desired high standard. These may seem like obvious points, but some freelancers and small businesses fail to even take full responsibility of the job that they've been briefed to do, including letting the client know of any issues that may arise and chasing them if they cannot progress without updates.

Any successful client of a tax accountant in Surrey will take seriously their role as a problem solver - after all, you are not being paid by the client simply to add to their list of problems. As such, you will need to communicate proactively if you are to truly win the client's trust, making yourself constantly available so that they are not the ones chasing you. If you are not due back in the office until 3pm on a certain day, set up an email 'auto-reply' so that the client is aware, for instance. Take full and accurate briefs, and involve the client at every stage of the creative process so that they feel in control of the assignment.

You should also endeavour to complete projects quickly, but thoroughly. This can be achieved in part by taking real care over such 'minor' elements as the spelling in your emails and other business communications, with any errors here all too often suggesting a lack of care for the client. The most successful businesses that make use of our tax accountants in Surrey are realistic in the quality and quantity of work that they can complete in a given timeframe, but are also flexible enough to, for example, work during the evening to meet a deadline or make a last minute change to the specification of requested work.

If you wish to better attract and retain clients, there is ultimately no substitute to showing real care for your clients, making sure to treat them as individuals with what may be highly specialised requirements. Adequately catering for the basics in this way makes the task of one of  Sherwin Currid’s small business accountants in Woking (http://www.sherwincurrid.com) so much easier.

Editor’s Note: Sherwin Currid (http://www.sherwincurrid.com) is represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Please direct all press queries to Louise Byrne. Email: louise@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.

What does my accountant need to tell me about Partnerships?

As has been previously covered on the Sherwin Currid (http://www.sherwincurrid.com) blog, for those wishing to start a business in the most hassle-free possible way, the option exists to begin trading as a Sole Trader. This removes much of the administrative burden of that other option, Limited Company formation, but what would a good tax accountant in Surrey recommend if there is more than one of you wishing to go into business together?

Well, in that situation, a Partnership is the closest equivalent to Sole Trader status. Although it is a more complicated process than that of becoming a Sole Trader, entering into a Partnership still somewhat simplifies the tax and accounting process. A standard Partnership lacks any legal status, as would be the case with a Limited Company. It simply links together two self-employed individuals in a basic business structure, with the partners having personal liability for any debts that they incur in running the business.

Those who desire the separate legal status that is enjoyed by a Limited Company are advised by our Guildford accountants to register a Limited Liability Partnership with Companies House. As the name suggests, this arrangement limits the liability of the partners for the debt that they incur in running the business, giving them a similar status to Company Directors. Nonetheless, given that the business profit of each partner is taxed alongside their existing personal income, a Partnership does not usually cause too many accounting headaches.

For tax purposes, when the business is started, each partner will need to inform HMRC of their self-employed status. Sherwin Currid's accountants in Woking frequently advise on choosing the right business name for the Partnership, with any 'offensive' words needing to be avoided. Nor are you permitted to use certain 'sensitive' terms, like 'Chartered', 'Authority' or 'Council' that imply any special status that does not exist. Trademarked names, such as 'Microsoft', will also need to be avoided in your business name. In the case of Limited Liability Partnerships, Companies House must accept the proposed name.

Partners are urged by our accountants in Guildford to keep accurate and up-to-date records of all business transactions and accounts. These will be needed in a standard Partnership for the submission of an annual self-assessment form, complete with Partnership page, to HMRC. Self Assessment forms must be submitted yearly by not only each partner, but also the Partnership itself. All of these entities will need to be registered for Self Assessment, which will involve income tax and Class 4 National Insurance Contributions being paid on all profits.

There are also various legal issues that you will need to be prepared for when you enter into a Partnership, and our small business accountants in Woking and accross Surrey can advise you on all of these. Contact Sherwin Currid (http://www.sherwincurrid.com) for more information on our expertise in relation to Partnerships, including Limited Liability Partnerships.

Editor’s Note: Sherwin Currid (http://www.sherwincurrid.com) is represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Please direct all press queries to Louise Byrne. Email: louise@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.