Is Yahoo doing the right thing by banning remote working?

Anyone who spends any time at all working from home – and that’s certainly an increasing number of people these days – will have had their ears pricked by the news that Yahoo is actually banning remote working for its executives. It just seems so contrary to what we have been told more and more down the years, that home working is the way of the future. So, do our accountants for contractors here at Freelancer Accounting (http://www.freelanceraccounting.com) reckon Yahoo has a point?

In a memo sent out to all staff, the search giant’s head of human resources, Jackie Rees, states that “it is critical that we are all present in our offices”, adding that “some of the best decisions and insights come from hallway and cafeteria discussions, meeting new people, and impromptu team meetings”. It’s hardly entirely untrue, to be fair, and it’s also hard to argue that home working still has an image problem in some quarters, with even London Mayor Boris Johnson having once joked that “we all know that is basically sitting wondering whether to go down to the fridge to hack off that bit of cheese before checking your emails again.”

That is despite London, during last year’s Olympic Games, actually demonstrating just how invaluable home working remains for many clients of small business accountants, with many people choosing to avoid the traffic disruption. In the wake of Yahoo’s announcement, which is thought to be an initiative of incoming chief executive Marissa Mayer, plenty of other people have stepped forward to defend home working. One of them was Richard Branson, who bemoaned the decision as “a backwards step in an age when remote working is easier and more effective than ever.”

Certainly, remote working is not going away any time soon. We’ve already moved so far from the traditional ‘9 to 5’, thanks to all manner of both cultural and technological developments. The Internet has opened up new means of communication – you’re reading this blog, after all – and the clients of accountants for freelancers have certainly made the most of it in recent years. Many start their businesses from their kitchen or bedroom, and might make use of virtual office space rather than renting it outright. They are also more likely to outsource services like accounting, leading to savings in time, effort and money.

These days, many people only ever want to work from home, so Yahoo may find that their new policy restricts the talent that they can attract. As for you, a current or prospective user of Freelancer Accounting’s (http://www.freelanceraccounting.com) accounting services in London, we wouldn’t leave that home office just yet. We can even give you advice on making more of it, such as how you could claim back tax for the use of your home and the paperwork that you should keep close at hand in your home office that you may need to show to HM Revenue & Customs.

Editor’s Note: Freelancer Accounting (http://www.freelanceraccounting.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.

What are the best ways to raise finance as a freelancer?

As a client of accounting services in London, it isn’t just taxation that will give you money worries as a freelancer, especially if you are only just getting started. The reality is that many new freelancers may also find themselves stumped as to the best ways of raising finance for their new business. If this is your position, our experts at Freelancer Accounting (http://www.freelanceraccounting.com) can introduce you to sources of finance both well-known and relatively undiscovered.

One of the problems when you are first starting out as a freelancer is that you can be seen as a riskier investment. This means that, if you want to minimise costs, you may be best advised by small business accountants to depend initially on a bank loan/overdraft, savings and/or money borrowed from family. But of course, as is always the case when one is seeking funding, the right business plan is vital when you are approaching a bank, so that it can have confidence in you achieving set objectives with your given resources.

What banks most want to know about prospective lenders is the security that they can provide. Of all of the assets that you could have that could possibly be sold on by the bank if you default on the loan, your house is the most obvious. It’s customary for almost all borrowings for the bank to request a “charge” over your home, which allows them to force a sale on your house so that their money can be recovered if you fail to repay the loan.

Our accountants for freelancers would advise anyone who is seeking this type of finance to consult the bank that they have a personal account with first, as they will be aware of your history and more likely to be of help. Another potential source of finance for a freelancer is a government grant, scheme or loan. Examples of grant providers include the Prince’s Trust, which considers applications for grants or loans from young people aged 18-30 who may be of limited means, unemployed or underemployed.

Across the full range of grant providers, criteria vary widely depending on such factors as business location and sector, as well as the number and type of employees. The sums that are granted also vary greatly, but when you are new to freelancing and only just starting to take advantage of contractor accountancy, you might not fully appreciate how much every little saving helps. European Commission grants and loans are also a possibility.

It may be the case that you are not intending to remain a freelancer forever, perhaps having ambitions to establish a larger business over time – in which case, you may want to consider investment from a business angel. In the meantime, Freelancer Accounting (http://www.freelanceraccounting.com) is on hand with contractor accountants to guide you in the efficient structuring of your tax affairs as a freelancer.

Editor’s Note: Freelancer Accounting (http://www.freelanceraccounting.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.