GoForma

What is IR35? IR35 is a tax legislation in the UK aimed at determining whether a contractor or freelancer is genuinely self-employed or should be treated as an employee for tax purposes. It affects contractors working through their own limited companies, impacting their tax status and liability. What is an Outside IR35 Calculator? An  Outside IR35 Calculator  is a valuable tool for limited companies and contractors to assess their IR35 status. It helps determine if a contract falls within the scope of IR35 or is considered "outside" it. This calculation considers various factors such as control, substitution, and mutuality of obligation to provide a clear understanding of the contractor's tax position. Benefits of Using a Take-home Pay Calculator Outside IR35 Accurate Assessment:  The calculator evaluates key employment factors accurately, reducing the risk of misclassification and potential tax liabilities. Financial Clarity:  Contractors can estimate their take-home pay

When starting a business in the UK, one of the most crucial decisions you’ll make is choosing the right legal structure. A popular choice among entrepreneurs and small business owners is the  limited company . But what exactly does this term mean, and what are the different types of limited companies available in the UK? This article will provide an in-depth look at what a limited company is, explore its various forms, and discuss the benefits and considerations involved in setting one up. What is a Limited Company A limited company is a type of business structure where the company's finances are separate from the personal finances of its owners. This means that the company's debts and liabilities are the responsibility of the company itself, not the individual shareholders or directors. The term "limited" refers to the limited liability of the company's shareholders, meaning they are only responsible for the company’s debts up to the amount they originally invest

  A sole trader, also known as a sole proprietor, is a self-employed individual who operates their business as the sole owner and manager. In the United Kingdom, a  sole trader  is the simplest and most common form of business structure. As a sole trader, you are responsible for making all business decisions and are entitled to all the profits generated by the business. However, you are also personally liable for any debts or losses incurred by the business. How to Become a Sole Trader in the UK? Becoming a sole trader is a straightforward process. To start, you need to choose a business name, though you can also trade under your own name. Registering your business with HMRC is a crucial step. You will need to keep accurate financial records, including income and expenses, and report your earnings through a  Self-Assessment tax return  each year. This ensures that you’re paying the appropriate income tax and National Insurance contributions. Sole Trader Advantages 1.  Full Autonomy:  S

As a limited company owner, understanding the allowable expenses can help you maximize tax efficiency and manage your finances effectively. In this article, we will explore the various categories of  allowable limited company expenses   that can be claimed, providing you with valuable insights to ensure compliance and optimize your financial operations. I. Office and Administration Expenses: Rent and Utilities Office Supplies and Equipment Insurance II. Travel and Subsistence Expenses: Business Travel Accommodation and Meals Subsistence Expenses III. Staffing Costs: Employee Salaries and Benefits Training and Development Recruitment Costs IV. Marketing and Advertising Expenses: Advertising and Promotion Website Development and Maintenance V. Financial and Professional Fees: Accountancy and Legal Fees Bank Charges and Interest Professional Memberships VI. Research and Development (R&D) Expenses: R&D Costs VII. Miscellaneous Expenses: Bad Debts Charity Donations Read all the allo

  A private limited company is a popular business structure known for its flexibility and numerous benefits. In this article, we will explore the  advantages of a private limited company , highlighting the key reasons why it is a preferred choice for many entrepreneurs and business owners. Let’s explore Private Limited Company Advantages: Limited Liability Protection:  One of the most significant advantages of a private limited company is the limited liability protection it offers to its shareholders. Here's how it benefits them: Shareholders' personal assets are separate from the company's liabilities, protecting them from being held personally responsible for business debts and obligations. In the event of financial difficulties or legal claims against the company, shareholders' liability is typically limited to the amount they have invested in the company. Separate Legal Entity:  A private limited company is recognized as a separate legal entity from its owners, resu

When operating a small limited company, hiring an accountant is a crucial step to ensure proper financial management, compliance with legal obligations, and strategic decision-making. However, one common question that arises is, " How much does a small limited company accountant cost ?" In this article, we will explore the factors that influence the cost of hiring an accountant for a small limited company and provide insights into the average costs involved. Factors Affecting the Cost: Complexity of the Business:  The complexity of your business plays a significant role in determining the cost of accounting services. If your company deals with a high volume of transactions, multiple revenue streams, or complex financial structures, it may require more time and expertise from the accountant, resulting in higher costs. Scope of Services:  The range of services you require from the accountant will also impact the cost. Basic services like bookkeeping, tax return preparation, and