High Street Accountants Can Seriously Damage Your Wealth

01/07/2009

Contract workers who take the wrong advice from high street accountants could find themselves thousands of pounds out of pocket according to a survey carried out by specialist contracting firm Freelance World.

Lack of detailed knowledge of legislation affecting freelancers and a worryingly vague attitude to the need for compliance with the legislation were just two of the findings revealed in the survey from the Aberdeen-based firm.

Contractors, who trust their financial affairs to less-than-expert advisors could find themselves faced with hefty fines from Her Majesty's Revenue and Customs (HMRC) and their names placed on a credit blacklist warned Freelance World managing director Alasdair McGill.

Freelance World conducted a mystery-shopper survey this month of more than a dozen general accountancy firms on the high street in the north east and elsewhere in the UK, in order to find out what advice they could give to prospective contracting clients.

Alasdair McGill, said: "We have been genuinely alarmed at the poor advice being given by some firms to prospective clients. It is like going to a GP for treatment when you really need to see a specialist consultant. It is quite clear that many high street accountancy firms simply do not have the expertise to advise contractors on key legislation, compliance and management of their specific requirements."

One accountant offered an off-the-shelf incorporation service - a practise that is prohibited by the Managed Service Companies legislation of 2007. Another told a Freelance World researcher that they "didn't need to worry about IR35" - the key legislation that revolutionised the contracting industry and meant contractors can be taxed as employees.

Alasdair added: "One responder told us that IR35 had 'died a death'. That kind of advice could cost a potential client a lot of money and years of credit problems, this is because since the 2009 budget, HMRC can now place people on a tax avoiders’ blacklist for non-compliance. Freelance World researchers found that general firms were not offering the full range of options for clients, instead steering them towards choosing limited companies."

Alasdair said: "The only option these firms seemed to offer was to set up limited companies for contractors, which is sometimes not the ideal option. Not one suggested options such as using an umbrella company or going PAYE. This is fundamentally against the MSC legislation, which has to be considered by all potential one-person limited company contractors."

"I believe it is simply because the high street firms plainly do not understand the legislation and as a result are failing to give the correct advice," said Alasdair.

"What these firms should be telling their prospective clients is that IR35 work should be handled by an employment law specialist who has a detailed understanding of this area of taxation, not telling them that it is nothing to worry about. Accountants should not be issuing advice on IR35 unless they have real experience of employment status and are confident about defending their clients in front of the tax tribunals."

The survey made it apparent that none of the high street accountants contacted realised that by offering a contractor targeted solution, they fall within the scope of this legislation and cannot rely on any exemptions simply because they are registered accountants.

Alasdair said: "Freelance World is also a registered accountancy firm, however, we understand that because we deal with contractors amongst our other clients we need to be fully aware of this legislation and have undergone three third party audits to ensure we are one of the most compliant businesses in the market. Our researchers found that there are a number of firms in the north east who may not be compliant, which is bad news for their clients."

"Most contractors do not understand the legislation that governs them as freelancers and contractors as much as they should and that is why it is crucial they get the correct advice. The ultimate consequence is that they could end up with a huge charge from HMRC or appear on a credit blacklist."

The North Sea oil industry in particular has utilised contractors' services over the years and there are approximately 40,000-50,000 contract workers operating in the north-east of Scotland.

Freelance World Awarded APSCO Mark Of Excellence!

10/12/2008

We got an early Christmas present this month after becoming accredited members of The Association of Technology Staffing Companies (APSCo).

APSCo is a dynamic, pro-active trade association that has been providing a powerful unified voice for the Professional Technology Staffing Industry for nearly a decade.

Our Managing Director Alasdair McGill commented "This is terrific news, and has been the result of many months of hard work by the team. APSCo are a very influential organisation in the Engineering, IT and Professional recruitment industry.

APSCo membership gives us a great opportunity to raise the profile of Freelance World, build our credibility with national and international recruitment companies, and grow our business.

The accreditation process required a rigorous compliance audit by Professional Passport, references from several of our customers and some recruiters, and a demonstration of our commitment to quality and compliance."

Marilyn Davidson, APSCo Director added "The APSCo logo is a recognised "mark of excellence" within the recruitment industry. In order to maintain confidence in the APSCo brand, it is important that we ensure, as far as possible, that Affiliate Members providing accountancy services remain fully compliant with prevailing tax legislation and ethical practices. We are delighted that Freelance World have been successful in passing our Compliance Review and are joining our select group of Affiliate Members."

Alasdair: "This is a great achievement only made possible by the hard work we've all done throughout 2008 on improving the service to our clients."

Freelance World Race To Raise Money For Charity

11/11/2008

Two men from Freelance World, a leading provider of accountancy and tax advice services to the contracting and freelance community, took part in the Loch Ness Marathon on Sunday 5 October, raising more than £2,500 for charity.

Bryan Kinghorn and Nick Stevenson took part in the 26.2-mile race along the shores of the world's most famous loch eventually raising £2,508 for CLAN, the Aberdeen-based, independent charity for those affected by cancer.

The two friends trained for three to four months prior to the marathon but the race was put in jeopardy for Bryan, who lives in Inverurie, as he damaged his Achilles heel during training the weekend before the race.

Bryan, a tax advisor at Freelance World, said: "My physio told me that I should pull out of the race, but I was determined not to let everyone who had sponsored me and CLAN down. I was nervous before the race started, as I wasn't sure if the injury would hold up, but thankfully it did. I was in pain at times but once I crossed the finishing line it was such an amazing feeling that the pain was definitely worth it."

Nick, contracts and insurance manager at Freelance World, said: "We have managed to raise an incredible amount of money between us for CLAN. Our original target was only £1,000, so we have more than doubled it. All the nights of running along the old South Deeside railway, pushing myself further each time paid off in the end when Bryan and I crossed the line. We both came around the 1,000th mark of 2,500 entrants."

The marathon was the first for both men but the hard training regime hasn't put either of them off competing in another one. Bryan said: "I would definitely take part in another marathon, I quite fancy the London or New York marathon in the future."

Freelance World managing director, Alasdair McGill said: "Everyone is very proud of Nick and Bryan and we admire their commitment to the cause especially with Bryan running on an injury."

"Freelance World is working hard to show staff it is committed to their wellbeing and have taken important steps including providing fruit and free health assessments to everyone. Hopefully this is the start of a long list of Freelance World accomplishments."

The Loch Ness Marathon has been running annually since 2002 and sees participants follow a point-to-point route through stunning Highland scenery, along the south-eastern shores of Loch Ness, and then across the River Ness to finish in Inverness Queens Park Stadium.

Freelance World Launches A Get Fit Campaign For Employees

10/11/2008

Freelance World has launched an internal campaign to help create a healthier workforce and develop an exciting new work ethos.

The Aberdeen-based professional services advisor to the freelance community invited Fitnut into its office to provide its services to help improve employee health and well-being. The health drive kicked off in September with Freelance World issuing a survey to staff asking about their health and working environment. An overwhelming number of staff stated they would like to adopt a healthier diet and be more active.

Qualified and trained advisors from Fitnut carried out Lifestyle Plus assessments on participating employees. Their height, weight, blood pressure, body fat index, blood glucose and cholesterol were tested giving employees an opportunity to review their lifestyle behaviour and personal health care.

In October a Fitnut dietician will visit Freelance World for a period of time, giving employees an opportunity to make an appointment for dietary advice. Fitnut also provide a range of services to support the employee health programme including workshops where employees can learn how to adopt a healthier lifestyle that integrates with their working and social lifestyle.

To help staff keep up the good work after all the advice and workshops, a web-based health manager / get fit nutrition programme will be launched in November which will invite Freelance World staff to log their exercise activity and diet. Employees are keeping themselves motivated by signing up for events such as the Baxters Loch Ness Marathon in October and the British Military Fitness classes being held at the Duthie Park in Aberdeen, near the Freelance World on Riverside.

Alasdair McGill, managing director of Freelance World, said: "This new health drive has gone down really well amongst employees and has increased the positive energy around the office. Already the effects of this campaign are visible with a decrease in absenteeism.

"Freelance World will play its part in keeping employees healthy by providing fruit at work, recognising health events the company can take part in and considering benefits to staff such as memberships for sports facilities." Penny McIntosh, director of Fitnut Ltd which has an extensive portfolio of clients in the north-east of Scotland, said: "We are ambitious for our clients and passionate about health and fitness. Our highly qualified and professional personnel will bring expertise, energy, determination and dedication to support Freelance World's corporate commitment to excellence and outstanding performance."

Deeside Thistle Cycling Club Announces Sponsorship Deal

05/11/2008

One of Scotland's largest cycling clubs, Deeside Thistle, has announced it is to receive sponsorship from Freelance World, the Aberdeen-based professional services advisor to the freelance community, and its sister company the Acumen Group.

Freelance World and the Acumen Group, will provide financial support to Deeside Thistle over the next four years until 2012. In return, the club will feature the Freelance World and Acumen logos on its new club kit, which will be produced later this year. Club members will be able to purchase the new kit at cost price thanks to the sponsorship deal.

Freelance World managing director Alasdair McGill, who is a keen cyclist and member of Deeside Thistle, said he was excited to support one of Scotland's longest established cycling clubs.

Deeside Thistle was founded in 1953 and has approximately 400 members. It covers all aspects of cycling, including road racing, time trialling, mountain biking, touring and recreational cycling. It organises competitions and recreational events, runs its own coaching sessions and is actively encouraging youngsters to take part in the sport.

Alasdair McGill said: "I have been involved in cycling for several years and have been a member of Deeside Thistle for two years. Since joining the club I have always been impressed by the level of enthusiasm, dedication and commitment shown by members and officials, either in participation or organisation. I know that people like club secretary Sandy Lindsay, who organised the highly successful Great Inverurie Bike Ride for many years, have put a great deal back into to cycling."

"Our business is based on the support we provide to freelance contractors around the world and we believe that the strong club spirit and social network that runs through Deeside Thistle are values we wish to encourage."

Staff at both Freelance World and Acumen share a keen interest in cycling. Alasdair McGill, and Acumen Group Director Mervyn Stanley and Head of Corporate and Commercial Services Steve Mitchell, raised £6,000 in 2007 for Breast Cancer Care after completing the 300-mile London-Paris cycle ride.

Mervyn Stanley said: "As a company we have been attracted to a sport and activity that not only has tremendous health benefits, but which also has a strong social element that sees entire families become involved in cycling. The sponsorship deal ties in with our Group corporate social responsibility values of supporting the people and communities in which we live and work."

Alan Campbell, CBE, chairman of Deeside Thistle, commented: "We are delighted to receive the support of Freelance World and Acumen. Deeside Thistle is one of Scotland's largest cycling clubs with a diverse membership and is a club that supports grass-roots participation and welcomes cyclists from all disciplines. It is gratifying that two forward thinking businesses have chosen to invest in a sport that offers health and environmental benefits."

"The club continues to go from strength to strength and attracts new members. We have recently welcomed riders in Albuquerque, New Mexico, who have established a branch of the club in the US and who wear their Deeside Thistle jerseys with pride."

For more information on Deeside Thistle log on to www.deeside.org

Find out why working through your own limited company can minimise your tax and maximise your income with Freelance World.

Be sure you have the right information at your disposal to ensure you understand how to run your own business efficiently.

At Freelance World, compliance underpins everything we do across all aspects of our business.

• A range of flexible solutions to fit all sizes and shapes
• Set-up process that’s one of the fastest in the industry
• Guaranteed turnaround and response times or your money back
• IR35 and tax advice

An umbrella solution is a risk free solution that can have you trading in a matter of hours.

Enjoy all the benefits of being an employee with none of the burden of running your own business!

An umbrella company works well for many contractors, but do you understand the alternatives?

• Dedicated account manager
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Working overseas means you need to understand your tax obligations in the country you are working in as well as in the UK.

A Freelance World international solution means working overseas needn't be taxing!

As an employee of our Norwegian umbrella company you can have total peace of mind that all your UK and Norwegian tax is being deducted and paid on time every time.

• Payroll payments to any bank in any currency
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What is CIS and how does it affect the construction industry?

Remove the administrative hassle of CIS with a Freelance World solution.

Get paid on time, every time, guaranteed with our CIS solution

• Automatic deduction of CIS taxes due
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