Employee or contractor – what to think of?

If you have decided to take on someone to work with you, should that person be an employee of your business, or an independent contractor?

Emily Coltman ACA, Chief Accountant to FreeAgent – who provide an award-winning online accounting system for freelancers and small business owners – gives her top tips on the different financial and other issues you may encounter when working with employees as compared to contractors.

Tax responsibilities

If you take on an employee, you must register as an employer, run their payroll and pay PAYE and NI, file the right forms with HMRC at the right time, and make sure you’re ready for RTI.

When you work with a contractor, you must be sure they really are independent. If they are a sole trader and found to be an employee by HMRC, then it’s you who would be liable for the extra tax. However, if they trade through their own limited company, then it’s that company that would be liable for any extra tax.

Paying them

For your employees, their wages will often be their only source of income, so even if business cashflow is tight, you can’t delay or avoid paying them!

With a contractor, you have more flexibility than with an employee to negotiate payment timescales and to pay less than the agreed fees if they don’t cut the mustard. But it’s important not to push them too far, or they won’t want to carry on working with you, and your relationship with them will be soured.


When you take on an employee, you must know your and their rights and responsibilities under employment law, which is a very complex area. For example, you could have to pay statutory sick pay, or maternity or paternity pay. You must give your staff paid time off, and put a contract of employment in place. The list goes on. If you don’t have an HR department, consider using an outsourced HR service to help with this. This is a very easy area to fall into a trap on, because as the proverb says, “You don’t know what you don’t know.”

A contractor should have a standard contract for services, but again you should be aware of the ins and outs of this and what it would mean for you in the event of a dispute. It might be as well to have the contract checked by a friendly solicitor or legal expert.


You must give your employees work to do, and pay them their full salary even if they have few tasks to do. For example, in an accountancy practice, the months of February and March are often very quiet, because the key tax filing deadline of 31st January has passed and the new tax year has not yet begun. Staff in the practice still have to be paid their salaries even if they are not carrying out chargeable client work.

But colleagues who worked as independent contractors often didn’t come in full-time during February and March. You can ask a contractor not to come in, and not pay them, if you don’t have any work for them to do.


Relating to the above point, as a good employer you should give your employees regular appraisals and work with them to help them grow and develop their career path.

Although you should also review your contractors’ performances, their career growth is their own responsibility rather than yours.


With all these responsibilities why do business owners take on any employees, rather than simply staffing their business with contractors?

Firstly, because HMRC are on the alert for people avoiding tax by pretending to be independent when they’re actually not, and they will levy that extra tax.

Also, when you’re growing your business it’s important to build the right crew to work together and stay together. When your team are employees who plan to stay with the business long-term, you have the potential to build a much stronger and more effective crew.

Contractors may well have other projects to do, and may not feel so much like one of the team. That said, I’ve known contractors who were as much part of the crew as employees. It depends on the individuals as well as their status.

You need to take into account all the above before deciding on whether to hire an employee or a contractor.

Do You Know The Ways Of Goal Setting Techniques?


All three of these aims are essential to get evidently presented in front of you. Your long-term goal keeps you inspired to continue pushing with the smaller targets. This visual breakdown of how to begin hitting your target can be an essential resource in your vacation.

Using this technique I began with 1 or 2 attributes simply, till I really could do-it practically blindfolded and that I would practice these. And from there I’d move onto two or the next attribute.

It really is difficult to encourage yourself when you don’t have recommended of what you want to complete. Then when setting targets think of what you want to reach within long haul and the limited term. for doing so techniques are the strategy that is WISE. S = particular M = considerable A= Action R = Sensible T = time-based. Use business marketing services to help you in objective planning and environment.

When you offer your professional business marketing services on line freelancing is,. not, although a number of the solutions you could provide might incorporates limited to, creating business marketing services or websites, building websites or articles. Make sure that you’ve the training along with the information to supply these before you try doing some of these. Like, if you want to build websites, ensure that you realize other rules as well as your HTML which might be required.

Reward yourself. As soon as you start to total projects, prize oneself by giving something to yourself that you want. Thus before you finish an activity as opposed to viewing a movie,, notice it and allow it to be a prize for you personally.

One method to motivate your professional party is by reminding them that the fruits in their job are bigger than the profit line or salary. Have your online business mentoring programs also have your staff to take them under their side for care and accept several kids or school interns. By having to teach them to it occasionally the best way for workers to master project drive is.

Definitely possess a few friends that could not be uninterested as mentioned above you. You certainly have a friendship which means you might not want to do a hard offer but why-don’t you merely say, I have simply joined this program online, it is a means I am looking at making a little more money if you like to truly have a search here is the address. Then they can make their head up themselves. You will likely already have some individuals in your mind that would almost certainly hop in the concept.

Please have a few times to believe back to high school, your middle-school or university years. Could you remember much time you invested in understanding implement and just how to strategy, write your goals? Aim publishing and purpose planning are capabilities that most of the time are mastered through what I call the “Osmosis Factor.” In this approach, a presumption exists that if I hear or browse the phrases this instance goal planning or goal-setting, I will quickly have the capacity to set my goals. Unfortunately, regular objective success is composed of five components and these factors generally aren’t trained inside the K-12 even corporate education or encounter.

5 Best Marketing Strategies to Follow, When Starting a Jewelry Business

5 Best Marketing Strategies to Follow, When Starting a Jewelry Business

Jewelry business is considered as a lucrative business. People who are in to fashion and jewelry designing are most interested in opening up their own jewelry business, but the risk associated with a set up company or buying a business stops them to grow. Best option for entrepreneur is to go for jewelry franchise opportunities. It helps in opening a business with existing brand name that helps in minimizing the risks of new business and ensures the profitability. Few more things come under marketing strategy and are required to be followed to make your business successful.

  1. Web Designing: It is significantly important to open a new website for your business and design it in a way that attracts user. A website must be user-friendly and offer great functionality. It offers a great extent of visibility to the business and hence, anytime accessibility to the user. Actually, it is an easiest way to introduce your business to costumers.
  2. Online Store:  In this computer era, most of the businesses are dealing online, which is the demand of time. Therefore, starting an online company registration is a very smart idea. Customers are getting attracted towards online shopping as it saves their time. Place your products, service online, and use an advanced pricing technique that will help you to compete in this business world. 
  3. Optimization of Website: Once you are done with opening your own website, the best next step that must be taken is to optimize it. Optimizing a website leads to a better page ranking on search engines and hence the maximum traffic to the page. It helps in bringing out best of your business. Hiring a professional to get reliable search engine optimization service is suggested. They use legal and latest techniques to produce a better search result and thus influence the growth of the business.
  4. Advertising: Advertising a business is a very old technique, yet it is efficient and effective. There are various ways to advertise your business as in advertising through media, electronic media, social networking sites, mobile applications and more. Advertising is the best way to promote your business. It is an easiest and cost-effective way to make new and potential customers. 
  5. Best available Offers in the Market: Offer is not only about discounting. It off course deals and meant for competitive price of products and services, but it also implies various attractive services that a company offer. It may a unique service as in repairing of jewelry of something else, a complementary service or gift offered to the customer and much more. This strategy helps in retaining your existing customer by valuing them and making new one by the best attractive offer in the market. 

Steps to be followed before buying a jewelry franchise:

If you are fond of jewelries and designing, but are in-experienced and still want to make a carrier in jewelry business, choose jewelry franchise option. Nevertheless, you must look for certain things before buying a franchise and that is the key to succeed in business. Check for the reliability and reputation of franchises; gather all the information about them and their business. Contact them to know what are the services they provide to newbie and how do they help new owner in starting a business. Get the information about insurance, training and support provided them and if you are satisfied with their reputation and business strategy; you are ready to go.

Start Your Very Own Jewelry Business Online

Amber jewelry is known as one of the leading online wholesalers of fashion and costume jewelry. This organization is once again beckoning people to take advantage of their scintillating offering- one that allows you to both source and sell jewelry pieces using the internet medium. By signing up for their policy, you get an opportunity to run your very own jewelry business without even setting up a company premises. However, the company’s policy is subject to certain Terms and Conditions. Let us now take a look into some of them.

On receiving the shipment, the customer will be asked to sign for the items. Hence, it is imperative that whatever delivery address you are providing must be attended by someone round the clock. For AU it takes two to five working days to get the products delivered. Similarly, dealers based in the Scottish offshore islands have to wait for ten days before the shipment reaches them. Amber jewelry is easily among the most revered fashion jewelry pieces across the length and breadth of globe. When combined with precious metals, the jewels exude an ageless elegance. Amber qualifies as a rare gemstone that is available in a variety of shades like typical gold, black, green, and even yellow.