independent trainers billing report 2013
DESCRIPTION
Results from a survey of 300 independent trainers on how they bill for their services. Including options on limited companies, self employed and umbrella companies and accounting software.TRANSCRIPT
The Independent Trainer Survey
Results : Accountancy Practices
The ultimate aim is to protect
our associate trainers,
ourselves and our clients while
providing the excellent service
for which we and you have
now deservedly earned a
reputation.
David Field
Managing Director, Training Synergy
The Independent Trainer Survey Results
Introduction
Accountancy Practices
The Independent Trainer Billing Report is based on an online
survey of over 300 independent trainers.
The survey covered:
Types of billing providers used
Cost of billing providers
Opinions of various methods
The Independent Trainer Survey Results
Overview
Accountancy Practices
Most trainers choose to bill as a limited company.
Umbrella service providers are seen as the simplest way of billing for services.
The cost of using an Umbrella Service Provider is often more than paying for an accountant.
Billing as a limited company is seen as the most tax-effective and cost-efficient.
Those billing as self-employed and limited companies said control was a key factor in choosing that vehicle.
Microsoft Excel is by far the most popular accounting software amongst those doing their own accounting.
Survey Highlights
The Independent Trainer Survey Results
Billing ProviderPreferred billing method used
Accountancy Practices
Billing using a limited company is by far the most popular
option
Those registered as self-employed made up just under a
quarter (23%) of trainers.
Billing via an umbrella company was the least popular
option with less than an eighth (12%) of trainers choosing
this route.
We asked trainers, how do you bill for your services?
The Independent Trainer Survey Results
EffectivenessWhich billing method is most effective
Accountancy Practices
What are your opinions of the different billing methods?
Billing via Limited company is
believed to be most cost effective,
the most tax compliant
Umbrella service providers were
believed to be the simplest, but not
cost effective
Self-employment is seen to be cost
effective and simple
The Independent Trainer Survey Results
Umbrella Providers
Accountancy Practices
Umbrella Providers
The Independent Trainer Survey Results
Umbrella ProvidersThe cost of an umbrella service provider
Accountancy Practices
Almost half (45%) pay the least,
amount of between £20-£23/wk, to
their umbrella company.
Almost a quarter (23%) pay
slightly more at £24-£27/wk, the
same amount paid the maximum of
£31/wk
How much do you pay your umbrella provider?
The Independent Trainer Survey Results
Umbrella ProvidersHow tax efficient is this option?
Accountancy Practices
Around 1/3 of trainers said they were very confident in their umbrella services ability to maximize their tax efficiency.
40.9% were either unsure or only somewhat confident about that umbrella company was efficient.
Do you feel your umbrella maximises tax efficiency?
The Independent Trainer Survey Results
Billing ProvidersChoosing to go Limited over Umbrella
Accountancy Practices
It works out cheaper to pay an accountant per year.
You can pay you tax at the end of the year rather than
every month, thus you can earn interest on it. I think
umbrella companies charge too much and bill you for
things that you do not need.*
To provide opportunity for future growth of the company.
An umbrella will not give you the flexibility of taking on
other staff members etc.*
*Quotes from trainers participating in the survey
Why do you choose your current vehicle
over an Umbrella?
Limited Company vs. Umbrella Company
The Independent Trainer Survey Results Accountancy Practices
Billing ProvidersChoosing to go Self-Employed over Umbrella
Why do you choose your current
vehicle over an Umbrella?
*Quotes from trainers participating in the survey
Self-Employed vs. Umbrella Company
Freedom to perform the accounting any
way I want at any time that suits me.*
I don't know enough about how it works and
being self-employed is so easy.*
The Independent Trainer Survey Results
Accountancy
Accountancy Practices
Who does the accounting?
The Independent Trainer Survey Results
AccountancyWho does the accounting?
Accountancy Practices
The vast majority of trainers who bill using a limited company structure
choose to have an accountant do their taxes for them.
Just under half of those who are self-employed use an accountant.
Limited Companies Self Employed
Who does the accounting?
Limited Companies Self Employed
The Independent Trainer Survey Results
Accounting
Accountancy Practices
AccountancyHow much does accounting cost
How much do you pay your accountant?
Limited Companies Self-employed
The Independent Trainer Survey Results
AccountingChoosing accounting software
Accountancy Practices
Key findings:
Excel is by far the most popular
form of accounting software.
Sage and Quickbooks are also used
but only by some.
More than a third of those billing as
self-employed don’t use any
software
12% of those billing as limited
companies used no accounting
software at all.
What accounting software do you use?
The Independent Trainer Survey Results Accountancy Practices
Thank You!
Training Synergy
European based training company
with Global reach
Work with 4 out of the 5 largest
global systems integrators
Work across all markets including
IT, public services, defence and
finance.
Contact us if you have any questions or would like to
enquire about training services.
Email: [email protected]
Telephone: 0800 072 9844
www.trainingsynergy.com