How to calculate an employee’s billable cost per hour
Ensure you include all employment costs for each billable employee. Gross salary, employers’ NI, company pension contribution, benefits, training and development costs and the annual value of equipment such as a mobile phone and laptop.
As a guide, additional employee costs are usually between 15% and 25% of their salary. You then need to spread these costs across the employee’s available hours, deducting any non-working hours such as non-client admin and new business generation.
HMRC delays in responding to your communications that contribute to a tax return being late can count as reasonable excuse in an appeal against late filing penalties.
Always keep records of guidance given by HMRC officers. If your appeal goes to Tribunal they could be important.