GDPR and Limited Companies

What is GDPR?

The General Data Protection Regulation (GDPR) controls how personal information is used within organisations, businesses and the government.

Initially an EU regulation that no longer applied to the UK after Brexit, it was incorporated into the Data Protection Act 2018, which replaced the Data Protection Act 1998.

Any business that processes personal data, whether that involves customers, staff or account holders, must comply.

An individual’s rights when it comes to GDPR

Under the Data Protection Act 2018, everyone has the right to know what information about them is being stored by the government and other organisations.

Everyone has the right to:

• be informed about how their data is being used
• access their own personal data
• have any incorrect data updated
• have data erased
• stop or restrict the processing of their data
• data portability
• object to how their data is processed in certain circumstances

An individual will also have rights if an organisation is using personal data for automated decision-making processes (without human involvement) or profiling.

What are my GDPR responsibilities as a limited company contractor?

As a limited company, while the volume of data you handle will generally be smaller compared to larger sized businesses, you must still follow the strict rules surrounding personal data.

These are called data protection principles and mean that all information must be:

• used fairly, lawfully and transparently
• explained clearly and used for specified purposes only
• accurate
• kept for no longer than is necessary
• dealt with in a way that ensures appropriate security, taking into consideration that it is protected against unlawful or unauthorised processing, access, loss, destruction or damage.

More sensitive information, such as race, political opinions, religious beliefs, health or sex life/orientation, has stronger legal protection.

Breaking GDPR rules

If you are found to be in breach of the Data Protection Act 2018 or GDPR then the Information Commissioner’s Office (ICO) could issue action against you.

This could result in several outcomes, from a warning or temporary/permanent ban on data processing, to fines and penalties.

If you’re unsure of whether or not your practices are compliant with the Data Protection Act 2018 or GDPR then your accountant will be able to guide and advise you on this.

Hiring an accountant

There are many reasons why a limited company contractor would benefit from hiring an accountant.

Here are just a few examples of what a good accountant can do for you:

• Ensure you’re filling tax forms correctly and on time – while you can do your own accounts if you so wish, this is only recommended if you have a good understanding of UK tax laws. If you make a mistake there’s a chance HMRC could reject a tax form or even suspect foul play and investigate your finances. A good accountant can take care of all this, saving you the stress of doing it yourself.
• Help to save you time and money – an accountant can take care of your accounts, leaving you to spend more time on the running of your business. Their expert knowledge and advice can also help to minimise your tax bill each year.
• Support the growth of your business – an accountant can provide guidance using their own expertise and experience, which can help your business to grow and succeed further.

Accountancy fees are also an allowable business expense, helping to further reduce your tax bill at the end of each year.

Take a look at Our Services page to see everything that we can offer you as an award-winning accountancy company.

If you’d like to sign up or need any further information, please give us a call on 01442 795 100 or you can email jaime.thorpe@dolanaccountancy.com. There’s also the option to contact us via live chat.