The accountant - worth every penny?

[cjbombero]

I've recently set up as a Sole Trader and I am anticipating a small but regular part time income from my tiling work. I feel that i'm pretty good with numbers and should be able to keep accurate accounts. I have found out that I will only be eligable for a Self Assessment tax return as long as my declared net turnover stays below 15k pa, this means that although I don't have to submit all of my accounts (just the profits side) I will still need to keep full accounts.

The question is "Is it worth getting an accountant?"

Some people have said to me whatever an accountant charges you, you will save back from tax write-offs, while others have told me they are an expencive charge for something that can be done yourself.

If you have got an accountant please could you let me know what a reasonable rate is and the extent of their services (eg full book-keeping or just end of year accounts)

cjbombero

 

[grumpygrouter]

Not really sure what you mean about "only be eligable for a Self Assessment tax return as long as my declared net turnover stays below 15k pa"?

if you are self employed and notified the Revenue that you are trading, you are obliged ny law to submit a tax return.

The £15k limit is to do with submitting a less detailed return. If you feel you are competant to work out things like capital allowances, and disallowable expenses and are familier with what you can legally claim as tax deductable then by all means save the expense of hiring an accountant.

Bear in mind that if you are also holding an "employed" position as well, this too needs decalring on your tax return, not just your self employed income. Things now start to become a little more complicated.

Consider carefully before you decide to do it yourself. It is not nice sitting through an"enquiry" if you have failed to declare something or the tax office see something "of interest".

 

[cjbombero]

Grouters, Thats the first time i've noticed that your an accountant! I'm going to take a wild guess that you do your own books? :lol:

I understand what your saying about the complications of accounting and I am not taking the tax side of my business for granted (hence this thread) I feel like I can manage the books on a day to day basis but like you say, when it gets to deductable expences (particularly linked to business vehicles) i'm a bit short of the mark.

What sort of fee would I be looking at if I got an accountant to do my end of year tax returns rather than my monthly book-keeping?

Thanks for the advice

cjbombero

 

[grumpygrouter]

Grouters, Thats the first time i've noticed that your an accountant! I'm going to take a wild guess that you do your own books? :lol:

I understand what your saying about the complications of accounting and I am not taking the tax side of my business for granted (hence this thread) I feel like I can manage the books on a day to day basis but like you say, when it gets to deductable expences (particularly linked to business vehicles) i'm a bit short of the mark.

What sort of fee would I be looking at if I got an accountant to do my end of year tax returns rather than my monthly book-keeping?

Thanks for the advice

cjbombero

Fees vary widely CJ. I would recommend that you bypass large firms and go for small independent practises. You will generally have a more 1 to 1 relationship and it will usually have smaller fees as their overheads will be lower.

 

[DHTiling]

I agree with grumps here..one man/woman comps are better to deal with.......IMO

 

[UKTT Darren]

About the £300 mark for an accountant to square up you books and do your tax return for a sole trader, you will get the 22 % tax relief on his services as well, about 60 quid off your next tax bill, a decent acountant should save you his fees in tax breaks

 

[cjbombero]

Thanks for the good advice guys, I have aquired a copy of line50 accounting (which i just need to learn how to use now!) and i'm meeting up with a local accountant this week. He has quoted me around the £300 mark so it looks like you have answered my question!

He's already saved me some money by getting me to register my business before i started trading, that way i can put my training course in the books as expences. If i had done the course before starting it would have been a personal expence and therefore nothing to do with my business accounts. (Smething like that anyway!)

Thanks for the advicd, more questions coming soon!

cjbombero

 

[grumpygrouter]

Thanks for the good advice guys, I have aquired a copy of line50 accounting (which i just need to learn how to use now!) and i'm meeting up with a local accountant this week. He has quoted me around the £300 mark so it looks like you have answered my question!

He's already saved me some money by getting me to register my business before i started trading, that way i can put my training course in the books as expences. If i had done the course before starting it would have been a personal expence and therefore nothing to do with my business accounts. (Smething like that anyway!)

Thanks for the advicd, more questions coming soon!

cjbombero

No cheap software for you then eh! CJ?

 

[cjbombero]

Just got to work out how to use the bloody thing now!

When I say aquired I meant "borrowed indefinately from the father in-law"

cjbombero

 

[FreeD]

cj your accountant should discuss with you a simple system to keep records of exactly what he needs from you.

I wouldn't bother trying to use Line 50 its meant for use by professional accountants/bookeepers.

A simple system will be more beneficial to you.

:yawn:

 

[White Room]

I use Quickbooks Simplestart about £50 bought at staples

 

[Deleted member 1779]

I paid an accountant £500 for submitting a tax return on my behalf in year one. I used him for basic advice and after that I do it myself.

He was just a back up to make sure I was doing the right things. As it turns out he managed to clear up a few legal issues of which I had the wrong info on.

If you have a good understanding then use them in year one.

Then do it yourself.

 

[UKTT Darren]

The best books that you can record your accounts on are Simplex D or Collins accout book, both available from W H Smith or Staples, i go through this way of keeping accounts on the first morning of the course.
It simply has box collums for you to fill in the info, the 3 headings are Takings, stock purchased for resale and expenses, after you have filled in the right £s there is a simple summary at the bottom and thats it.
There is 1 page for every week of the year, fill it out and hand all the reciepts and the book to your accountant and thats it,
Simple

 

[grumpygrouter]

I paid an accountant £500 for submitting a tax return on my behalf in year one. I used him for basic advice and after that I do it myself.

He was just a back up to make sure I was doing the right things. As it turns out he managed to clear up a few legal issues of which I had the wrong info on.

If you have a good understanding then use them in year one.

Then do it yourself.

Bit heavy that just for a tax return! I do full company accounts and corporation tax returns for less than that!

 

[UKTT Darren]

he is talking London prices though Grumps, cannot see any of them boys down there being cheap