Going self employed..

homer_j_3

Hi,

I am starting a self-employed role next week with a company and understand that I will need to register and operate in a self-assesment environment.

I am wanting to get an accountant on board so I can ensure that I am benefiting fully and getting the correct advice on all matters tax wise. Could anybody suggest what things I should be looking at when choosing one?

Many thanks in advance for your help.

WHA

homer_j wrote:

Hi,

I am starting a self-employed role next week with a company and understand that I will need to register and operate in a self-assesment environment.

I am wanting to get an accountant on board so I can ensure that I am benefiting fully and getting the correct advice on all matters tax wise. Could anybody suggest what things I should be looking at when choosing one?

Many thanks in advance for your help.

1. Go to see 2 or 3 local accountants who offer a free intro meeting (usually 30 minutes or so). You can pick their brains and get an idea about whether you can work with them.
2. Ask friends and family for any recommendations - don't rely on recommendations from larger firms, your agency, formation agents, etc., - personal recommendations are far more worthy.
3. Don't ignore the "Internet based" accountants where you do everything by phone, fax, email etc - it can work well for single person businesses and you can get competitive rates. Do you really need to meet with your accountant? Maybe, maybe not.
4. Make your accountant work for you - ask questions, don't be afraid to check what they're saying, use them to teach yourself their job so you won't be reliant on them.

Maybe others can add a few more suggestions...

homer_j_3

From my current understanding and view point, I am moving into a role where I am going to be setting up a home office and will be running a car for the job and just need a good idea of what I can claim for and what I cant claim for.

I have booked an appointment with a local accountant. There are about 3 in the town where I live but I have never heard of the other 2 and nobody I have spoken to has either so I will see what they have to say.

If anybody can help me further or can suggest some good online companies then please let me know.

SAP_Saver

I am a self employed IT contractor I have used companies such as Paystream2000 and ParasolIT, both online services who run the book for your company for a small charge (£17-24 a week max). They can work out your expenses etc etc... works well for me maybe check out the websites.

skintchick

£24 a week? £1,248 a year???

I think I'd rather do my own books at that price.

I've just gone SE too , but expected I'd pay around £200 for an accountant - am I totally off the mark??

SAP_Saver

Well I guess it depends on what you earn and if they are worth it...
If I was to go the normal route and pay tax liike the average guy I would be paying 40% on anything over £37,500 and with my accountants I pay 19% corperation tax.
If I was to earn £1500 a week (ave for my work)
Before I used these guys I would earn £56,000 after tax.
Using these guys I would earn £63,940 after tax.
So they are worth it for me.

For others earning less maybe not so much...!

Cook_County

I think SAP_Saver is confusing the question and the solution here.

Umbrella companies are common in the IT contracting world but have no relevance outside of it.

An accountant/chartered tax adviser will charge sufficient to pay for her/his rent, continuing education, professional indemnity insurance, profit (so that she/he can afford to go to Sainsburys) plus print, stationery, subscriptions etc. homerj should seek out an adviser who can suggest a solution that will work. A company may be relevant but IR35 would need to considered.

The way that homerj has asked the question also makes me think that the specialist will need to consider status issues as well.

I doubt that a suitably qualified adviser will come in as low as £200 a year...

homer_j_3

thanks for the commentary so far. Hopefully (dunno if that is the right word in this context) it will be likely that I become someone who woudl also fall into the higher rate of tax but really want someone who will look after my interests to ensure that I am maximising income and reducing tax - yes I hear you all groan "dont we all" lol..

Thanks all so far.

Aark

You can find some information on the possible Employment Status issue, i.e. will you be Employed or Self-Employed, at http://www.hmrc.gov.uk/employment-status/index.htm.