Do I need an accountant ?

moneymoneyman

Hi There , I would be greatful for any advice.

I am a full time management accountant with a banking group. My taxable pay is around £32k.

I have classic cars which I run as wedding cars, I am planning on registering as self employed to ensure everything is above board. I do not envisage making much if any profit from the this company, as I only do a handful of weddings, and the maintenance costs, wedding fayres, driver costs probably outweigh the profit. ( The reason i bother is that helps me keep them on the road which i couldnt otherwise afford ) .

Initialy I was thinking I could take care of my tax affairs myself .
I will set up a seperate bank account, keep receipted, Record bills, and income on an excel spreadsheet.

However where I am getting confused is how my bank salary will fit into all of this, having always been employed , I havent got a clue about income tax, or what i can claim against income.

Should i get an accountant ?

I was also thinking that maybe I should go the LTD company route, to protect myself in the event of any disasters.

Any advce is greatly appreciated.
Thanks

PlutoinCapricorn

If you do create a limited company, you have no choice but to use an accountant.

Many people start their self employment as a sole trader, and only incorporate when the income makes this advisable tax wise. It does protect you in the case of debts, but it does seem unnecessary if you don't expect to earn much.

If you are an accountant yourself you should be able to keep records and file your own tax returns.

https://www.businesslink.gov.uk is a good place to start.

However, I am not sure what HMRC will think about someone who habitually runs at a loss. It defeats the object of becoming self employed.

minnie123

I am an accountant and I am pretty sure you are able to offset losses from self employment against your employment income. In fact i'm sure I do this all the time at work unless I am going mad. Can anyone else confirm this. I know you can't offset losses from rental income but I thought you could from self employment as long as it's a Trade (an activity pursued WITH A VIEW to making a profit).

Have they changed the rules? I have been on maternity leave so this may be possible?