Do I need an accountant?

loftty_2

Hi all,
Do I have to have an accountant to 'sign off' my figures?
My Mum is handing her small business down to me next yr. It makes around £18,000 before tax ( I think ) I also have 3 part time jobs so already have hassle when sorting out my tax. What I need to know is can I do a self assessment on the business and still sort my other tax for my part time jobs the way I normally do, or does it all change? Also how do I find out what I can get tax relief on?
Thanx

ctdctd

loftty wrote: »

Hi all,
Do I have to have an accountant to 'sign off' my figures?

You don't HAVE to have an account for a small business - even if it's a ltd company.

However, you may be WISE to get an accountant if you are not sure how business taxation works!

HTH

loftty_2

how much am I looking at paying to have an accountant?

no-oneknowsme

You will be able to continue paying tax in your part time jobs as you normally do and then just self assess for the business when it becomes yours.

Mallotum_X

How does your mum report the profits for tax? if she doesnt use an accountant and simply self certs maybe she can take you though how she deals with the book keeping.

Self employed income (which this sounds like) does not attract "business taxation", and so can be dealt with on a tax return. (if its a ltd co then this is different)

As for how much an accountant would charge, well thats a difficult question to answer, it depends on local prices, what is involved, and what you ask them to do. If you keep good records and they simply prepare the return then you may be able to find a small accountant who will do this for as little as £250+vat.

morgani

no-oneknowsme wrote: »

You will be able to continue paying tax in your part time jobs as you normally do and then just self assess for the business when it becomes yours.

Although true you will still need to include your PAYE jobs on your Tax Return and in the tax calculation as these will be using up your Personal Allowance and I assume basic rate tax band and will determine the tax rate at which your profits are taxed.

As for what is allowable there is one fairly simple rule you need to consider 'wholly and exclusively'. If it is wholly and exclusively incurred in the course of the trade then it is allowable.