"Simply not solvent!

Seaxwyn

Hello Tyllwyd, how are you doing? I have looked into this - and got lots of useful advice from people on the tax forum here. I concluded that the possible small benefits would be outweighed by the huge amount of extra admin required, but I haven't ruled it out. I want to find a good accountant that I can talk it all over with, and I've had some recommended, I just have to find time to contact them.

Are you a limited company?

tyllwyd

No, I'm a sole trader - I've only been working part-time while the kids were pre-school, so I've never earned more than about £10K at the most, so its not been worth it. I'm trying to do my tax return this morning, and I think they must have given me the more detailed one to do this time because I earned a bit more the year before, and so I'm trying to answer questions I've never seen before. If I start earning a bit more at least it would give me a reason to go to an accountant - up until now, there's never been enough scope for them to save me enough money to pay their bills, so its not been worth it.

I used to work for the publishing arm of a company called Jordans, so I used to do a lot of work on company law books. I wouldn't have thought there would be a huge amount of extra admin for a small single-member company, but I agree that there is more pressure to make sure that the paperwork is done and filed correctly. I would have thought that a good accountant (or company formation agent like Jordans!) should be able to hold your hand through all of that - but then like you say it depends whether they can save you enough tax to make it worthwhile.

taxi73

I don't think my accountant particularly saves me a lot of money but he's tax deductible anyway.He saves me loads of hassle though and understands about capital assets and depreciation etc etc...so makes sure I can claim what I'm entitled to and is good at dealing with my solicitors letters for DH loss of earnings.
Now a bent one would save me a fortune probably but mines really straight..lol...and theres less chance of an enquiry when you use a good accountant.

Verbatim

taxi73 wrote: »

I don't think my accountant particularly saves me a lot of money but he's tax deductible anyway.He saves me loads of hassle though and understands about capital assets and depreciation etc etc...so makes sure I can claim what I'm entitled to and is good at dealing with my solicitors letters for DH loss of earnings.
Now a bent one would save me a fortune probably but mines really straight..lol...and theres less chance of an enquiry when you use a good accountant.

Exactly. It takes all the stress away even if you are investigated, as I was one year. They dealt with everything, I just had to dig out all the old receipts etc. I even found some I hadn't claimed for. Waste of tax payers money. Why don't they go after the crooks!!

taxi73

I agree about the crook bit.My accountant puts a covering letter in if theres a substantial difference in earnings ie..when I had to have a lot of time off due to my hysterectomy.

Seaxwyn

I suppose they have to do random checks as well as go after the obvious crooks. I do quake at the thought of an investigation - not because I misrepresent anything, just the embarrassment of showing them my scrappy hand-written records!

The accounting requirements are much more onerous for a company than a sole trader. If your accountant does it all for you, then that's no bother. But one of the things I value about my situation if the relative lack of hassle so I am not keen to take on a lot more admin. I used to be a Trustee of a small charity and the amount of bureaucracy was staggering.

But I am not dismissing this advice, I do plan to check out some accountants in the new year and if I get a good feeling about them, I will listen to and act on their advice.

bountiful

I had an accountant when I was a self-emloyed shiatsu therapist - after a few years of sweating over it myself, it was a great relief to let someone else deal with sorting it all out for me. I never turned over more than about £7,000 - and it was making it business-like that made me realise that my self-employed business was not actually working, as a business - so I gave it up! I still have a cardboard box with all my records and receipts etc for the past 7 years..... as legally required....... takes up a lot of space! It doesn't matter how scrappy your records are - as long as you can account for everything. I'd give it a try and see how you feel - what is there to lose?:A

taxi73

Bountiful a woman after my own heart.Sounds like you kept your books in the same way as me ie: I keep all receipts and staements and my accountant goes through them all...lol..and hey presto..professional accounts.Well worth the £150 I pay him.

Seaxwyn

I will look into getting an accountant, I promise.

I'm really pleased with how my no-spend Christmas is going. I put a 'wanted' ad on Freecycle for Gameboy games and a lady round the corner has offered me 15! I did offer to pay as I felt so embarrassed and she refused.

I have decided to give my two nephews (aged 2 and 3) some of our Duplo. We have loads, which the children have had so much pleasure from over the years. I will box it up so it looks nice and the little lads won't mind that it's not new.

So Xmas is sorted. And our tree is up and looks lovely, decorated with all sorts of handmade treasures which would make Hypno and her fellow OCDers come out in hives! But I like it. OH is booked for lots of sessions playing Santa for various playschemes, afterschool club etc all based at the local YMCA. There's a certain Christmassy irony thinking of the old grump spreading cheer - I'm sure he'll do a wonderful job.

All that apart I am brewing plans and new year's resolutions. Work keeps rolling in, which is so reassuring. And I'm doing a paper round this week as one of the regulars is sick (I won't be so mean as to keep his tips) and another one in January. It's only £20/week but it all adds up, and I positively enjoy being out and about in the early morning.

Karmacat

taxi73 wrote: »

I keep all receipts and staements and my accountant goes through them all...lol..and hey presto..professional accounts.Well worth the £150 I pay him.

Sorry to but in Seaxwyn, but ... Taxi? You pay £150 a *year* for this? Do you think he'd do accounts from a fair distance away [KC asks wistfully, get a yearning, misty look in her eyes}.....