help: new to self employment

kets09

Hey,

This January i'll need to fill in my tax return. Im a freelance designer with accounts that aren't too complicated grossing 28k. i have a fair amount of travel expense which is split between train and car (and i also work from home). my bookkeeping is pretty though with monthly in's and outs recorded.

I had planned on filing my return myself without an accountant until i started reading up on 'rent' i can claim as business loss, aswell as specific business mileage, claiming electricity costs etc. which went a bit over my head what things i might be missing..

As i dont want to leave it too late (nor get it wrong) my question is would you advise paying a few hundred quid for someone to sort out or does the IR online form guide you enough through it to spare the expense of an accountant?

also, are you less likely to be investigated if its filed by an accountant?

regards,

kets :cool:

chrismac1

My advice to people who call me with this sort of query is that you should get an accountant to do year 1 if you have any doubts over your ability to cope with the HMRC forms. Ensure you get one who will provide you with PDF copy of the final tax return and question any numbers you don't understand on it.

Then if that looks like money for old rope, do year 2 yourself! In my experience, people who then sign up as new clients on this basis go on to do their own stuff in year 2 less than 10% of the time.

bartnwood

kets09 wrote: »

I had planned on filing my return myself without an accountant until i started reading up on 'rent' i can claim as business loss, aswell as specific business mileage, claiming electricity costs etc. which went a bit over my head what things i might be missing..

As i dont want to leave it too late (nor get it wrong) my question is would you advise paying a few hundred quid for someone to sort out or does the IR online form guide you enough through it to spare the expense of an accountant?

Hello kets,

I would advise you seek professional advice.

A small fee to have an Accountant handle it all for you and liaise directly with HMRC on your behalf is well worth it.

As you have pointed out yourself, there are many areas that you may be missing out on if you are not sure of what you can claim as an expense all of which will save you in the long run by reducing your liability to tax.

I am sure that those savings would far exceed the cost of a good Accountant and their fee is also tax deductible

PlutoinCapricorn

Perhaps it would be best to let someone else do the first return for you, but do be careful to make a good choice: someone who inflates your expenses may be the source of trouble later.

HMRC do free courses and webinars on tax returns and expenses; there are useful pages on their website and plenty of information available online.

I file by the end of September; it is best not leave things to the last minute.