Accountant

[simon]

I will be working for myself soon

Do i need an accountant Or can i learn to do things myself ?

What is it that the account does that a business owner can not do ?

Is it something i can learn to do rather than pay someone else to do it ?

PlutoinCapricorn

Simon, will you be doing a lot of buying and selling? Will you be registering as a sole trader or creating a limited company.

Many self employed people learn how to handle their own tax returns, but a lot depends on what they do and how complicated their affairs are.

[simon]

No No No No No - Sole Trader, Yes

Transport company. Transporting people.

Just VAT invoices, income, out goings, repairs, services, MOT's, Fuel...

Pennywise

There's nothing that you can't learn or research for yourself. Plenty of online resources such as the HMRC website.

Lots of people use an accountant, lots of people do it themselves. It's horses for courses. Do you service your car yourself rather than take it to the garage? Do you decorate your home rather than pay a decorator? Do you mow your lawn or pay a gardener. The same applies. Some people have the ability and time to do it themselves, others don't.

You also have to consider other aspects such as whether you're missing a trick or two by not getting professional help re tax planning. HMRC website only gives the facts, it doesn't give you any tips or tax planning advice. Also, if you are relying on your self employment earnings to support a loan or mortgage applications, many lenders are now starting again to expect accounts prepared by a qualified accountant now that the easy money days are gone.

Bearing in mind that HMRC charge fairly hefty penalties for late submission of tax returns, surcharges/interest for late payment and penalties of up to 100% of the tax due for mistakes made on tax returns, you do take a risk doing it yourself if you don't really know what you're doing.

Why not talk to 2-3 accountants to ask them about their charges and for details of what services they'd provide to you. Most decent accountants will spend an hour or so of their time for a new client. You may be surprised at how little some charge!

phill99

I run a property maintenance business and have always used an accountant.

I do this because my time is spent far more cost effectively oing what I am good at, rather than spending time learnng another skill which can so eone properly trained will always be far better at than me.

There are a lot of things that an accountant will put down as expenses and thus reduce your tax liability that you woudn't think to include. My accountant costs me £300 a year and he saves me far, far in excess of that.

sequence

People often say there are lots of things that accountants can save you money on, but what are they ? If you're a sole trader doing simple buying and selling what can an accountant add that you wouldn't think to add yourself ? Can anyone give actual examples ?

Pennywise

sequence wrote: »

People often say there are lots of things that accountants can save you money on, but what are they ? If you're a sole trader doing simple buying and selling what can an accountant add that you wouldn't think to add yourself ? Can anyone give actual examples ?

1. Potential tax saving on converting to a limited company
2. Tax savings on changing the business year end
3. Tax savings on whether or not to claim full capital allowances on equipment purchases.
4. Tax relief for losses.
5. NIC relief for losses.
6. NIC exception or exemption for low earners or second incomes.
7. Maximising tax credit claims.
8. Suggestions to improve book-keeping to save you time and improve your control over your finances.
9. Credit control collection procedures to reduce slow payers and bad debts.
10. Pros and cons of using the new simplified cash basis for tax returns.
11. Pros and cons of VAT registration, and which (if any) special VAT scheme to use.
12. Options open to employ household members if they work for you.
13. Grooming your business for potential future sale (systemisation etc).
14. Helping you control costs by highlighting any unnecessary expenses or any costs which seem higher than other similar clients.

That's the kind of thing we talk about with all our clients. If your accountant isn't doing that, then change to someone who will.

nlj1520

The OP mentioned doing VAT invoices, so presumable registered for VAT? Just an aside
Perhaps an intial session with an accountant to seek advice on VAT cash accounting vs 'normal' VAT and special VAT schemes, to get clear on deadlines for Self assessment and due dates and what books and records need to be kept to fulfil HMRC rules. Plus a bit of tax planning and advice on how to do the returns yourself.

When I worked for an accountanct we were always delighted to help someone set things up so they could do it themselves. Equally happy if they wanted us to do it when things got more complicated.

zygurat789

[simon] wrote: »

No No No No No - Sole Trader, Yes

Transport company. Transporting people.

Just VAT invoices, income, out goings, repairs, services, MOT's, Fuel...

Could you be a little bit more specific as to how you will perform this service.

PlutoinCapricorn

Simon, it does seem that in your case it would be better to get an accountant. Some of us do consultancy work from time to time, our affairs are simple and we are best off doing everything ourselves.

You probably could learn what needs to be done and how to do it, but it might take time away from building up your business.

trailingspouse

Definitely worth considering an accountant. The way I saw it - if I'd wanted to be an accountant, I'd have trained to be an accountant. So it seemed daft to try to do what they do (and doubtless get it wrong) when my time would be better spent doing the things I am trained to do.

Our accountant charged us £1700 +VAT this year - but saved us £4,000.