i have a issue

maxbale1

Hello

I am wondering if anyone can provide advise or guide me where to go to get best advise:

I have used an accountant for the past 2 years, however I think I have been paying too much for their service.

It is for tax return for myself ( employed) and my partner ( Employed) who both pay through Payee. However as we have a property which is rented out and also I have to use my own personal car for business, I thought it would be most cost effective to get an accountant. But he has been charging us £300 per year and I think it is to much, considering I am always giving him all the details properly and all filed by months and ... and he doesn't have to do much filing himself.

Do you think it is too much?

Our combined earning from emplyment is £55k and the rental income is about £10k on top. i do about 20k miles per year in my car.



SO I am thinking either do it myself next year or get someone else to do who is a bit cheaper?

On another note,

I work as a contractor and also have full time job, bit of moon lighting I guess ( Not necessarily at night though )

I don't do it a lot as I wanted to set it up when the company I work for looked like to be going out of business and I wanted to make sure I wasn't going to be left stranded. But now I want to set it up as a limited company properly and start to do more and hopefully give up working for someone else soon.

My question is:

1) If I setup my own limited company, and lease a car through the company, can I claim the cost of the car/lease from my end of year tax ?

2) As I still will be working and classified as employed by someone else, and still have to use my own car for work, can I also claim mileage for using my own car when I do business for the company I work for?


Thanks in advance

Mark

Pennywise

£300 isn't expensive for 2 tax returns and a joint property BTL. It's about average, or maybe a little on the low side, particularly if you're using a properly qualified/regulated accountant. Like anything else, you'll find cheaper, just as you'll find more expensive. As for doing it yourself instead, do you understand all the changes around BTL at the moment, i.e. the changes to mortgage interest tax relief, the changes in the renewals rules, change from acctuals to cash basis etc? You won't be able to just copy last years!

re the Ltd co idea, no the car expenses will be an expense and reduce the company's profits, hence reduce its tax, but you'll personally be taxed on car and car fuel scale benefits which could cost more than the tax relief obtained. You'd need to do the sums. Highly unlikely to be beneficial for tax unless it's a very low CO2 or hybrid car.

polymaff

maxbale1 wrote: »

Hello ...

Mark, to be blunt, a prospective entrepreneur and company director shouldn't need to ask these questions.

You use specialists such as accountants because you could earn more than their fees in the time it would take you to perform the services they are supplying.

£300 sounds pretty good for what you are getting.

As for the Limited Company, it sounds like you will need further accountancy services - including advice on the issues you raise - and you should be ready to pay for - on the same basis: Can I earn the fees, and more beside, in the hours I'd need to devote to becoming and then being a proficient Company Accountant?