[matt jones]

Hi guys i just recieve my first tax return form and to be honest havent got a clue.
Do alot of you do your own or pay an accountant to do it for you? I only started up end of august last year and to be honest havent had a great deal of work so i would of thought it would be quite simple as probably not alot of whats in it will apply to me. But the thing is i do other work aswell to tie me over and to slowly build up my business. This casual work goes through my books but not sure if this will complicate things or what, when it comes to filling out my tax returns.
Any thoughts or advice would be greatly appreciated.
Kind regards
matt

[Phillip Mold]

Get an accountant - NOW!

[Ian Rochester]

That's the best advice you will get, a good one is worth their weight in ............whatever!!!

[Aquakleen Restoration Services]

matt a good accountant will cost you £200 a year and take care of all the hassle for you (and save you money in to the bargain)! Get one asap

[Chris R]

Its a good idea to have your accounts made up to finish at the end of the tax year ( April).

It makes things a lot easier in years to come.

Get an accountant, but not one from a BIG company.

My accountant works from a small office with 2 staff, my bill is about £300 per yr.

A mate of mine uses a company with loads of offices and staff, he pays about £600 per yr ( and i am doing more turnover than him  )

regards

Chris

[matt jones]

ok guys looks like i will be getting myself an accountant then lol.
matt

[Ian Gourlay]

Its quite easy to do it yourself.

First Work out your Gross Income.

Expenses  Less

Into Classifications

Chemicals
Van Diesel
Van Repairs
Road Tax
Van Insurance
Business Insurance
Life Cover Key Worker
Machine Repairs
Advertising
Small Tools
Postage
Stationery
Leaflets
Staff
Wife Wages
Interest on business loans
Quote Car Mileage at 45p for first?
Rent on Lock Up
Compensation claims plus refunds

obsolete stock

Home as Office

Percentage of

Telephone

Electric
Gas
Rates
Rent
Depreciation

Van
Equipment
Computers
Desks
Photo Copier
Copy Printer

Add back in any items sold
Stock used for personal use

This should give you a starting point 

Add to list as you think of other expenditure not included

[The Great One]

Hi

Accountant!

If you make mistakes and it sends up Red Flags at the Tax Office they can be on you lke a pack of wolves.

An accountant will be piece of mind, I pay about £400 and I just send it off, he does the rest, it is done professionally, not DIY.

Is it better to do carpets professionally or DIY?

Regards

Martin

[Ian Gourlay]

Martin,

I wrote that at midnight last night.

Accountants often stick to their formula.

I remember about 10 years ago I was talking to an accountant and he did not know self employed people can claim for  car motoring expenses using the mileage formula as opposed to depreciation interest and actual running costs.

If you were doing high millage in an older car this was a beneficial way to do it.

If you have complicated tax affairs I agree use an accountant  but for a sole trader provided you have studied it and investigate all the tax breaks with the Guides that are usually published by Daily Mail , etc   I talking actual books usually found in Public Libraries you can do it yourself.

If you are out earning £100 an hour cleaning carpets it makes more sense to pay an accountant.

[rambly]

Its a good idea to have your accounts made up to finish at the end of the tax year ( April).

It makes things a lot easier in years to come.

Get an accountant, but not one from a BIG company.

My accountant works from a small office with 2 staff, my bill is about £300 per yr.

A mate of mine uses a company with loads of offices and staff, he pays about £600 per yr ( and i am doing more turnover than him  )

regards

Chris

Agreed. A small local firm where its on first name terms seems to work well.
My account pays for herself with the savings I could not have thought of, plus the jobs she has put my way from her contacts easily balances out the cost.

[Cleaning Resource]

if you phone the inland revenue and tell them that you have only just set and your having a bit of trouble with your tax return, they will offer you one of their advisers to help you AND ITS FREE

 if you go one step further and tell them your illiterate they virtually do it for you, but that depends on how cheeky you wanna be

[chrisg]

Yes go see one of there advisers thats what there for, they will sit down with you and do the form filling with you, every year if you want, all you take with you is your figures,   income and  expenses. simple.

and its free!

Its a myth that accounts save you money they only put in exspenses that you tell them, the figure will be the same if you do it yourself.

i do my own accounts, takes me 2 hours.

[Chris R]

Its a myth that accounts save you money they only put in exspenses that you tell them, the figure will be the same if you do it yourself.

i do my own accounts, takes me 2 hours.

My accountant put through about £5000 of depreciation last year.

How would you work that out for yourself ?

Chris

[Ian Gourlay]

Chris

I believe you have aquired a truckmount

Obviously I would have to check rules but I think you can claim 50% depreciation in first year so £5000 could easily be achieved.

[chrisg]

Correct Ian,  Its a capital allowance the remaining figure will reduce at 25% each subsequent year, like this;

10k TM

5k go in as a expense in first year

remaining 5,000 - 25% = £1,250  year 2

left over £3,750 - 25% = £937    year 3

left over £2,812 - 25% = £703    year 4

and so on, until its all gone.

Capital allowances is as complicated as it gets, normal expenses are easy, as is income.

let the tax adviser go through it with you first couple of years, then do on your own when you got the gist

for FREE. not £400!  

[Chris R]

It used to be the case that you HAD to use an accountant if you had a turnover of more than £15000 ?

With a turnover less than this you could just do a simple 3 line entry ( T/O - costs = profit ).

Does this rule still apply and whats the limit on it now ?

regards

Chris

[AJB]

If your Turnover exceeds £15000 then a breakdown of expenses is required.

Doesn't matter who does it as long as the figures are correct and add up.

[Elfyn]

A good accountant will save you, in tax, more than his fee.

[Kinver_Clean]

More small businesses pack in or go bust through no or bad accounting than any other reason. If your affairs are simple it should not cost the earth. I had an in depth investigation by the revenue and it cost a bomb in extra fees not to mention the hassle, it was a nightmare. Got enough back to cover the fees much to the inspectors disgust. Got a proper accountant from then on.

Trevor

[Ian Gourlay]

I have been involved in Profit and Loss, Audits etc all my working life.

It would be wrong of me to say  you do not need an accountant.

It depends if you have studied the subject at all.

Im not sure  if an accountant is anymore of a guarantee against a tax investigation.

As they would say they are working on information you provided.