[lee_dewing]

hi, i use an accountant, charges me £280 a year, not overly happy with him 3rd one i've had in 5 years window cleaning.

Just wondering does anyone do their own tax return, ive heard if you send your accountants to inland rev they do your return free.

anyone know about this or any reading matter that can help you be more savvy.

not got p/c yet, but hoping to get laptop and george, and keep all my reciepts, be more tidy and organised
thanks lee

[dai]

Lee I just saw your post after I had posted mine. I am definitely doing my own from now on.
I have just paid my accountant £300, and will probably have to pay and extra £100 because they screwed up.
Your local tax office will give you any advice that you require. It seems crazy to pay someone else to enter your own figures on a tax form, lets face it they had nothing else to do, all my receipts were sorted by date and order the expense occurred. Each bank statement was in it's own clear envelope with receipts for that month.
Talk about money for old rope.

[Tosh]

If you turn over less than 30K per year and you're a sole trader, anyone of at least average intelligence can do their own accounts.

That's why it's called Self Assessment; not Accountant Assessment; it's easy guys!

[mikethechamois]

i do mine online and at the end of the tax year they do the assessment free of charge, the upside no fees the downside you cant be creative

the details are on their site but you need a government gateway password which is a pain but essential for your security

[Dean Taberner]

Hi guys,

I did my own for a few years when I worked alone and it worked fine,

Its very easy if your go on the revenues courses which are free and you get loads of advice from their small business teams.

Since ive started employing and had subbys though, I realised an accountant was the way forward.

Dean

[Tosh]

I think I'll do a DIY tax guide...

[chris@c.m.s]

Yes Please Tosh 

[Rogue Trader]

it is definately worth using a good accountant , i worked out that i would have to pay around 6k in tax but my accountant did it and my bill was £1700 just paid and £800 in July , definately worth his £200 fee i think!!!! accountants are accountants for a reason.

[Tosh]

it is definately worth using a good accountant , i worked out that i would have to pay around 6k in tax but my accountant did it and my bill was £1700 just paid and £800 in July , definately worth his £200 fee i think!!!! accountants are accountants for a reason.

That's a big difference, how did your accountant save you that much?  Did he do it honestly or creatively?

[Tosh]

Just an afterthought...

Remember for your average sole trading window cleaner; tax is fairly simple. 

You have your Turnover and your Expenses.  You deduct your Expenses from your Turnover and what is left is called your Profit.

You're taxed on your Profit.

There's no magic wands that an accountant has that can reduce the amount of profit you've earned and as long as you know what your expenses are, what's the problem?

[Rob.Hall]

As mentioned you can go on a self assesment course with the Tax Office.

They are updateing the course and will be holding them after April time.

For a newbe they have a course on what you need to know when going self employed. Cant remember the exact name but you will find it on there web site.

Courses are held locally so you dont have to travel to far.

Hope this helps.

Tosh...its a great idea....maybe you could do a little business on the side for self assessement!

[Sir Squeaky]

it is definately worth using a good accountant , i worked out that i would have to pay around 6k in tax but my accountant did it and my bill was £1700 just paid and £800 in July , definately worth his £200 fee i think!!!! accountants are accountants for a reason.

Something wrong there.
Did you forget your expenses?

My accountant used to be £175 or so.
I do it myself now.

He would have to find an extra £800 of expenses just to cover his £175 fee!
And there just isn't £800 of expenses i've forgotten about!

[lee_dewing]

sorry to hear about bad luck dai
thanks all.
I let my guy do this one yearapril 08-april 09
then in mean time contact inland rev and as 0f april 6th this year make sure i'm in 21st century computerised and keep all reciepts.
thanks lee

[Rogue Trader]

it is definately worth using a good accountant , i worked out that i would have to pay around 6k in tax but my accountant did it and my bill was £1700 just paid and £800 in July , definately worth his £200 fee i think!!!! accountants are accountants for a reason.

That's a big difference, how did your accountant save you that much? Did he do it honestly or creatively?

im know he is honest and good and comes highly recommended he knows the system and what can be claimed for , he does this as his profession and so has his finger on the pulse regarding saving his clients money , my time is better spent cleaning windows and trusting his work.

[seandyer2003]

Hi guys,

I did my own for a few years when I worked alone and it worked fine,

Its very easy if your go on the revenues courses which are free and you get loads of advice from their small business teams.

Since ive started employing and had subbys though, I realised an accountant was the way forward.

Dean

I am planning on doing one of them courses. keep forgetting to book though!!

[Neil Williams]

There's no magic wands that an accountant has that can reduce the amount of profit you've earned and as long as you know what your expenses are, what's the problem?

As per others. I pay an accountant because he knows about accounts and tax. An accountant gets a window cleaner because he wants someone who can get the right results on his double glazing.
If you work from home did you know you can claim a proportion of your interest on your mortgage. You can claim proportionally on your electric usage and gas etc.
That's why I pay someone who knows these things.

[Tosh]

If you work from home did you know you can claim a proportion of your interest on your mortgage. You can claim proportionally on your electric usage and gas etc.
That's why I pay someone who knows these things.

I know that from this forum, though different people work out how much their office expenses out in different ways.  But rather than fanny about with gas/electric/mortgage calculations, I've claimed for £10 per week which I think is more than fair in the tax man's favour.

[mikethechamois]

be very carefull how you claim as using your home as a place of work

if you dont do it right you can be hit for capital gains tax when you sell

offsetting a portion of your mortgage re payments is not a good idea

c&r accept that a portion of your bills goes towards running your business as you are a smallbusiness without seperate office facilities

any amount they deem as reasonable they will accept

so £10 a month towards your household bills is acceptable

if you have a seperate office you can claim for depreciation on the fixtures and fitting on that room but again they have to deem it as reasonable

but claiming part of the mortgage and council tax for that room will make it a business premises and you will be taxed on that part of your home when you sell as its a capital gain

i think it would be  agood idea if this forum had a seperate section for wc business matters

as a sole trader your tax returns are straight forward

i keep my books on line with the tax office and everything is then done automaticaly

once you start subbing out/employing then an accountants not a bad idea, a good accountant can save you from all kinds of difficulties as well as saving you money

business link, details from your local chamber of commerce or job centre, do brilliant courses paid for by the government

the tax office also do free courses on tax matters

both excellant courses ......................very infomative

[macmac]

Just an afterthought...

Remember for your average sole trading window cleaner; tax is fairly simple. 

You have your Turnover and your Expenses.  You deduct your Expenses from your Turnover and what is left is called your Profit.

You're taxed on your Profit.

There's no magic wands that an accountant has that can reduce the amount of profit you've earned and as long as you know what your expenses are, what's the problem?

Tosh

Can all purchases i.e. consumables & equipment/tools be claimed 100% in the same year. I was led to beleive tools/equipment should be wrote down over more than 1 year ( abit like you used to have to do with a van) ?

Tony

[Tosh]

Tony, I believe this to be the case if you buy something that's expensive; I don't know what the threshold is; though I read £1K recently by someone on this forum.

Apart from my vehicle, I've never bought any single item of window cleaning over 1K, so I've never looked into it.