Which accountant?

[rmmc]

Hello rmmc, thank you very much for your reply. The first accountant did mention about it. My situation is that I work 7 hours at client site and 1 hour at home. I am paying my partner half of HIS mortgage. Accountant 1 said as long as the rent is to support his mortgage. It doesn’t not count as profit and he can get away with it as long as its below 75 pounds a week.

I am afraid there is no threshold such as "as long as its below 75 pounds a week". Either it is taxable or not.

As long as rental income is covered by the mortgage interest (note interest not the repayment instalment) and other utilities expenses and it is reported by the house / flat owner as their rental profit (rental income less allowable expenses).

If that is the case, what the different do they make? Why should I go for the expensive one? If I pay the same tax to the government? If its just the matter of expenses, I can just claim my travel expense. To be honest, the home office rental won’t save me much. I just use it as a guideline to compare the accountants' knowledge.

I am not suggesting that you should go with the expenses one. But reading from your post, I thought he would get my vote.

Here are my brief thoughts on selecting an accountant

You need to go with one you like and get on with, knows the rules, regulations and one would save you tax within the law, meet the deadline filing of the tax return and payment of tax on time, easily contactable. Also some one who do not copy and paste when producing the accounts.

What you do not want is tax evasion which is illegal.

I suggest, ask all the accountant what services are covered? Also check what qualification they hold and what professional body they belong to. Also ask for the copy of an engagement letter & terms of the business. It would be a good bed time reading!

[SallyPlanIT]

Thanks Sally. I feel comfortable with accountant 3 as he can explain the concepts very well. But he charges on everything. If i want his advice, i have to pay actual 20 pounds each month. Otherwise, he charges 100 pounds each hour for giving advice. Also he refused to caculate the tax I need to pay because I havent appointed him. So basically he wont give any thoughts or advice, or do anything until i sign with him. Guess I probably wont go for him. All other accountants including online accountancy firm SJD all happy to give me rough idea how much i can take home tax free.

I would source a couple more contractor accountants who will be able to provide you with all the advice you need included within a fixed monthly fee. Hourly rates are what most high street accountants work on.
Pro-activity should be high on the list, it's no good advising you after the effect, i.e. after your financial year or tax year has ended.

[manclarky]

I would source a couple more contractor accountants who will be able to provide you with all the advice you need included within a fixed monthly fee. Hourly rates are what most high street accountants work on.
Pro-activity should be high on the list, it's no good advising you after the effect, i.e. after your financial year or tax year has ended.

I have been a contractor for over 14 years and have recently joined In Touch Accounting and found them (especially Clare) extremely friendly, helpful, knowledgeable and reasonably priced.....and believe me, I ask a lot of numb questions.