To use an accountant or do it myself?

[LisaContractorUmbrella]

That's why I pay them, for the extra accounting tasks, not just to add up two numbers and hit Print.

When my client pays me 100% of what I ask for I always make sure they're happy and follow up with them. And if I was to hike up my rate by 20% after a few months I'd definitely go the extra mile, even if it's for a short period. Just saying, it's about quality of service these days and added value. Everyone can do the bare minimum, and if you can't it takes looking on Google and a few YouTube videos until you can.

Maybe I will. Although a client chasing the supplier/service provider is just p*** poor in my (limited) experience.

You seem to be under the misapprehension that an accountancy firm can just provide you with a booklet that will tell you everything you ever needed to know about running a Limited Company - unfortunately it doesn't work like that. If you take a look on the HMR&C website, the potential regulations that could apply to you and your Ltd run into hundreds and hundreds of pages and, unfortunately, tax law is anything but straightforward - there are always ifs, buts and maybes. Give your accountant as much information as you can about your circumstances and, if they are a good accountant,they will tell you what's best for you but they can't do that without information.

[kaiser78]

You seem to be under the misapprehension that an accountancy firm can just provide you with a booklet that will tell you everything you ever needed to know about running a Limited Company - unfortunately it doesn't work like that. If you take a look on the HMR&C website, the potential regulations that could apply to you and your Ltd run into hundreds and hundreds of pages and, unfortunately, tax law is anything but straightforward - there are always ifs, buts and maybes. Give your accountant as much information as you can about your circumstances and, if they are a good accountant,they will tell you what's best for you but they can't do that without information.

Agree - was reading over the weekend that the HMRC tax handbook is 3500 pages long !

[malvolio]

Agree - was reading over the weekend that the HMRC tax handbook is 3500 pages long !

In my early life as an accoutant, Tolley's was a single volume - a big one, admittedly. Now it needs a couple of bookshelves.

[Clare@InTouch]

In my early life as an accoutant, Tolley's was a single volume - a big one, admittedly. Now it needs a couple of bookshelves.

Indeed. And it's not only knowing the taxes, it's also knowing how they interact with each other. A course of action may be fine according to income tax law, but then you may get clobbered due to IHT or CGT.

It's having someone on your side when something goes wrong too. Knowing what rights you have, what rights HMRC have, and advising along the way.

[Nixon Williams]

I think I may have mentioned this before so apologies if I am repeating myself.

If I really put my mind to it, I could probably figure out how to service my car, put in a new kitchen, bathroom etc but I neither have the time or the inclination, so I employ a professional to do these tasks for me.

Most of our clients are highly intelligent and I am sure that most could, get their heads around the various tax and accounting rules, most however choose not to for the same reason I gave above.

You need to choose an accountant that you can trust and let them get on with their job, enabling you to use your time in a more constructive way.

It is your choice at the end of the day, I know what I choose, my free time is too limited to waste it doing something I would rather not.

Alan

[northernladuk]

If I really put my mind to it, I could probably figure out how to service my car, put in a new kitchen, bathroom etc but I neither have the time or the inclination, so I employ a professional to do these tasks for me.

Here is a good example. As handy as I am sure Alan is, does he know the regulations about earthbonding copper piping in his bathroom? He doesn't want to have to read the 17th edition Elec regs to do it so has to pay someone to do what appears to be a pretty basic service, but that person has knowledge of regulations that Alan doesn't. The most important part of bathroom installation is also the most intangible.

P.s I can give you a good price on the kitchen and bathroom if you want Alan.

[Wanderer]

If I really put my mind to it, I could probably figure out how to service my car, put in a new kitchen, bathroom etc but I neither have the time or the inclination, so I employ a professional to do these tasks for me.

Yeah, it's a fair point though sometimes it feels like I employ someone to change the wheel on my car and they leave one of the wheel nuts loose then tell me it's my fault for not checking them when I later find a wheel nut missing.

I can see why some people consider doing it themselves but the bottom line for the vast majority of people is if you have to ask if you need an accountant then the answer is YES, you do need one.

[samiyer]

Somebody might ask what my "questions" would be to an accountant so i'll outline the kind of stuff i'm worrying about.

1. I don't know how to structure it so that I pay the least tax possible, I think if I pay myself minimum wage and the rest in dividends it would work out fine, but i've heard that paying more in salary can reduce tax due to CT relief?

Let your accountant handle the work, not because you cannot do it, simply because you can do better things in the time saved on these things, in addition there will be never surety in your mind whether you have conducted a proper due diligence on the matter as there are and will be numerous taxation and accounting updates throughout the year!!

2. I've paid thousands in server hosting fees over the last year and a half while the company has been dormant, and I bought a server, all out of my own money. Can I claim all these costs back now? Even though the company was inactive and I assume the payments would be in a previous year?

There are several clauses for claiming preincorporation expenses, preliminary expenses etc, couple of due diligence has to be undertaken before deciding!!

3. I have also bought equipment that I only use for work (such as a macbook pro), can I simply sell this to the company in order to get money out of it tax free in the beginning?

Again, you need an accountants advice on this, no kidding!!

I am not telling all this because i work as an accountant or for an accounting company , on the contrary, i'd be more than glad to give free advices on tax and accountancy, however mentioned questions can be tricky, hence!!


https://www.linkedin.com/profile/vie...83&trk=tab_pro

[kingcook]

However, if you're keen to go alone, then FreeAgent is a great piece of software, BUT only if your contract falls outside of IR35 as it cannot handle deemed payments.

I found the IR35 checkbox on FreeAgent.

Projects -> ProjectName -> Edit Details -> More Options -> Is 'Employment' under IR35?