First End Of Year Accounts - What should I be expecting?!

[SimonMac]

My Ltd's first year is coming to an end on the 3rd October, so starting to get my head around what I need to do. Upto now I have not used an accountant for the day to day stuff like salary, mileage and VAT returns etc, so obviously I'll need to get in touch with one for the end of year.

Question 1

Is there any benefit finding a "contractor specialist"? I'd prefer a local one who I can talk to face to face

Question 2

What will I need to take to them, my head say's everything but can I take too much information? And in what format? I am using a series of spreadsheets from DIY Tax Accounting Software, Payroll Software, Company Formation UK so would they want hard copies? Flash drive with files on?

Question 3

What should I expect to pay? I know this is a how long is a piece of string question as circumstances will vary but pall park?

[Clare@InTouch]

If you started your company in October last year then the year end would default to the end of the month, so it would be 31 October.

Take bank statements, your spreadsheet and copies of any invoices. That should be all that's necessary to prepare a set of accounts. Scans should be fine, no need to take a bundle of actual paperwork.

The fee will vary depending on how tidy your records are, and how much time it takes to complete the accounts. Some accountants will charge a set fee, others will work on a time basis. I'd say between £600 to £800 would be normal if it's a full trading year.

Try getting quotes from contractor specialists and local firms, and go with who you feel most comfortable with. You should feel totally happy that you can rely on their advice, and know that you can question anything and everything until you get a satisfactory answer.

[Alan @ BroomeAffinity]

Importantly, get referrals for the accountant. I'd advocate using a specialist but I'm biased. Some horror stories about High Street firms not knowing their way round contractors' affairs. But then there are some contractor specialists who are useless as well. Do a bit of research is what I'd say.

[xoggoth]

I'd go with the local bloke. Apart from IR35 what is there about tax rules for contracting that does not also apply to employees? 24 month rule, 40% rule, what expenses are allowable and what are not, all just the same. My experiences with specialists have been horrendous, just awful service.

[Gonzo]

I'd go with the local bloke. Apart from IR35 what is there about tax rules for contracting that does not also apply to employees? 24 month rule, 40% rule, what expenses are allowable and what are not, all just the same. My experiences with specialists have been horrendous, just awful service.

I worked with one Contractor who went with the local guy. The local guy's other customers were all retail so he didn't know about the 24 month temporary workplace rules and advised that he probably shouldn't claim his travel and accommodation expenses. These were substantial because the contractor lived in Scotland and worked in London during the week.

[Alan @ BroomeAffinity]

I worked with one Contractor who went with the local guy. The local guy's other customers were all retail so he didn't know about the 24 month temporary workplace rules and advised that he probably shouldn't claim his travel and accommodation expenses. These were substantial because the contractor lived in Scotland and worked in London during the week.

I just took on a client from a fairly well-respected local firm and he had a whole host of issues caused by the accountant: salary set at £30k, not on VFRS, shares issued wrong (5% were on contractor's mum's name). Cost to client probably £10k all in. I know these issues aren't limited to local accountants - but you really should look for an accountant used and recommended by other contractors. IMO.

[d000hg]

SM are you planning to continue using accountants only for year-end, or to take this opportunity to sign up for a monthly service at the same time? The cost/per/year might not add up to much different and if you signed up now they might cut you a discount on your current end-of-year cost

I don't know if contractor-specialist firms particularly like end-of-year accounts, but if you go monthly I'd recommend Clare from a few posts above.

[BolshieBastard]

SM are you planning to continue using accountants only for year-end, or to take this opportunity to sign up for a monthly service at the same time? The cost/per/year might not add up to much different and if you signed up now they might cut you a discount on your current end-of-year cost

I don't know if contractor-specialist firms particularly like end-of-year accounts, but if you go monthly I'd recommend Clare from a few posts above.

Deffo find a specialist IT Contractor aware accountant. I've seen too many contractor's accounts done as if they were within IR35 by accountants who were not.

As you do quite a bit of your own work, I'd say probably 800 quid for YE accounts. However, my accountant does all my stuff except VAT as time to me is more imprtant than a couple of hundred quid being saved over the year.

Tell your accountant everything. He isnt an HMRC stooge.