Monthly accounting services worth it?

**NotAllThere** · 14 August 2013, 07:11

When I was in the UK last, I did all my own accounts and I'm not an accountant. If I was to move back to the UK, I'd use an accountant. As you are a chartered accountant, I cannot see any reason whatsoever for you to use someone else's services.

**malvolio** · 14 August 2013, 07:20

The accountancy is easy. I only outsource it because I gave up being an accountant 30 years ago and have no desire to go back to the donkey work of the various year end form filling; life's too short. As long as you are up to speed on the relevant legislation and keep up with the constant changes (joining the PCG will cover that off) you can surely do it for yourself.

However, lesson learned. Agencies know nothing about running a freelance contracting business and work to a set (and usually self serving) script. Don't ever use them as a source of advice.

**The Spartan** · 14 August 2013, 07:22

WNATS

Being as you're an accountant you should find it pretty easy to do compared to say me who's forte is software testing, I pay for a monthly service and find it extremely useful but then I don't have a background in finance and personally hate reading anything HMRC produce as it's as clear as mud.

**GazCol** · 14 August 2013, 07:39

Originally posted by guy656 View Post

Hi all
I'm new to daily rate contracting - I have just got a job through Hays - I have to go and see them today and the consultant is suggesting I go through limited company and they have some service which takes care of it all for about £100 per month.
My question is - is it really that difficult to do it (the accounting admin) on your own? I was thinking I just need to set up a limited company and open a business bank account. Then pay (say £1000 per month and the rest dividends leaving room for the corporation tax). Is the monthly admin to do it oneself really that difficult? I am a Chartered Accountant and although I haven't worked on small companies accounts and tax for years, I still know the principles and would have thought I could work out the forms (PAYE etc) required with some internet research.
Anyway - just wanted to check if other people have administered this on their own and how they found it?
Thanks
Guy

I would go with an accountant in your situation, but of your own choosing. Taking away payroll and VAT returns (which are far too easy to do yourself rather than pay for) and letting the accountant focus on corporation tax, self assessment, account filing and general tax advice – you’ll likely be able to find somebody for between the £550-£700 mark a year.

IMO it’s worth the small expense to the business to have the aid of somebody that’s familiar and up-to-date with legislation and working practices that can be called on for help and support should your business ever need it.

**Martin at NixonWilliams** · 14 August 2013, 08:18

Originally posted by guy656 View Post

Hi all
I'm new to daily rate contracting - I have just got a job through Hays - I have to go and see them today and the consultant is suggesting I go through limited company and they have some service which takes care of it all for about £100 per month.
My question is - is it really that difficult to do it (the accounting admin) on your own? I was thinking I just need to set up a limited company and open a business bank account. Then pay (say £1000 per month and the rest dividends leaving room for the corporation tax). Is the monthly admin to do it oneself really that difficult? I am a Chartered Accountant and although I haven't worked on small companies accounts and tax for years, I still know the principles and would have thought I could work out the forms (PAYE etc) required with some internet research.
Anyway - just wanted to check if other people have administered this on their own and how they found it?
Thanks
Guy

I cannot give you my personal experience, though many of our clients are chartered accountants and although they are perfectly capable of operating a limited company, it seems that having the time to keep on top of things is more of a difficulty than the actual filing of the returns etc.

You mention that you have not worked with small company accounts for a while - I assume you are aware of iXBRL and RTI reporting requirements?

Martin

**Contreras** · 14 August 2013, 08:25

Originally posted by guy656 View Post

Hi all
I'm new to daily rate contracting - I have just got a job through Hays - I have to go and see them today and the consultant is suggesting I go through limited company and they have some service which takes care of it all for about £100 per month.
My question is - is it really that difficult to do it (the accounting admin) on your own? I was thinking I just need to set up a limited company and open a business bank account. Then pay (say £1000 per month and the rest dividends leaving room for the corporation tax). Is the monthly admin to do it oneself really that difficult? I am a Chartered Accountant and although I haven't worked on small companies accounts and tax for years, I still know the principles and would have thought I could work out the forms (PAYE etc) required with some internet research.
Anyway - just wanted to check if other people have administered this on their own and how they found it?
Thanks
Guy

They could be offering you the services of an umbrella company, in which case you receive everything as PAYE and no flexibility in managing your own tax affairs but with the upside of less admin and IR35 is a non-issue.

If you want to go as Ltd Co. then it's not difficult. You can pay an accountant to do everything but remember it is YOU as director that is responsible.

Fwiw, I did all the registration and do all the PAYE, VAT, and monthly admin myself. I do not have an accounting background but I can drive a spreadsheet and reckon on average I spend an hour a month on admin (not including lurking/posting on CUK

). I pay an accountant (about £800+VAT) at year end to compile and submit the CT600 and Financial Statement. It doesn't save me any money doing it that way, and yes the admin can be tedious, but I feel a LOT more comfortable understanding my business.

First do some research on optimum salary/dividends (clue: £1k/mo it is not), as well as VAT & the Flat Rate scheme, and IR35. Then I would suggest speaking to (and ideally meeting with) a few accountants to discuss your plans and you should find the half hour or so with each quite productive and have a pretty good view at the end of it how you want to proceed.

**kevpuk** · 14 August 2013, 08:46

I reckon it is worth it, if for nothing else than allowing you to concentrate on what you do best.
I managed part-qualified ACCA, never really had the inclination to stick at it (was a dull permie job some time back which were happily paying for my studies...) and am pretty comfortable with the everyday bits and bobs; that said, I really cannot be bothered with the reams of paperwork, RTI and so on, and can rely on my Accountants to look after everything.
This is not to say that I do not take an interest, and have full understanding of what it going on with MyCo - I imagine Carla & co. @ Intouch yearn for the day/week/month when I don't badger them about somethine - but I have faith & confidence in the necessary being managed according to Hector.
Last point, the monthly fee is only a small portion of my day rate and therefore value.

**kingcook** · 14 August 2013, 09:24

I have an accountant and while he appears to not do much during the year, it is well worth the money to me as all the year end paperwork gets done, and he's on hand to answer any questions I have throughout the year.

I'd much rather do that than have to spend some weekends keeping up with accountancy practices/HMRC tax changes, not spending time with the family.

As someone else said, life's to short

**guy656** · 14 August 2013, 11:38

Thanks very much all! Life is too short seems to be a recurring comment so I might just get an expert at least for the year end. Thanks again - very useful to hear others experiences.

Monthly accounting services worth it?