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Ditching Accountant - FreeAgent Only?

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    Ditching Accountant - FreeAgent Only?

    Hi there.

    I'm looking to remove the chain of Me --> Accountancy --> FreeAgent by removing the Accountancy. They are a well known outfit but have made some serious mistakes in the last six months. I can either migrate to another accountancy or DIY.

    With the limited co I have no specialist requirements or unusual expenses, no property income for example and it's a basic salary and dividends situation.

    With FreeAgent getting better and better, is it viable to just this solely to keep on top of salary RTI requirements, CT600 returns and maybe even year end accounts? Has anybody actually done this? I'm also happy to pay a local accountant some cash every year to sort out the year end accounts, should that be required, but paying the days of paying £100-120/month are over for me I think. It's worth looking at the number of accountancies struggling now and the big name brands performing atrociously, such as Nixon Williams, JSA and now SJD too. This forum is full of stories, although I can't quite believe that people have stayed with Nixon Williams since the VC buyout a couple of years ago. Caveat emptor.
    Unfortunately a higher monthly fee doesn't automatically mean better service.

    If anybody is using FreeAgent [or Xero/QuickBooks/something else] to DIY their Limited Co simple accounts then please reply with any caveats and general issues you have had.

    I'll still be engaging an accountant for self assessment sometimes, but am capable already of doing that myself, so see less and less reason to pay an accountancy to do what is already automated in FreeAgent.

    Thanks,
    AgentZero*

    (*Not an agent, but a contractor who avoids agencies)

    #2
    See Dispensing With Accountants - Contractor UK Bulletin Board - which was 4 posts below this one.
    merely at clientco for the entertainment

    Comment


      #3
      And to add to Eeks reply, have a go at a google search to find other threads on a similar topic, there are plenty.

      In google type in <keywords> site:forums.contractoruk.com

      Something like self accountant site:forums.contractoruk.com

      https://www.google.com/search?q=self...4dUDCA4&uact=5
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        It's probably worth the OP checking on what features FreeAgent offers these days. It's quite impressive. MTD for VAT, personal tax return submission and end of year filings.

        I did end of year accounts and filing using the gov.uk portal using the numbers from Quick File. It is a bit clunky but not difficult to do. The portal submits to both HMRC and Co House. Looks like FreeAgent makes it even easier.

        I have no idea how good the personal tax return is that comes with FreeAgent. For quite sometime now I have been doing my own tax returns using TaxCalc which doesn't cost a fortune (and an annual licence will do 6 tax returns in the year).
        Public Service Posting by the BBC - Bloggs Bulls**t Corp.
        Officially CUK certified - Thick as f**k.

        Comment


          #5
          Originally posted by Fred Bloggs View Post

          I have no idea how good the personal tax return is that comes with FreeAgent. For quite sometime now I have been doing my own tax returns using TaxCalc which doesn't cost a fortune (and an annual licence will do 6 tax returns in the year).
          I do my SATR directly on the HMRC site for free each year. It's simple if you don't have loads of investments and rentals and goodness knows what. One field for my salary, another for my dividends, job done.

          Comment


            #6
            Originally posted by ladymuck View Post

            I do my SATR directly on the HMRC site for free each year. It's simple if you don't have loads of investments and rentals and goodness knows what. One field for my salary, another for my dividends, job done.
            And why not? Indeed.

            I should say that having been tax resident in the UK and multiple other countries all at the same time for several years, the twenty something quid each year that I spent on TaxCalc has been worth every penny. (It prompts you if you enter something daft and there's wizards etc to guide you though the SATR). I hope this year or certainly next year, i will not be doing an SATR.

            It might be in any case that the SATR function in FreeAgent meets most folks needs anyway? I have seen no comments on that to date.
            Public Service Posting by the BBC - Bloggs Bulls**t Corp.
            Officially CUK certified - Thick as f**k.

            Comment


              #7
              Thanks for the responses. I did search, but could only really see FredBloggs having taken the leap of faith to DIYing accounts.

              There are some problems with FreeAgent for year end accounts, from reading their FAQ. It can't handle negative corporation tax if CT ends up being a negative calculation due to offsetting.

              An accountant or accounting firm is also called upon for references for mortgages, some projects that require clearances and other matters.

              Given that we only have one person who has responded that they are DIYing accounts, I have concerns that the lack of accountant will cause hassle when requiring an accounting reference. How have you dealt with that FredB? Can FreeAgent themself be a reference or a business bank account? With high retained funds and years of accounts available to, for example, the mortgage provider, I would've thought that would suffice, but I also imagine the squeeze on contracting will mean the banks are discouraged from giving references to PSCs and would rather we all disappeared.

              Comment


                #8
                Originally posted by eek View Post
                See Dispensing With Accountants - Contractor UK Bulletin Board - which was 4 posts below this one.

                I see people stating that they want to go down the route, but haven't yet. I also see an accountant posting what seems to be worry that people are considering this, but then cites misinformation from a website regarding RTI.

                This thread is specifically asking if FreeAgent itself is viable for DIY accounting, particularly with it being the largest firm offering DIY accounting services, with more users than QuickBooks or Xero combined.

                Comment


                  #9
                  Free agent only started to offer CT600 to none accountants last year - so few people will be in the position to have used it yet.
                  merely at clientco for the entertainment

                  Comment


                    #10
                    I know some small businesses who are using it, but they work the retail sector, so a very different ball game to ours.

                    I suspect a half way solution is possible, in which year end accounts are completed by a local accountant. The authentication provided by this could be invaluable for getting a mortgage, business loan and other matters. If I was investigating a business and they stated that they completed all their own accounts and ratified it themselves then it would raise an eyebrow. Finding a good local accountant is difficult. I know that the major large outfits purposefully charge very high fees for a once a year input to complete year end accounts to persuade you to take out the yearly package or monthly package with a minimum one year commitment.

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