Do I Need An Accountant? Just Started Out. Cost Control

[SteveMcadden1]

Ok - Very simple question guys.

Do I actually need an accountant at this stage?

I have opened a company and set up a bank account.

I can send invoices to the client who will pay me. I want to get paid my salary at year end only once and dividends in one lump sum.

Can I just leave the money paid by client in bank account and then ask the accountant to prepare the taxes at year end and calculate Paye / NI and so on?

[sweetandsour]

I can send invoices to the client who will pay me. I want to get paid my salary at year end only once and dividends in one lump sum.

Can I just leave the money paid by client in bank account and then ask the accountant to prepare the taxes at year end and calculate Paye / NI and so on?

What about VAT?

I think you might need that accountant sooner rather than later.

[TroubleAtMill]

My accountants asks me to pay VAT and PAYE/NIC every quarter. I have no idea if it's strictly necessary but it keeps me aware that I should always have enough in the bank account to pay Hector.

I would recommend getting in an accountant as soon as you can, paying it out of your personal funds if necessary until your invoices are paid. It's only 1/2 a day's work for most contractors after all.

[malvolio]

My accountants asks me to pay VAT and PAYE/NIC every quarter. I have no idea if it's strictly necessary but it keeps me aware that I should always have enough in the bank account to pay Hector.

Precisely why the OP should get an accountant.

FFS, you're running a business for which you are personally responsible. At least have the wit to find out some of the basics.

Fscking amateurs...

[smalldog]

Ok - Very simple question guys.

Do I actually need an accountant at this stage?

I have opened a company and set up a bank account.

I can send invoices to the client who will pay me. I want to get paid my salary at year end only once and dividends in one lump sum.

Can I just leave the money paid by client in bank account and then ask the accountant to prepare the taxes at year end and calculate Paye / NI and so on?

You can do the VAT yourself, you can work out PAYE and NICs and pay them yourself directly to HMRC....You basically can do everything yourself BUT accountants take the hassle factor out of most of it...You will need an accountant to do your year end accounts....You only need to register for VAT once you hit a threshold but again you dont need an accountant for that....VAT submission is a piece of cake, you fill in one form showing VAT on sales and purchase and pay them the amount due each quarter...in the words of Meerkats...simples....

By the sounds of it yours will be very easy, one payment run each year....I would look to get an accountant to just prepare your year end and pay them for that rather than monthly payment by SO or DD etc. Doesnt sound like you need their services, BUT if it gives you piece of mind then get one onboard..

Dont fall for the trap that I know of where some contractors are paying about £150 per month for an accountant whose services basically entail them being on the end of a phone just in case, submitting one VAT form a quarter (10 mins work) getting them to do a payslip run once a year (pressing a button on an accounts package and sending you PDF payslips, again 10 mins work)...and preparing accounts which takes them a day or so (depending on complexity)...they can be a swizz and ripoff

[gingerjedi]

What about VAT?

I think you might need that accountant sooner rather than later.

VAT is easy (invoice total x .115 I think?), I've started doing that myself as it's less hassle than sending the form off and waiting for the accountant... I should ask for a rebate!

[TroubleAtMill]

Precisely why the OP should get an accountant.

FFS, you're running a business for which you are personally responsible. At least have the wit to find out some of the basics.

Fscking amateurs...

Consider me appropriately chastised!

[sweetandsour]

VAT is easy (invoice total x .115 I think?), I've started doing that myself as it's less hassle than sending the form off and waiting for the accountant... I should ask for a rebate!

I agree that it is easy to do - but the OP didn't seem to realise that they needed to do it.

That's why I think they need an accountant.

[SteveMcadden1]

I agree that it is easy to do - but the OP didn't seem to realise that they needed to do it.

That's why I think they need an accountant.

Well i ve just gone through 'voluntary' registering for the hmrc vat...

Bad move in retrpospect as it means I can no longer do the Flat Rate Tax I am now reading about

I think I am going to throw the towel in...

Can you withdraw a VAT registration request and will it affect FRT registration??

[PhilAtBFCA]

Do I need an accountant

SteveMcadden1

Hi Steve,

No you do not need an accountant at all you could actually do everything yourself, including all the relevant filings with HMRC and Companies House.

If you do not know what to do, then you may well need some help, and an accountant may be able to offer that.

If you need an accountant, then not having help until the end of the year, is in my view a false economy. The fee you pay an accountant is an annual fee, some may spread that over a year, but the fee will be the same if you get their help now or in a years time.

It may be more expensive in a years time, if the accountant has to correct any errors that could have been prevented with a bit of advice.

Once you are registered for paye, for instance, you have to make quarterly payments and declarations for paye - so why not run payroll anyway, its easy if you choose a simple system or get an accountant to do it for you ( or both !)

What about IR35 ? If you are on a contract have you considered it yet ?

What about vat ? It is possible that you could gain from being registered.

Not having the right help early on, may well be a false economy.

And I agree with Smalldog, dont get trapped into paying £150 a month, totally unnecessary !

Phil