Will accountant really save money?

[diseasex]

Hi guys, im starting my first gig in few weeks and I have a question:
I heard that good accountant is worth it as it will save more money than he takes.
Is that true? I believe I can do all the necessary calculations by myself and its just income - claimable expenses etc with some tool like quickfile...
Is it worth to get an accountant in my case?

[northernladuk]

Do you know all about current legislation and rules? Do you keep on top of them? Do you know all the rules about expenses and what is and isn't allowed? directors loans, tax thresholds and so in and so on? No? You make a mistake which costs you say £1200 in he hey presto you've paid for your accountant. That's just deal with the stuff you know about. How much are you losing by not claiming certain things etc.

That statement is completely true and you should get an accountant.

[stek]

Hi guys, im starting my first gig in few weeks and I have a question:
I heard that good accountant is worth it as it will save more money than he takes.
Is that true? I believe I can do all the necessary calculations by myself and its just income - claimable expenses etc with some tool like quickfile...
Is it worth to get an accountant in my case?

Depreciation, capital allowances, written down costs, treatment of bad debts, work in progress........

Go for it.....

[kevpuk]

Well worth the money in terms of how much time saved, professional knowledge and diligence.
Work out how much time you would spend on accounts, all of it, and figure out what you would charge (based on your day rate) for that work......I suspect, if you are candid about it, that the cost of the accountant is going to be less than the amount you would charge.

= Win Win

Besides, I part-qualified ACCA moons ago, and although I have (probably!) sufficient knowledge (albeit a little out-of-date) and ability, really could not be bothered - my time is too valuable

As a contractor, you are a paid expert on your specialist area. Your accountant is a paid expert on their specialist area - kind of the same thing, no?

[diseasex]

Depreciation, capital allowances, written down costs, treatment of bad debts, work in progress........

Go for it.....

I did my research on that and actually im running my ltd alone for few months , keeping books in order etc. There's not so much to it, to be honest I cant justify paying 1000+ for an accountant for the little work required and calculate few digits and work out how much taxfree I can pay to myself and how much by dividend.
I have yet to submit my accounts but I also know that Companies House or HMRC don't bother will small companies anyway
Well.. I just don't know

[kevpuk]

I have yet to submit my accounts but I also know that Companies House or HMRC don't bother will small companies anyway

[diseasex]

Does that sound naïve?

[cojak]

I did my research on that and actually im running my ltd alone for few months , keeping books in order etc. There's not so much to it, to be honest I cant justify paying 1000+ for an accountant for the little work required and calculate few digits and work out how much taxfree I can pay to myself and how much by dividend.
I have yet to submit my accounts but I also know that Companies House or HMRC don't bother will small companies anyway
Well.. I just don't know

Do not pass go. Pay out £100 in fines for late annual returns and £400 fines for not setting up your workplace pension when it comes in.

And as for thinking that CH and HMRC don't go after small companies - dream on...

[eek]

Does that sound naïve?

Well its as clueless as every other post you make here.

As a hint, HMRC have access to an awful large amount of metadata. They will compare your CT660 with your VAT returns and if things don't add up....

As for doing your CT660 personally. I hope you have a spare few days (I do my own but I'm paranoid about such things and have 2 accountants I can ask questions to)...

[kevpuk]

Does that sound naïve?

Well, HMRC definitely will care about small companies - still have taxes to pay. Companies House have requirements on form filing too.
Not only that, but there is IR35 to consider. An accountant's advise can be useful in tandem with contract review and working practices, in establishing correct salary/dividend structure......

Still, everyone will have their own approach My thoughts are that the cost of my accountants are less than 3 days invoicing - well worth it IMHO