Reply to: What should I be asking potential accountants

[WordIsBond]

On this, do you mean claim every legitimate expense available or bump up say mileage expenses if on the low side, or both ?

Some things are clear, but other things are debatable, as to whether they are legitimate expenses. I want to know what the accountant's own approach is to those things. I interviewed one guy whose risk approach was about 10.5 on a scale of 1-10. No thanks. He probably gets away with just about everything he claims, but if he were advising me and I ever got investigated I'd be very nervous.

Also, if he's more cautious than me, I want to know if he's willing to work according to my terms or not. If he's more aggressive/risky than me, I want to know if he'll advise me on my terms or is he going to work to his own inclination. Even more, I want to hear how he handles that kind of question, because it tells me a lot about him as a person.

AND, yes, if he is going to advise me to artificially bump up my mileage expenses higher than are legitimate if he thinks I can get away with it, I want to know that, too. If he were going to advise me that way, this question might bring it out, at which point I'd end the interview and walk.

[malvolio]

On this, do you mean claim every legitimate expense available or bump up say mileage expenses if on the low side, or both ?

You claim any expenses you are entitled to, to the level you have paid out for. Anything else is either fraudulent or expensive.

The other question to ask any accountant tis are they IPSE Accredited. If they are, they will have a much better handle on the peculiarities of our way of working.

As for meeting them or even having the same one month on month, neither are actually that important.

[kaiser78]

1. "Should I take £8K or £11K in salary this year? Which is better and why?"
2. "What is your view on making a wife a shareholder and either company secretary or director? What share holding split would you recommend if I do this? Can I pay my wife a salary if I do this, and how much of a salary should I pay? Are there any drawbacks or risks here?"
3. "At times, I'd ask your advice on expenses. On a scale of 1-10, 1 being extremely cautious and 10 being aggressive in claiming everything I can, where would your advice fall on that scale?" And follow-up, after the answer is given, "If I told you that I want to be more aggressive than that, would you be prepared to advise me according to my own risk attitude rather than yours, explaining the risks to me? If I told you I want to be more cautious than you've described, would you advise me according to my standard rather than yours?"
4. "Can I have a company paid 'Christmas party' where I take my wife out and the company pays? If so, what is the limit I can spend? If not, why not?"
5. "If I have contracts with the same client for more than 2 years, does that mean I'm inside IR35?"
6. "Do you recommend my company make pension contributions for me? Why or why not?"
7. "Is there any way my company can buy life insurance for me tax free? What about private medical insurance? Critical illness cover? Can I get any of these for my wife?"
8. "Should I take out all my profits after tax in dividends every year?"

The answers to those will tell you a lot about the way an accountant thinks, and some of them will let you know whether he knows his stuff or not. It will also just give you more of an opportunity to find out if you like him/her.

On this, do you mean claim every legitimate expense available or bump up say mileage expenses if on the low side, or both ?

[john@UKCA]

wanted some advise about what would I be asking in specific? Thank you.

Ask them if they are FRS102 compliant yet.

[northernladuk]

Just pulling your leg dude since you brought up the correct spelling/grammar thing

Believe me I'm the last person that should be correcting Grammar . TheFaQQer is the Grammar Nazi round here. I just get frustrated the number of time people put advise rather than advice. You'll get a quick response using their, there, they're wrong here as well. It's part of the forum banter. Someone said it's because I can't win an argument I have to pick on the Grammar... I'll let you decide if that's true or not Kudos for not throwing the teddy out of the cot and flouncing like some do.

Next step is for you to post in General and come out in one piece.......

[midlandscontractor]

The force is strong with this one. Lol.

Just pulling your leg dude since you brought up the correct spelling/grammar thing

[northernladuk]

I'd have to read that thread again to see what I said. I'm more interested in securing the gig and not rocking the boat over my opt in/out status. Maybe I'm being to blasé about it though.

P.S... Advice not advise

P.P.S...too not to :P

The force is strong with this one. Lol.

[midlandscontractor]

I'd have to read that thread again to see what I said. I'm more interested in securing the gig and not rocking the boat over my opt in/out status. Maybe I'm being to blasé about it though.

P.S... Advice not advise

P.P.S...too not to :P

[Dactylion]

I like to meet my accountant face to face....

So do I.
It might be old fashioned but I prefer to do business with people. I feel that I benefit from personal interaction.

Then you are just weird.

Not weird at all - see above.

Very unusual, I doubt if even 1% meet their accountant each year.

Quite possibly unusual but I cannot comment as to %age.

It's a personal preference thing I know and not necessarily weird.

Quite.

I like to buy things from shops. I walk into the shop and speak to a person, ask advice etc etc.
I could buy pretty well everything via online systems and never need to speak to a real person.

Buying things in shop might actually cost me more but it is a better experience and had the side effect that local businesses can still exist - if no one shopped in real shops they would cease to exist the world would be a poor place for it.
As an strange paradox my using a local accountant is actually considerably cheaper than using many of the major online providers but the service I receive is arguably better.
I am certainly confident that all my accountancy stuff is done by a qualified accountant, much of the stuff done by the online providers is done by lowly qualified staff not accountants.
I am also confident that all of the advice etc provided is specific to me, many of the online providers use a very generic model so that all contractors are treated "the same".

So in my opinion I get a better service for a better price therefore I find it difficult to understand why others would pay more for a lesser service, I might even suggest that it was weird.

[northernladuk]

Thanks for the reply NLUK - I'm of the same opinion don't really see it as big issue opting in/out as I'm going to be paid weekly (minimum risk there), don't have plans to go permit with the client and also know the client doesn't hire contractors directly.

P.S...I know, blame it on auto correct on the phone!

That damn autocorrect again

[midlandscontractor]

Thanks for the reply NLUK - I'm of the same opinion don't really see it as big issue opting in/out as I'm going to be paid weekly (minimum risk there), don't have plans to go permit with the client and also know the client doesn't hire contractors directly.

P.S...I know, blame it on auto correct on the phone!

[northernladuk]

Following advise given here I have spoken to a few accountants and discussed services and what's included in monthly charge etc. One conversation stands out from Gorilla accounting who advised I should accept an opt out contract as it would keep me outside of IR35. From what I've read on this forum to me opting out has nothing to do wit IR35.

NorthenLad - you mentioned being with Gorilla, what's your view? I thought from reading the long opt/in thread you were a strong advocate of opting out. Any advise here?

Thanks

My opinion is Gorilla do my accounts (very well) and the rest of running my business is down to me to research and understand, particularly my IR35 status. Everyone around us will offer advice, help and guidance but so much of it is down to individual interpretation. I'd go to an IR35 specialist for the answer to this. If they made a comment on my accounts I'd take it on board but go back and ask my accountant....If that makes sense.

It's arguable opting out of regs makes you look like a business but the detail and effect on IR35 may indicate it's not really an issue but no one really knows until it's tested.

I'd have to read that thread again to see what I said. I'm more interested in securing the gig and not rocking the boat over my opt in/out status. Maybe I'm being to blasé about it though.

P.S... Advice not advise


EDIT : Here is an example of why it's all about interpretation. The specialists inc QDOS tend to use woolly words like 'May' or 'could' cause a problem. You can see why on the face of it but the detail opens it to interpretation. Roger even goes as far as to offer his belief rather than the word of law which is interesting.

http://www.contractoruk.com/agencies...pt-out.html_0/

3 IR35: There was much discussion in the course of the battle over whether or not the inclusion of limited company contractors within the regulations would be an IR35 negative; if it is an IR35 negative, then in my view it will be a very minor one, but I myself believe that operating within or without the regulations will be an IR35 neutral point. Indeed, I would say the taking of a decision to avail oneself of the commercial protection of the regulations and not opt out could be argued to be an IR35 positive, since it is exercising sound management principles to take a commercial decision in the best interests of the business, for reasons other than tax.

[midlandscontractor]

Interesting conversations with Accountants- NLUK what do you think?

Following advise given here I have spoken to a few accountants and discussed services and what's included in monthly charge etc. One conversation stands out from Gorilla accounting who advised I should accept an opt out contract as it would keep me outside of IR35. From what I've read on this forum to me opting out has nothing to do wit IR35.

NorthenLad - you mentioned being with Gorilla, what's your view? I thought from reading the long opt/in thread you were a strong advocate of opting out. Any advise here?

Thanks

[Louisa@InTouch]

Yes, arrange a call with your personal accountant and it will give you a good feel in terms of your relationship going forward.

You can ask them some technical questions too, to make sure you start off on the right foot

[midlandscontractor]

Thank you all!

Thanks for all the replies, I've got a good list of questions to answer and from reading the list I realise I will need the account to explain a lot it. So if I understand better after a chat they're probably the right accountant for me.

And no I don't have a wife or husband but do have partner but I didn't think he could be a shareholder in my company as he is a permanent PAYE employee of another company.

So far I've had good communication with inTouch, SJD and Accountsnet - but only their 'sales' team on the phone. Have arranged for discussions with their accountants and will take it from there. Another company that looked good to me from their website was paperrocket - I've read the thread where they're mentioned but didn't read any personal recommendations - anyone using them??

Thanks again everyone!