Reply to: End of year accounts with new accountant

[Alan @ BroomeAffinity]

Update: the accountants had in fact not even had a look at any business receipts and pretty much only taken into account business mileage, for reasons unknown to me as I made sure it was easy for them to go through everything. That would explain the confusion over the figures we were given.
They're now working on it.

And you’re paying for this? Get out pronto. And as advised get involved with a freeagent accountant.

[squidlet]

Okay thanks I'll do it manually in that case.

Yeah it's the first year end accounts I've sent and I realise I should have kept/sent copies.

I think everything is getting ironed out now anyway, thank you!

[northernladuk]

Even if you can't oink to the account you can still do bulk uploads, or manual transaction input.

I love oinking my account.

[Lance]

I say we because we work as a team but I keep my expenses separate from him and his business. He has his own residence and money in the UK, I have mine in France, none of my receipts or joint receipts end up in the business pile. The accountant knows about the situation, they're working on it.

I'm also doing as much research as I can on many topics discussed on this forum and consulting with some experienced people so I can hopefully have a better grasp on it all.

FreeAgent seems pretty good so far, unfortunately I won't be able to link the Euro account which is the main one I'm afraid because it's only a holding account. I don't know if it's a big issue, at least I can keep track of the other things.

Even if you can't oink to the account you can still do bulk uploads, or manual transaction input.
The main advantage with Freeagent, or other bookkeeping software is you can keep it up to date yourself. No more shoeboxes stuffed with receipts that need a weeks work every year.

I note earlier that you've given the receipts to your accountant. Thus is not normally how it would be done. If you keep the books yourself, and stay on top of it then you'll know any answers before the accountant does. That way you're double checking his work and he's double checking yours. Far fewer mistakes that way IMO.

[squidlet]

I say we because we work as a team but I keep my expenses separate from him and his business. He has his own residence and money in the UK, I have mine in France, none of my receipts or joint receipts end up in the business pile. The accountant knows about the situation, they're working on it.

I'm also doing as much research as I can on many topics discussed on this forum and consulting with some experienced people so I can hopefully have a better grasp on it all.

FreeAgent seems pretty good so far, unfortunately I won't be able to link the Euro account which is the main one I'm afraid because it's only a holding account. I don't know if it's a big issue, at least I can keep track of the other things.

[northernladuk]

Perhaps............. In my own experience that is likely a rather optimistic explanation, but not beyond the realms of possibility, naturally. For starters, if I had Mrs Bloggs following me around Europe, how would the accountant even know this? (Unless, of course you told them).

Some of the receipts would be for the two of you. Meals, flights etc. Surely the accountant should be spotting this and querying it. Same for the the fact they are in countries with a a different tax regime.

That said I'd guess the accountant isn't checking or querying very well and the OP has taken what they want to hear rather than head the warnings so they will get what they want even though there is a possibility it's not quite correct.

[Fred Bloggs]

Perhaps............. In my own experience that is likely a rather optimistic explanation, but not beyond the realms of possibility, naturally. For starters, if I had Mrs Bloggs following me around Europe, how would the accountant even know this? (Unless, of course you told them).

Yes, as I expected, that expectation was WAY to optimistic!

[Fred Bloggs]

Update: the accountants had in fact not even had a look at any business receipts and pretty much only taken into account business mileage, for reasons unknown to me as I made sure it was easy for them to go through everything. That would explain the confusion over the figures we were given.
They're now working on it.

It's time you switched to FreeAgent. That way it is YOU who is in complete control of this stuff day by day and in real time.

[squidlet]

Update: the accountants had in fact not even had a look at any business receipts and pretty much only taken into account business mileage, for reasons unknown to me as I made sure it was easy for them to go through everything. That would explain the confusion over the figures we were given.
They're now working on it.

[Fred Bloggs]

If you travel with him then approximately 50% of the expenses aren't allowed as a start though it could be higher than this.

This is why your accountant disregarded so much of your expenses.

Perhaps............. In my own experience that is likely a rather optimistic explanation, but not beyond the realms of possibility, naturally. For starters, if I had Mrs Bloggs following me around Europe, how would the accountant even know this? (Unless, of course you told them).

[SueEllen]

And even his will a problem as he's staying weekends so duality of purpose or BiK or summat? At the very least 5/7ths.

Not necessarily. The rules are different if you are abroad. You can stay some weekends and claim it but you need to show that where ever you live in that country is temporary.

The big thing here is:
1. the spouse/partner going everywhere with him, and,
2. the lack of permanent UK address which is illustrated by 1, and,
3. not paying taxes in the countries worked in.

I'm actually surprised no foreign taxman has chased and found them yet. For starters the taxman in the Nordic countries and Germany are very efficient in working out where you are so you don't screw with them.

[northernladuk]

If you travel with him then approximately 50% of the expenses aren't allowed as a start though it could be higher than this.

This is why your accountant disregarded do much of your expenses.

And even his will a problem as he's staying weekends so duality of purpose or BiK or summat? At the very least 5/7ths.

[northernladuk]

I’m finding the term “we” troubling in the comments. If you’re travelling with him and and part of the expense, this may well have an impact on the allowability of he expenses.

Good spot. I asked the question about other issues in post 5 as this has 'information trickle feed' written all over it and guessed it would end up in a long convoluted thread while we extract all the relevant information. I didn't expect that though.

I'd guess if they rent in the UK and actually spend more time away from their temporary location than at it then the whole expenses thing becomes questionable? Each place would be come permanent just by arriving there as they have no permanent base to travel to a temporary one from ergo no expenses allowed at all?

[SueEllen]

Yes I have seen the HMRC rates https://www.gov.uk/government/upload...ence_rates.pdf.
We mostly find accommodation on Airbnb and rent privately, and always cook our own meals so I am aware the rate won't be as high. I'll definitely have to check with the accountant to see if and what they've claimed in regards to this.

If you travel with him then approximately 50% of the expenses aren't allowed as a start though it could be higher than this.

This is why your accountant disregarded so much of your expenses.

[Alan @ BroomeAffinity]

I’m finding the term “we” troubling in the comments. If you’re travelling with him and and part of the expense, this may well have an impact on the allowability of he expenses.