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Previously on "To use an accountant or do it myself?"

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  • kingcook
    replied
    Originally posted by Sally@InTouch View Post
    However, if you're keen to go alone, then FreeAgent is a great piece of software, BUT only if your contract falls outside of IR35 as it cannot handle deemed payments.
    I found the IR35 checkbox on FreeAgent.

    Projects -> ProjectName -> Edit Details -> More Options -> Is 'Employment' under IR35?

    Leave a comment:


  • samiyer
    replied
    £100 even with VAT is too much for accounting fees... i'd agree with you

    Somebody might ask what my "questions" would be to an accountant so i'll outline the kind of stuff i'm worrying about.

    1. I don't know how to structure it so that I pay the least tax possible, I think if I pay myself minimum wage and the rest in dividends it would work out fine, but i've heard that paying more in salary can reduce tax due to CT relief?

    Let your accountant handle the work, not because you cannot do it, simply because you can do better things in the time saved on these things, in addition there will be never surety in your mind whether you have conducted a proper due diligence on the matter as there are and will be numerous taxation and accounting updates throughout the year!!

    2. I've paid thousands in server hosting fees over the last year and a half while the company has been dormant, and I bought a server, all out of my own money. Can I claim all these costs back now? Even though the company was inactive and I assume the payments would be in a previous year?

    There are several clauses for claiming preincorporation expenses, preliminary expenses etc, couple of due diligence has to be undertaken before deciding!!

    3. I have also bought equipment that I only use for work (such as a macbook pro), can I simply sell this to the company in order to get money out of it tax free in the beginning?

    Again, you need an accountants advice on this, no kidding!!

    I am not telling all this because i work as an accountant or for an accounting company , on the contrary, i'd be more than glad to give free advices on tax and accountancy, however mentioned questions can be tricky, hence!!


    https://www.linkedin.com/profile/vie...83&trk=tab_pro

    Leave a comment:


  • Wanderer
    replied
    Originally posted by Nixon Williams View Post
    If I really put my mind to it, I could probably figure out how to service my car, put in a new kitchen, bathroom etc but I neither have the time or the inclination, so I employ a professional to do these tasks for me.
    Yeah, it's a fair point though sometimes it feels like I employ someone to change the wheel on my car and they leave one of the wheel nuts loose then tell me it's my fault for not checking them when I later find a wheel nut missing.

    I can see why some people consider doing it themselves but the bottom line for the vast majority of people is if you have to ask if you need an accountant then the answer is YES, you do need one.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Nixon Williams View Post
    If I really put my mind to it, I could probably figure out how to service my car, put in a new kitchen, bathroom etc but I neither have the time or the inclination, so I employ a professional to do these tasks for me.
    Here is a good example. As handy as I am sure Alan is, does he know the regulations about earthbonding copper piping in his bathroom? He doesn't want to have to read the 17th edition Elec regs to do it so has to pay someone to do what appears to be a pretty basic service, but that person has knowledge of regulations that Alan doesn't. The most important part of bathroom installation is also the most intangible.

    P.s I can give you a good price on the kitchen and bathroom if you want Alan.

    Leave a comment:


  • Nixon Williams
    replied
    I think I may have mentioned this before so apologies if I am repeating myself.

    If I really put my mind to it, I could probably figure out how to service my car, put in a new kitchen, bathroom etc but I neither have the time or the inclination, so I employ a professional to do these tasks for me.

    Most of our clients are highly intelligent and I am sure that most could, get their heads around the various tax and accounting rules, most however choose not to for the same reason I gave above.

    You need to choose an accountant that you can trust and let them get on with their job, enabling you to use your time in a more constructive way.

    It is your choice at the end of the day, I know what I choose, my free time is too limited to waste it doing something I would rather not.

    Alan

    Leave a comment:


  • Clare@InTouch
    replied
    Originally posted by malvolio View Post
    In my early life as an accoutant, Tolley's was a single volume - a big one, admittedly. Now it needs a couple of bookshelves.
    Indeed. And it's not only knowing the taxes, it's also knowing how they interact with each other. A course of action may be fine according to income tax law, but then you may get clobbered due to IHT or CGT.

    It's having someone on your side when something goes wrong too. Knowing what rights you have, what rights HMRC have, and advising along the way.

    Leave a comment:


  • malvolio
    replied
    Originally posted by kaiser78 View Post
    Agree - was reading over the weekend that the HMRC tax handbook is 3500 pages long !
    In my early life as an accoutant, Tolley's was a single volume - a big one, admittedly. Now it needs a couple of bookshelves.

    Leave a comment:


  • kaiser78
    replied
    Originally posted by LisaContractorUmbrella View Post
    You seem to be under the misapprehension that an accountancy firm can just provide you with a booklet that will tell you everything you ever needed to know about running a Limited Company - unfortunately it doesn't work like that. If you take a look on the HMR&C website, the potential regulations that could apply to you and your Ltd run into hundreds and hundreds of pages and, unfortunately, tax law is anything but straightforward - there are always ifs, buts and maybes. Give your accountant as much information as you can about your circumstances and, if they are a good accountant,they will tell you what's best for you but they can't do that without information.
    Agree - was reading over the weekend that the HMRC tax handbook is 3500 pages long !

    Leave a comment:


  • LisaContractorUmbrella
    replied
    Originally posted by dmo View Post
    That's why I pay them, for the extra accounting tasks, not just to add up two numbers and hit Print.

    When my client pays me 100% of what I ask for I always make sure they're happy and follow up with them. And if I was to hike up my rate by 20% after a few months I'd definitely go the extra mile, even if it's for a short period. Just saying, it's about quality of service these days and added value. Everyone can do the bare minimum, and if you can't it takes looking on Google and a few YouTube videos until you can.

    Maybe I will. Although a client chasing the supplier/service provider is just p*** poor in my (limited) experience.
    You seem to be under the misapprehension that an accountancy firm can just provide you with a booklet that will tell you everything you ever needed to know about running a Limited Company - unfortunately it doesn't work like that. If you take a look on the HMR&C website, the potential regulations that could apply to you and your Ltd run into hundreds and hundreds of pages and, unfortunately, tax law is anything but straightforward - there are always ifs, buts and maybes. Give your accountant as much information as you can about your circumstances and, if they are a good accountant,they will tell you what's best for you but they can't do that without information.

    Leave a comment:


  • Danielsjdaccountancy
    replied
    Originally posted by escapeUK View Post
    Just a thought, are SJD responsible for making a mistake in the accounts they prepare, or is the client? In other words do clients have to check your work?
    I encourage all clients to check our work.

    We are only advisors and therefore responsibility falls on the director.

    I try to give my clients the best advice possible so they understanding how their businesses are being run as this will help them to spot any potential mistakes. Remember you guys know your businesses better than anyone.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by dmo View Post
    That's why I pay them, for the extra accounting tasks, not just to add up two numbers and hit Print.
    But that is all you are going to get for £100 a month. Again you are over simplifying what they do, at first it was just one file, now it is VAT. I do understand what you say but I don't think you are being wholly fair. They are available to you any time you need which is a service and the rest.

    When my client pays me 100% of what I ask for I always make sure they're happy and follow up with them. And if I was to hike up my rate by 20% after a few months I'd definitely go the extra mile, even if it's for a short period. Just saying, it's about quality of service these days and added value. Everyone can do the bare minimum, and if you can't it takes looking on Google and a few YouTube videos until you can.
    Yet again missing the point. 100% of peanuts is still peanuts. It doesn't matter if it is 100% or 50%. It is 100 quid. I bill my client more than that for having dumps in a month and I am sure an accountants hourly rate is a lot more than mine!

    Maybe I will. Although a client chasing the supplier/service provider is just p*** poor in my (limited) experience.
    Which is because you are not understanding the relationship, the value and the expectation IMO.

    Leave a comment:


  • dmo
    replied
    Originally posted by northernladuk View Post
    It isn't as simple as that, they will keep you on top current legislation and keep you at the current rates as they change. Do they not help you with VAT.
    That's why I pay them, for the extra accounting tasks, not just to add up two numbers and hit Print.

    They do not know your business, only you do that, they provide a service so you cannot rely on them for everthing. You need to strike up a relationship and keep in touch. Ask about stuff, ideas, areas that convern you and they will advise the best approach. That is about it. You pay 100 quid. How proactive for you clinet would you be for 100 a month?
    When my client pays me 100% of what I ask for I always make sure they're happy and follow up with them. And if I was to hike up my rate by 20% after a few months I'd definitely go the extra mile, even if it's for a short period. Just saying, it's about quality of service these days and added value. Everyone can do the bare minimum, and if you can't it takes looking on Google and a few YouTube videos until you can.

    Ask about stuff, ideas, areas that convern you and they will advise the best approach.
    Maybe I will. Although a client chasing the supplier/service provider is just p*** poor in my (limited) experience.
    Last edited by dmo; 24 June 2012, 21:48.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by dmo View Post
    Having contracted for a year, I would strongly recommend an accountant at least for the beginning. The paperwork isn't intuitive or guessable when it comes to doing your duties, and you have to know what you're doing. After a year or two you might want to change to a cheaper service provider, but always check the numbers and know what's going on with your accounts.

    My accountants were great to begin with, however now I pay
    £100+ per month and send just one file to them via email. They don't call me or email me with ideas ever.. So from that point of view they're not so great anymore. Maybe it's different elsewhere though...
    It isn't as simple as that, they will keep you on top current legislation and keep you at the current rates as they change. Do they not help you with VAT. They do not know your business, only you do that, they provide a service so you cannot rely on them for everthing. You need to strike up a relationship and keep in touch. Ask about stuff, ideas, areas that convern you and they will advise the best approach. That is about it. You pay 100 quid. How proactive for you clinet would you be for 100 a month?

    Leave a comment:


  • Old Greg
    replied
    Originally posted by dmo View Post
    Having contracted for a year, I would strongly recommend an accountant at least for the beginning. The paperwork isn't intuitive or guessable when it comes to doing your duties, and you have to know what you're doing. After a year or two you might want to change to a cheaper service provider, but always check the numbers and know what's going on with your accounts.

    My accountants were great to begin with, however now I pay
    £100+ per month and send just one file to them via email. They don't call me or email me with ideas ever.. So from that point of view they're not so great anymore. Maybe it's different elsewhere though...
    Why don't you phone them and ask if they've got any ideas?

    Leave a comment:


  • dmo
    replied
    Having contracted for a year, I would strongly recommend an accountant at least for the beginning. The paperwork isn't intuitive or guessable when it comes to doing your duties, and you have to know what you're doing. After a year or two you might want to change to a cheaper service provider, but always check the numbers and know what's going on with your accounts.

    My accountants were great to begin with, however now I pay
    £100+ per month and send just one file to them via email. They don't call me or email me with ideas ever.. So from that point of view they're not so great anymore. Maybe it's different elsewhere though...

    Leave a comment:

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