SELF EMPLOYED??? IS IT A GOOD IDEA TO GET AN ACCOUNTANT?
Hi i have just started working as self employed and have been quoted £120 a year by an accountant to register me and to do all my tax returns ect... just wanted to hear from anyone who is already doing this if you think this is a good idea? Also how do you work out how much to keep back each month as im worried i may spend the money i am meant to save for tax.... does anyone have ways of calculating this?
United Kingdom - 4 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
It probably makes sense to employ an accountant for at least the first set of returns. Make sure that you can observe the process, what forms are needed, how the calculations are made, what is and isn't deductible. Next time round you can try for yourself. The general rule is that an accountant should save you more money than they cost to employ. The first time round, you might spend a week trying to find all the information you need for your returns, if you can get that information from a professional, the fee will have paid for itself in terms of your time and any subsequent returns, you can file yourself and it might only take a day of your time to collate.
Answer 2 :
It's a very good idea. Your accountant will be able to advise you on how much to retain for tax, but I always work on putting 25% away to cover all such eventualities.
Answer 3 :
Excellent idea, We had one as soon as we started, they can save you loads of money. I doubt you will be liable for tax in your first or second years as the business set up and expenses are high. This is why you need an Accountant. Good Luck.
Answer 4 :
It is advisable, at least to start with. It is likely he will save you more money than he costs, as he will be more aware than you are as to what business expenses you can claim. For tax you are liable to pay tax at 20% once profit figure is established and you take off the personal tax-free allowance of £6475, to which all UK citizens are entitled. That goes up to £7475 next April. The self-employed have to pay Class 2 NIC weekly/monthly, and Class 4 if profits are high enough. You can see those rates on http://www.hmrc.gov.uk/rates .
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