Accountants In Here Please!

[Damini]

Let me put this bluntly.

I hide all my bills underneath phone books so they can't see me and I can't see them.

My overdraft is set at three grand, and I headbutt that limit every month and then run away crying.

Kenny still hasn't forgiven me for spending my last tenner in the world one time one a really large cuddley green alien toy from Toy Story (it *is* uber, but then I couldn't eat for ages and beetles ate the last of my pasta and it made me sad).

So, bearing that in mind, I now have to sort out an accountant for myself for the writing and I hate sounding like a spoon. There's nothing worse then when you go to a garage and say "My car in the blue one and it is sad and makes odd noises and I think the metal bit is wobbley" and I've got fear of doing the same thing with accounts. I have to have an accountant because there's no way I'd survive in the wild with taxes and student loan repayments and things like that.

Is a chartered accountant really umpteen billion times more expensive than a mortal accountant?

What realistically should I be looking to spend a year on accountants? Obviously, depends on how much money I generate, but is it like a percentage thing, or or there boundaries where you pay this much for this much income, and so on?

Please please someone help me not come across like a total naive tool.

 

[GDW]

I assume you are self employed ? If so you dont need a Chartered Accountant just to do your tax returns, one of the lesser beings will suffice

 

[Damini]

I've been phoning local accountants, and its only been the chartered accountants that have been even vaguely helpful/interested.

And I guess I'm self employed :/ See my level of incompetence?

 

[GDW]

If you are willing to learn something new Id say do your returns yourself, its not that bad and youll save a few quid. Ono is probably a good person to ask as I only do Corporate work

 

[throdgrain]

I shouldnt bother unless you start earning some large money.
You can do your tax return online I believe, theres a website



/god this is the vaguest of posts, sorry

 

[Jonaldo]

Sounding like you actually need some kind of Agent/Manager if really that unclear about the industry you're entering. Unless there's somewhere you can research it some more.

I'd love to be helpful but I possibly know less than you about all this malarké

 

[Damini]

Well, the reason I think its complicated is because I get lump sums on signing a contract, and then staggered amounts throughout the year, and then you get a percentage amount of books sold after a certain amount, so it's all fairly erratic, and there's talk of claiming back tax on printing material and chairs and desk and stuff, and also something about how being a writer is like being a farmer(???) because if you get a bad year after a good year they average out the wage and so on?

And also, I can't fill out forms for crap. Dyslexia hates me.

 

[GDW]

Ok, my advice would be to choose an accountant who has good personal tax experience, if that be a Chartered Accountant then fine.

The important thing is that although they will charge you for their service make it clear to them that you want to know how much money they can save you via loopholes etc than if you were to do it yourself. If they cant save you any money then find another accountant.

Sounds like a long drawn out procedure which will involve numerous telephone calls and meetings but it will be worth it in the future.

 

[Tom]

You have several options:

1) Hire an accountant to advise you on tax issues and general book keeping, one-off session
cost = not much, no more than a couple of hundred to check things out and start you off, how to inform IR etc.

2) Hire an accountant to do your year end accounts and tax returns
cost = £200 - £400 per annum.

3) Hire an accountant to do all the above plus your book keeping
cost = £dunno tbh, but I would imagine no more than £700 - £800 per annum.

My advice is simple. Get someone to advise you on 1) and also to do 2). Book keeping is pretty easy, just keep all your business related receipts, write them down in a ledger (or use a spreadsheet) every month, that makes the accountant's job at the end of the year much easier. Use a separate bank account for all your business dealings (it doesn't need to be a business account, although most banks give 2 years free to new businesses, so probably worth it for the short term).

You could try doing your own tax returns, but I don't recommend it, my accountant saves me a lot of money. It might be different for you, I spend a lot of money each year on equipment, I don't suppose you'd need to do that.

Check with Business Names Registrations to see (and possibly register) your trading name, so you don't get stitched up by someone with a similar business name in a similar business. That costs about £40 + VAT

If you're only going to be working for large companies, get yourself VAT registered, and claim the VAT back from any car parking tickets, fuel, stationary, food, whatever. So long as you don't invoice members of the public or non-vat-registered businesses, its a win-win situation. Get your accountant to do your first VAT return, so you can see how its done (they're piss easy).

It all sounds a bit complex, but once you get things set up (this is where you need the accountant), its pretty easy to follow. You might have trouble with mortgages/credit etc in the early years, but I found a good advisor and got around that easily.

Oh, if you buy a computer before April 2004, then you can offset all of the cost against your tax return in the first year (so £1000 computer = your tax rate% of £1000 off your tax bill. That frees up a few hundred quid, although normally you'd get that money back after 2-3 years anyway. It just helps you get started.

 

[doh_boy]

I know this may sound wierd but ask any builders you know. Since most builders are sub-contractors and thus work for themselves most of them have accountants. If you live anywhere near manchester I would have recommended moffatt & co who seem to do my dad ok.

 

[Tom]

Oh, the year end accounts are quite important, most creditors will ask for them before they lend you any money for mortgages etc.

Really, get an accountant to start off with.

 

[GDW]

Thats good advice Tom.

Damini, getting advice from non-accountants who have a self employed business is a good path to follow.

 

[xane]

You don't sound like you need an accountant if its just tax you are worried about, it only becomes important when you want to run a business and do VAT stuff and such. If all you ever going to claim for is for a laptop, envelopes and stamps, plus commission for me when I supply story ideas, then I don't see how an accountant can really help.

You can do all simple tax returns online now, including Self Employment, I've been doing mine for about five years, originally via a piece of software and now directly through the IR website, most of the forms you need for special stuff are on there.

I was renting out my old flat until the negative equity dissappeared, and you needed a separate tax form for property income, so I had to fill them out manually, I believe it now applies to everyone especially those on the higher tax band (40%). I haven't been officially self employed for years now, so I can't advise on that.

Go to their website and check it out, stacks of information.
http://www.inlandrevenue.gov.uk/

 

[Ono]

As GDW says, I'm an accountant too, but I have also been seduced by the Corporate side of things and have been out of Practice for 4 years or so now.

Suggest you get some good general Tax planning advice (particularly on the pros and cons of forming a company and what you can or cannot deduct as business expenses etc ) and also get advice on what the legal requirements are regarding your duty to keep accounting records, VAT (not relevant here I believe), paying yourself/drawings and your annual Tax return or company accounts.

Good advice can reap rewards in future (my wife is a practice accountant and did my Tax Return for me and I got £1,500 back as a tax refund!).

I can recommend some in London if you want Lou, but if you have a general query just send me a PM and I'll see what I can do.

 

[dysfunction]

Originally posted by Ono
As GDW says, I'm an accountant too, but I have also been seduced by the Corporate side of things and have been out of Practice for 4 years or so now.

Suggest you get some good general Tax planning advice (particularly on the pros and cons of forming a company and what you can or cannot deduct as business expenses etc ) and also get advice on what the legal requirements are regarding your duty to keep accounting records, VAT (not relevant here I believe), paying yourself/drawings and your annual Tax return or company accounts.

Good advice can reap rewards in future (my wife is a practice accountant and did my Tax Return for me and I got £1,500 back as a tax refund!).

I can recommend some in London if you want Lou, but if you have a general query just send me a PM and I'll see what I can do.

PM him only if you want the wrong answer tbh

 

[Embattle]

Originally posted by Damini
Let me put this bluntly.

I hide all my bills underneath phone books so they can't see me and I can't see them.

My overdraft is set at three grand, and I headbutt that limit every month and then run away crying.

Kenny still hasn't forgiven me for spending my last tenner in the world one time one a really large cuddley green alien toy from Toy Story (it *is* uber, but then I couldn't eat for ages and beetles ate the last of my pasta and it made me sad).

So, bearing that in mind, I now have to sort out an accountant for myself for the writing and I hate sounding like a spoon. There's nothing worse then when you go to a garage and say "My car in the blue one and it is sad and makes odd noises and I think the metal bit is wobbley" and I've got fear of doing the same thing with accounts. I have to have an accountant because there's no way I'd survive in the wild with taxes and student loan repayments and things like that.

Is a chartered accountant really umpteen billion times more expensive than a mortal accountant?

What realistically should I be looking to spend a year on accountants? Obviously, depends on how much money I generate, but is it like a percentage thing, or or there boundaries where you pay this much for this much income, and so on?

Please please someone help me not come across like a total naive tool.

TBH Damini it just sounds like you need to control yourself better and stop spending...ironic really that people want to spend money on someone to help them save money

 

[Damini]

I'm not grand with money, I'll happily admit that, but bear in mind I've had just a nudge over 3 grand a year to sustain me for the last four years, I've worked myself into a bit of a debt hole. I'm not a big spender (I've got shoes older than your jokes Embattle) but I find it hard dealing with paper work and bills, so I pretend they don't exist. And it's not so much to save me money as to stop me finding out i owe the tax man an obscene amount. I've gone from having practically no money for four years to having to manage my own finances over night, and that's a little intimidating.

 

[Tom]

Damini, just stick 15% of whatever cheques you get paid into a separate account, a high interest 30 day notice account, and don't touch it. That will cover you when your tax bill arrives.

Bear in mind that my first ever tax bill was quite low, it was the following year that blew me away, its almost like paying tax in hand.

 

[Deebs]

Originally posted by Tom
Damini, just stick 15% of whatever cheques you get paid into a separate account, a high interest 30 day notice account, and don't touch it. That will cover you when your tax bill arrives.

Bear in mind that my first ever tax bill was quite low, it was the following year that blew me away, its almost like paying tax in hand.

Better yet, just give me all your money and I will "look" after it for you

 

[kameleon]

A "good" accountant will save you more money than you pay them. If its a one off book deal then I wouldnt bother just marry Kenny and make him liable for all your tax returns.