Should I get an Accountant?

[Katianne]

I keep records of everything I've spent and made from my crafts and filled in my first tax return last year for 06/07. I was in debit so got a letter to say I won't pay any tax (good good!). However, this tax year, I am in profit (hoorah!!!), although the downside of course is that a certain % will go to the Tax Wo/man.

I was talking to my neighbour, who also works full time but has his own business on the side. He told me that he has saved loads on tax from having an Accountant, paying just 18p this year. He's recommened that I get one, as he's said for what you pay you save a lot more.

Has anyone else got any experience of this? Thinking about it I suppose I'd have to weigh up the cost of having an Accountant against how much it would save me in tax, although until I do my next tax return, I have nothing to compare it with re: how much it would save me???

Hope you can all understand that! I get really confused with tax - sorry!!!

[Focus on Life]

I'm not there yet so cant help but will read replies with interest! :)

Shaz x

[nattynetty]

I'm lucky cos my dad is an accountant who tends to specialise in small businesses/sole traders so I just pass my accounts to him and he does the rest (although he's threatened to charge me if I leave it until 5 days before the deadline ever again :rolleyes:).

An accountant knows exactly what you can set against your tax so your tax bill is likely to be less than if you did it yourself I guess. For the 2006/7 year I made a profit but still got a tax refund, think it's something to do with still being employed part-time for some of that year and having carried over loses the previous year but not sure tbh :confused:.

If you do look to get an accountant phone and get an idea of prices first as charges really do vary depending on who you go for.

[craftdancer]

When I first started up my business (not crafts and I wasn't in it to make loads of money anyway) I used an accountant - because I thought I had to! By the third year they were charging me £300+ for their services - and I was getting about £170 back in tax.

I figured it was cheaper to do my own tax return and have done so for the last 4 or 5 years and never had to pay more than £79 tax on my business, which now includes crafts.

However, my turnover is very low, mainly because the craft side is a hobby and the therapy side is because I love helping people to feel better. I have paid employment to pay the bills.

Good luck, whatever route you take. And the people at the tax office are very helpful if you're not sure about things. You can ring them up and ask questions or even arrange to go in and see someone about it.

HTH
Linda

[EMEvans]

Why not try an accountant for one year?

They do know what you can and can't claim, such as use of room as office. If you buy any capital goods such as computer etc you can claim 50% one year and carry the rest over to the next etc.

If you ask the accountant how they would like you to keep your books and records in a tidy state that they could work with that would help aswell and keep costs down.

In most cases it's the 'messy' business man that gets charged lots from not writing on paying in slips/cheque stubs etc so it takes along time to match invoices with debits and credits. If your records explain themselves well then it shouldn't be a problem.

I'm lucky as i work in an accountants so do my own and get my boss to check it for nowt but same as netty i left it till the 31st (bit later i know) and he wasn't best pleased.........lol

[lucykate crafts...]

i would say yes to an accountant, if your profits are in a region which would require you to go vat registered or if you have a complicated situation for tax deductible expenses, but beyond that, it may not be worth it. my husband has done his own tax return since 1992, about 5 years ago we did get an accountant involved, really only as we needed to add his self employed earnings to my salary to get a bigger mortgage. the accountant came out with the same figures my husband already had, plus he said his book keeping was pretty good. so, after 3 years of using the accountant purely to get 3 years worth of accounts certified, we switched back to doing without, and saving the £250 cost of the accountant.

unless, you know anyone who is an accountant, who would do it at mates rates maybe?

[nattynetty]

If you ask the accountant how they would like you to keep your books and records in a tidy state that they could work with that would help aswell and keep costs down.

In most cases it's the 'messy' business man that gets charged lots from not writing on paying in slips/cheque stubs etc so it takes along time to match invoices with debits and credits. If your records explain themselves well then it shouldn't be a problem.

Yep mine takes my dad an hour or two at the most to do as I give him all the figures from invoices etc already totalled on a spreadsheet.

Hmmm yes the 'messy' business man, I worked for dad one summer and spent virtually the whole time matching invoices for one of his clients - the guy ran a busy restaurant and kept all his receipts stuffed in carrier bags....seven full bags of them :o no wonder I hate doing my paperwork now.

[EMEvans]

LOL, i know that feeling, most of the farmers bring there receipts etc shoved in bin bags:o, worst thing is some don't even wash there hands before putting them in there so they stink. Not to bad now as i mainly do VAT returns (doing my own as we speak) and just help out in accounts in peak season. Worst jobs come in all rolled up with an elastic band round them, trying to lay them flat on table and there springing everywhere....lol.

[dinkins]

im in the same boat, wondering if i need an accountant?

My mother does book keeping etc, and is doing my books for me all on excel etc, thats not a problem..

but when it comes to the end of the Year i think i may panic and she may ? as we have not seen what a self assessment looks like and how hard it is?:confused:

[lauralou1601]

If im a student, and I dont pay tax on my part time earnings, do I need to pay tax on the money I earn from selling my jewellery? Do I need to register myself as a business or something? Im so confused!!!!

[Rodeo Lady]

Katianne ,

Phone your local tax office. Honestly they have loads of advise workshops and all sorts of other help available . They were really nice when I phoned not intimidating in at all.

I think they realise not everyone is an expert but they advise on proper book-keeping etc how it should be laid out and at least if it'e done to their standrads an accountant wont be charging you to go through "a carrier bag of reciepts"

Cheers Janice

[Focus on Life]

Worst jobs come in all rolled up with an elastic band round them, trying to lay them flat on table and there springing everywhere....lol.

Oh thats made me laugh, the thought of you sitting there with springy boingy receipts bouncing up in the air all around you! LOL LOL :mf:

Shaz x

[Katianne]

If im a student, and I dont pay tax on my part time earnings, do I need to pay tax on the money I earn from selling my jewellery? Do I need to register myself as a business or something? Im so confused!!!!

You need to register, even if you end up not earning enough to pay tax. I think you can earn about £5k (total earnings, part time jobs, crafts etc) before you pay tax, but either way you need to register and complete a tax return each year. The Tax section of the forum is great for advice o this and how to register.