With the 31st January, the tax return deadline looming large, there are tens of thousands of those who are self-employed that are starting to hit panic stations. I am repeatedly being tagged in posts on social media asking about accountants; should they have one? Are they being charged correctly? What is the benefit of using an accountant? With this in mind, I thought it might be useful to share a quick blog with you.
The short answer is if you are asking if you have typed this question into Facebook or google the chances are that you could benefit from having a sit down with an accountant, most of who will not charge you for the initial chat.
If you are not 100% on your accounts and are questioning the internet then you are looking for answers that your accountant can provide you with. For less than £1 a day, you can give yourself access to an industry professional to ask your accounting questions:
- Are you unsure of if you should be paying VAT?
- Do you know what rate you should be reclaiming mileage?
- Do you know the most tax effective way to take money out of a limited company?
- What other receipts do you have that make you go ermmmmmm?
- Etc, etc, etc
The single most important reason to get an accountant is to ensure that you are paying the right amount of tax at the right time. Contrary to a recent Facebook debate the tax man will not let you off just because you are a sole trader, if you submit an incorrect tax return, you are punished in the same ways as anyone else.
You should be very wary of taking advice directly from Facebook especially not from someone who is not an accountant. This is the modern-day equivalent of your friend down the pub giving you tax advice. Whilst you may get lucky and receive the correct answer, this is not always guaranteed.
If you would like to know how much it will cost you per month for peace of mind please get in touch.