Wrong place in forum i know... but you're a friendly bunch!

[mildmanneredjanitor]

My apologies in advance!

But just just wondered if any of you had any pearls of wisdom with regard tax returns?

I have been nearly trading for a year and need to fill in my tax return (online tax returns are taxing Adam!)

In your experience have accountants saved you far more money than they have cost? I have kept meticulous records and spreadsheets for the year and intend to do my own return (with the help of the local tax office - who are very friendly and helpful!)

Any tips would be welcome.

Having been employed all my life until now (35) I've always considered 'tax return' a dirty word(s).

 

[Scoby_Beasley]

Ignore them at your peril !
Run
Keep moving
(Isn't tax something you use to keep carpet down ?? )

 

[benthebuilder]

I've only ever used an accountant simply because the tax returns don't look like a nice thing to fill in! I just paid my accountant £285 for doing my tax return for me and I can claim back that fee from my next years tax bill as an allowance, the same way you can claim for fuel, work clothing etc. I'm sure someone will tell you it's pretty easy to do the return yourself, I just prefer to pay someone to do mine for me and then I don't have to worry about it. Good luck!

 

[oilman]

I don't know how much of a problem tax returns are as an accountant does it for me. They may not be difficult, but sometimes the taxman writes a letter telling me they are making further enquiries as they are not satisfied with the information so far, (gulp!). Never mind, the accountant deals with it, and I get a letter saying thanks for the info, everything is now satisfactory.

The accountant costs me money, but I can sleep easier. I'll pay the money thanks.

 

[masona]

My friend is accountant and his clients always find the money they save and what you're entitle to,which we don't always know what you can claim seem to make up for the accountant bills! So in theory,it shouldn't cost you anything !!

 

[mildmanneredjanitor]

Thanx 4 all the responses chaps!

I'm suprised the Oracle didn't have anything to say?

I think I'm gonna have a stab myself I think, as like I said they are a good bunch down in my office. Even told me about how I can claim household expenses for my 'office' (dining room, play area, puppy toilet training area!) nice... Divide my house bills, electric, heating etc. with the number of rooms in the house, and I can claim this against expenses. With a bit more prying they might tell me other legitimate expenses I am entitled to.

Hopefully next year (or so) when my turnover is higher and less irregular I can afford (and maybe need) the luxury of an accountant, until then I'll be b*gg*r*d if I'm going to pay someone the equivalent of three days hard graft for a mornings work in return! (before tax that is!) Rant over...

One last note, I was really suprised when I found out that you pay the same rate of tax self-employed as you do employed. After years of being led to believe you pay less. It's purely down to claiming against expenses. (and cash in hand I guess?)

Ta

 

[ChrisR]

Unless you just hand your accountant a pile of papers you have to do all the sorting yourself . It's easy to find out what you can claim for and what you can't - that only really has to be done once. If you keep a set of books as you go that's half the job done - the rest is getting all the bit of nterest etc added up. All that, you'd have to assemble to give the acct anyway. Adding the totals together and filling in the form is little more than trivial!

 

[DAZB]

A good accountant should pay for themselves. I know mine does. It cost me around £300 for mine last year but for every pound I paid her she got me £10 back. I always find myself far too busy to do my own and if I did I would be losing valuable working time so it is well worth giving the hassle to someone who knows what they are doing. I had a different accountant about 5 years ago and when I changed to my present one she had a look at my previous years books and mentioned that my last accountant hadn't claimed for this,this,that,that and this etc and resubmitted that years accounts again and she got me £1282 in addition to the £980 the first guy got back for me.So like I say, find a good one and you'll do ok.

 

[gimbals]

i agree with everyone else - get an accoutant - given that they claim for things you would not know about and you can offset their costs against next years earnings, they are free! They will also steer you around the minefield of claiming part of your house is business related and finding that you owe the inland revenue tax for a percentage of the "business related" part of your house when you sell it.

 

[masona]

I was really suprised when I found out that you pay the same rate of tax self-employed as you do employed. After years of being led to believe you pay less. It's purely down to claiming against expenses. (and cash in hand I guess?)

I'm employed and p.a.y.e but properly pay more tax as I can't claim expenses as self-employed do,we all pay the same rate but in theory the self-employed should pay less tax than employed.

 

[gimbals]

paye employees get an allowance (their tax code) which is allegedly to allow for the sort of costs that self employed can claim for but self employed must itemize all costs to claim them. There is no difference in the tax paid but the self employed get their hands on the money and have some control over what they are or are not declaring and claiming. With paye, the payroll people do it all for you. Both paye and self employed can claim for legitimate expenses (business travel, etc).

 

[BiGDave]

Don't forget that little extra the "Class 4 NIC " which you pay to the revenue not the DSS.

 

[securespark]

Yes, as everyone says, get an accountant.

But save yourself money by presenting paperwork to him at the year end in good order then he won't spend hours rifling through it looking for a lost counterfoil.....thus charging you 1000quid!!