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Hi Guys I am Wondering as my First year is coming to a close how much you pay to keep your books tidy or if you do them Yourself . I know a few people who do it but I know Some who find it Difficult with the Paperwork which I am one . Any Help and ideas and if You do have an Accountant how much do you Pay , Any Help will be Appreciated Thanks 

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1 hour ago, Mark75 said:

Hi Guys I am Wondering as my First year is coming to a close how much you pay to keep your books tidy or if you do them Yourself . I know a few people who do it but I know Some who find it Difficult with the Paperwork which I am one . Any Help and ideas and if You do have an Accountant how much do you Pay , Any Help will be Appreciated Thanks 

Yes most of us do have accountants. 

If you are newly established sole trader, and your simply running a profit-loss sheet (income minus business expenditure) it's a very simple case of working out the remaining profit the business made, and putting aside tax for self assessment. Don't forget your payments on account, which catch a lot of 1st timers out  you will find that you will need to put aside 20 percent more than you thought you had to cover your tax bill as they like payment and half again upfront on your submission.

Also don't forget it doesn't matter if you took x amount out to live on and left x amount in the business, you will still be taxed on the total profit regardless.

Don't think for a minute that by only transferring   £1500 for the the month onto your personal account (as an example) you will only be taxed on that that's another mistake many male when first going into business. 

Strictly speaking you shouldn't need an accountant as such for very basic in/out transactions. Although an accountant will know what is "allowable" and your interpretation of an allowable business expense can differ from the tax man interpretation when it comes to it, and the rules are so complex and convoluted, to a large degree it is open to interpretation. 

So over the longer term I would suggest going for at least a book keeper grade accountant  that can help you, expect to pay anywhere from £500-£1000 per year. 

For full on tax advice, and chartered accountants expect to pay anywhere from £1400 to £3500 per year,  I pay approx £3200 a year but they do everything, paye, tax advice, structure, ect....

Good luck.

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steve garwood

I pay £400 per year and happy do so.

He fills in my self assessment forms and is available for any advice when needed 

Edited by steve garwood
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16 minutes ago, steve garwood said:

I pay £400 per year and happy do so.

He fills in my self assessment forms and is available for any advice when neede

Hi Steve thanks for your Reply I think I  being Fleeced I am paying £93 a month 

  • Sad 1
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14 minutes ago, Mark75 said:

Hi Steve thanks for your Reply I think I  being Fleeced I am paying £93 a month 

I think it largely depends on your turnover mate. I believe most accounts base their charge on 1.5% of the company turnover. So if £93 a month works out at 1.5% of your turnover this could actually sound about right. Not that i am entirely certain about my statement. 
whenever you pay for things monthly it usually works out more expensive than paying all in one whack, as with van tax & insurances etc

Edited by Incheck
Addition to text
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3 hours ago, cleaniac said:

Yes most of us do have accountants. 

If you are newly established sole trader, and your simply running a profit-loss sheet (income minus business expenditure) it's a very simple case of working out the remaining profit the business made, and putting aside tax for self assessment. Don't forget your payments on account, which catch a lot of 1st timers out  you will find that you will need to put aside 20 percent more than you thought you had to cover your tax bill as they like payment and half again upfront on your submission.

Also don't forget it doesn't matter if you took x amount out to live on and left x amount in the business, you will still be taxed on the total profit regardless.

Don't think for a minute that by only transferring   £1500 for the the month onto your personal account (as an example) you will only be taxed on that that's another mistake many male when first going into business. 

Strictly speaking you shouldn't need an accountant as such for very basic in/out transactions. Although an accountant will know what is "allowable" and your interpretation of an allowable business expense can differ from the tax man interpretation when it comes to it, and the rules are so complex and convoluted, to a large degree it is open to interpretation. 

So over the longer term I would suggest going for at least a book keeper grade accountant  that can help you, expect to pay anywhere from £500-£1000 per year. 

For full on tax advice, and chartered accountants expect to pay anywhere from £1400 to £3500 per year,  I pay approx £3200 a year but they do everything, paye, tax advice, structure, ect....

Good luck.

Hi thanks for the advice , I did think about doing it myself but I got a Accountant as I did not want to get my first year wrong , do you have Employees in your Company .

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7 minutes ago, Incheck said:

I think it largely depends on your turnover mate. I believe most accounts base their charge on 1.5% of the company turnover. So if £93 a month works out at 1.5% of your turnover this could actually sound about right. Not that i am entirely certain about my statement

Hi Thanks for that I wish I had asked when I started to be Honest I knew about keeping roughly 20 percent back .

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Just now, Mark75 said:

Hi Thanks for that I wish I had asked when I started to be Honest I knew about keeping roughly 20 percent back .

No worries, My advice is if you’re a sole trader mate would be whatever you make, keep 40% back, that should cover your expenses and taxes nicely and allow you to build up a nice buffer to invest in the business in the future without worrying about having to find extra money when things hit the fan. Of course not everyone can afford to do this but each to their own i guess 

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36 minutes ago, Mark75 said:

Hi Steve thanks for your Reply I think I  being Fleeced I am paying £93 a month 

That's about what I pay and for that I get advice, a Ltd companies Accounts, a Partnership Accounts and tax returns for 3 people. You don't need a Chartered Accountant to do your tax return unless you're a Limited Company.

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41 minutes ago, Mark75 said:

Hi Steve thanks for your Reply I think I  being Fleeced I am paying £93 a month 

If you aren't Ltd and simply a sole trader you are been ripped off.

I am a sole trader and have used a chartered accountant for years off the top of my head I pay £389 a year for him doing my tax return and he is always available to chat if I have any questions as you would expect 

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27 minutes ago, Part Timer said:

That's about what I pay and for that I get advice, a Ltd companies Accounts, a Partnership Accounts and tax returns for 3 people. You don't need a Chartered Accountant to do your tax return unless you're a Limited Company.

I think to a certain degree, there is no correct price to pay. The accountants I use are a fairly large firm, so.i guess there is a small premium to pay for the prestige. They also do all my postage, and I have use of the boardroom whenever I want, as many times as I like. (Perfect for interviews etc)

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25 minutes ago, Iron Giant said:

If you aren't Ltd and simply a sole trader you are been ripped off.

I am a sole trader and have used a chartered accountant for years off the top of my head I pay £389 a year for him doing my tax return and he is always available to chat if I have any questions as you would expect 

There is a difference between someone doing your tax return, and an accountant that will do their utmost to ensure you are maximising your tax entitlements..and staying on the case...have saved THOUSANDS for the 3 grand a year...

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1 minute ago, cleaniac said:

There is a difference between someone doing your tax return, and an accountant that will do their utmost to ensure you are maximising your tax entitlements..and staying on the case...have saved THOUSANDS for the 3 grand a year...

My chap is top notch, as he sees my earnings increase year on year he phones to talk through possible options to make sure I don't pay anymore than needed prior to submitting a tax return and lets me know what my options are each year, 

But equally by not paying 3k a year I could have very well saved as much as you 😘

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3 minutes ago, Iron Giant said:

My chap is top notch, as he sees my earnings increase year on year he phones to talk through possible options to make sure I don't pay anymore than needed prior to submitting a tax return and lets me know what my options are each year, 

But equally by not paying 3k a year I could have very well saved as much as you 😘

Listen mate it's not a competition. 

🤣

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Cghwindowcleaning
4 minutes ago, cleaniac said:

I think to a certain degree, there is no correct price to pay. The accountants I use are a fairly large firm, so.i guess there is a small premium to pay for the prestige. They also do all my postage, and I have use of the boardroom whenever I want, as many times as I like. (Perfect for interviews etc)

You sound like you are trying to justify their ludicrous fees  £3500 grand a year for a business with 2 employees and under the Vat limit.Postage??How much post would you need to send justify that as a plus point for their service?

You could probably hire a board room for £50 an hour from a serviced office on an adhoc need.Why a window cleaner would need a board room is beyond me.

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Listen I agree. I probably can find a cheaper service. But I am very happy with the service I am getting, so it being a free county and all I choose to use the best i can afford. 

😀

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Yeah after the second full year I got an accountant. Really helpful, always calls me back. Think I paid £250+ vat last year for self assessment and a couple of phone calls through the year. 
 

I turnover a few million a year so £300 is what I’ll often use just to get the fire pit going 😁

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A sole trader in his first few years accountants bill shouldn’t be more than £400-500 if it is I would suggest you look for a different one . We only pay around £1200-1500 per year for everything with vat and 5 employees.

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Posted (edited)
9 minutes ago, Pjj said:

A sole trader in his first few years accountants bill shouldn’t be more than £400-500 if it is I would suggest you look for a different one . We only pay around £1200-1500 per year for everything with vat and 5 employees.

I think I will its just me in the company so I have a look round , 

Edited by Mark75
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6 minutes ago, Mark75 said:

I think I will its just me in the company so I have a look round , 

Are you operating as a Ltd company or a sole trader 

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