*Traditionally, accountants do a number of tasks in completing a set of accounts & tax returns. Here are a few of them. (Note that some of them may not apply to all businesses. For example, sole traders would not have to submit accounts to Companies House. If you don’t hold stock, then stock-takes and stock [read more]
Oct 252011
I’ve blogged previously about why you should have an accountant. However, when trying to cut costs (and who isn’t, these days?), often business owners look to cutting accountant fees. They either fnd a cheaper accountant, or they do without one altogether.
Unless you require an audit, there is absolutely no obligation for a business to appoint an accountant. None whatsoever. It is only a matter of being prepared to spend time researching how to do it (and then doing it, obviously):
- Making sure every transaction is in the right place
- Dealing with tricky, unusual or ambiguous transactions
- Using the required format (particularly important for limited companies/limited liability partnerships)
- Having the correct notes & wording (again, mainly for limited companies/limited liability partnerships)
- Decide what is tax-deductible and what is not
- Getting the tax computations correct and in the right format.
The information required to prepare a set of accounts and a tax return is all within the public domain. Sole traders should look mainly at the HMRC website. Limited Companies should also refer to the Companies House.
With the advent of iXBRL (a new labour-saving - for HMRC, that is - way of “tagging” accounts and tax returns so that computers can “read” the data), you must file or submit your accounts & tax online.
The software to do all this is also available free from HMRC. Just set up a login and wait for the PIN to arrive in the post (this can take a little time, so plan ahead). (Limited companies can “joint-file” to HMRC and to Companies House using this software. Alternatively, Companies House have their own free software that you can use to file accounts directly with them)
The only questions to consider are:
- Have you got time for all of this?
- Do you even want to do accounts?
- Will it be correct? (there are penalties for getting it wrong and/or late – and ignorance is no defence or excuse)
- Will you have paid more tax by doing it yourself?
- Could you be doing something more productive and profitable with your time that would have earnt you more money than the accountant fees would be?
 Most Innovative Accountant Nomination*Last month, I discovered that the very lovely people at The Book-keepers Forum had nominated Figurate Ltd for an award. Just to be nominated is absolutely brilliant and I feel very honoured to have been so. To vote in the awards, please visit the website. (Note that your vote is not confirmed until you click [read more] |
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Using Forums*As I’ve said previously, I do frequent various forums. Some of them I just check into now and again and others more regularly. They are a great way of sharing information, raising your profile, and getting the odd tip. Each forum has it’s own unique “atmosphere” and some are more helpful than others. Forums can [read more] |
P35 Penalties 2011*HMRC have recently issued many employers with £400 penalties for not filing their P35 return for 2010-11. You only have 30 days to appeal the penalty, if you disagree with the penalty. Some of the penalty notices have gone, in error, to employers who have already filed a P35. If you have already filed a return for [read more] |
 How I don’t use Twitter*Yesterday, Mark Lee (BookMarkLee, tax advice network, speaker & writer on social media for accountants, tax, and practice positioning & development), had a little Twitter Competition on the subject of Why Bother with Social Media. He asked: Any accountants who’d like a mention during my talk @ #clouda21 , please answer the Q: Why should [read more] |
VAT Amnesty*HMRC has had a VAT amnesty over the summer. This is the chance for those people who should have registered for VAT but haven’t to come forward and bring their affairs up to date with potentially reduced penalties as a result. For those already registered, you can also use the amnesty period to notify HMRC of previous errors [read more] |
