Since I started in June last year I've not had much time to sit down and get my accounts in order, but now the maintenance side of things has calmed down, it's time to get organised and tackle that pile of receipts and invoices.
I've asked a local accountant for a quote to prepare my self assessment tax, to advise on setting up my own book-keeping, and to advise on tax deductables, capital expenditure etc.
I am a sole trader, low turnover (30K pa perhaps), no VAT, no employees.
The quote has come in at £420 per year inclusive of VAT. They operate by email and post, no telephone service from what I can tell. Having never used an accountant before, is this a reasonable price ? Do you have any other advice or experiences to share ?
Thanks in advance, Russ.
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From memory/experience I would suggest that typical costs to prepare a simple sole traders SA form would be in the region of £200-£300 +vat depending on the quality of your records. The difference between that and your quote is down to how much you value the add-on advice/guidance? Is this difference 'time' related or open ended ? Is this from one of the franchise book keeping / accountant firms ?
Personally, I would be looking to form a relationship with a good local accountant with small business experience where I could drop on by or call for help as your business grows. Ask around, check you local business club/chamber of commerce for recommendations.
Consider the future - what if you take on employees - can they provide payroll? What if there is a need to go Ltd, what does that mean for accountancy costs etc. Seek recommendations for book keeping software, what systems do they use, can they provide cloud-based, on-line accountancy software so they can log on to your system (also removes you from purchasing costly yearly sw updates).
Finally, use the Search function (top right of screen) to check out LJN as there have been a few good posts in the past offering opinions and guidance.
Once you've made a decision, keep us posted :-)
That does not sound too bad if it includes help for setting up a system for yourself, but if for a sole trader just doing the basic end of year return and books, it does seem a little steep to me. when I first started a few years back, I get a few quotes as you would do for anything and some were around that figure but ask around, I ended up using a customer and now have a good working relationship with him and he is helping the business grow with good advice and guidance. He does my partners end of year return and books (similar to your turnover) for £180.
As the wife of an accountant I can tell you that it is depending on what type of book keeping system you keep or none at all as some small businesses don't keep any records - just receipts in a box! It is usually about £320-£370 plus VAT for a very small concern but that includes help and advice and a free consultation to get you started. Tax returns completed and accounts produced in that price.
regards
Anna
On behalf of Wootton Taylor Accountants
just do it yourself with the on-line tax return........... piece of cake if you're just a sole trader with no vat or employees. You can also look up on the site what you can claim for etc etc. I usually reckon on a couple of hours to get it all sorted and submitted.
I guess the OP needs to make a business decision as to whether he wants to take this task on personally or delegate to a qualified person and remove any 'doubts'.
Next question is whether the OP wants to focus on growing their business (in which case using an Accountant has many advantages and releases you to concentrate on what 'you' do best) or intends to stay a small sole person sole trader (in which case DIY Self Assessment does makes financial sense).
That seems a bit expensive to me, I pay about the same but im VAT registered and have employees.
I think for SA return alone I paid around the £200 mark. As others have said while your affairs are relatively simple its easy enough to do it yourself and in some ways preferable: it allows you to get a working knowledge of the tax system and how to work it to your advanatge! Its only in the last couple of years as the business has grown that I've used an accountant, and it has been really great: they are local, very understanding and experienced with small businesses.
My accountancy fee for last year was £300 + VAT. I am a sole trader with no employees or VAT. I do the book keeping, well 95% of it. Maybe it is a bit expensive but it is worth it for the peace of mind it gives- saying that I read some where that there are more mistakes made on tax returns by accountants than business owners. Seems hard to believe.
They do provide things that I cant do myself such as trading accounts, balance sheets and fixed asset schedules. These are essential for getting loans and mortgages etc.
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