Self employed

[NannyBeth]

Hi all, I am looking at going self employed as a nanny after this summer (doing a series of temp and ad hoc roles, nothing permanent so don't shout ) and I am so, so confused about tax! I'm from Australia and back home I do nothing tax-related as my dad is an accountant and insists on doing it for me (i think he just can't be bothered to explain it ask to me haha), so have no clue!

Do you use an accountant? How much does it cost? I don't plan to be working full time for the whole year, and may do some work overseas too, so don't know if it's worth paying for an accountant for the whole year - are there accountants who I can pay a one off fee to do my books at the end of the tax year or something?? Is it actually difficult to work out how to do it all yourself?

Any tips or advice for a total newbie??

You can use an accountant, most of us work by talking to you at the start about the sort of records you need to keep so that you can comply with the requirements - and maximise the expenses you can offset against your income. Then at the end of the year you send her what she asked for and she will deal with the return.

It's not easy to talk about costs because every accountant works in a slightly different way, but as a rough guide you can pay about £300 for this kind of service from a reputable sole practitioner, about twice this for a firm with a small office, or twice again for a firm with a smart office in the centre of town. The standard way to pay is a one-off fee at the year end, although many accountants offer monthly or quarterly payments too. In the UK anyone can set themselves up as an accountant, and there are some cowboys about so take care - there are a number of guides to help you like this one, but word of mouth can be the best way.

It is not difficult at all to work out how to do it yourself, but you may end up paying more tax than you would if you use an accountant that understands what can be claimed: there are literally hundreds of pages of manuals that explain this, plus some key items that are regularly tested in the courts. If you want to consider doing it yourself, start here for information about how to start, and here for information from HMRC about some of the expenses you can claim.

Thank you!!

I know in Australia there is chartered accountancy, which I think means you are genuine etc. is there something like that over here that 'proves' you aren't trying to rip people off??

Unfortunately it is a bit more complicated...

We have Chartered Accountants, Chartered Certified Accountants, Chartered Management Accountants and also Chartered Tax Advisers, all of whom are regulated by professional bodies and have to pass tough exams similar to Chartered Accountants in Australia.

No letters after your name or professional regulations are a guarantee of good service, but all the regulatory bodies insist that their practicing members have Professional Indemnity Insurance and a complaints procedure that can be escalated to the regulatory body if appropriate.

Thanks again!

Hi, I'm self employed (optometrist rather than a nanny). Unlesss you're competely innumerate I wouldn't bother paying an accountant.
When you register as self employed with HMRC, they send you lots of information through about tax and NI, if you're not sure of any of it, you just call the helpline.
I pay National Insurance NI on direct debit.
I have a large box file that I keep all the invoices from my jobs, reciepts for job related things. You just invoive the parents you work for weekly/daily or monthly and keep a copy of the invoices in the box file. You can also claim back work related costs, first aid courses, insurance (again its all in the pack from HMRC).