Employing an accountant

[BenoitBlanc]

I work full-time for a supermarket and I also sell handicrafts. I make about the same selling handicrafts as I do for the supermarket, although that income fluctuates wildly over the course of the year.

This year I am struggling with my book keeping and tax-return for a couple of reasons - a few details have changed and I am not educated or experienced when it comes to numbers and finances. I've spoken to the helpline and the thing I need to do comes with a 16-page PDF advice booklet. It makes me want to cry! I just really struggle with this sort of thing.

I put out a shout on a website that promotes local business to see if I could afford an accountant.

Within 12 hours 2 accountants have phoned me. Both are affordable - one even dropped his price significantly when I said I was speaking to another accountant. They both seem a bit pushy - one more so than the other. I have googled and they are both official, accredited accountants registered in the proper place. One has sent me a form to give him authority to act. Should I fill it in?

On the one hand they are registered accountants with web presence.

On the other hand I feel a bit cornered by slightly pushy phone calls instructing me to fill forms in straight away.

I suggest you find a local accountant you can talk face to face with. You still have until the end of January to file. There are changes coming. Tax is going digital.

Never use an accountant you feel wary about. You need a personal recommendation. Can you ask around your friends or post on Facebook recommendations? Then see the choices face to face. Make sure they're local

You need to feel comfortable with your accountant and it doesn’t sound like you are with either of these! I don’t think they need to be local as everything is done online now but a lot of people do like being able to pop in to see someone.

Like pp said, the best way to find someone is by word of mouth - do you know anyone else self employed you could ask? Or perhaps a local Facebook page?

There are loads of accountants to choose from, so don’t rush into signing up for one you don’t feel comfortable with.

Loads don’t have a web presence. Get a recommendation from the watts app groups you are a member of or facebook.
Get one that carries insurance so that if they give you incorrect advice you can claim against them.

I’d be very wary of an accountant desperate for business in their busiest month of the year. Most decent ones wouldn’t be remotely interested in tax returns due in just 3 weeks time!

I run an accountancy practice and we don’t push new enquiries like that - especially in January!! You need somewhere friendly. Keep looking.

Prices should be similar £200-400 depending on the state of your records. Some accountants will charge an extra fee for you giving the information in January.

Wouldn’t necessarily say you need a local one as most things are done / can be done online now; the priority is one you’re comfortable with and can trust, and who are qualified with ICAEW so you can trust they know what they’re talking about. Google and Facebook reviews are a good measure.

I think you’re right getting help - very often we spot expenses and reliefs that you can claim that you haven’t. Get them to look at the return you did last year too - they may be able to amend that one before the amendment deadline 31 Jan this year, if you missed anything!

hope this helps.

Ps don’t be scared into anything with Making Tax Digital - this has been recently delayed and won’t effect you for a few years yet.

This... we're turning away work right now because it's just too busy to take on anything more.

Do you use HMRC's online service to fill in your tax return? Other than Glo1988's points about potentially not making the most of reliefs, etc, that might be available to you, your tax return should otherwise be reasonably straightforward.

Essentially your tax is made up of two elements:

1. employment income (which they will likely already have the information for; and
2. your self-employment income.

On the self-employment side you need to just report your income and your expenditure from your craft work. The token phrase you need to remember for costs is that they must be "wholly and exclusively" incurred for the purpose of your business.

So, buying material to use - allowed. Buying a new pair of glasses that you also use when driving the kids to school - not allowed.

@Glo1988 's post is excellent advice.