Does anyone here (self-employed) do their own tax return? I am fed up of paying accountants.....

[orangina]

Hi there. I am self employed, and run a very simple business. No work outside the UK, VAT registered (I do my own VAT), work from home, don't have a company car or anything. Have just got my accountants to do my tax again this year, and have decided it is just NOT worth it, would rather do it myself.

Does anyone here do their own tax? Can anyone recommend a book or guide so that I can do my own tax next year? It can't be rocket science....

Thank you!

Yes I do them and it's very easy especially if you are able to do stuff like vat returns. I'm saying this because I presume like you say your business is quite a simple affair.

Basically just keep all your income receipts and expenditure receipts. Put them in a buiscuit tin if it suits you and then put them on a spreadsheet once a year. Or use a dedicated bank account for all your business ins and outs and download it to a spreadsheet once a year.

Your spreadsheet can show the same headings as what is on the Tax return to make it really easy, I can't remember what they are but think they are like Income, Finance costs, Insurances, Legal fees, etc etc So for every line on your spreadsheet categorise it into one of these headings. Do a check column to make sure you don't duplicate anything or miss any out.

Add the lot up and you will have Turnover, Allowable Expense, Profit.

This is a very simplified version as I'm not sure what is involved with your accounts but I hope it helps you.

How much do you know about:

• working from home expenses (apportionment, mortgage interest) - 20-odd pages of guidance to follow there
• capital allowances (equipment, computers, possibly car) - about a hundred pages there
• everything else that comes with 3+ years of training plus experience, reference manuals,

Start your learning journey here

If your turnover is less than £70,000 you don't have to break down your expenses at all: if your turnover is even half that you are paying much more tax than you need to by not operating as a company.

Perhaps you just need a different accountant?

On ebay my signature is
"Counting the beans £1
Knowing which beans to count £99"

anybody can do a tax return
but to do it right and well and minimise the tax bill while staying (just) inside the law
and keep up with the constant changes in legislation
THAT takes a qualified accountant

if yours is not providing you with a small business advice service as part of the game (I'm always looking at my clients strategic options as I work) then you need a different accountant rather than none at all

PS I've never met MrAnchovy!

I used to help my XP with theirs it was really easy!

but did you get the numbers 'right' ?

First year accountancy exams : 2 + 2 = 4
Second year accountancy exams : 2 + 2 = between 3 and 5
Third year accountancy exams : 2 + 2 = who needs to know and why?

I do mine and doubt if accountants could save me the £400+ they would charge.

happy to be corrected

I also understand- maybe incorrectly- that unless you are earning over £40K it's not worth setting up as a private co.

I also understood that if you factor in things like the use of your home then you might be liable for either capital gains tax when you sell, or breaching your mortgage rules by running a business from home.

most decent small accountants would charge you a lot less than £400
and your understanding of use of the home is incomplete

what would they charge then?

My income is small and I've done my own accounts for about the last 5 years.

I do my own (no vat) - selfemployed, work from home. It's easy.
Think most accountancy training is needed for more complex projects than my modest tax return.

I do my own tax return. Is very basic (actually worst bit is the fact I do some self employed and some employed work for different employers so have a lot of P60s to check).

I am an accountant though :) Not a tax specialist though and if I were doing anything more complicated than I do I would probably employ someone to do it.

Hahaha TalkinPeace might have to send that to my accountant mates!

I'm about to do my tax return for the first time but DH has done one for ages and says it's not that hard!

I simply fill in the basic boxes for income and expenses. I claim the max amount for incidental expenses that you can without itemising. if Ihave bought new pc etc then of course I add that in separately.

Tax returns are easy, you just do it online and follow the guidance.

In a really good year, my turnover will hit £70k, but as I've been studying on the side as well for the last few years, it has not hit such dizzy heights for a while..... ()

I pay my accountants MUCH too much I think. Perhaps I just need a different accountant.

MrA, do you think I would be better off operating as a ltd company then?

(Thank you all for your comments btw!)

happy to be corrected smile

here I go then...

I do mine and doubt if accountants could save me the £400+ they would charge.

Going rate is more like £250

I also understand- maybe incorrectly- that unless you are earning over £40K it's not worth setting up as a private co.

Do you like paying 9% Class 4 NI? With profits of £20k you are paying £1,150 which is more than an accountant would cost for a Ltd Co set up.

I also understood that if you factor in things like the use of your home then you might be liable for either capital gains tax when you sell, or breaching your mortgage rules by running a business from home.

That's why you need an accountant who is up to date with the current situation based on the latest case law and guidance because neither of those things are obstacles to a correctly prepared claim.

Is it time you changed your mind?

MrA, do you think I would be better off operating as a ltd company then?

Would need more info, but it is likely. I would also want to look at your VAT status because you may have savings to make there.

I claim the max amount for incidental expenses that you can without itemising.

Er, you don't have to itemise anything in a tax return. If you mean the maximum you can claim without supporting evidence that is generally £0 (although some exceptions exist for certain items and niche trades or professions).

The max for expenses like fuel etc and bits and bobs is given as £250 - or was last year.

Just to add- I am not in a position to query your expertise BUT I do have friends who do operate as Ltd co. and they say there are drawbacks as well as advantages. just saying it's not as clear cut as perhaps you make out.

Oh god, I really AM paying too much for my accountants.....

Ok, time for a change. Am looking to reduce the self employed stuff and take an employed position this year, so might just park the limited company query for the time being.

Where can I find a decent accountant who will only charge me £250 to do my tax return (and even then I provide them with a spreadsheet of all incomings and outgoings.......)? I never even see them (am west London, they are central London....), so I guess it can all be done remotely?

Re: my VAT status, I am registered, have been for some years. Have often thought about going for the flat rate thing, but haven't looked into it in enough detail.

All help GRATEFULLY received!

ameliagrey
where in the tax manuals does it mention your £250
you might be in for a shock at a records check

I'm not referring to manuals- I am referring to the info that pops up in a little box beside some of the boxes you complete online.
I can't remember this off the top of my head- it's a year since I did my return and am about to do the next one- but it does state that certain outgoings- possibly petrol and something else- do not need to be itemised as long as the total is under £250. I am not inventing this- but I readily admit that I'd need to check to be certain which allowance it's for.

I have a kind of related question... Please forgive me for hikacking I am a Director of a small limited company and wonder if anyone can advise if I'm paying my accountants too much, as it seems a great deal to me! For EOY accounts (I use Sage, quite proficiently but do sometime phone for a quick query) Corporation Tax return, and 4 directors SA returns I'm charged appx £2500 +VAT. I do the VAT return myself and pay another £250 for theem to run payroll. Its all very simple accounts. Does that seem reasonable or should I be looking elsewhere?

Oh forgot to add they are also our 'Registered Address'
Thanks in advance!