new small ltd: self management or tax accountant?
I recently set-up a new limited company in london and i've been contacted by a society called "Tax Assist Accountants" to take care of my tax returns, book keeping and all this stuff. They offer me their service for 600£ per year (plus VAT). my business is so simple: i promote and organize events (party), maybe 4/5 per year, so i'm not sure if i really need a tax accountant or i can take care of everything by myself (i'm italian and the uk burocracy is new for me). what do you think about the price they offer to me: is fair or not? can i find something cheaper in london? thanks for your help, BYE.
United Kingdom - 4 Answers
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Answer 1 :
Your english is good so I would reccomend you read the HMRC website - most one man companies do their own accounts nowadays - on line and wit ha computer it is fairly easy.
Answer 2 :
Sounds a little expensive. Go to a small accountant but make sure thaye are registered with the Certified Accountants professional body. Get a couple of quotes. You need a proper accountant to do your Company House returns but you can do a lot of the paperwork yourself to save costs.
Answer 3 :
I doubt if you will find anything cheaper. If you go with that quote make sure you check exactly what is included in the price. I think you need to see an accountant. At least to talk through the obligations and responsibilities associated with running a limited company. Maybe let them prepare the first year's accounts and tax returns and then, if you feel confident that you understand the processes involved, continue doing them yourself in future. Bear in mind that you will need to know - Company law - the format of statutory accounts; what needs to be filed at Companies House (abbreviated accounts); the correct procedure for declaring and paying dividends; filing annual returns, etc. Corporation tax law - to calculate the correct amount of tax and to file the returns. Bear in mind that you will have to file these electronically and the accounts must be in iXBRL format. (Hopefully the software on HMRC's site will make this straightforward) Payroll law - you will probably need to pay yourself a salary and make returns even if you do not employ anyone else directly.
Answer 4 :
Sounds like you need to speak to an accountant who deals with small businesses. They can advise you on tax matters, provide software for your to do your accounting/expenses and do your annual tax returns. Shop around to see if there's a small business accountancy firm that meets your needs. If you genuinely believe you can do the relevant accounting and tax/companies house returns, do it yourself. However, ignorance is no excuse in the eyes of the law, so if you fail to do something you're supposed to as a limited business, the tax man may investigate you and fine you for any errors/inaccuracies. Getting a qualified accountant to do this work for you transfers the risk of getting something wrong to them largely. They can also arrange things like free business banking for you in your first year and advise you on any tax breaks available to new businesses, so their advice might quickly pay for itself...
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