Many contractors might want to look at doing their own accounts, in order to save the cost of hiring a professional to do it for them.
This is perfectly fine, as long as you know what you are doing!
Filing a tax return can be a tricky process and unfortunately HMRC will not give you any leeway if you fill out any information incorrectly, just because you were not sure on how to do it properly. This can lead to a self-assessment being rejected, which could delay your tax return and might even result in a fine, if it ends up being filled after the deadline date.
For many people, they might believe that having an accountant is a luxury – but having one can really be a great asset, as they can be an excellent source of professional advice and guidance, can save you money in tax savings and ensure that you meet all your legal obligations.
So unless you are an accountant or are confident enough that you can follow the process correctly, it really will be useful to have one.
Also, don’t forget that hiring someone to look after that side of the business means that you can be left to concentrate on working, earning money and finding new clients.
How to find an accountant
It is vital that you hire an accountant who specialises in the self-employed. There will be specific tax legislation that will only apply to contractors and so having an experienced expert in this field really is important.
What else to look out for when looking for an accountant:
How much do they charge? – As is the case when you are purchasing anything, make sure you look around and find the best deal for you. It is also a good idea to see if they have a fixed monthly amount.
Check whether they have a fixed package that will include everything you require, such as tax returns, self-assessment, annual accounts and VAT returns.
Don’t assume that every accountant offers this fixed amount, as you could find yourself with an unexpected bill at the end of the year.