self employment / book keeping

do we have any self employeed people on here?
if so do you use a book keeper / accountant to cook your books?
what do they actually do and how much do they cost.

much appreciated

 

I do/did my own books. It's pretty straightforward-you just need to ensure you record all expenditure and income. I have a spreadsheet set up.

What you need the accountant for is to do your statement of accounts and tax return. This will cost £200/300 but is a legitimate business expencse and the savings should more than cover the cost.

You need to be aware that if your turnover exceeds £53K (ish) you will need to register for VAT (and that is a pain)

 

Vat limit is £60K in any 12 month period say jan-jan feb-feb.
Even if you slip staight back below that level you MUST REGISTAR AND THEN DE-REGISTAR if you don't you could end up with a vat bill in three years time of say £30K to £50K as the Customs and excise will take it as if you have been charging vat from the date you should have been registered.(oh plus penalties and interest) Don't mess with the vat man(rulez)

 

Flat rate vat - excellent

V.A.T. used to be a pain but if you're a small business its now very very good.... and a bit of an earner.

Flet rate V.A.T. as just come in to help cut out all the paperwork.

I only pay 11% of my VAT to the taxman ie. i invoice £100 +17.5 VAT but pay the taxman only 11% of £117.50 = £12.9.

So for every £100 i invoice i make about £5 ,,, the best and only thing Blair has done for self employed people since he came to power.

Just always always pay what you should when you should and you'll be sorted.

Hope it helps

 

RE: Flat rate vat - excellent

Sounds good as I'm just about to become self-employed again.

 

RE: Flat rate vat - excellent

But you get no allowance for the Vat on your purchases and vatable expenses. depends what your trade is.

 

RE: Flat rate vat - excellent

Typical Blair gives the good news ie lower rate, without giving the full picture. Flat rate schemes can be benifical but should be looked at on a case by case basis !! Also don't forget to claim the input tax back on large purchases such as a van or major plant and equipment.