Ask yourself how long you need to wait to see your accountant, how long do you get to discuss issues and in the end are you satisfied with the reply?? From a self employed cleaner to the largest corporation in the world, every business needs an accountant. Some accountants cause demise to their clients business and some assist business to fly. I am sure you have one too. If you are not entirely satisfied with the service you receive, why don’t you book an appointment with me just to discuss issues.
Its not going to cost you a penny!
We live in a socialistic pattern of society, which means a substantial give and take is involved. You earn more you pay more or you earn less you pay less and even claim to cover the deficit. So, Tax is an important factor and determinant of the equation. But, prudent accounting is the basis of determining tax liability. Prudent accounting is the thing, which is lacking almost everywhere. Tax planning is inherent of proper management of book. You are quite right, why incur more overheads when you can get all from your accountant. The bottom line is tax on your disposable income and the trick is how to keep the disposable to the nominal to attract less tax liability.
An accountant’s job is to assist you to comply with the HMRC rules and regulations by submitting required information data in time. I.e. submitting SAR, VAT returns, CT600 (Corporation Tax Return) in time. Your duty is to make money where you are best at and leave the rest to me. All you have to do is submit your Expenses and Income invoices to my office at a regular time interval depending on the scale of your operation. You shall see me at least once in a two month period to watch over my work and understand your data.
Well, tax evasion is illegal. What I have seen in my career as accountant that small business tend to burn their income receipts and keep their expenses to book. It works in the short run to keep your profit to the minimum level but this practice throws the industry ratio for Income and Expenditure to disarray. Of course, this is illegal.
But legitimate avoidance in not illegal. Say, your earning was £40k during 2012-13. All you need is £30k to run your family. You can invest £10k in pension fund and avoid tax. The bottom line is whatever money you keep in hand for spending you pay tax on it. Claiming capital allowance is another way to tax avoidance but you have to be very careful about it. If you are a limited company, you can issue share in lieu of payment that doesn’t attract tax up to a certain level.
That’s a million dollar question. The fee shall entirely depend on your financial status-co.
For a good and thriving business, astute advice is more important than thinking over a few hundred quid.