Self employed / keeping records

[monkeyhanger]

I am due to register self employed as a sole trader. I have currently spent nearly £1,000 on books, scheme membership, PL & PI insurance, website domain (no site yet though), bits n pieces, step ladders & some new tools, also £850 on a van (escort 75), some amount on van insurance etc.

I am about to spend a hefty bit more on -tranny, -chaser, -breaker, -hoover, I may even treat myself to a new combi drill.

I wish to start keeping my own 'accounts', and was hoping some of you could explain how you go about it, I dont wish to pay for the services of an accountant- at least for now. How do you go about recording you 'capital investments'.. seen as these are significant for me as I'm just starting out.

(I realise its not absolutely necessary to do this, but I want to keep organised and I deffinately dont want to end up with more taxable income than I should)!

Thanks.

 

[adam.h]

You should be able to download a few programs. My other half's dad is an accountant, he used to write his own programs. I will ask if he still does if you like?

 

[shagg]

I am due to register self employed as a sole trader. I have currently spent nearly £1,000 on books, scheme membership, PL & PI insurance, website domain (no site yet though), bits n pieces, step ladders & some new tools, also £850 on a van (escort 75), some amount on van insurance etc.

I am about to spend a hefty bit more on -tranny, -chaser, -breaker, -hoover, I may even treat myself to a new combi drill.

I wish to start keeping my own 'accounts', and was hoping some of you could explain how you go about it, I dont wish to pay for the services of an accountant- at least for now. How do you go about recording you 'capital investments'.. seen as these are significant for me as I'm just starting out.

(I realise its not absolutely necessary to do this, but I want to keep organised and I deffinately dont want to end up with more taxable income than I should)!

Thanks.

You need to buy yourself a good accounting software like sage or quick books. These are good for keeping records but you might need a bit of know how first.

All the best with setting up though

 

[dragon-av]

OR get the pro's to do it for you Purpleforce £16+VAT a month all done for you! thats less than an hour of (chargeable time) time which you would spend 3+ hours a month doing and trying to enter into software etc. I have a mate who was £12 a month for sage and couldn't get it work, Mazuma do it all for £16 a month + VAT! I think its £25 if your VAT registered and includes VAT returns!

I have done it myself and just switched to Mazuma and its much better, they deal with CAPEX etc and help you reduce tax bill as they know what is and isnt allowed! I was worried an accountact would costs a large % of my profit but after lasts years tax return panic its not worth it!

 

[monkeyhanger]

Ok, thanks for the advice lads- -
I didnt realise getting someone else to do it could be that reasonable! I'll have a 'shop about' maybe give it a go

 

[SirKit Breaker]

Dont fear the Accountant, its Ok doing it yourself but do you really want to come home on a night and start again doing accounts etc.

My accountant costs me £300 a year and her fee is tax deductable, she knows all the in's and out's and saves me a fortune. You can claim allsorts of stuff if you know about it, i dont but she does. Do you?

Because her fee is tax deductable it actually costs me nothing for her services and saves me time and grief.

Doing your own accounts is great if you like form filling and pen pushing, and headaches.

Cheers..............Howard.

 

[dragon-av]

Ok, thanks for the advice lads- -
I didnt realise getting someone else to do it could be that reasonable! I'll have a 'shop about' maybe give it a go

The advice when setting up is worth the first years fees mate.

 

[glasgowspark]

SirKit breaker is right. Accountants fees are completely tax deductable so in the grand scheme of things accountants actually work out to be free. I pay a 'lil bit over £400 per year, but that includes my returns and unlimited phone calls through the year if I ever need advice. MAKE SURE that your accountant is prepared to double as a tax advisor!

The knowledge that these guys have that you dont' have will surprise you. At the year end I am always amazed at the purchases that end up as tax deductions that I never thought qualified. The biggest surprise for me was that insurance is 100% tax deductable, so in effect after 1 year all your liability insurances, van insurances, tool insurance, etc are all FREE. So the savings in tax deductions alone after a couple of years is well worth forking out for the service.

 

[dragon-av]

SirKit breaker is right. Accountants fees are completely tax deductable so in the grand scheme of things accountants actually work out to be free.

Not Free, but tax deductable Iw ould rather pay the tax on £400 extra profit and keep the £240 my self

 

[acat]

Use an accountant they save you more than the bill believe me and in later years when you are doing well if you decide you want to buy your own house or want a large loan for anything properly audited accounts will go a long way to getting what you want.



Chris

 

[SirKit Breaker]

Not Free, but tax deductable Iw ould rather pay the tax on £400 extra profit and keep the £240 my self

My accountant saved me a whole lot more than £240......and i mean a whole lot more.

 

[piggyitm]

I'm a sole trader,belive it or not,the local Inand Revenue office will help with allowances if your honest with them.Set up for an Online Self Assesment and all the tax and NI is calculated for you.You just throw in a few figures in the allowable expenses boxes,but becareful about loading up capital expenditure as you could be getting a bill if you ever decide fold within 4 years of the purchase.New buisness can get 100% relief on anything spent in the first year.

 

[dragon-av]

Yeah i went on a course they ran for the newly self employed it was ok but you will find their view on allowables is as tight as it comes....self assement is easy espcially if you file your receipts etc in the right order and by the right type. I only took on an accountant when i had to register for VAT.