Accountancy

[beansmummy]

Hello all

Not sure if I'm in the right place here, but I'll give it a go...

My partner has recently gone self employed (he is a brick layer) and we were wondering a few things regarding the accounts.

We are aware that he can take all receipts/bank statements to an accountant at the end of the year, but we were wondering if I did a book keeping course (only level 1), if that would save money in the long run? Also, at the risk of being completely tight, can the cours cost go through the company somehow?

I know I wouldn't be able to sign stuff off, but does it make the accountant cheaper if he only has to make sure it's all in order rather than going through everything?

This is all very new to us both, and I'd love to help out if I can so any advice would be appreciated!

Thanks in advance xx

[fiction-factory]

I think it would be better to use a professional initially and then see what's involved and whether you can do it

[pixie374]

It does. I keep a cash book for ours, which is really straightforward and obviously bank statements and invoices in files. The accountant charges per hour and it saves her a lot of work, so is much cheaper.

[Cloverjo]

Doing the basic stuff yourself will definitely save money you would otherwise pay an accountant to do. A course might help you with things like VAT. I was going to tell you a few basics, but your business is quite different to the one i do bookkeeping for , so best if I don't. It's not difficult, thoug

[Buenchico]

Unless your partner has created a limited company, there is absolutely no need whatsoever to use the services of an accountant (or even of a book-keeper). The online tax return form only asks what his profit is for the tax year. So you simply need to keep a record of all income and another one for expenditure. Simply subtract the expenditure from the income to obtain the profit.

It's actually extremely unlikely that HMRC will ever want to see detailed accounts but, as long as there are clear records of income and expenditure , it matters not how those records are kept anyway.

So simply buy two cashbooks. Use one to record income and the other for expenditure. Number all of the receipts

[Buenchico]

. . .

[pixie374]

That's true....but our accountant saves us money by knowing all where to save it, and we need three returns. So it depends how much you want to do yourself. I think it's worth it once a year- because it's very boring.

[Buenchico]

(Aagh! I'm not hitting 'Submit' but AB keeps thinking that I am!!!)

Number all of the receipts and keep them in a ring binder in numerical order. (Small paper receipts can be attached to a sheet of A4). Ensure that the 'Expenditure' cash book records the number of each receipt, so that anyone auditing the accounts can quickly tie the two together.

Also keep a record of all business mileage and, at the end of the year, include that as an expense at the current permissible rate.
https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax
(Note that, if those rates are used, no additional claims relating to vehicle usage can be included).

That's all there is to it!

[david small]

For a while I paid an accountant, then stopped as he was incompetent. Then submitted earnings and out goings to taxman on one sheet of paper. They were happy, did the same for years. I kept all records of invoices etc just in case. Never needed them.

[Peter Pedant]

well you have a variety of views ....

I have used an accountant since a family member was accused of tax fraud and ( 1985) never regretted it. I was advised to keep every receipt for the rest of my life - which I have ! [ the case was discontinued but was still a bit of a shock to all of us ]

I started an accountancy course last year for personal reasons !!
and so joined a class of twenty somethings and teenagers some of whom work in pay offices....

AAT does a series of courses - level 1 is fundamental arithmetic and I plugged in a level 2 and found it quite interesting - just done a modular assessment.

courses near you may start mid year
and cost - £800
a year at uni is around £9 000 - so I regard something like that as peanuts


paying an accountant to book keep is expensive

BuenChico and I are used to disagreeing
He is of course entitled to his view
which caused a sharp intake of breath when I read it first time

[Peter Pedant]

oh and the cost should be tax deductible
you wouldnt be doing it unless you were doing company accounts

[Cloverjo]

You really don't need a £9000 uni course or any AAT course. I've been doing my partner's business accounts and a friend's business accounts for years. I have no relevant qualifications.
Also, the wages for paying you as the bookkeeper would come out as a business expense.

[tamborine]

Open a spreadsheet, enter & list all business exes. Keep all receipts, bank/visa statements etc. Accounts are submitted to HMRC after 1st year trading. You cannot claim course fees but you can bill the business for book keeping.

http://www.openoffice.org/

[Dogsbody2]

Personally I'd do as the majority of the above suggest - it isn't difficult. A someone above has pointed out, if you have no earnings (or annual earnings under the personal allowance of around £10.5k) you can 'charge' your hubby for your book-keeping services - thus further increasing his expenses on which he offsets against gross earnings. You would pay no tax if still under your your personal allowance - suggest a figure of £15 per week for this service would fly.

The usefulness of an accountant is in knowing what allowances and expenses hubby can claim, but that ain't difficult either as HMRC has pretty well-defined rules. Start by reading this download.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/367279/expenses-allowances.pdf

[Peter Pedant]

excellent ref dogz thx
wh I neva even knew existed !

[HenryFord]

Hi. I worked in accountancy for 5 years (many years ago) and was nearly qualified when I left. The general rule is that an accountant should save you more than he costs and a good one will do that. For a small business they are not as expensive as you think - maybe £10 per week, or £500 for the year. Thats for the year end accounts. The bookkeeping would have to be done by you. The bookkeeping is quite easy. Just keep receipts for everything that goes through your bank, mark on the receipt it was 'bank'. Keep receipts for everything you pay on a credit card, again mark on it 'credit card'. Keep receipts for everything you pay in cash. Put them all neatly into a ring binder in chronological order. For all other bank payments (wages, drawing etc) write it on the bank statement next to the amount and what it is. For receipts do the same - write who its from and what its for. My advice would be use an accountant for the accounts - but get a fixed price before you sign up and if you find the bookkeeping difficult go on a bookkeeping course.