Self-employed costs

[eggsarascal]

5 minutes ago, gary112 said:

I,ve been self employed 25yrs now and always had an accountant,it,s less stress,another thing i would advise is insurance against tax investigation aswell,its about 120 quid for the year,well worth it in my opinion

Have you been investigated by HMRC, I've never.

[gary112]

4 minutes ago, eggsarascal said:

Have you been investigated by HMRC, I've never.

No  but know a couple that have,i reckon its worth the 120 quid incase

[AHPP]

4 hours ago, Rough Hewn said:

Phone hmrc.
I'm SE, and I regularly phone hmrc.
I politely explain my complete lack of understanding of the tax system and could they help me.
Normally the advisor will be very happy to explain the intricate and complicated system in an understandable way,
Especially when they aren't being shouted or sworn at.
Unless you're good at paperwork, might be worth paying a book keeper or accountant.
I'm looking at this now cos I'm not great with it.
Also they will be able to give you simple tax advice.
SE is liberating but will be a struggle at first, cash flow, machinery, staff, premises, training,insurance,vehicles,
Etc....
Plan carefully.

You blow my mind every time you post this. You sound like a badger asking a dogfighting ring for careers advice. You seem to appreciate quality in other areas of your business. Why not with financial planning? You're at war. Tool up with an accountant.

[Rough Hewn]

You blow my mind every time you post this. You sound like a badger asking a dogfighting ring for careers advice. You seem to appreciate quality in other areas of your business. Why not with financial planning? You're at war. Tool up with an accountant.

You've got a point there [emoji106]

[kevinjohnsonmbe]

1 hour ago, gary112 said:

No  but know a couple that have,i reckon its worth the 120 quid incase

How can it be?

 

If you only submit expense records for that which you genuinely believe to be legitimate and you pay professional fees to an accountant to prepare and submit that which you have presented, why would you then need to insure against an 'investigation?'

 

If HMRC want to 'investigate' something they will ask for records to be provided in support of tax returns.  You should be keeping them for 5 years anyway.

 

What other profession that provides services to you do you insure for?

 

 

[Stephen Blair]

2 hours ago, gary112 said:

I,ve been self employed 25yrs now and always had an accountant,it,s less stress,another thing i would advise is insurance against tax investigation aswell,its about 120 quid for the year,well worth it in my opinion

I strongly disagree with the tax insurance.  

  A good accountancy firm that has done your books for you up until the point of investigation simply have to give them the required figures they ask for and sit in on the investigation which may only last a couple of hours.

  If you have nothing to hide and it’s simply your turn to be checked it’s a simple and stress free encounter.

 

  

[kevinjohnsonmbe]

2 hours ago, Stephen Blair said:

I strongly disagree with the tax insurance.  

  A good accountancy firm that has done your books for you up until the point of investigation simply have to give them the required figures they ask for and sit in on the investigation which may only last a couple of hours.

  If you have nothing to hide and it’s simply your turn to be checked it’s a simple and stress free encounter.

 

  

I’d go a step further than that even...

 

For a simple business model, the concept of tax investigation insurance is little more than up selling based upon scaremongering. It should be banned as a ‘sharp’ financial practice peddled (most often) by the very people that are drawing professional fees for the proper and accurate production and submission of due returns. 
 

You keep a record of receipt & expenditure, you total them up and what’s left, less legitimate deductions, is what you pay tax on. 
 

HMRC may try to play big boys but the rules is the rules. If they try and take the piss you take them in front of a tribunal judge and, if yome kosher, they  get their pants pulled down!

 

No need for insurance for that....

[Richard 1234]

11 minutes ago, kevinjohnsonmbe said:

I’d go a step further than that even...

 

For a simple business model, the concept of tax investigation insurance is little more than up selling based upon scaremongering. It should be banned as a ‘sharp’ financial practice peddled (most often) by the very people that are drawing professional fees for the proper and accurate production and submission of due returns. 
 

You keep a record of receipt & expenditure, you total them up and what’s left, less legitimate deductions, is what you pay tax on. 
 

HMRC may try to play big boys but the rules is the rules. If they try and take the piss you take them in front of a tribunal judge and, if yome kosher, they  get their pants pulled down!

 

No need for insurance for that....

? 

tell the truth and they can’t hurt you at all. Even if you do your own worse case is you have claimed for something you shouldn’t have and you have to pay a bit more.

one of the software apps you can get is plenty for sole trader especially when starting out

[Midge]

4 hours ago, kevinjohnsonmbe said:

 

 

If you only submit expense records for that which you genuinely believe to be legitimate and you pay professional fees to an accountant to prepare and submit that which you have presented, why would you then need to insure against an 'investigation?'

 

 

 

 

On this subject, if I do my tax returns myself it should look a bit like this......

 

$$$ earnt for the year = 10,000

 

$$$ spend on genuine business stuff = 2,000

 

$$$ profit = 8,000

 

Tax & NIC to pay = 2,400

 

HMRC the check this, agree everything is legit and we all move on with our lifes? Basically you submit everything on the annual tax return in one hit? Sent all reciepts, milage records etc in together.

 

Hope that makes sense and sorry about the $ symbol my pound sign isnt working on the laptop ?

Edited January 4, 2020 by Midge

[kevinjohnsonmbe]

Just now, Midge said:

 

 

On this subject, if I do my tax returns myself it should look a bit like this......

 

$$$ earnt for the year = 10,000

 

$$$ spend on genuine business stuff = 2,000

 

$$$ profit = 8,000

 

30% tax & NIC to pay = 2,400

 

HMRC the check this, agree everything is legit and we all move on with our lifes? Basically you submit everything on the annual tax return in one hit?

 

hope that makes sense and sorry about the $ symbol my pound sign isnt working on the laptop ?

Buy a new laptop and claim 100% deduction as IT equipment....

 

Of course you only use it for business purposes....  ? (Arbtalk is CPD ?)