UK tax

[Gander0]

I'm sure there is some useful information about tax in the forums somewhere but my searches haven't been very successful.

 

If someone could point me in the right direction I'd appreciate it.

 

This is my first year of freelancing within the UK and therefore of self employed tax payment.

 

I cant say its been the most productive year and I definitely haven't been putting enough aside so am looking to rectify matters before its too late.

 

One thing that might help is writing off computer and software costs as capital allowances. Has anyone any experience in doing this?

 

Also, is it worth forking out on any extra hardware or software that I've been putting off buying before the end of the tax year and how much of the purchases could I write off?

 

Many thanks

[mattclinch]

its long and complicated. best bet is to hire an accountant and run through all your figure so far. they will advise you where you can save money.

[Gander0]

Thanks Matt,

 

I was thinking I might have to take that route, but wanted to get my head around some of the possibilities before I approached anyone.

 

Does your accountant have a set rate for running through and helping you complete your return?

 

I don't suppose you have any recommendations?

 

Cheers

[Jim Mann]

Just like Matt says, get yourself an accountant ASAP. They will have different fees for different levels of service but you need to approach them to find out what these might be.

 

If you have been freelancing for a year already then you need to be careful as I am sure that you are supposed to register as being self-emplyed with the Inland Revenue or HMRC very soon after you start.

 

An accountant will know all the things you need to do and be able to advise you on everything you have asked questions about. There are a few routes you can take, one is as a sole trader, then the other most obvious one would be o incorporate your business. You then need to consider whether to register for VAT. Again, a decent accountant can advise you and guide you in ways that you won't get on a forum. Indeed, you would be asking for trouble if you relied on the forums for this kind of information.

 

Jim

[mattclinch]

my accountant charges me £250 per year to do my return and has been very helpful with advice.

 

he also helped me with the forms to setup as a sole trader and register with HMRC for tax, NI and student loan repayments through the SLC, and with the monthly DD payment of class 2 national insurance contributions.

Edited October 31, 2010 by mattclinch

[Gander0]

Thanks Jim, I registered as soon as I got back into the UK (April-ish)

 

Matt, I was going to get in contact with an accountant through a friend of mine but I think he/she charges £450 a year. £250 to me sounds fantastic. I'm in your neck of the woods so would appreciate any details if possible (Fully understand you may not want to if its a private contact)

 

Having never dealt with an accountant before I'm unsure about reliability and I'm sure there must be a fair few jokers out there. As with anything any recommendations are worth their weight in gold.

[JonRashid]

My accountant charges around the £250 mark but I prepare all my books in the same software as she uses to reduce the costs. Capital right offs such as hardware are usually done over 5yrs, but if you work from home you can claim some of your housing costs against the business. Electricity, phone and the like. If you anticipate earning over 35k (i think thats the figure) then you have to register for VAT as soon as you are aware of it. Best get accountant on board asap just for your own peace of mind.

[Gander0]

Thanks Jon,

 

Will be holding out for paying that much now. I hope I can find someone.

[mattclinch]

drop me an email, i can give you my accountants details.