jamescheung started this topic @ 21:42 on 01/11/2006
RE: RE: self-employed?
jamescheung | 01/11/2006 09:55 PM
thanks very much Brett, i think my friend's made a mistake, i'll just let him to withdraw the application for self-employed from inland revenue.
cheers,
james
RE: RE: self-employed?
James Smith | 02/11/2006 09:25 AM
That error does actually show a worrying lack of basic knowledge about their tax and legal status.
For your friend's own sake please suggest they take proper proffesioanl advice upfront BEFORE they start trading. There are probably 101 other things they are getting wrong too.
NB please don’t think im biased in suggesting you get help upfront – I make far more money from digging people out of messes 2 years down the line than I do steering people in the right direction on day one.
Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: RE: self-employed?
BrettUK | 02/11/2006 04:11 PM
The only way you will know how good an accountant is, is when it comes to your TAX return and how much money he/she can save you and the company 
That is not a pop at any accountants on the forum its just my view due to personal experience.. I was refered to an accountant a few years back, was told he was the dogs nuts. (more like a doughnut). come TAX reuturn time my Corp Tax seemed a little high as well as my Personal Tax so I got a second opinion and guess what...half a job harry
People like that should be struck of, gives the rest of the good guys a bad name.
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RE: RE: self-employed?
sykesdev | 02/11/2006 04:25 PM
If only that was an uncommon occurence!
I've heard of at least two people who incurred fines because their accontant just clean forgot to file corporation tax! It was all signed and sitting on the accountants desk he just had other stuff to do that month!
Of course, there is another side to this too, you shouldn't just throw a pile of figures at your accountant and leave him to it. Ask questions, make sure you understand what he's up to, you might even find you can help!
And finally, always remember who holds the liability!
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RE: RE: self-employed?
BrettUK | 02/11/2006 04:38 PM
sykesdev
Please correct me if I am wrong but even if an accountant makes a mistake is it not the client who is liable?
The reason I say this, a friend of mine who I used to work with as a contractor had an accountant do a runner with her money (she was making the Inland Revenue Checks out to him) don't ask I know. So when he was investigated for fraud the Inland Rev told her we don’t care pay us what you owe. As she had no books to show they estimated her accounts and it cost her a fortune. She then went to another accountant to help her sort this out and he charged her a fortune as well.
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RE: self-employed?
James Smith | 02/11/2006 05:14 PM
There is a very strange tone to this thread. Us accountants certainly aren’t a specially protected species - if we make mistakes up we should pay for any damages just like anyone else.
This means paying for late filing fees if it’s our fault (ie not simply clients not providing the information which is normally the case) and certainly paying any fines if the tax is computed incorrectly but the correct information was provided. We are not however liable to pay tax that should have been paid had the computation been correctly completed although some will as a goodwill gesture.
Properly qualified accountants have full indemnity insurance against errors. My policy is worth £250,000 for each and ever claim but has never had to be used. I have however had to put my hand up once and pay a £100 late filing fee on behalf of the client that was my cock up - should point out the money left my account within minutes of the error being noted and before I had even rung the client to tell them what had happened!
Sounds like you have been using unqualified accountants (not to mention a criminal in the case of Brett's friend) - unless they have the word "chartered" in their name they haven’t passed their exams and are not regulated, are not required to have any insurance or indeed any minimum level of ability. Its like getting a gas fitter round who isn’t CORGI registered.
Simply check with the ICAEW or the ACCA if your accountant is a member. If they are you are protected if things go wrong. If not - ask why they haven’t passed their exams, and why they are practising outside the regulations. Expect some very cagey answers.
NB How low they can get your tax bill should only be part of the consideration - business advice is far more important than massaging the figures to shave a few £££'s off - often at the risk to you personally if things have been pushed too hard. Again a good accountant will explain to you that you could do XYZ but explain the risks of that approach. Its easy to halve a tax bill – only declare half of your income! But that sort of an approach won’t get you very further than in court for fraud.
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: RE: self-employed?
BrettUK | 02/11/2006 05:27 PM
James.
Thanks for clearing that up. Sorry for the tone, I guess I was the one who set it. did not mean to imply anything in regards to your trade just that since I have been trading Ltd compnanies my eyes have been opened to some of the things that have and do gone on.
In regards to your last comment I have to agree with that but only since I have been running this business. before when I was a contractor and running a Ltd company it was a lot more cut and dry but with this new business things are not so simple
Regards
Brett
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