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Self Assessment...Do You Really Need An Accountant To Deal With This??

Written by: Ray Stewart

Article Overview: This article examines what benefits are gained by using a qualified professional to handle your tax affairs for you. Not using an accountant for your tax matters is akin to doing your own minor surgery on yourself to save the cost of a surgeon. I hope you would never dream of doing that - so why then would you risk getting into strife with the Tax Office just to save a few quid. Any accountant can more than justify his fee and can save you money on your tax bill that you will never have thought of. After all...if you were expert in tax you would be a tax consultant - not running the business that you are.

Self Assessment...Do You Really Need An Accountant To Deal With This??

We have seen the 2008 filing deadline come and go and once again the government are boasting record numbers of penalties being issued to those who didn't meet the deadline.

How are you going to file your 2009 Return?

What are the options for filing now? There are 5 at the moment:-

1. Using HMRC software on their own website.
2. Filling the form in by hand.
3. Taking all your paperwork to the Tax Office and leaving it to some clerk to deal with.
4. Using a program you have bought yourself specially to file on-line this year.
5. Using an Accountant.

I am sure you know which one I prefer you use… that’s right, No.5.

Lots of people still insist on going their own way and that’s fine, as long as the implications of going it alone are fully understood. The main problem is that, astute as most business people are, they don’t really have a clue about what they can properly claim against their income, and whether or not the figures they submit are just walking into a Tax Investigation.

The reason accountants are (mostly) very good at their jobs is because they specialize in certain types of businesses, and therefore build up a vast store of knowledge about their area of expertise; what is acceptable; what they can “get away with”; and what just doesn’t “look” right and needs altering.

For example, I don’t audit companies. I specialize in small businesses up to 15 employees. My interest is in helping those businesses who want to grow, improve their profitability and yes, weirdly, watching them get too big for us to handle and see them go on to success and personal wealth.

This is why accountants charge for their services.

It isn’t because they are just out to be a leech on business. They can actually add substantial value and are worth many times more than the annual fee to business owners who use them fully.

There are good and bad accountants out there - so how do you tell the difference when you are looking through the Yellow Pages - skipping through the search results on Google?

Obviously, other people’s opinions and recommendations count here. As do whether or not you know the accountant’s name from things they have been doing locally; Round Table; Newspaper editorials; Radio interviews; advertisements; charity events etc. I always tell new prospective clients that "chemistry" is important in the accountant/client relationship. Does the chap make your skin crawl when you sit in the office? Is the office an untidy mess all year round? Can they give you a couple of satisfied clients to talk to? Can they give you an informative report on the area of business, marketing, cash-flow, employee management, VAT, Income Tax, Capital Gains Tax, selling your business? planning strategies? that you are struggling with, or do they fob you off with an answer you only half understand?

The choice of accountant is really important because, when the chips are down and you are sitting in front of the Tax Inspector, you both need to be sure that you can totally trust each other. I need to know I can trust my clients not to open their mouths and totally contradict earlier statements (yes it does happen) or start blaming me as a scapegoat - trying to ruin my reputation, and the client needs to know that they have been fully briefed, expertly advised, and confident their accountant is performing at their peak when needed.

If you don’t feel you can be totally honest with your accountant, and also don’t feel they are being completely open and frank with you, then change to one you do feel comfortable with.

An accountant is not for life! You can change at any time. The only thing to watch is changing constantly, because that signals to the Tax Office that you are perhaps being less than frank with each new accountant (remember each time you appoint a new accountant, a form goes to HMRC to advise them).

Lastly, if you are very happy with the service, the answers, the extra’s you get from your accountant all year round - do them a big favour and tell your friends. I always reward existing clients with a cash windfall based on a % of their annual fee each time they recommend someone to me. Perhaps your own accountant offers something similar - have you asked?

Finally, however you do it, make sure you get your 2009 Self Assessment filed before the 31st January 2010 or penalties and the wroth of the mighty HMRC will come tumbling down on you shortly after - and trust me - you don’t want that - ever.

Ray Stewart

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Article Tags: accountant, accountants, audit companies, business owners, clue, jobs, leech, own website, paperwork, personal wealth, profitability, record numbers, small businesses, store of knowledge, substantial value, types of businesses, vast store, yellow pages



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