We have seen the paper form filing deadline come and go - this is now ancient history.  In just a few short weeks the on-line filing option will expire on the 31st January 2009.

You will not be one of those who miss the deadline will you?

What are the options for filing between now and the deadline?  There are 3 at the moment:-

1. Using HMRC software on their own website.
2. Using a program you have bought yourself specially to file on-line this year.
3. Using an Accountant.

I am sure you know which one I prefer you use… that’s right, No.3.

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 2008 Self Assessment filed before the 31st January 2009 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.

As always, please feel free to ring me on 0800 047 0731 if you would like to discuss anything before the deadline hits - even if you just have a question - I won’t charge you, it will be my pleasure to help.

~Ray

Yes, it’s that time of year again. Isn’t it worrying how quickly it comes around each time. I am sure it gets quicker each year!

The 31st October 2008 is the deadline for sending in a paper Self Assessment Return (SAR) and if you want, HMRC will calculate your tax for you - more on that in a minute.

You can submit an electronic SAR right up until 31st January 2009 but if you would like your outstanding tax collecting through your tax code, you need to submit the SAR before 31st December 2008.

Not everyone who is liable to submit an SAR uses a bookkeeper or accountant, in fact less than 50% do. This means there are a significant number of small business owners who do everything themselves, no doubt in a misguided attempt to save money on fees, and who are at serious risk of a full and lengthy tax investigation into their business and private affairs.

The Tax Office love dealing with “undefended” taxpayers because they are much more likely to have a “successful” (more expensive for the taxpayer) outcome than someone who has an accountant and professional fee insurance in their corner.

Back to the option to have HMRC calculate your tax for you if you submit your paper SAR before the end of October 2008. Why would you???

They will not give the same care and attention to your business records and particular circumstances that an accountant would. You are likely to deal with a low level assistant and just be one of their 100 odd tasks a day. They simply do not have the time or professional knowledge to do everything in their power to minimise your tax bill. They will not understand you or how you run your business and you will pay much more tax than you should.

And, you are no less likely to have a full in-depth investigation because HMRC have done it for you (despite some pub talk I have heard). In fact, you are more likely to have problems because someone higher up has to check the work of the afforementioned low grade assistants who do this for you.

The moral is - use an accountant. I don’t understand plumbing and twice this week I have had near disasters because I thought I could cope and not wait around for the busy expert. Everyone has their field of expertise, but if you want an accountant to come round and fix your blocked toilet then call me, you will get a much more professional, insured and trustworthy job done if you call a qualified plumber but I will be cheaper!

Dealing with the Tax Office at the moment is best left to the professionals. The only consequence of me doing my own plumbing was s### all over the bathroom floor. The consequence of dealing with the might of the Tax Office on your own could be a heck of a lot messier and cost you a fortune.

If you would like to talk about your Self Assessment form, if you are not sure if you should still deal with it yourself, if your present accountant isn’t giving you the time and attention you need - please call me on 0800 047 0731 for a no-obligation chat.

I never charge for the first 30 minute interview and sometimes this is all it takes to put someone’s mind at ease. But if you would like us to take over your case, we will bring all our expertise to bear on your situation until it is resolved.

I never let a tax return out the office without personally going through it, and the supporting information, to ensure nothing slips through un-noticed.

Remember though, if you choose to become a client, you will be expected to either join the Federation of Small Business, or let me see that you are covered for professional fees for a tax/vat investigation. This helps us maintain the highest reputation with the Tax Office and ensures you have the best possible team behind you if an investigation does start.

So, ring me today on 0800 047 0731 and let’s have that 30 minute free chat.

~Ray