first year submitting accounts

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esperanza2

Registered User
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I became a sole trader last September and will have to submit my accounts at the end of September plus an estimation of forecasted earnings until September 2008.

Does the Revenue have the right to look at my bank statements? I use different accounts, as I have clients in another country who prefer that I get paid into an accuont in that country. Will this pose a problem for Revenue? I don't have a business account as my business is quite small.
 
esperanza2 said:
I actually manage my own accounts as I'm trained in that. Would an accountant give me the above information free of charge over the phone?
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LOL. I have an accountant who I pay to do my returns. And from time to time I ring him with a query and he answers it free of charge. But I wouldnt expect any professional to answer a query from someone they didnt already have a working relationship with for free- and even at that professionals don't like giving advice over the phone because they won't have all the relevant information.
 
Vanilla said:
LOL. I have an accountant who I pay to do my returns. And from time to time I ring him with a query and he answers it free of charge. But I wouldnt expect any professional to answer a query from someone they didnt already have a working relationship with for free- and even at that professionals don't like giving advice over the phone because they won't have all the relevant information.
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Well, some of us can't afford accountants to do things as easy as profit and loss accounts. Come to think of it, my cousin's an accountant: he's sure to give me advice for free. :)
 
esperanza2 said:
Well, some of us can't afford accountants to do things as easy as profit and loss accounts. Come to think of it, my cousin's an accountant: he's sure to give me advice for free. :)
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Free advice is always worth exactly what you pay for it.

Why need to ask anyone, your earlier post said "I actually manage my own accounts as I'm trained in that."
 
Graham_07 said:
Free advice is always worth exactly what you pay for it.

Why need to ask anyone, your earlier post said "I actually manage my own accounts as I'm trained in that."
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It depends. I don't think just because you pay for something you get better quality all the time. Yes, I am skilled in doing the actual accounts but not ofey with auditing matters. In any case, I've just phoned my cousin who said that the Revenue will ask to see bank statements if I get audited (which may or may not happen).

Thanks anyway for your helpful advice... not!
 
Thanks for that. :) Noone else picked up on it but I guess they understood what I meant anyhow judging from the reponses I received.
 
Revenue themselves are very helpful for any queries paticularly if you are doing your own accounts.
You don't have to submit your bank statements, you declare your income. Keep everything on file in case you ever got audited.

P
 
I don't mean to be offensive but in my experience the worst cases I have to deal with is people who have done their own accounts. Your questions already indicate a lack of knowledge. Their are approximately 3,500 sections in the taxes acts. The revenue like people who do their own accounts because in general people do not claim all of the expenses that they are entitled to. Most reviews I have done in these cases show errors - mostly where tax is over paid however the worst cases is where tax has been massively underpaid. The client then has to pay the underdeclaration, penalties and interest at outrageous rates - often leading to massive settlements. Knowing how to 'do accounts' is only an initial step. There is other knowledge needed that in general an 'interested' qualified accountant can provide. This would include types of expenses that you can or cannot claim, tax planning opportunities, pension planning, tax efficient investments, leasing/purchase decisions, estate planning and business/strategic planning. I say 'interested' accountant as unfortunately there are too many out there that will just take the money and give you a very basic service and won't go that extra bit where your affairs are planned and in order.
 
simplyjoe said:
I don't mean to be offensive but in my experience the worst cases I have to deal with is people who have done their own accounts. Your questions already indicate a lack of knowledge. Their are approximately 3,500 sections in the taxes acts. The revenue like people who do their own accounts because in general people do not claim all of the expenses that they are entitled to. Most reviews I have done in these cases show errors - mostly where tax is over paid however the worst cases is where tax has been massively underpaid. The client then has to pay the underdeclaration, penalties and interest at outrageous rates - often leading to massive settlements. Knowing how to 'do accounts' is only an initial step. There is other knowledge needed that in general an 'interested' qualified accountant can provide. This would include types of expenses that you can or cannot claim, tax planning opportunities, pension planning, tax efficient investments, leasing/purchase decisions, estate planning and business/strategic planning. I say 'interested' accountant as unfortunately there are too many out there that will just take the money and give you a very basic service and won't go that extra bit where your affairs are planned and in order.
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Thanks for that. I do appreciate your taking the time to write so much information. Indeed the problem is just that: trying to find a good accountant. I didn't think there were outrageous rates for undeclaration, penalties and interest. Like I said, my cousin is an accountant, but how competent he is I'm not yet sure. If you could, please PM me with a few names (location is irrelevant). Failing that, please recommend me a good book. I know how to do a profit and loss account and am aware that expenses purely related to the business may be deducted (in my case, phone, Internet, a part of my rent, business trips to meet clients in person, stationary, printer ink, computer maintenance, academic resources, pension).
 
The only penalties I see mentioned here are for late submissions.

[broken link removed]

Perhaps some one can point me in the direction of a another link that may help. Thanks.
 
If you do nothing else, open a separate business bank account. Not having this, will make doing your accounts a lot more difficult. Ultimately the revenue do have the right to see your bank accounts, and failing to declare them will be viewed in a dim way.
 
esperanza2 said:
I know how to do a profit and loss account and am aware that expenses purely related to the business may be deducted (in my case, phone, Internet, a part of my rent, business trips to meet clients in person, stationary, printer ink, computer maintenance, academic resources, pension).
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If you mean you own pension it is deductible against earnings (within limits) but not because it relates purely to your business (it doesn't for a sole trader), the reason pension is deductible is to encourage you to save for retirement.
 
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