Self-employed tax return,new business.

A

andersoc27

Guest
Hi, I have been self employed since Sep 2004. I was told by the Tax office last year that I was not obliged to make a return Oct 2005 deadline but that I could instead return 2 years of accounts Oct 2006. My question is this: Do I now pay and file for 2 full years tax ie. sep 04 to Aug 05 and then prelim of Sep 05 to Aug 06. or are there any special rules applying to the first few years in business?
 
If you are self employed then you really should engage an accountant to deal with this sort of stuff regardless of what free advice you might receive on discussion forums like this.
 
Yep, I know at the end of the day you are correct strictly speaking. Just I have come across a few who seem to know even less than I do, and then with the paper trail they expect you to lay out for them it seems like you are giving them everything on a plate and paying a hefty price for work that I could really just do myself.
 
Dunno about that but I would be very surprised if there are ANY practising accountants out there who don't know the basic rules of self-assessment for new businesses.
 
well, I'm not trying to belittle all accountants or anything. It's just I run quite a low earning business, so maybe the ones I have been talking to would not be quite as reputable as a shopfront or golden pages accountant. I have asked them this basic question and they either could not or would not answer it for me....hence the post.
 
Do bear in mind that some accountants who work outside small or medium practices (eg in industry, financial services or the large auditing firms) may not be up to date on basic self-assessment rules. Then again I sincerely hope that you have not been "paying a hefty price" to people in this category for such advice, as you state above.
 
ubiquitous said:
Dunno about that but I would be very surprised if there are ANY practising accountants out there who don't know the basic rules of self-assessment for new businesses.
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Are these two comments consistent? I've never been clear on what it means for an accountant to work "in practice" versus the alternative(s?)? What does the former deal with that the latter does not and vice versa?
 
No, I fourtunately haven't paid anyone anything yet. My "hefty price" is based on quotes I received for doing my annual returns. Maybe I'm being naive but I think its the sort of thing I can do myself. very basic business. Just deducting cost's from income. Just wasn't sure what period I should do my accounts for as I have been given conflicting info from revenue office and books and actual accountants.
 
ClubMan said:
Are these two comments consistent? I've never been clear on what it means for an accountant to work "in practice" versus the alternative(s?)? What does the former deal with that the latter does not and vice versa?
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I work in industry and as I have stated before, have no day-to-day dealings with self-assesment etc., nor sole trader accounts-the kind of stuff that most accountants in small/medium practice would typically undertake on behalf of clients (however I am a chartered accountant).

Larger practice would tend to focus on audit and related services.

Those working in industry may work in specific areas (treasury, regulatory reporting, internal audit etc.) or as 'general financial accountants' and prepare accounts and tax returns etc.

There are moves underway to restrict the usage of the term 'accountant'.
 
ClubMan said:
Are these two comments consistent? I've never been clear on what it means for an accountant to work "in practice" versus the alternative(s?)? What does the former deal with that the latter does not and vice versa?
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For a useful analogy, think of the difference between doctors who work as GPs against those who specialise in specific areas who, while expert in their own fields, may not have the same familiarity with the broad range of "bread and butter" issues that the GP deals with on an everyday basis.
 

Couldn't have put it better myself.
 
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