Getting your Self Employed tax return right

Getting your Self Employed tax return right

To work out whether you must pay income tax, you need to fill in the self-employment supplement (SA103) as well as the main tax return.

Usually, this is sent to you automatically once you've registered as being self-employed.

If you have registered but don’t receive one, you can download it from the HMRC website or get a copy by calling the HMRC orderline (0845 900 0404).

Tax return supplements

There are now two tax return supplements – a short one and a full one.

You can fill in the short one if your turnover for 2014/15 was £77,000 or less and there are no complications like a change of accounting date, for example.

However, you cannot use the short one if your accounting period is not the same as your basis period (i.e. your business year), so you may not be able to use it in the first year. The onus is on you to make sure you get the right supplement.

Getting the right advice and an affordable accountant

Of course, by instructing an accountant, you can avoid worrying about this – self employed tax return services from Omni Chartered Accountants start from as little as £95.

To find out more, request a free of charge call back from our website or click here and we will contact you at your convenience to discuss the options available to you.

3 common misconceptions SMEs have about accounting and tax

Anyone who is thinking of, or has already set up, their own business may admit to having preconceived ideas about how tax and accounting works.

For some, these misconceptions could have put them off even starting up their own business so instead, they have stuck with the security of working for an established employer.

Don’t let this stop you from fulfilling your dream of running your own company.

Below are some of the most common misunderstandings.

1. My business is too small to need an accountant

Regardless of how big or small your business is, you can always benefit from the help of an accountant.

If cash flow is limited then admittedly a full time employee may not be the most practical step. However, many small companies enlist the help of an accountancy practice that can keep track of figures, submit tax returns on time, carry out payroll services and best of all, advise you on the best ways to save your company money.

Even if you’re happy to take on the extra workload yourself, hiring an accountant purely for the money saving advice can be well worth your time. You stay in control of what you want when, but you benefit from the professional knowledge, experience and advice.

2. I can do my accounts myself

This is of course true – you can do your accounts yourself. However, as mentioned above, even though it may not seem like it at the time, an accountant can save you a lot of money in the long run.

Furthermore, very few successful entrepreneurs got to the top because they spent their days bookkeeping.

You are of much better value to your business when you spend time working on new business development and growing the company rather than doing things that you can hire others to do.

3. HMRC is always right

Just like any business, HMRC isn’t immune to making mistakes. Although they endeavour to achieve incredibly high levels of accuracy, human error is part of life.

If you are uncertain about a tax bill, the complexities of filing online, your tax code or anything else to do with your accounts, check out the FAQ’s and help available on the HMRC website.

Alternatively, if you have been left incredibly confused by tax codes and balance sheets, or just want help or advice, contact Omni Chartered Accountants who will be able to advise you accordingly.

Why trusting your accountant is key

Is it possible that the big players can ever really take over the position of the “high street accountant” or the reliable online accountancy practice that is always happy to offer one-on-one advice?

Of course not – not in our opinion, anyway.

An accountant should be there for you to advise you on the best way to manage your business finances and tax affairs. Let’s face it; this is a huge responsibility and one that you should only ever hand over to a company that you 100% trust in.

For example, you may be looking for the best price, but do cheap prices always mean great value?

Save more than just your accountancy bills

At Omni Chartered Accountants, we do what we say on the tin. We are direct, honest, experienced and – like our title says – we are Chartered Accountants, so you can be sure you are getting a professional level of service at all times.

We offer our clients excellent value for money but at the same time, we don’t scrimp on client service. All of our customers are given an initial consultation and we are always on-hand to offer advice in all aspects of their accounting queries when they need us.

In short, we are in business to save our clients money – we don’t put our profits first.

Why trusting your accountant is key

If you are unhappy with the way in which your company affairs are being managed, or if you would like to review your current accountancy bills, why not contact us for a free review? We will be happy to speak to you over the telephone initially and put forward our ideas as to how we feel our services could benefit your business.

Call 01902 837408 today or request a free of charge back from our website – also, check out our pricing page now to see how competitive our fees actually are.

And that is before we have started helping you to make the most of your company finances and tax affairs! Call Omni today: you won’t look back.

10 ways to get the best value from your accountant

An accountant can sort out your tax return or your annual accounts and provide advice on a range of issues, but how do you get the best return on the fees you pay to an accountant? 

1.   Choose carefully

Look for accountants with experience of your type of business. Anyone can set up as 'an accountant', so look for chartered or certified accountants, whose qualified status is backed by membership of professional bodies. A large firm suggests reliability, but a smaller one may respond better to your needs. Ask prospective accountants how they can help your business.

2.   Explain your expectations

Your accountant will summarise terms and conditions in a letter of engagement. Put your expectations in writing, too. Describe the level of service you require, for example, how quickly you need queries to be answered. Ask to deal with a specific contact, to help build a close professional relationship.

3.   Ask questions

Check what other services your accountant can offer. These could include guidance on setting up your business, preparation of financial forecasts, help with loan applications, audits, investment advice and other suggestions for minimising your tax liability.

4.   Use your accountants’ contacts

Accountants specialising in your type of business can often suggest good trade contacts. Perhaps your accountant knows a supplier who can offer you a great deal or maybe they know of a potential investor.

5.   Keep talking

Communicate regularly with your accountant to get the best possible value from the relationship. Schedule quarterly meetings to review your firm’s performance; this will help you plan better for the future. Be sure to meet before producing your end-of-year accounts or tax return.

6.   Keep user-friendly records

If necessary, ask your accountant for advice about how best to maintain your financial records. If your books are easier to read, you will save them time, which should mean a lower bill. 

7.   Do the easy jobs yourself

To reduce your outgoings, take care of simple bookkeeping tasks yourself, possibly by using accounting software. You could then better focus your accountants’ efforts where they best serve your business.

8.   Delegate

If your time would be better spent concentrating on sales or product development, you could ask an accountant to take greater responsibility for your bookkeeping and payroll. This would free you up to make more profitable use of your time.

9.   Shop around

Armed with recommendations of good accountants, get a full breakdown of an accountant's charges and services. Work out which one offers you best value for money (and that's not necessarily the cheapest, of course). And, at least once a year, review the value for money you receive. If you believe you can get better advice and value elsewhere, go elsewhere.

10.   Seek advice

An experienced accountant can offer sound advice in a number of areas. For example, they could help with your business plan, help you estimate the cost of new projects or advise on the levels of investment needed to achieve your business development goals.

We understand that all clients are individual and as such have different needs – our cost effective but personal approach gets results and ensures that customers always get the best out of their accountant if they choose Omni.

For more information, call 01902 837 408 today, request a call-back or contact us.

Do I really need an accountant?

There are good reasons for hiring an accountant at different stages of your company's growth.

Whether it is help with a business plan, forming a company, dealing with a loan application or even a government audit, Omni can make life easier for you, proving to be a worthwhile investment.

Can I afford an accountant and do I need one full time?

You don’t always need to employ an accountant full-time or hire one on a retainer basis – that is entirely within your control.

Like all small business owners who are looking to save money, you may think you can’t afford an accountant. But look at how long it would take you to do certain tasks (such as calculating taxes), and ask yourself - is that a good use of your time?

For example:

• Ø  Let’s say it takes you 20 hours to do your taxes
• Ø  Your time is worth £60 an hour
• Ø  Doing taxes yourself costs £1200

And there’s always the risk you’ve made errors – especially if you’re multi-tasking like most business owners.

However, if you get an accountant like Omni to take care of time-consuming tasks like taxes, it’s quite likely that they will cost you less per hour than your time is worth. You’ll not only have extra time to free you up to generate revenue, but you’ll have peace of mind that an expert is taking care of the details.

So what other moments during the life of a typical small business might you want to hire an accountant to help you?

Advice about your company’s legal structure

Not all businesses have the same legal structure – there are different types that are determined by a number of factors. Some might be called limited companies, limited liability partnerships or corporations, others could be sole traders or proprietors.

Sole trader vs Limited Company

You should carefully consider each type before deciding which one best suits you. Omni can help advise you on this. For example, you may do business as a sole trader or sole proprietor, working on a self-employed basis and invoicing under your own name. If this is the case, you might be able to offset some of your living expenses against tax.

However, this also means you could be held personally liable for any business-related obligations. If your business fails to pay a supplier, defaults on a debt or loses a lawsuit, the creditor could legally come after your house or other possessions.

With a limited liability company structure, it's different. As the name suggests, the liability of the business is limited to the assets owned by the business, not you personally (though there may be exceptions in some circumstances).

Omni can explain the legal business structures available and help you choose the one that best suits you.

Accountants can help with the finances

Small business accounting can quickly become complex if you do it on your own.

If you feel you're losing control of who owes you money and how much, Omni can help you get back on track.

You may also want to measure key business metrics, such as the ratio of salaries and other employee payments to total revenue. We can help by managing your payroll and producing graphs so you can see how the ratio changes over time.

Hiring an accountant when you're ready to delegate

As a small business owner, no doubt one of the things you like best is that you have control. You can set your own working hours, craft your business strategy, regulate your workload (at least to some extent) and determine your own finances. And being the master of all of these things is a wonderful and liberating feeling.

But sometimes it can stop you from delegating. Business owners can feel overworked, partly due to a reluctance to allow other people to help out. You might feel that no one can possibly know your business as well as you do, therefore nobody can handle any part of your business as well as you can.

Inability to delegate can mean you’re left feeling overworked and stressed. At some point you will have to let go, and learn to trust other people to handle some parts of your business so that you can look after the rest. Trust in Omni to help you every step of the way as you grow YOUR business.

Contact us now to find out more or call 01902 837408 for a free initial telephone consultation.