At first it can work for you to run your own books, but there are a number of points where it becomes more sensible to bring in a professional to do your accounts.
You’ve Missed a Tax Deadline
Late Self Assessment Returns. Being late with a Self Assessment return will automatically attract a £100 penalty. This will then increase by daily penalties after three months. Many sole traders and directors of limited companies find that they are struggling to meet payment on account dates each year. Others find that they are late with their online return in January each year. In both circumstances, running your own books will become too difficult and it is time to look for professional help. Self Assessment obligations for sole traders and directors of limited companies are explained by the ICAEW here.
Your Turnover Is Nearing £90,000
The VAT threshold for registration is £90,000 in taxable turnover. Although HMRC will allow you time to register once you have passed the threshold, they can then retrospectively charge you for any VAT you have made, plus interest. An accountant will be able to advise when you are approaching the threshold and recommend the most suitable VAT scheme for you and your business.
You’ve Taken On Your First Employee
Payroll brings PAYE, National Insurance, RTI submissions as well as the auto-enrolment pension duties for your employees. Each of these has its own due dates as well as rules that must be adhered to, and if any of these are completed incorrectly then penalties will be incurred. Many Bath sole traders look for accountancy help for the first time when they employ their first member of staff.
You’re Making a Big Financial Decision
Whether you are looking to take on a new premises, look for a business loan or bring in a business partner then it is wise to set out your finances on a more detailed model than a simple estimate. A local accountant will have experience of the current business scene in Bath and be able to give you solid, realistic advice. More on Accountants Bath can be found at //chippendaleandclark.com/accountants-near-me/bath/.
If any of the situations above have happened to you then bringing in an accountant to sort out your Bath business books could end up costing less than the potential mistakes you may have made in the rest of the time.
