do we really need accountant for Self Employed?

[tcpip_helper]

hello folks,

my extension is due in oct 2012, i am in full time job but short of around 4k to claim the required points, to get around this i've started self employed job and luckily got a 2 months contract that will give me atleast 4k, i've already registered with HMRC and received my UTR, i am well aware that what docs i'd need from my full time job but not sure about self employed side. i've gone through this forum and looks like i'll need the following document, please add any if i missed any.


1. Letter of contract
2. Bank statements, i am using the same current account for payments in which i receive my normal salary, is that ok?
3. Invoices
4. welcome letter with UTR Number,
5. NI payment, how do i pay my NI? i am already registered for self assesment online


now from this forum i found out that i will need the following documents from an accountant,
profit and loss statement
balance sheet
a letter from him

can i not prepare the above documents myself or by anyone who know accounts or is it a requirement of ukba that they must be prepared by an accountant? and obviously accountant will not do this job free.

is my check list complete for self employed purpose?

many many thanks

[rpsarangi]

you really do need an accountant .. its an requirement of HO

[tcpip_helper]

thanks, and what about my document check list, is that ok or anything missing?

[rpsarangi]

documents seems ok.. you pay NI by direct debit every month or 6 months when HMRc send you the bill.

[tcpip_helper]

and what exactly accountant will do for me and how much he'll charge roughly?

[Manka10]

and what exactly accountant will do for me and how much he'll charge roughly?

you dont really need an accountant to do your accounts but to just issue a letter confirming your operational expenses & gross income. just search for local accountants & walk in to their office, explain that you will provide bank statements & invoices to them so they can issue the letter.

you can create the letter yourself & ask them to print on their letterhead & sign

it should not cost more than £40-£50 pounds depending on your location

[tcpip_helper]

i spoke to one accountant today and he said he'll give me profit and loss statement and a letter from him, he'll charge £200 which sounds ridiculously high.

thanks for all the replies so far, so is that true that accountant will give me only two documents, p&L statement and his letter?

[rizwan567]

£40 - £50 for accounts and letter of income confirmation from Chartered Certified accountant is impossible to get.

Yes, it depends on your local but £200 is a fair quote for any location within the UK.

Its not that they will charge you 40 - 50 pounds for printing a piece of paper, they will also need to maintain your file in their offices as per their regulatory body.

[Manka10]

i spoke to one accountant today and he said he'll give me profit and loss statement and a letter from him, he'll charge £200 which sounds ridiculously high.

thanks for all the replies so far, so is that true that accountant will give me only two documents, p&L statement and his letter?

I got the letter from an accountant in London for £120 in 2008 & for £40 from TaxAssist in Swindon this year.

£200 is a bit too much but some accountants may also look at the invoice amount & charge accordingly

Also, its only 1 document, not 2, the letter itself states invoice amount - operational expenses = gross profit

[scorpio_besal]

Manka,

When you got your letter for 40GBP from Taxassist for your extension, apart from your gross and net income, did they also include

profit and loss statement
balance sheet
invoice summary.

And lastly, are they registered with ACCA or ICAEW.