Do Small Sole Traders Need An Accountant
If you are sole trader and your service is fairly simple and there are no complicated tax issues you could probably do it all yourself. There is plenty of information online at HMRC’s website and elsewhere, however the question I would ask you is this.
Is it good use of your time?
Accountants are experts in their field, it’s what they do everyday. Something that may take you hours, days or even weeks to figure out the accountant should already know. For a small sole trader with good records, few transactions and straightforward tax affairs your accounting fees are unlikely to come to more than £750 plus VAT per annum. Not only this but fees for preparing accounts and tax computations are tax deductible so that £750 is only actually costing you £450 if you are a 40% taxpayer
So whats £450 of your time worth? Isn’t it better to spend your time marketing and getting new business? Additionally how do you know that you have covered everything? You are after all an amateur in this and qualified accountants are the experts.
So really my answer is always the same yes you should engage an accountant.
If you need further help and advice please contact me Paul Stankiewicz FCA on 0800 689 3084 or [email protected]
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