Is using an accountant for my limited company accounts expensive?
If you are considering setting up a limited company, or perhaps you already have one and are wondering what managing your accounts should cost – then this is the post for you.
Running a business comes with many different costs, and an accountant that specialises in limited companies or self-employment is essential. Factor these costs into your yearly expenses so that you are always ahead of the curve.
What do accountants do?
Many people wrongly assume that they don’t need an accountant since HMRC supplies so many guides. However, that is not the case. An accountant isn’t a luxury; they are a must-have for any business.
Here are two simple sentences that give you some insight into how essential accountants are:
- They make sure you will always give the correct figures of limited company accounts to Companies House and HMRC for corporation tax.
- They have over 17,000 pages of tax law worth of knowledge, and they have an eye for detail unlike any other.
An accountant will make sure that you ever pay a penny more of tax than you need to and that you are maximising the number of expenses and credits you are entitled to.
Did you know many companies overpay VAT because they don’t have an accountant? No, not many people do. They also don’t understand that a company director can treat themselves to non-monetary gifts up to the value of £50 as much as they want so long as the amount spent doesn’t exceed £300. But here is the trick: Your accountant will add that £300 straight to the expense’s column, and you can save about 19% in corporation tax.
There is so much more than a tax accountant can do, and it is all legal for them to do so. They understand your business and taxes.
How much does an accountant cost?
There are no standard prices for tax accountants because their tasks will differ from company to company. For example, one limited company might have straightforward taxes and no deductibles, while another might have messy paperwork and thousands of receipts to go through.
Tax accountants look after a range of different business sizes, from freelancers and contractors to large corporations. Each of the bodies will require another skillset from the accountant.
In general, the larger your limited company, the more hours and the bigger the task.
How much will an accountant charge per hour?
Most accountants don’t charge by the hour; they charge by the job that is required. Once you have given your accountant all of the information about what you need, they will provide you with a list of everything they need from you, and they can outline all of the services you need. Your accountant will then give you an annual rate that will cover all of your business needs, and every job they have outlined will be completed. When you work with a tax accountant, they act on your behalf, which means if you are selected for a tax investigation, if the HMRC has enquired, they will handle it for you. Interestingly, tax accountants often handle all of this without the client ever needing to worry about it.
So, the answer to how you get your taxes filed by a tax accountant is to book an appointment today, and the second is – it depends on what your business needs.