Being self-employed comes with lots of benefits; you get to be your own boss, choose when and where you work, and do what you enjoy for a living – what’s not to like?! But with these benefits comes great responsibility… and managing your own accounts is definitely a big responsibility!
Whether you’re thinking about making the jump into the self-employed lifestyle, or are already managing your own workload, we hope this article will help you decide whether or not an accountant is the right choice.
As a sole trader, HMRC requires you to submit an annual self-assessment tax return, which is basically their way of collecting Income Tax. This means that throughout the financial year, you need to keep on top of all your payments, invoices, receipts, sales, business expenses and everything else in between. The last thing you want is to be panicking right before submission because you’ve not organised your finances correctly. Our palms get sweaty just thinking about it!
For some, the thought of submitting your own tax return is not a nice thought… which is where an accountant can help. Using an accountant – like Mazuma – can remove some of the pressure. You can be happy in the knowledge that your tax returns will be taken care of and can spend more time focusing on what it is you do best – your business!
Keeping up to date with HMRC’s rules and regulations can feel like a job in and of itself! But it’s something that must be done to avoid any additional penalties or charges.
Managing your own accounts means ensuring that your tax return is filed on time, your tax bills are paid promptly, and that you comply with the recently launched new initiative, Making Tax Digital. In addition to this, you’ll also want to be knowledgeable about the changes within any of these processes, and any new regulations that HMRC implement. We know – it’s a lot to take in!
Now we have a question for you; on top of all the work you’re doing as a sole trader, do you think you’ll have the time to make sure you’re up to date on all HMRC regulations? If the answer is no, or even if you’re not sure, we’d definitely say that using an accountant is the right way to go! Accountants will be familiar with all of HMRC’s rules and regulations and will be far more knowledgeable on changes to legislation.
Sorry to use the ‘b’ word, but we have to! Brexit is something that will undoubtedly have a knock-on effect in many areas of business and finance. So on top of all the other rules and regulations to digest, you’ll also need to be aware of how the impending Brexit will influence your finances – and, more importantly, how it will affect HMRC regulations.
If you want to feel a little more certain about the uncertainty of Brexit, talk to an accountant. That way, you can be sure that your finances will be prepared for whatever might happen when we eventually leave the EU.
Ultimately, the choice to use an accountant is up to you. There’s no law that specifies you must use one, so weigh up the pros and cons to make the right decision for you.
We might be biased, but we definitely think an accountant is a worthwhile investment as a sole trader! Relieving the pressure of accounts will free up your time and head space to focus on building your business. And you don’t always have to pay an arm and a leg for a good accountant! Here at Mazuma, we offer competitively priced services based on the requirements that you need. Get in touch today to find out more.