The idea of quitting your 9 to 5 and running your own business is something that many of us aspire to. In fact, there are more self-employed people in the UK than ever before, and the figures are rising thanks to remote working, freelancing opportunities, and the gig economy.
Though there are many benefits to doing it all on your own, it sometimes pays to outsource parts of your new business to a professional, as we outline below, giving reasons why you should find an accountant to manage taxes and bookkeeping when you’re self-employed…
It saves time
Perhaps the biggest benefit of hiring an accountant if you’re self-employed is time. At the end of a busy day, the last thing you want to be doing is checking your books and inputting endless data from clients. Though software has made it easier to manage books, offloading the responsibility to a chartered accountant will free up your time. And if you’re a contracting, working with one of the best umbrella companies in your niche will mean you can be treated as an employee, with tax and National Insurance covered before you receive a paycheck.
It keeps you compliant
With the rules regarding tax ever-changing, having a professional on hand to monitor issues and report back makes sense. Making Tax Digital, for example, now requires VAT-registered businesses to submit their returns via an approved digital bookkeeping tool. If you fail to stay up to date and comply with future changes, you might face a fine or even a criminal charge.
Ensures tax efficiencies
If you’re growing a self-employed business, you might be wondering if you’re operating in the most tax-efficient manner. Once you earn over a certain amount each month, it makes sense financially to incorporate a business and take a salary, rather than running as a sole trader. And that’s not all – things such as paying into a pension and making investments can help to reduce your tax burden and secure your future. Working with an accountant, experienced in wealth management, will allow you to hold onto more of your hard-earned cash.
Gives you peace of mind
Every January, millions of self-employed people fight to submit and pay for their tax return before the deadline. Put simply, it causes people lots of unnecessary stress, resulting in loss of productivity and even sleepness nights. By outsourcing your accounting to someone who knows what they’re doing and can submit your returns before the deadline, you’ll be able to rest easy. And if the worst were to happen and you were investigated, having a professional on hand to fight your corner will ensure you don’t overpay, or be faced with a tax fine.
Though handing over money and your books to an accountant may seem unnecessary if you are self-employed, the benefits really speak for themselves. Weigh up the pros and cons, find an accountant you trust, and offload the responsibility. We’re sure you’ll be glad you did.
