
ACCOTAX - Accountants & Tax Consultants
Welcome to ACCOTAX, a firm of Chartered Accountants in London. The firm was established in 2009 and has helped thousands of businesses and individuals...See More

ACCOTAX - Accountants & Tax Consultants
Welcome to ACCOTAX, a firm of Chartered Accountants in London. The firm was established in 2009 and has helped thousands of businesses and individuals...See More
Frequently asked questions
What should I look for when choosing an accountant for my freelance business?
When selecting an accountant, check their qualifications and whether they are regulated by a professional body such as ACCA, ICAEW, or AAT. Look for experience with freelancers in your industry and ask about their fee structure. It is also wise to confirm they are familiar with HMRC requirements for Self Assessment and VAT, and that they offer proactive advice on tax planning.
How can an accountant help me with my Self Assessment tax return?
An accountant will prepare and file your Self Assessment tax return accurately and on time, ensuring you claim all allowable expenses and reliefs. They will also calculate your tax and National Insurance contributions, helping you set aside the correct amount. If HMRC queries your return, your accountant can handle communications and provide supporting evidence on your behalf.
What is the difference between a sole trader and a limited company for freelancers?
As a sole trader, you are personally responsible for business debts and pay tax through Self Assessment. A limited company is a separate legal entity, meaning you pay Corporation Tax on profits and often take a salary and dividends. Each structure has different administrative and tax implications, so an accountant can help you decide which is best for your circumstances.
Do I need to be VAT-registered as a freelancer?
You must register for VAT if your taxable turnover exceeds the current threshold, which is £90,000. Even if your turnover is below this, you may choose to register voluntarily, especially if you supply other VAT-registered businesses. An accountant can advise on whether voluntary registration is beneficial and help you manage your VAT returns and payments.
How often should I meet with my accountant?
The frequency of meetings depends on your business needs. Many freelancers meet their accountant quarterly to review cash flow and tax planning, while others only meet annually at tax return time. Regular communication is beneficial, especially if your income fluctuates or you are considering changes to your business structure. Your accountant can suggest a schedule that works for you.
What records do I need to keep for my accountant?
You should keep records of all income and expenses, including invoices, receipts, bank statements, and any records of personal drawings. If you are VAT-registered, you must also keep a VAT account. Using accounting software can simplify this process. Your accountant can guide you on the specific records required and help you set up an efficient system.
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