Accounting For Freelancers: All You Need To Know

If you're thinking of starting a new business or perhaps you've already started your business, you may have many questions about how you record your earnings and pay income tax. If you're self employed, you'll pay tax a little differently to employed individuals as it's paid based on your profits rather than gross income via a self assessment tax return. It's advisable to use an accountant as they can handle bookkeeping as well as filing your company and HMRC returns on time.

Do I need an accountant?
If your business earns less than £82,000 per annum in earnings, then HMRC will allow your business to use cash-based accounting. You will only need to provide HMRC with details of your actual income and expenses in the tax year, without including any money you are owed or that you owe. This type of accounting is best suited to sole traders and small businesses. Many individuals prefer to enable an accountant to take care of this, to help keep their bookkeeping streamlined and all their earnings reported accurately.

An accountant will ensure that you are claiming all the expenses you are entitled to claim, which offers great peace of mind for you. They will be able to sort out your end of year tax return which can be a bit of a hassle and may be a source of stress or anxiety for you. they will be on hand to explain anything you don't understand and answer any questions you may have.

An accountant will understand your business needs and expenses and will ensure you are always paying the correct amount of tax.

An accountant will be an invaluable asset for your business and will take away much of the stress and worry you may have about whether you may accidently be paying too much or too little tax, may be filing the tax form incorrectly, or not accurately keeping a record of your books,
 

Where do I find an accountant?

You can find local accountants or you can look for an online accountant. One way of finding an accountant would be to type 'online accountant UK' into Google. This will give you results of UK based accountants and you can then take a look at their websites, see what services they offer and read reviews to see if they might be a good match for you. Many of these accountants will be highly experienced, will have a wealth of knowledge and will also use top of the range technology to assist them. 

When using an online accountant you can often get a quick quote from them before arranging to further discuss your needs with them. You can often tailor the service you require exactly to your requirements, for example, if you want to handle your tax return yourself, that can be left out of the package you buy so you can be sure to find one to suit your needs. 

*Collaborative post