Question 1

I already have an accountant. How difficult is it to switch?

Accepted Answer

Far easier than most people expect, and you do not need to have an awkward conversation with your current accountant. Once you tell us you would like to move, we write to them directly with a professional clearance letter, request your records and handle the entire handover ourselves. You can switch at any point in the year, though moving just after a year end is usually the tidiest. Providing that the information we require is readily available, most changeovers are complete within a few weeks and there is nothing for you to chase.

Question 2

Are you actually chartered accountants?

Accepted Answer

Yes, the practice itself is an ICAS (Institute of Chartered Accountants of Scotland) registered chartered accounting practice. Additionally, we employ staff at different levels of experience ranging from trainee accountants to those who are fully ICAS or ACCA qualified. This matters more than most business owners realise. In the UK, “accountant” is not a protected title. Anyone can call themselves one, with no qualification, no regulator and no professional indemnity insurance behind them. Chartered accountants are examined, regulated, insured and answerable to a professional body. If something goes wrong, you have somewhere to go.

Question 3

What happens at a first meeting, and does it cost anything?

Accepted Answer

The first conversation is free and there is no obligation whatsoever. We are completely flexible in terms of the format of the meeting and are willing to visit you at your place of work, host you at our office, or arrange a video or telephone meeting if this is more convenient. We listen first and advise second. We will want to understand what the business does, where you want to take it, and what is currently frustrating you, before we say a word about services or fees. You will leave knowing what we would recommend and what it would cost. No pressure, and no jargon.

Question 4

Do I need to be based in Ayrshire to work with you?

Accepted Answer

No. Our office is in Prestwick and a great many of our clients are across Ayrshire and the west of Scotland, but we act for businesses and individuals throughout the UK. Most day-to-day work is handled by phone, email and video call. If you would rather sit down face to face, we are always glad to see you.

Question 5

How do I get my paperwork and records to you?

Accepted Answer

Whichever way suits you. Some clients use accounting software (such as Sage, Xero, QuickBooks or FreeAgent) which we can log into directly, some provide the information via secure electronic document exchange, and some still bring a folder in. We will agree the simplest method for you at the outset and stick to it.

Question 6

How much does an accountant cost?

Accepted Answer

It depends on the size and complexity of your affairs, so we will always quote you based on your individual circumstances. Depending on the scope and nature of services required we offer both fixed fee and variable rate (time-based) charging mechanisms for clients. Often we apply a variable rate in the first year, and then give clients the option of a fixed rate service in future years when we better understand your business and requirements.

Question 7

Will I be charged every time I pick up the phone?

Accepted Answer

No. One of the most common complaints we hear about previous accountants is that clients felt they were being billed for asking a question, so they stopped asking. That is no way to run a relationship, and it usually costs the client far more in the long run than the call would have. Reasonable ongoing contact is included in your fee. If you have a question, ring us.

Question 8

Can I spread the cost across the year?

Accepted Answer

Many of our clients prefer to pay by monthly direct debit instead of receiving a single annual bill, with any difference settled at the completion of the service, which makes budgeting far easier. In fact, for those clients on a fixed fee charging mechanism we encourage clients to choose this option, but we are also happy to accommodate annual payment.

Question 9

When is my Self-Assessment tax return due?

Accepted Answer

For the tax year ending 5 April, an online return and any tax owed are due by the following 31 January. If you file on paper the deadline is earlier, 31 October. If you make payments on account, those fall due on 31 January and 31 July. We would always rather have your information months before the deadline than days before it. Filing early does not mean paying early, but it does mean you know your tax bill in advance and have time to plan for it.

Question 10

When are my company accounts and corporation tax due?

Accepted Answer

For a private limited company, annual accounts are generally due at Companies House nine months after your year end. Corporation tax is payable nine months and one day after your year end, and the corporation tax return itself is due twelve months after it. Your confirmation statement is separate and is filed once a year regardless of your accounts. We track all of these for you and tell you what is coming well before it arrives.

Question 11

What happens if I have missed a deadline?

Accepted Answer

Speak to us as soon as you can. Penalties are automatic and they escalate the longer a filing is outstanding, so the worst thing you can do is nothing. We deal with late filings and penalty situations regularly, and we can get you back on track and up to date.

Question 12

What is Making Tax Digital and does it apply to me?

Accepted Answer

Making Tax Digital is HMRC’s programme to move tax reporting away from a single annual return towards digital record keeping and regular updates submitted through approved software. It already applies to VAT-registered businesses. It is now being extended to income tax for the self-employed and landlords, phased in according to income level. If it affects you, we will tell you well before it does, and we will get the right software and processes in place so the change is simply something that happens in the background.

Question 13

Do I need to register for VAT?

Accepted Answer

You must register once your taxable turnover passes the VAT registration threshold in any rolling twelve-month period. It is a rolling test, not a test of your accounting year, which catches a lot of growing businesses out. You can also register voluntarily below the threshold. That often makes sense if most of your customers are VAT registered themselves, because you can reclaim VAT on your own costs. It rarely makes sense if you sell mainly to the public. We will keep an eye on your turnover and tell you before you reach the threshold, not after.

Question 14

Should I be a sole trader or a limited company?

Accepted Answer

There is no single right answer, and anyone who gives you one without asking questions is guessing. It depends on your profit level, how much you need to draw personally, the risk in what you do, whether you want the protection of limited liability, and where you are taking the business. Following recent Budget changes both options can be more tax efficient at different levels of profitability. Limited companies require more administration and your accounts are publicly visible at Companies House, but they also offer higher levels of protection. We will help to run the numbers for you and provide additional tailored advice, so you can make an informed decision with the facts in front of you.

Question 15

Do you run payroll?

Accepted Answer

Yes. We handle both fixed and variable payroll, P11D benefit reporting, and workplace pension submissions including NEST, The People’s Pension, Royal London and SMART. Some employer responsibilities cannot be delegated, but please discuss your requirements with us and we will do our best to accommodate your needs.

Question 16

I work in construction. Do you deal with CIS?

Accepted Answer

Yes. We can handle Construction Industry Scheme monthly and annual subcontractor submissions, and CIS reclaims on your behalf. Reclaims are worth mentioning specifically. A great many subcontractors have tax deducted at source across a year and never reclaim what they have overpaid. If that sounds like it might be you, it is worth a conversation.

Question 17

Can you help me apply for funding or a grant?

Accepted Answer

Yes. We can help you to prepare grant and finance applications, and produce the forecasts, projections and management figures that lenders and funding bodies ask for. Applications are very often refused on presentation rather than on the strength of the underlying business. Getting the numbers set out the way a lender expects to see them makes a real difference.

Question 18

What is the most tax-efficient way to pay myself as a director?

Accepted Answer

For most owner-managed companies it is a combination of salary and dividends, but the right balance shifts depending on your profits, your pension contributions, any other income you have, and the rates in force that year. It is not a decision you make once. We can review it with you annually so your remuneration keeps pace with both the business and the tax rules.

Question 19

I am thinking of selling a property or my business. When should I speak to you?

Accepted Answer

Before you sell. Not after, and ideally not once the deal is already agreed. Capital gains tax outcomes depend heavily on timing, on how the sale is structured and on which reliefs you qualify for, and almost all of those options close the moment the transaction completes. A conversation early on can make a very significant difference to what you keep.

Question 20

Can you help with inheritance tax planning?

Accepted Answer

Yes. Inheritance tax planning is about structure and timing, and it is far more effective the earlier it is started. We look at the shape of your estate, the reliefs and allowances available to you, and how you would like assets to pass on, then set out the options in plain English. It is a subject people put off, and putting it off is the single most expensive thing you can do.

Question 21

HMRC has opened an enquiry into my tax. Can you help even if I am not a client?

Accepted Answer

Yes. We provide HMRC enquiry support and we can act for you whether or not we prepared the return in question. If you have had a letter from HMRC, do not ignore it and do not reply off the cuff. Get in touch and we will tell you what it actually means and what happens next.

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