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When you are an employed individual, chances are that your employer takes care of your taxes and national insurance contributions on your behalf. While you are given a specific salary on paper when you sign your work contract, you don’t receive this full amount. Instead, your employer will deduct a variety of legally required sums from your salary before depositing your wages into your account. They will then pay these sums to the correct places. They will send your tax and national insurance to HMRC and they will make student loan repayments to the student loan company. However, when you are self-employed, you don’t have an employer to take the reigns. Instead, responsibility for figuring out and making all of these payments falls on your own shoulders. If you are mathematically adept, this should be simple. But for those of us who are numerically challenged, or who are unfamiliar with rules and regulations, things can get a little more difficult. This is why you might want to consider hiring an accountant.
What Does an Accountant Do?
Put simply, an accountant provides you with assistance with managing your finances. They will use all of the financial information that you give to them and file your tax return on your behalf. They will be able to make sure this is entirely complete on time, helping you to avoid fees and fines for late submission. They will also overview your financial statements, ensuring that they comply with the law.
If you want, an accountant may also be able to give you insights into your own business in a similar way to how a financial advisor will. They can look at different areas of spending and determine which areas are paying off and which are proving relatively unprofitable. This could help you to come to conclusions regarding where you should continue spending or investing and where you should cut funding.
Not only does hiring an accountant provide you with the above benefits, but it can also help to reduce pressure on your own shoulders. When an accountant carries out calculations on your behalf and submits your tax return on your behalf, they take responsibility for what is submitted. If there are mistakes or miscalculations, you won’t be liable for them. This can prove to be a great relief, as the potential consequences for problems in the process can be harsh. You could face fines, fees, or even jail time!
Do You Have to Hire an Accountant?
Of course, there is personal choice in all of this. If you have confidence in your abilities and feel you are capable of carrying out this work yourself, you are more than welcome to. Accountants are merely there to make your life easier!
Sure, hiring an accountant isn’t an absolute necessity, but it is definitely something worth mulling over. Hopefully, the above information will help you to come to the conclusion that is best for you!