setting up a limited company - do I need an accountant

Hi Alex

I think a lot of people wonder this. Some will pay an accountant just to do their year end accounts and some will pay an annual charge. Either way this makes sure your accounts are submitted in a format the taxman will accept and there shouldn't be any errors.

An annual charge means they'll do your VAT return if you're registered and check your spreadsheet regularly. This means there are no nasty end of year surprises and they should be able to advise you on what expenses you can claim to reduce your tax bill.

I read one post somewhere else the other day where the chap thought it worthwhile paying so his accountant had to deal with the taxman. He said his knees knocked at the thought of the taxman querying something and when he when to see his accountant he saw a file of correspondence between taxman and his accountant he hadn't seen and hadn't had to worry about.

So it's down to the individual I guess, how organised they are, how much they understand about what they can claim back, and whether it's worth it to them.

Although the accountant might look like an unnecessary expense they will save you lot of time and money in the long run. If you shop around you could find an accountant for quite a reasonable price just ask around from people in your sector and they might be able to recommend you somebody.