Anyone doing your own taxes this year (indendents or studio owners)?

[EdgarAllanPoe]

I've met with 3 CPA's and HR Block, I wasn't impressed or satisfied with any of them. The only one I liked charged double what everyone else did (go figure).

Always done my own taxes but this year i have so many writeoffs and april 15th I'll have to pay my quarterlys too

Ever since I was 18 I've used turbo tax and I see they also have small business software. I already have everything organized but the CPA i liked said $500 to start with the possibility of more being added on. Schedule C seems pretty straight forward and easy to follow, plus I've picked up on things from the 4 meetings I've had.

The others were in the $250 ballpark but 2 seemed shady and HR Block seems like they're working for the government and not me

[Mr.ILL]

No I dont do my own taxes. I would ask for a referral in this case.

[RevolutionFF]

It's my first year, so going to give it a go.

Mine isn't complicated

Income: sessions

Outgoings; mileage allowance, studio rent, general expenses such as clothing, books, training courses etc.

Shouldn't be too tough arm.

[EdgarAllanPoe]

It's my first year, so going to give it a go.

Mine isn't complicated

Income: sessions

Outgoings; mileage allowance, studio rent, general expenses such as clothing, books, training courses etc.

Shouldn't be too tough arm.

I'm actually a little more concerned about the quarterly filing. I think everything is easy annually. I don't like this whole paying estimated taxes based on last year idea.

Maybe I should do my 2012 taxes and then just have a CPA walk me through the first quarter filing. According to everyone I spoke with after your first year you HAVE to file quarterly.

[RevolutionFF]

Okay, I'm from the UK so need to double check that

[PeteratCastle]

Okay, I'm from the UK so need to double check that

I'm doing my own as well, will get my self assesment code in the next week or so. I am only doing it because I have only started up recently. Next year i will definitely get an accountant and happily pay him£400 to do my taxes. A good accountant will easily make you that £400back (I used to use one when I was contracting as a project manager, it's amazing how many deductibles these guys can find).

Take into account car depreciation, laptops, broadband costs etc etc. just give an accountant a big box of, well filed receipts, and he will make you a tonne of money.

[RevolutionFF]

I'm doing my own as well, will get my self assesment code in the next week or so. I am only doing it because I have only started up recently. Next year i will definitely get an accountant and happily pay him£400 to do my taxes. A good accountant will easily make you that £400back (I used to use one when I was contracting as a project manager, it's amazing how many deductibles these guys can find).

Take into account car depreciation, laptops, broadband costs etc etc. just give an accountant a big box of, well filed receipts, and he will make you a tonne of money.

Cheers.

I started as a sole trader in June of 2012. Correct me if I'm wrong, but isn't the tax return that is due bu 31st of January for the April 2011-April 2012 tax year?

[PeteratCastle]

Cheers.

I started as a sole trader in June of 2012. Correct me if I'm wrong, but isn't the tax return that is due bu 31st of January for the April 2011-April 2012 tax year?

No idea tbh, I saw it coming up and thought "feck, I'd better get on this quick!" will have a look as not having to do it would be suuuuuperb.

[Trollin4Tuna]

I've met with 3 CPA's and HR Block, I wasn't impressed or satisfied with any of them. The only one I liked charged double what everyone else did (go figure).

Always done my own taxes but this year i have so many writeoffs and april 15th I'll have to pay my quarterlys too

Ever since I was 18 I've used turbo tax and I see they also have small business software. I already have everything organized but the CPA i liked said $500 to start with the possibility of more being added on. Schedule C seems pretty straight forward and easy to follow, plus I've picked up on things from the 4 meetings I've had.

The others were in the $250 ballpark but 2 seemed shady and HR Block seems like they're working for the government and not me

I'm a CPA and I would guess that $500 would be a very good price for a first time client. I don't see how a CPA firm could charge $250 for it. Don't go to H&R Block or any tax service. Most I have seen are not good. They will write anything off that you ask without supporting docs. Even legit stuff is handled poorly. I've seen people have to spend tens of thousands of dollars on legal and accounting fees for legitimate deductions that were not handled correctly the first time.

I will advise anyone to see a CPA and a lawyer as soon as they start a business. Get your books set up correctly from the beginning. It only takes an hour or so at the start but if you wait until tax time then it can take multiple hours to correct mistakes that are made throughout the year. That's how fees add up. You also can call your CPA up and ask questions throughout the year. Usually once 12/31 has passed you can't go back and fix too much. I have seen plenty of cases where a few days or something seeming unimportant happen that can cost a lot of money.

Just a little advice. I've been lurking around here for a while and thought this would be a good time to post since I actually know something about it. Keep up the good work. I'd get QuickBooks also. Every CPA firm has it so you can just send an accountants copy to them for your taxes. You'll learn what supporting docs to send too. After the first year, you will know a lot more and can have your books better prepared before you send. I hate when a client has sloppy books. It takes a lot of time to fix when we are super busy. I always try to send a bookkeeper out to a client to set them up. That way I can get you done quickly and you save on fees.

[Trollin4Tuna]

I'm actually a little more concerned about the quarterly filing. I think everything is easy annually. I don't like this whole paying estimated taxes based on last year idea.

Maybe I should do my 2012 taxes and then just have a CPA walk me through the first quarter filing. According to everyone I spoke with after your first year you HAVE to file quarterly.

Also, you should get vouchers based on your 2012 income so you can pay 2013 quarterly income taxes. These amounts are the safe harbor amounts. If your income changes a lot from year to year you may want to have the estimates calculated quarterly. CPAs do that as well. It isn't usually much money for this and it helps plan throughout the year.

[EdgarAllanPoe]

I'm wondering if i can use the business version of turbo tax to put all my numbers in and see how much I'd owe. I've been putting 30% of training to the side plus additional from a part time job.

I would like to think I have more than necessary on the side but I don't want to end up owing the govt then end up paying a tax guy another $600 or so. I'll be glad when this first year of this mess is over so I have a better idea of what to expect.

[Trollin4Tuna]

I'm wondering if i can use the business version of turbo tax to put all my numbers in and see how much I'd owe. I've been putting 30% of training to the side plus additional from a part time job.

I would like to think I have more than necessary on the side but I don't want to end up owing the govt then end up paying a tax guy another $600 or so. I'll be glad when this first year of this mess is over so I have a better idea of what to expect.

Remember that you owe 13.3% SE tax on top of your regular tax. 50% of that is an above the line deduction though.

[SFT]

Remember that you owe 13.3% SE tax on top of your regular tax. 50% of that is an above the line deduction though.

Isn't it back up to 15.3%?

[Trollin4Tuna]

Isn't it back up to 15.3%?

Yes it is.

[RevolutionFF]

Quick question on taxes. I am brushing up all of my records onto a simple accounts software opposed to Excel. It's a question about sales. In the date column, should I enter the date I invoiced the client or the date they paid me?

[Trollin4Tuna]

Quick question on taxes. I am brushing up all of my records onto a simple accounts software opposed to Excel. It's a question about sales. In the date column, should I enter the date I invoiced the client or the date they paid me?

That really depends on if you are cash basis or accrual. If you are accrual generally it is when the invoice is sent. Cash is generally when you receive the payment. There are circumstances where this is not the case but they are rare. (Also, this is general accounting methods. I am not sure how it is done in the UK. I'm not sure if you have a tax basis of accounting or use GAAP, IFRS or OCBOA.)

Hope that helps.