Why should I hire an agent when I can do it myself???
First and foremost, I hope everyone is safe and well throughout these unprecedented times that we are experiencing at present. I write this short blog as am I regularly queried from prospective clients as to why they should hire an agent when they feel they can do the job themselves. My reply is never the same as each individual and business has their own specific needs when it comes to their business or individual tax and accounting requirements.
However, I do point out the following few points within the conversation I have when posed with the question above:
You may feel your saving money by not hiring an agent, but how much time do you have to take out in order to do the various tasks that you would’ve hired an agent to do on your behalf. For example as a business owner you will have to manage your own bookkeeping, payroll for yourself and any staff you have, general compliance with HMRC (and Companies House if a limited company) and submitting correct tax returns by their deadline. All of this whilst running your business. The time you have taken to complete these will have cost you money as you have had to take time out from your business to complete these tasks and as the saying goes time = money. You will also be surprised as the although the annual cost of hiring an agent may seem high, the cost can usually be broken down into manageable monthly costs and when you look at this way you will find that the costs are actually lower than what you imagined them to be.
An agent also understands the various legal structures that a business can perform under (sole trader, partnership, limited company, etc.) and the various legal obligations required for each structure. The need for the business to be compliant is crucial to avoid any unnecessary fines that may be imposed by HMRC and Companies House if they aren’t met.
If you’re a new start up then hiring an agent from the start will help your business get off on the right footing. They will be on hand to ensure that everything is set up correctly and will also help with ensuring that the latest tax laws are being applied correctly.
There is a common misconception that preparing and submitting tax returns are “easy peasy”. Although I wont sit here and say they require a rocket scientist to complete them, preparing the correct figures are crucial as any incorrect information can lead to a misleading tax return which in turn could lead to tax investigations and HMRC clawing money back later down the line. This can all be avoided by hiring a professional to do this as they will ensure all the details submitted are correct. It is worrying the number of “expenses” clients put through believing they are legitimate expenses, when in reality they aren’t tax deductible in the eyes of HMRC.
Whilst on the topic of tax returns, hiring an agent can actually save you more money on your tax returns than doing them yourselves as they will be aware of the various legislations that will allow you to reduce your tax bill legally.
The above are just a few reasons that I get across when posed the question why a client should hire an agent, but there are many other points and the response given varies depending on the individual circumstance of those posing the question.
If you would like to find out more how we can help you and your business get in touch for a FREE NO OBLIGATION consultation on email@example.com or call us on 0191 5111217. Given the current Covid-19 circumstances we offer telephone and skype consultations to maintain social distancing.