Accountant query

[Mikep]

Apologies if this is too much off topic .. but .. I am self employed and have an accountant for the next payout then going to do all online. She insiists that I give her all my personal account statements for 2010 - 2011. All my business money goes through my business account and I only transfer a salary to my personal account. I have nothing to hide. I have been told that she cannot ask for these statements. Anyone with any expereince of this ?

 

[Gall.B]

If you have doubts about this accountant why use her? there are plenty others out there, would use someone recomended and known.

Had a bad experience myself a couple of years ago, accountant got my repayment made directly to him, long story got my dosh in the end guy was registerd with ministry of justice etc and thought he was cushty.

Goes to show its worth digging and reading reviews etc to make sure your dealing with a reputable company, needles to say I do it online now, or you can book an appointment at your local tax office and they will go through it with you, or call them if you have any questions they might give you a better answer.

 

[Mikep]

Thanx for that .. but back to my question .. for example .. did you have to provide all your personal account details paying in book and paying out book?

 

[easyt]

When I used to do self employed work in addition to regular employment I used to pay my wife for looking after my books. As she was looking after the kids then and not working I used to pay her up to her tax allowance. I found the people in the tax office very helpful. On at least one occasion they pointed out an error in my submission and invited me to correct it. That was when the tax allowance had increased and I had not increased OH's pay.

 

[Deleted member 9966]

Hi Mike

on of the Admin team on the forum, Grumpgrouter, is a qualified accountant as well as a tiler. I'll see if I can nudge him in this thread's direction and get an answer for you.

GRR

 

[paul78]

my accountant wants all my personal bank statements etc. because you still earn interest on these so my accountant says its classed as income which needs filling on the tax return.
im not saying thats correct though its just mine. interested to see what all others do.....

 

[Mikep]

I can understand regarding the interest earned. I was two years behind with my tax and I was unable to remember where some of the incomings had come from onto my personal account and so she classed them as income ! I will be ok for this return, but she will not accept a printout of just the interest earned on the personal account. Quickbooks next year 🙂

 

[Ian]

My accountant asks for all my bank account statements including ISA's and savings accounts. This, according to him, is so that when the return is done they can see interest earned and also that you haven't been putting cash/ cheques in other accounts in an attempt to avoid paying tax on it. I have no reason not to beleive what he is saying, I have always used him, he doesn't charge through the roof and my returns are always accurate. Basically I give him what he wants to do a good job, and keep the tax man as far away from me as is humanly possible!

 

[paul78]

My accountant asks for all my bank account statements including ISA's and savings accounts. This, according to him, is so that when the return is done they can see interest earned and also that you haven't been putting cash/ cheques in other accounts in an attempt to avoid paying tax on it. I have no reason not to beleive what he is saying, I have always used him, he doesn't charge through the roof and my returns are always accurate. Basically I give him what he wants to do a good job, and keep the tax man as far away from me as is humanly possible!

 

[Deleted member 9966]

I spoke to Grumpygrouter. He said if he gets chance tonight, he will pop online to try and answer the question himself. But he did say he didn't understand the reason for looking at personal accounts unless checking for interest earned (which is what some of you guys seem to have experienced with your accountants). The other option he suggested could be that the accountant is trying to prove beyond all doubt that all trading income is declared.

Hope this helps peeps.

 

[Mike]

i've just had my books back off my accountant, i didn't have to provide any personal bank account details, i was led to believe that they have to believe what you tell them. if you give the wrong info then it's you the tax man will come after not your accountant.

 

[White Room]

I allways give my accountant everything, statements etc.

 

[grumpygrouter]

There is no reason as far as I am aware to produce private bank statements to your accountant unless you have business transactions going through it. Banks provide statements of interest at the end of each tax year and everyone should receive one if they have earned interest from their account. This accountant may well have just been judicious in her attempt to produce an accurate tax return.

On the other hand she may have been suspicious that you weren't declaring everything you should and was wanting to check for her own, and your, peace of mind.

Just for info, the law changed a few years a go because of money laundering and accountants have a duty under law to "grass" on clients that they suspect are not declaring everything they should. Not doing so, or "tipping off" the client that they have made such a report (can and has) resulted in the accountant being imprisoned!!!

Nice eh!!!

 

[Mikep]

Thanks to all the replies. I have gone with her wishes. Mr Grumpy, I felt there was a big brother attitude by her type of questioning and I definitely knew that she was trying to trip me up on several occasions. Having nothing to hide makes it all the more irritating.
Thanks again.

 

[Dan]

If you have nowt to hide give 'em to her. I've recently done the same with all bank accounts (personal, savings and business) to ensure we've covered everything possible. As we work from home some of our personal bills can be offset against the tax bill such as a % of electric, gas, telephone, internet, etc, and that all comes out of the personal account as it's used personally (so not by the business) for most of the hours in 24. Only 10 a day goes through the business.

I'd trust her, she knows best I guess.