Nervous about number-crunching and in need of some sound tax and VAT advice for your salon or barbershop? Not sure which accountancy services you need? Find out what’s on offer to NHBF Members and how to go about choosing an accountant.
This blog post covers:
- Tax & VAT advice and support for NHBF Members
- Why you may need an accountant
- Types of accountant
- Making sure your accountant is qualified
- Understanding your accounts
One of the many benefits of becoming a Member of the NHBF – which costs less than 75p a day – is access to our free 24/7 tax, VAT and payroll helpline. Our financial specialists can answer your queries on a range of key topics, including:
• Tax, VAT and payroll.
• National Minimum Wage.
• Financial aspects of chair and room renting.
Our free expert guide to the NMW and NLW is available to Members only. It includes detailed information about how the NMW and NLW impact the hair, beauty and barbering industry.
Find out more about becoming a Member and join now for less than 75p a day.
As an NHBF Member you will also be entitled to free support and assistance if you are selected for an HMRC investigation. This includes £50,000 cover (with £250 excess) to pay any accountancy or legal fees incurred during an investigation.
“Small cash-generating businesses who fail to keep adequate records or fail to pay their taxes, whether deliberately or inadvertently, are always at risk of being on the wrong end of a compliance visit from HMRC,” says Brian Palmer, a tax policy adviser at AAT (the Association of Accounting Technicians).
“Investing in a qualified accountant can bring peace of mind and leave you free to do the ‘day job’ of running your salon. This may feel like an unnecessary cost, particularly if you are just starting out and cash is tight. But using a reputable bookkeeper, accounting technician or accountant from day one can save you thousands of pounds in the long run as well as providing peace of mind.”
What’s the difference between a chartered or certified accountant, an accounting technician and a bookkeeper?
“The first thing to point out is all these roles come under the broad category of ‘accountant’. The main difference is in their level of qualification,” explains Brian.
Bookkeepers, such as AAT (Association of Accounting Technicians) Bookkeepers, generally focus on managing day-to-day paperwork, doing the books, creating and sending out client invoices, managing supplier bills and receipts, and helping with VAT returns and the payroll.
Accounting technicians, for example, members of AAT are fully qualified and regulated professionals who can offer accountancy, taxation, bookkeeping and related consultancy services. They will also be able to prepare year-end statutory accounts if you are a limited company, advise on tax and VAT and offer general business advice.
Chartered or certified accountants can offer the full range of financial services, but in addition some are authorised to carry out audits on company accounts, where this service is required.
Be aware that anyone in the UK can call themselves an accountant, tax adviser or bookkeeper, even if they have no training, qualifications or experience.
That’s why it’s important to ensure that the accountant you choose for your salon or barbershop is a full member of a reputable professional membership body, such as AAT, the Institute of Chartered Accountants in England and Wales (or its equivalent in Scotland) or the Association of Chartered Certified Accountants.
“Don’t fall into the trap of thinking that once you have a person looking after your salon or barbershop finances you can ‘switch off’ from understanding this part of your business,” says Brian.
“Gaining basic financial knowledge not only allows you to have a better relationship with the person looking after your finances but, importantly, will give you a deeper understanding of your accounting system and the data going into it.”
• Get free financial advice as an NHBF Member.
• Consider employing an accountant.
• Understand the different types of accountant.
• Ensure your accountant is qualified.
• Take steps to understand your business accounts.
Become an NHBF Member
For less than 75p a day you’ll have instant access to a wide range of additional benefits that offer incredible value for money.
The NHBF will help you boost your business while keeping you safe, legal and bang up to date with all the latest business legislation that will affect you. Benefits include:
• Our friendly membership helpline for everyday business support.
• Free 24/7 legal helpline.
• Essential health & safety kits.
• Free tax and commercial helpline.
• Free Member-only in-depth guides about all aspects of running your business.
• Savings and discounts on business essentials including insurance.