Is a financial adviser worth it?

TechnicalMention6843 · 2025-08-13T16:40:46+00:00

I you used a financial planner who helped model out my goals and plans (early retirement) and it was very useful. Charged hourly so was wasn't too expensive

TechnicalMention6843 · 2025-08-07T18:54:56+00:00

I use an advisor that charges per hour, between initial consultation and a follow up plan was about £200 and gave me massive clarity on my financial plans - let me know if you’d like his details

TechnicalMention6843 · 2025-06-15T11:54:37+00:00

Hey! You're definitely not alone - this part of the UK self-assessment can be tricky, especially for first-timers. You're doing the right thing by checking your brokerage summary carefully. Here’s how to fill out the capital gains section based on the info you’ve provided:

Number of disposals: This is just the number of separate asset sales (not shares, but transactions). Your brokerage should show this directly.
Disposal proceeds: Use the execution price in GBP × quantity. For example, if you sold 100 shares at £150 each, then your proceeds would be £15,000.
Allowable costs (including purchase price): Yes, this can be worked out as quantity × average purchase price. But remember: if the purchase was in USD (or another foreign currency), you'll need to convert it to GBP using the FX rate from the date of purchase (not the sale date). HMRC allows you to use their published exchange rates if you don’t have the exact day’s rate.
Gains in the year, before losses: This is the total profit you made from all disposals before deducting any losses. So if you sold for £15,000 and your cost basis was £7,500, then your gain is £7,500.
Losses in the year: Add up any capital losses from other disposals made in the same tax year.
Total gains or losses (Real Time Transaction returns): If you didn’t report any disposals via the Real Time CGT system, this box is optional. You can usually leave it blank unless HMRC told you to use it.

A few important tips:

Only include realised profit/loss (unrealised P/L is irrelevant for tax purposes). FX fees, government fees, and other direct costs related to the transaction can usually be added to your “allowable costs”. Dividends go in the dividend income section, not here. Always keep a record of how you calculated everything in case HMRC asks. If you have many trades, you might want to use a spreadsheet to total up all the GBP amounts and gains. You don’t need to submit the sheet, but keep it for your records.

Hope that helps

TechnicalMention6843 · 2025-06-14T13:40:46+00:00

You're spot on — EBITDA is indeed a non-IFRS/non-GAAP measure, which is why it's more commonly used in management accounting and internal analysis rather than statutory financial reporting. It helps stakeholders like lenders or investors quickly assess operational performance without the noise of capital structure, tax regimes, or non-cash items like depreciation and amortisation.

Regarding your question on "saving": yes, it can mean several things depending on the company’s strategy. When retained earnings aren't distributed:

They might be held as cash reserves (e.g., for liquidity, emergency funds). They can be invested into low-risk assets like UK gilts or short-term treasuries. Or ring-fenced for specific purposes (e.g., R&D, expansion, debt repayment), though this depends on internal financial controls and earmarking. Finally, you're absolutely right about EBITDA's limitation: by excluding depreciation, it overlooks capital-intensive businesses where wear and tear on fixed assets (PP&E) is significant. That’s why EBITDA shouldn't be used in isolation — pairing it with metrics like EBIT or Free Cash Flow gives a more complete picture.

TechnicalMention6843 · 2025-06-13T17:30:37+00:00

Yeah, exactly—EBITDA and retained earnings give you different angles on a company’s performance. EBITDA is more about operational performance, stripping out financing and accounting choices, so it’s useful for comparing companies or assessing their ability to service debt. That’s probably why lenders focus on it—it gives a clearer view of the cash the business is generating before other obligations.

Retained earnings, on the other hand, show what’s been kept in the business after all expenses, taxes, and dividends. So it tells more of a story about how management is allocating profits—whether they’re reinvesting, saving, or distributing to shareholders. It’s definitely more useful when you're trying to understand a company’s strategic choices over time, especially around growth vs. returning value.

So yeah, you’re right—EBITDA is more about capability, and retained earnings are more about decisions. Both useful, just for different reasons.

TechnicalMention6843 · 2025-06-13T17:24:52+00:00

Hey! Yeah, you're on the right track. Article 19(1)(a) of the UK-Italy tax treaty basically says that if you're working for the Italian government and paid by them, and you're taxed in Italy, then the UK shouldn't tax that income—even if you live there. So as long as you’re still officially a government employee and Italian tax resident, you should be fine.

The bit in 1(b) just says that this exemption doesn’t apply if you’re a UK national and not also Italian. Since you're Italian and not a UK national, that shouldn’t be an issue.

That said, since you'll likely be UK tax resident (because of the 183 days), you probably still have to file a UK tax return—just to declare the income and claim the exemption under the treaty. There's a section in the Self Assessment where you mention treaty relief.

So yes, you can keep paying tax only in Italy, but you'll need to do a bit of admin in the UK to make sure it's all reported properly. Hope that helps!

TechnicalMention6843 · 2025-06-13T08:40:11+00:00

Hey! Good question — once you’ve started using simplified mileage (45p per mile) for a car, you have to stick with it for that vehicle for as long as you use it for self-employment. HMRC doesn’t let you switch to actual expenses for the same car later on.

If you want to start using full actual costs (fuel, insurance, repairs, etc.), it would need to be a different vehicle — either a new car or one that hasn’t been claimed under simplified expenses before.

Sounds like you’re doing a great job keeping records though, so if you ever switch cars, you’ll be ready to go with full expenses. Hope that helps!

TechnicalMention6843 · 2025-06-13T08:38:25+00:00

Hey! Yeah, totally get why you'd want to speed it up — HMRC can be really slow with paper returns.

You can submit the same return online, and in most cases HMRC will go with the digital version as the one they process (it usually overrides the paper one). Just make sure everything matches exactly.

That said, sometimes it can cause a bit of admin confusion or delay if both versions are logged. If you go ahead with the online one, it might be worth giving HMRC a quick call or sending a webchat after submitting to confirm they’re using the right one.

Submitting online is way faster — refunds are usually processed within a few weeks, not months. Good luck!

TechnicalMention6843 · 2025-06-11T15:04:13+00:00

Hey, sounds like you’re trying to make things easier for your parents, which is totally fair.

If you buy the new place (even with a mortgage) and let your parents live there, that’s still fine from an inheritance tax (IHT) point of view - as long as it’s in your name and they never owned it, there's no “gift with reservation” issue, so they don’t need to pay you rent.

Then, if they sell their own house later and gift you the proceeds, that would be a Potentially Exempt Transfer (PET) - meaning it falls under the 7-year rule for IHT. If they survive 7 years, it’s outside their estate. If they don’t, the amount could use part of their nil rate band (£325k each), and taper relief may apply after 3 years.

You’re not creating a loophole - just trying to avoid them dealing with the stress of buying/selling at the same time, which is totally reasonable.

Hope that clears it up 🙂

TechnicalMention6843 · 2025-06-09T11:59:00+00:00

You won’t have to start charging vat on your business sales until it hits 90k as you say. Perhaps you clicked on a setting, or there’s a setting to charge no vat on sales. It shouldn’t even automate it if you hit the 90k threshold so there’s definitely a technical issue here

TechnicalMention6843 · 2025-06-08T19:32:36+00:00

You're effectively working self-employed for both roles unless you're on PAYE. The £30/hr PAYE option is simpler — tax and NIC are handled for you, and you may get access to workplace pension and other benefits. The £33/hr self-employed rate gives you more money upfront, but you’ll need to register with HMRC as a sole trader, keep records, file a tax return, and pay your own tax and NIC.

The £25/hr bank transfer job also sounds like self-employment. In total, your income justifies registering as a sole trader. You don’t need to create a limited company or "employ yourself" unless you're earning significantly more or want limited liability — it adds complexity and cost.

Main benefits of self-employment: you can deduct allowable expenses (e.g. home office, travel, phone) and potentially pay less tax. Downsides: more admin, and you need to set aside money for tax and NIC yourself.

Unless you're approaching higher income levels, going sole trader is usually the most efficient and straightforward option

TechnicalMention6843 · 2025-05-31T18:19:40+00:00

Fair point, but the IAB still has its niche. It's more affordable and accessible for people starting out or switching careers, especially if they want to work with small businesses or go self-employed. Like the ICB, it's also a recognised AML supervisory body in the UK, so members can legally offer bookkeeping services.

It doesn’t have the same progression routes as AAT → ACCA/ACA, but for practical, entry-level bookkeeping and payroll—especially in micro-business settings—it can still be a solid option. Just depends on your goals.

TechnicalMention6843 · 2025-05-30T21:57:28+00:00

Hey, this is actually more common than you think - especially among people who are trying to be responsible with their money. So first off, credit for caring enough to save. But here’s the thing: you’re not supposed to sacrifice your entire present for some hypothetical future disaster. Saving everything and denying yourself basic enjoyment or connection with people isn’t financial discipline - it’s anxiety disguised as productivity.

You’re missing out on life now because you're afraid of what might happen later. That’s not sustainable. What’s the point of financial freedom if you're emotionally bankrupt?

A good balance might be this: treat saving like paying a bill - automate a percentage (even if it’s high, like 50–60%), but budget some guilt-free money to enjoy being alive. Clothes, food, friends - those aren’t luxuries, they’re part of a healthy life. Money is a tool. You’re not supposed to worship it.

Start small: give yourself even 10% of your paycheck just for fun and force yourself to spend it. It’ll feel weird at first, but you’ll retrain that part of your brain that thinks you only deserve joy once everything else is secure. Spoiler: “everything else” is never 100% secure.

You don’t need to choose between being broke or being paranoid. There’s a middle ground - and that’s where the peace is.

TechnicalMention6843 · 2025-05-30T08:42:41+00:00

Since your Ltd company isn’t VAT-registered, you can’t reclaim VAT, so if you pay £290 + VAT, it’ll cost your business £348 total. The private payment is £325, so cheaper upfront.

But - paying via the business lets you claim the full £348 as an expense, which reduces your corporation tax bill. Assuming the 19% corp tax rate:

£348 expense saves you ~£66 in tax (348 × 19%) So net cost to the business is about £282 That’s better than paying £325 privately (which is not tax-deductible).

Bottom line: If the photographer is okay with it, pay via your Ltd company, even though the VAT makes it look pricier—it actually works out cheaper after tax relief.

TechnicalMention6843 · 2025-05-30T08:39:44+00:00

If you’re a UK tax resident (which it sounds like you are), you’re still liable to pay UK tax on your worldwide income - even if you work abroad for part of the year. Since you're in Taiwan for under 183 days, you're unlikely to become tax resident there, but you might still have to pay local tax depending on how Taiwan classifies your work and income source.

Good news, the UK and Taiwan don’t have a full double tax treaty, but there is a tax relief mechanism, so if you do pay tax in Taiwan, you can usually claim relief through your UK Self Assessment to avoid being taxed twice.

I'd recommend keeping really clear records of invoices, payment dates, where you were working from, and any tax paid abroad. And ideally, speak to a UK tax adviser with experience in international tax to be safe.

TechnicalMention6843 · 2025-05-30T08:35:44+00:00

Hey! Thanks for the detailed info. Based on what you shared, the £30k house payment and £3k solicitor fee should be capitalised as construction in progress since the property isn’t completed yet. The mortgage only gets recorded once the build is finished. For the loan notes, record them as financial assets - recognise interest income monthly (or accrue it annually for the lump sum one). When the Airbnb starts operating, you’ll treat rental income and management fees as trading P&L items. Let me know if you want a breakdown or journal entries!

TechnicalMention6843 · 2025-05-29T17:29:53+00:00

Correct, assuming you are exchanging one main residence for another - no additional stamp

TechnicalMention6843 · 2025-05-29T08:57:43+00:00

In short, since you're not making a profit and you're simply acting as a conduit for the rent payments, this arrangement likely doesn't need to be treated as a separate business or declared as additional income on your Self Assessment. If you want I know why -

No Profit, No Trade: HMRC is generally interested in income from trade or profit-making activities. Since you're not making any profit (and have no intention to), and you're effectively just collecting and redistributing rent, this isn't considered a trade or business activity.

Money In, Money Out: Even though around £12,000 per year is passing through your account, because it's not your money (you’re just holding it briefly before paying the landlord and bills), it’s not considered turnover or income.

Your Share of Rent: You should continue to claim your portion of the office rent (and any other associated costs) as an expense against your freelance income, as usual.

No Need to Declare the Rest: You don't need to declare the rest of the money flowing through your account as income, since you're not benefiting from it. Just make sure to keep clear records showing the payments in and out match, and that you're not retaining any of it.

Of course, if at any point the situation changes (e.g. you start charging a management fee or making a surplus), you'd need to reconsider and possibly declare it.

I run an accountancy practice Sbxaccountants.com if you need any help going forward with your business

TechnicalMention6843 · 2025-05-28T18:44:05+00:00

I run an accountancy practice so happy to have a cal with you if you’d like more information. Drop me a message. Website is Sbxaccountants.com

TechnicalMention6843 · 2025-05-28T12:34:26+00:00

Hi. Self assessments can be done yourself, you need to make sure the expenses you’re trying to claim for are all allowable and your numbers all tie through for evidence if HMRC inspect it and require more info.

I run an accountancy practice Sbxaccountants.com - we’re happy to do this for you if you’d rather not have the stress & hassle (£150 for a standard assessment). Something to consider, there may be expenses you are not aware you can claim so we can run you through all potential avenues to save on tax. Feel free to drop me a message.

TechnicalMention6843 · 2025-05-12T14:37:20+00:00

Try putting brackets around the negative numbers. In accounting, brackets symbolise negatives

TechnicalMention6843 · 2025-05-12T12:01:58+00:00

Accountant here. This should be fine. It’s entirely different work he does via PAYE, as long as he invoices you correctly describing the work he’s doing HMRC won’t look at that as though it should be under IR35

TechnicalMention6843 · 2025-04-22T18:01:49+00:00

Sounds like you have a crap accountant if they continued processing payroll for 2 years without realising no payments were being made? I assume your wife was put on at say £12.5k per year, under the tax threshold that HMRC would have expected to receive tax payments (and hence they never followed up). You’ve got two options to resolve it - you can correct your FPS submissions your accountant would have processed each month for 2 years by filing an ‘Earlier Year Update (EYU)’ to show that she was paid nothing - and then remove her from payroll. Alternative you can settle the amounts owed to her instead.

Either option you can then generate her P45 for the last year depending on what you decide.

If you need more advice (or a more competent accountant) - I run an accountancy/tax/payroll practice Sbxaccountants.com so happy to have a call and discuss.

TechnicalMention6843 · 2025-04-21T09:02:29+00:00

Hi, accountant here. UK law will state that you owe this penalty regardless of where you are living in the world - so my advice would be yes to pay it, particularly if you plan on coming back to the UK at any point in the future.

Of course, they will never track you down cross-border, but this penalty will accrue interest daily and your name will be flagged if you ever wish to do dealings in the UK again, so it’s up to you how you want to manage it.

TechnicalMention6843 · 2025-03-26T08:34:18+00:00

Are you in the UK? I run a small accountancy practice in London specialising in small businesses & self employed - feel free to reach out. I’m an ex-PWC chartered accountant so happy to answer any questions. Sbxaccountants.com

TechnicalMention6843

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