At what stage did you get an accountant?

[SallyG101]

Hi everyone,

I've been working as a self-employed, mobile hairdresser for about 12 years.

I'm thinking of setting up my own salon, once everything settled down with covid (so possibly next year). I'm looking to register a limited company, when I open a salon.

I'm wondering what order to do everything in.

At what stage did you get an accountant please? What it before you opened up, or afterwards?

For those of you, who run through a limited company, how much do you pay your accountant please?

Many Thanks.

 

[Trinity]

I had a sit down with mine before opening my home salon, we talked about my plans, previous tax arrangements, what I wanted from him and vice versa. That first year he saved me more in tax than I paid him so throughly worthwhile.

 

[TheDuchess]

It’s a little early to make a decision, but I’d certainly start looking for accountants now. Breakfast and networking clubs usually have accountants keen to find clients. You can usually get yourself invited for free to a meeting as you are a potential customer for the paid up members.

What you want is an accountant who looks after other beauty type businesses and hospitality. They need to be used to deposits and gift vouchers which are not treated as money in your “till” until you’ve provided the service.

You should get a quote for setting up advice and for your annual accounts. I’ve seen on Instagram an accountant who specialises in hair/beauty clients and of course there is salonfrog who posts here. You may prefer to deal with someone local who is plugged into the community. If you are paying rent in bricks and mortar it’s definitely worth considering going local - an accountant may even have a client considering retiring who has premises available.

Get educated now. Read up on VAT and MTD (making tax digital) . If you will have a turnover close to £85,000 you will need to register for VAT and it can really adversely affect your profit until your turnover gets up to £140,000. So you have to decide whether you want to do that or whether you’d prefer to stay below the VAT threshold.

If you have employees you have to expect to register for VAT. If you don’t want the hassle of VAT you will need self employed stylists working with you. You’ll also need proper contracts - I’d suggest joining the NHF.

You’ll also have to decide whether to be a director of your own limited company taking a wage/profit, or whether to run your column as a separate, self employed business, paying rent etc to your limited company who manages the salon and buys stock to retail. Definitely something to take professional advice from someone who has advised several similar businesses over a few years. You’ll have to think about how you’ll keep money separate.

Hope that’s helpful. Good luck