Accountancy fee. Is it ok?

[peter_hungary]

Dear all,

I've just received my first bill from my accountant and I'm just wondering if the price is fine. My Limited Company runs for one year now, but it wasn't trading yet. We had some expenses but no money came in and wages wasn't paid too.

Bill Details:
VAT Return for the period 12/07 - 200GBP
VAT Return for the period 03/08 - 200GBP
Annual Return and Annual Account for the period ending 29/02/2008 - 300GBP
Corporation Tax Return for the period ending 29/02/2008 - 200GBP
Total: 900GBP

Are these prices ok for a company which wasn't selling at all? There was only few bills for VAT return too. To be honest I found this prices a bit high for my situation.

Any advices?

Thanks,

Peter

[jholden]

Hi Peter,

I can understand your feelings when the company has not traded, however, your accountant is also in business and you have incurred his time and that of his staff.

Are the fees reasonable? I have no idea, it depends on how long everyone spent on your affairs, but to be honest yes they look reasonable, and if you had meetings with him I would say they are on the low side.

This I am affraid is the problem with Limited company structures, everyone thinks they should be limited, but in accounting fees terms they are expensive and if you are not going to use it then it is very expensive.

Jason

PS Wanted to add, you really should agree fees when dealing with a professional, it saves surprises later on.

[Jenni384]

It does sound a bit on the high side to me, considering the small number of transactions involved. That said, it's not extortionate, but I would expect to see something in the region of £500 based on the information you provided.

I agree with Jason, try and get fixed fees agreed up front so you know what to expect. Many of us work on this basis and most clients expect it!

[dp0848]

Hello Peter,

I think that £900 is very high for what really amounts to not very much work. £350 / £400 maximum would have been more reasonable.

Completely agree with Jason and Jenni though. Get the fee fixed up front and then there are no nasty surprises when the bill arrives.

Regards.

David.

[wood1e2]

one way to cut the cost is to do your own VAT return. If there is little trading then it should be simple enough.

[Fernhurst Solutions Ltd]

I can only agree with most of what everybody has said ..... the fees are on the high side, and would strogly consider getting a fixed fee for next years work which I assume will be more if you are growing and developing the business - otherwise you could be in for a very nasty suprise!

[taxattack]

Peter

It sounds distinctly high on the face of it, subject to knowledge of the full facts.

My main question would be, who is doing the bookkeeping?

I am also pondering whether the start of trading has been delayed, or have there been large vat reclaims; if not, why have you been vat-registered so long?

You say "no money came in" - did you have interest income?

As others have suggested, fixed fees are advisable.

Chris