How much should I be paying for an accountant?

Discussion in 'Accounts & Finance' started by adam thompson1981, Sep 13, 2018.

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  1. adam thompson1981

    adam thompson1981 UKBF Newcomer Free Member

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    I formed a ltd company in may this year and took on an accountant at £72 per month.

    No other employees, turning over a projected 45k this year...

    I do all my bookeeping.

    Anyway prices have just been increased to £80 plus vat, so thats £96 pm for me.

    Seems a lot to be paying for a small business with no employees and just dealing with the end of year tasks..

    Or am i just being tight? Not sure how much is s reasonable figure for ltd accounts?
     
    Posted: Sep 13, 2018 By: adam thompson1981 Member since: Jan 20, 2018
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

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    At that level of turnover the cheapest I can recall seeing is 700 odd a year. I think it's similar to your service - pretty basic?
    5 years back for a figure around your turnover I was paying around 900 a year for similar service.
    Those figures include vat.

    Some people appear to be paying over a grand currently for limited company.
     
    Posted: Sep 13, 2018 By: Mr D Member since: Feb 12, 2017
    #2
  3. Bob Morgan

    Bob Morgan UKBF Regular Free Member

    230 58
    Will he save you £1,162 each year? (12*96)
     
    Posted: Sep 14, 2018 By: Bob Morgan Member since: Apr 15, 2018
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  4. adam thompson1981

    adam thompson1981 UKBF Newcomer Free Member

    24 1
    I don't see how they will save me any more than the next accountant. It's a very simple business
     
    Posted: Sep 14, 2018 By: adam thompson1981 Member since: Jan 20, 2018
    #4
  5. SteLacca

    SteLacca UKBF Ace Free Member

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    And who takes care of all the compliance issues, planning, tax adjustments to the accounts etc.?
     
    Posted: Sep 14, 2018 By: SteLacca Member since: Jun 16, 2016
    #5
  6. mattk

    mattk UKBF Newcomer Free Member

    1,800 724
    This is a very good way of looking at it.

    Take into account:

    Your time in preparing payroll, VAT returns, end of year accounts - plus learning how to do it if you've never done it before
    Tax you'll save from your accountant's expert advice
    Other non-tangible benefits

    My advice is not to scrimp on accountancy, at least for your first year. Once you have seen what is involved in the above steps you can decide if it is cost effective to do it yourself or pay your accountant to do it for you.

    For example, I do my own VAT because it is incredibly easy, but don't bother doing my payroll as what my accountant charges is roughly the same as what I'd have to pay for the software to do it myself. Having just completely my first year end there is no way I would attempt to produce the accounts myself.
     
    Posted: Sep 14, 2018 By: mattk Member since: Dec 5, 2005
    #6
  7. Newchodge

    Newchodge UKBF Big Shot Free Member

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    But the next accountant will also charge you something, probably something similar.

    Incidentally, you mention not having employees but, presumably, your company is paying you wages through payroll?
     
    Posted: Sep 14, 2018 By: Newchodge Member since: Nov 8, 2012
    #7
  8. Glenn Martin

    Glenn Martin UKBF Regular Free Member

    173 45
    Do you want a good accountant or just a cheap one.

    Accountants dont charge fees a % of turnover so you will find that as your business grows you fees wont really increase by the same %.

    There is a base level work involved and the fees you have been charged are not unreasonable.
    The vat element is not part of the accountants fee but it is a cost to you.

    If its an issue if you can find anew startup accountant who is not VAT registered they will effectively be 20% cheaper although they will likely need to register in a year or so as they grow.

    Does the fee also include a software subscription to do your bookkeeping on.

    You maybe able to shop around and get someone cheaper but I rarely find that cheap is good.
     
    Posted: Sep 14, 2018 By: Glenn Martin Member since: Oct 1, 2015
    #8
  9. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

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    If you just want an accountant to prepare the year end accounts and a tax return for your company you will find cheaper than that.

    I run an accountancy practice and we offer an all inclusive pay monthly service which includes advice and support throughout the year but also a year end service where we just prepare the year end accounts and tax returns for clients that want that (and quite a few do). The fees are on our website if you want to look. Your accountant may perhaps offer something similar?
     
    Posted: Sep 14, 2018 By: MyAccountantOnline Member since: Sep 24, 2008
    #9
  10. adam thompson1981

    adam thompson1981 UKBF Newcomer Free Member

    24 1
    Thanks guys, yes i was just wondering if i was overpaying at almost 1200 a year thats all, particulary as it has just jumped from about 850 for the same service.

    my accountant does do my payroll although thats something i could do myself (did my own as a sole trader for an employee using free version of brightpay and found it super easy) but dont see the point for the sake of a fiver a month...

    As for what i require, just a basic service, i dont need the best accountant in the world just someone who knows the basics and submit the end of year stuff etc, i dont need bookeeping, nor any complicated advice as i know mostly what i can and cant claim etc from years of doing my own books and return as a sole trader....My business is window cleaning, theres not any complicated calculations, its mainly money in money out and a few expenses, theres no capital assets or vans etc in the business.
     
    Posted: Sep 14, 2018 By: adam thompson1981 Member since: Jan 20, 2018
    #10
  11. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    12,826 2,386
    I really would speak to your accountant - explain exactly what you've said above and see what they can do.
     
    Posted: Sep 14, 2018 By: MyAccountantOnline Member since: Sep 24, 2008
    #11
  12. DontAsk

    DontAsk UKBF Ace Free Member

    1,073 140
    £660/yr inc. VAT for Ltd. with similar turnover and one employee, but I do my own payroll with HMRC's free software.
     
    Posted: Sep 14, 2018 By: DontAsk Member since: Jan 7, 2015
    #12
  13. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,707 791
    Do you go round on foot then?
     
    Posted: Sep 14, 2018 By: UK Contractor Accountant Member since: Sep 18, 2013
    #13
  14. adam thompson1981

    adam thompson1981 UKBF Newcomer Free Member

    24 1

    I will have a look what you have to offer, thanks
    Being an accountant I would have thought you were smart enough to work it out not make sarcastic comments....

    The van is mine, i claim the mileage from the company.
     
    Posted: Sep 14, 2018 By: adam thompson1981 Member since: Jan 20, 2018
    #14
  15. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

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    Who told you that was the most tax efficient way of operating?
     
    Posted: Sep 15, 2018 By: UK Contractor Accountant Member since: Sep 18, 2013
    #15
  16. SteLacca

    SteLacca UKBF Ace Free Member

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    I have to agree with UKCA. You don't seem to be operating tax efficiently. This is the value of a good accountant, not in their ability to count beans, but to know which beans to count.
     
    Posted: Sep 15, 2018 By: SteLacca Member since: Jun 16, 2016
    #16
  17. Jaydee

    Jaydee UKBF Enthusiast Free Member

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    Could be though, if there is significant business miles and modest running costs - particularly if he owned the van personally prior to the company being formed and so would have WDA rather than AIA.
     
    Posted: Sep 15, 2018 By: Jaydee Member since: May 27, 2007
    #17
  18. Richard Patey

    Richard Patey UKBF Contributor Free Member

    31 1
    I would think £100/m is about average, I'm solo director / owner and pay a little more
     
    Posted: Sep 15, 2018 By: Richard Patey Member since: Sep 15, 2018
    #18
  19. adam thompson1981

    adam thompson1981 UKBF Newcomer Free Member

    24 1
    Nobody told me i decided myself......

    45p a mile, i do about 8-10k (business) a year so £4500 (10k example)
    35mpg so £1700 fuel cost
    insurance is about £350
    tax £250

    so gives me about 2k to play with for m.o.t/servicing/repairs etc to break even, but most likely i make a profit.

    even if it isnt the most tax efficent way, its the easiest and what i prefer.
     
    Posted: Sep 15, 2018 By: adam thompson1981 Member since: Jan 20, 2018
    #19
  20. Mr D

    Mr D UKBF Legend Free Member

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    Can help to talk to an accountant about options at some point. When looking around for one many will give an initial consultation for 30 minutes (maybe more) for free. Have a list of questions to ask. Don't have to sign up with the first one you see.

    Occasionally may find your local area having a business event day, multiple support companies doing for example a business fair and new or experienced business owners wandering around getting free pens, business cards and opportunity to meet and discuss particular matters with experts. Councils and local chambers of commerce often keen to help businesses prosper in one fashion (while council messes them about in other ways!)
    I met my first accountant at one of those events, didn't sign up with him until about 3 years later.
     
    Posted: Sep 15, 2018 By: Mr D Member since: Feb 12, 2017
    #20
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