Is it normal for an accountant to charge £100 to add new employees

[Lukejohn]

We have been quoted for £600 for the following :

Operation of the payroll for the 2024/25 tax year for 5 additional employees, including preparation and submission of RTI payroll reports, PAYE/NI calculation, production of payslips, submission of 2024/25 year end payroll reports and production of P60 forms for the employees.

Is this normal and do any others want to quote services for accountancy?

Thanks,

LJ

 

[Bobbo]

Impossible to say based on your post whether it is "normal".

How many employees do you have at the moment and how much does that cost?

Monthly, 4-weekly, 2-weekly or weekly payroll?

Fixed pay or variable?

Pension scheme?

Also, we're already two months into the 2024/25 tax year - does this quote include those months for which payroll has been completed but not charged or is it just for the remaining ten months?

 

[Newchodge]

We have been quoted for £600 for the following :

Operation of the payroll for the 2024/25 tax year for 5 additional employees, including preparation and submission of RTI payroll reports, PAYE/NI calculation, production of payslips, submission of 2024/25 year end payroll reports and production of P60 forms for the employees.

Is this normal and do any others want to quote services for accountancy?

Thanks,

LJ

An additional 5 employees would cost £120 per year for my clients. Unless they are weekly paid?

 

[MyAccountantOnline]

We have been quoted for £600 for the following :

Operation of the payroll for the 2024/25 tax year for 5 additional employees, including preparation and submission of RTI payroll reports, PAYE/NI calculation, production of payslips, submission of 2024/25 year end payroll reports and production of P60 forms for the employees.

Is this normal and do any others want to quote services for accountancy?

Thanks,

LJ

I wouldn't say it's unreasonable - effectively £50 per month for 5 employees payroll. I'm assuming its a monthly payroll.

Could you get it cheaper - yes probably but having your accountant run the payroll should give you an assurance that it will all be dealt with and done properly.

Have you considered doing it yourself?

 

[Newchodge]

Could you get it cheaper - yes probably but having your accountant run the payroll should give you an assurance that it will all be dealt with and done properly.

Have you considered doing it yourself?

I find it strange that you would state that using an accountant means you know it is done properly, and tyhen raise whether they should do it themselves!

 

[MyAccountantOnline]

I find it strange that you would state that using an accountant means you know it is done properly, and tyhen raise whether they should do it themselves!

I asked if they'd considering doing it themselves to save paying the fees.

I'm not suggesting it's necessarily the best option, but if anyone is going to try to reduce accountancy fees, bookkeeping and payroll are generally the easiest tasks to DIY.

 

[UK Contractor Accountant]

I think you are using FreeAgent - there is a fully integrated payroll software included.

Why not use that if your existing Accountants are using their own payroll software.

 

[David Griffiths]

I think that the original question needs to be clarified. The question itself mentions £600 for the services, but the headline refers to an additional £100 for 5 extra employees. To me that means that the price was £500 but with 5 extra employees it is now £600. (It's also not clear whether VAT is or is not included.)

 

[Lukejohn]

An additional 5 employees would cost £120 per year for my clients. Unless they are weekly paid?

Thanks is that each or for all 5?

 

[Lukejohn]

I asked if they'd considering doing it themselves to save paying the fees.

I'm not suggesting it's necessarily the best option, but if anyone is going to try to reduce accountancy fees, bookkeeping and payroll are generally the easiest tasks to DIY.

 

[Lukejohn]

Hi all,

Its £100 per employee, so £500 + VAT.

Monthly pay for them. I feel he has increased costs too much.

 

[TheSkyisGray]

We charge £10 per month per additional employee so sounds right. You could get it done cheaper elsewhere, a payroll bureau or whatever.

 

[Newchodge]

Thanks is that each or for all 5?

It's a total.

 

[Lukejohn]

We charge £10 per month per additional employee so sounds right. You could get it done cheaper elsewhere, a payroll bureau or whatever.

He charges me each time someone joins. I guess that because of the software. I do think he would be better off charging us monthly for everything. His payroll services are £30 an hour which i think are definately too much. The girl made mistakes and doesnt know freeagent.

 

[numbersrule]

£600 woukd seem OK if it is done correctly.
£600 with mistakes included sounds like a bad deal.

 

[numbersrule]

It's a total.

But what would you provide for that fee?
Your earlier post is not clear?

 

[TheSkyisGray]

I love FreeAgent but, in my view, the payroll option is for a Director doing their own payroll. A practice charging those fees should use proper software and include new starters, pension etc. And not make mistakes. The firm should be checking this person’s work.

 

[Newchodge]

But what would you provide for that fee?
Your earlier post is not clear?

A full payroll service, including advice on payroll related employment law.

 

[Newchodge]

He charges me each time someone joins. I guess that because of the software. I do think he would be better off charging us monthly for everything. His payroll services are £30 an hour which i think are definately too much. The girl made mistakes and doesnt know freeagent.

It is very unusual to charge payroll as an hourly fee. Do they do many?

 

[UK Contractor Accountant]

A full payroll service, including advice on payroll related employment

does that include paying staff?

 

[Newchodge]

does that include paying staff?

No, I don't handle client money

 

[Sahasang]

No, I don't handle client money

does that include paying staff?

OMG, I am a Payroll manager providing service to clients @ £5.5/per employee per month that includes all PAYE (pension) related services.

 

[Newchodge]

OMG, I am a Payroll manager providing service to clients @ £5.5/per employee per month that includes all PAYE (pension) related services.

Why OMG?

 

[Daybooks]

I find it strange that you would state that using an accountant means you know it is done properly, and tyhen raise whether they should do it themselves!

I thought you were going to pick up on why an accountant would ensure it is done properly as opposed to anyone else being able to.

 

[Newchodge]

I thought you were going to pick up on why an accountant would ensure it is done properly as opposed to anyone else being able to.

I didn't think that needed saying!

 

[Daybooks]

I didn't think that needed saying!

Does depend upon the definition of "properly" though.
Checking the client's PAYE payments are properly made and allocated, pension payments are properly recorded on the provider website portal and that their payroll control accounts are in order; not to mention all the money laundering regulations - all takes time and thus the fees quoted are certainly not unreasonable.

 

[numbersrule]

A full payroll service, including advice on payroll related employment law.

Even though I am relatively new to the accounting and bookkeeping sub-sector, it seems to me that you are under charging for what I am sure is a very good service by you.

 

[Newchodge]

Even though I am relatively new to the accounting and bookkeeping sub-sector, it seems to me that you are under charging for what I am sure is a very good service by you.

My primary business is to offer employment law advice and support. I have found that doing payroll can often give me an insight that something is not right on the employment law side.

 

[numbersrule]

My primary business is to offer employment law advice and support. I have found that doing payroll can often give me an insight that something is not right on the employment law side.

That sounds like you are saying that you are offering this good deal because the insight is on your part and therefore is a benefit to you.

However, surely, the insight you gain is a benefit to your Client which they should pay a fair rate for.

You have clearly described how your dual role is of great benefit to your Clients and is therefore surely worth more than you are currently charging.

 

[Newchodge]

That sounds like you are saying that you are offering this good deal because the insight is on your part and therefore is a benefit to you.

However, surely, the insight you gain is a benefit to your Client which they should pay a fair rate for.

You have clearly described how your dual role is of great benefit to your Clients and is therefore surely worth more than you are currently charging.

Don't you think that is my business?

 

[numbersrule]

Don't you think that is my business?

Yes, of course, sorry.
It's just that you posted it on a publicly accessible forum!
When being very responsible as you are, you should be careful how you publicise that.

 

[numbersrule]

I've just rediscovered this thread when searching in relation to pricing for Payroll Services and I'd be really interested in any views on how weekly payroll is priced compared with monthly.

For example, if pricing is per payslip you would have thought that weekly payroll would be 4.33 x monthly cost.

What I can't get my head around is, that it seems to me that what should be priced is *changes* to payroll as opposed to just running repeats.

If you have several zero hours contractors on weekly and they are always different amounts every week then that is going to be many times more costly in terms of processing time compared with stable monthly salaries with no overtime.

The problem seems to be that businesses don't really like having to pay for paying people. It's the same with payment processing fees on card payments or direct debits. Paying to pay is an emotive thing.

The other thing is, should you penalise the employer of weekly paid workers?

Or maybe yes, let's penalise the weekly to drive them to change?

 

[Newchodge]

I've just rediscovered this thread when searching in relation to pricing for Payroll Services and I'd be really interested in any views on how weekly payroll is priced compared with monthly.

For example, if pricing is per payslip you would have thought that weekly payroll would be 4.33 x monthly cost.

What I can't get my head around is, that it seems to me that what should be priced is *changes* to payroll as opposed to just running repeats.

If you have several zero hours contractors on weekly and they are always different amounts every week then that is going to be many times more costly in terms of processing time compared with stable monthly salaries with no overtime.

The problem seems to be that businesses don't really like having to pay for paying people. It's the same with payment processing fees on card payments or direct debits. Paying to pay is an emotive thing.

The other thing is, should you penalise the employer of weekly paid workers?

Or maybe yes, let's penalise the weekly to drive them to change?

The work involved in processing weekly payroll is pretty much the same as monthly. I price per payslip, whether weekly or monthly.

 

[UK Contractor Accountant]

For example, if pricing is per payslip you would have thought that weekly payroll would be 4.33 x monthly cost.

economies of scale!