Opinions on fees quoted for Accountant Services

Discussion in 'Accounts & Finance' started by johnpear, Feb 3, 2018.

  1. johnpear

    johnpear UKBF Contributor Free Member

    40 5
    Hey. Wish you all the best Weekend :)

    I've setup a small LTD company last September 2017 and being working as an IT contractor since October. I did not took any money out from the company's income yet. Now that the fiscal year is ending I'm looking for accountant services to help me take money out from the company he most tax efficient way. Also I have zero knowledge about taxes and want to be in the side of the law.

    Making it short, I've been given two quotes to do my bookkeeping, payroll and other duties. Basically I've been told that I need to do nothing but approve some stuff.

    The first quote was around 2000 per year, including payroll, dividends, preparation for corporation tax
    The other quote was around 1700 per year with the same services.

    My company is pretty simple. I have some expenses that I managed to bookkeep myself, only one source of income and now one director (will add another director for before end of tax year), I do my own invoices using google docs.

    What you guys think about these quotes? Btw, is in London, Wimbledom.

    Thanks
     
    Posted: Feb 3, 2018 By: johnpear Member since: Apr 21, 2016
    #1
  2. The Byre

    The Byre UKBF Ace Free Member

    7,510 2,913
    Payroll, VAT and books are not difficult (and doing them yourself will help you to understand your business!) Do it yourself and just have accountants doing the end of year stuff to keep you on the straight and narrow and you should be below £1k.
     
    Posted: Feb 3, 2018 By: The Byre Member since: Aug 13, 2013
    #2
  3. Jonathan Gallard

    Jonathan Gallard UKBF Newcomer Free Member

    2 1
    Hi John,

    As you suspect this is very high for what is a very simple service. As the byre says you should be able to use a system like xero for doing your bookkeeping, payroll and VAT. Completion of CT returns (and presumably self assement tax returns if you are taking dividends) is a little more complicated but still those figure looks very high.

    Unless you need face to face meetings a lot i'd suggest an accountant in a cheaper part of the company would make most sense.

    I'm an acccountant (but don't work in practice) who runs a cost management company. So i've got a general idea of the amount of work managed here (and what people in general are paying)
     
    Posted: Feb 3, 2018 By: Jonathan Gallard Member since: Feb 2, 2018
    #3
  4. Newchodge

    Newchodge UKBF Big Shot Free Member

    10,002 2,555
    You may want to look at the individual services, individually ;)

    Book-keeping is relatively straightforward, especially if you use a recognised accounts package. Or you could out-source the work for comparatively little.

    Payroll is relatively simple, but you MUST use a payroll package (which may be included in an accounts package). The problem with payroll is when something unexpected happens. Again it can be outsourced for comparatively little.

    VAT returns are not difficult PROVIDED you have kept full and accurate records, see book-keeping above.

    Year end accounts for a limited company are a bit more complex, but can be completed at a relatively low cost if the book-keeping has been done properly.

    The main reason to have an accountant is for them to advise you on the most tax efficient way to run your business. Getting them to do the mundane stuff, particularly book-keeping is not cost-effective. They tend to do it very well, but they charge a lot for it.
     
    Posted: Feb 3, 2018 By: Newchodge Member since: Nov 8, 2012
    #4
  5. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

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    As an IT Contractor I suggest you look at engaging a specialist Contractor Accountant who is familiar with IR35.

    All inclusive packages for Contractor Accountants range from £65 to £125 per month so cheaper than what you have been quoted. They also include free access to Cloud based bookkeeping software.
     
    Posted: Feb 3, 2018 By: UK Contractor Accountant Member since: Sep 18, 2013
    #5
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  6. Newchodge

    Newchodge UKBF Big Shot Free Member

    10,002 2,555
    Does the all-inclusive part include book-keeping?
     
    Posted: Feb 3, 2018 By: Newchodge Member since: Nov 8, 2012
    #6
  7. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,276 720
    Some do with online bank feeds into FreeAgent etc

    My firm provides a spreadsheet or cloudbased software but expect the client to do the basic entry for income & expenses. Bookkeeping is generally not cost effective to be handled by Accountants.
     
    Posted: Feb 3, 2018 By: UK Contractor Accountant Member since: Sep 18, 2013
    #7
  8. johnpear

    johnpear UKBF Contributor Free Member

    40 5
    Well, none of the accountants a got a quote, mentioned the IR35... That's why I don't want to try do stuff by myself in the beginning and get into trouble.

    These quotes of 65 to 125 include also some tax advice?

    thanks
     
    Posted: Feb 3, 2018 By: johnpear Member since: Apr 21, 2016
    #8
  9. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,276 720
  10. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    12,259 2,282
    How are the quotes comprised?

    Certainly if you want to reduce the fees doing the bookkeeping yourself will probably be a big saving.
     
    Posted: Feb 5, 2018 By: MyAccountantOnline Member since: Sep 24, 2008
    #10
  11. johnpear

    johnpear UKBF Contributor Free Member

    40 5
    The quote includes bookeeping, preparation for CT taxes, tax advice, payroll, communication with the companies house about changes on the company... basically, it includes everything except personal tax and VAT

    Any quotes will be welcomed...
     
    Posted: Feb 5, 2018 By: johnpear Member since: Apr 21, 2016
    #11
  12. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    12,259 2,282
    I meant what was the charge for each of the services?

    I don't think anyone can fairly quote for bookkeeping without seeing the company bank statements and ascertaining the exact amount of work required.
     
    Posted: Feb 6, 2018 By: MyAccountantOnline Member since: Sep 24, 2008
    #12
  13. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    4,725 1,321
    Much too high. Your bookkeeping workload isn't too high and is probably similar to my own yet I only pay £900 per year for preparation of accounts, payroll and all necessary filing and dealing with HMRC.

    In addition I pay £100 per annum for my own self assessment calculations and submissions.

    The only thing that my accountant doesn't do is to pay it for me.

    If you want details I'll happily PM contact details to you
     
    Posted: Feb 6, 2018 By: Ian J Member since: Nov 6, 2004
    #13
  14. STDFR33

    STDFR33 UKBF Big Shot Free Member

    3,532 858
    How do you know?
     
    Posted: Feb 6, 2018 By: STDFR33 Member since: Aug 7, 2016
    #14
  15. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    4,725 1,321
    He's an IT contractor so raises either one invoice a month or one per week and his costs and expenses can't be that large in terms of volume of invoices either
     
    Posted: Feb 6, 2018 By: Ian J Member since: Nov 6, 2004
    #15
  16. STDFR33

    STDFR33 UKBF Big Shot Free Member

    3,532 858
    Could be the case. Also might not be. I've had a number of contractor clients where this would be far from the truth.
     
    Posted: Feb 6, 2018 By: STDFR33 Member since: Aug 7, 2016
    #16
  17. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,276 720
    Mine do!
     
    Posted: Feb 7, 2018 By: UK Contractor Accountant Member since: Sep 18, 2013
    #17
  18. johnpear

    johnpear UKBF Contributor Free Member

    40 5
    Ok, The company started to trade in October and issues one invoice per month. The expense are very low (Web hosting and domains mainly). Currently the Company's bank account just have money in (I've been paying the small business expenses from my personal account and will submit the expenses to the company to pay them back to me... )

    The company is not VAT registered yet. I keep the expenses and invoices organised in Google Drive and Google Sheets, so nothing special there.

    I just need to do payroll for two directors and issue dividend vouches. (I don't want to be in the other side of the law in any circumstance, so looking also for payed advice)

    Thanks
     
    Posted: Feb 7, 2018 By: johnpear Member since: Apr 21, 2016
    #18
  19. Pat Walsh

    Pat Walsh UKBF Contributor Full Member

    56 18
    My personal opinion is those quotes sound a bit high for what sounds a fairly simple scenario.

    I'm on sole trader basis but every now and then look into the Limited Company route. From my research into this, I think the ideal approach (where it's a fairly simple scenario) would be to use an online platform like FreeAgent, Xero or QuickBooks to keep track of invoices and expenses plus payroll, VAT etc and then use an accountant to do the end of year submissions etc.

    I like using an online platform as it keeps everything in one place and you can access important info from the web or via an app whenever you need to, rather than having to look through a mix of Excel/Word docs and/or Google docs.
     
    Posted: Feb 9, 2018 By: Pat Walsh Member since: Apr 14, 2017
    #19
  20. GoingOnline

    GoingOnline UKBF Contributor Free Member

    53 18
    I'm an IT contractor using a well known online accounting service, and I paid last year around 800 for everything (payroll, VAT, Corporation tax) outside of IR35. I also get some advice but I haven't really needed much tbh. But they always answer. I put my invoices, expenses and reconcile my bank accounts through their web interface or the mobile apps. I have asked them plenty of questions about allowable expenses :D

    If you are worried about IR35, there is insurance for that but I would do my reading myself and stay away if possible of contracts where IR35 applies. If you fall under IR35 you are likely off better with an umbrella company instead of Ltd. I suggest checking out the calculators at contractorcalculator for comparisons, explanations, etc... it's a pretty useful resource.
     
    Posted: Feb 9, 2018 By: GoingOnline Member since: Jun 18, 2011
    #20