Submitting year end accounts for Ltd company that hasn't been doing much/anything

Discussion in 'Accounts & Finance' started by D_Evans, Aug 1, 2020 at 3:26 PM.

  1. D_Evans

    D_Evans UKBF Newcomer Free Member

    7 1
    Hi,

    So I just had a quote from my accounts for a different business for submitting accounts for a separate business I own. I was initially going to try and figure out how to do the submission myself as the company has not been trading (delayed plans) so I didn't want to sink too much money in to it.

    Erring on the side of caution however (as I may well miss things) I though I would get a quote - which was £400 for the following:

    Full Accounts prepped and submitted
    Registrar Accounts prepped and submitted to Companies House
    Corp Tax return prepped and submitted

    From my casual googling up to this point I had not come across the need to submit the "registrar accounts" - but perhaps this is all part of the process?

    Other than this the company has less than 20 total transactions on the account, 3 of which are loan payments from my other company and most of the rest are interest paid after tax.

    I am no accountant, so perhaps i am vastly underestimating the amount of work that goes in to this process, but does £400 sound like a reasonable fee?
     
    Posted: Aug 1, 2020 at 3:26 PM By: D_Evans Member since: Aug 10, 2018
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

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    I presume this means accounts in a format acceptable to Companies House.

    £400 sounds like a reasonable amount to me.
     
    Posted: Aug 1, 2020 at 5:04 PM By: Scalloway Member since: Jun 6, 2010
    #2
  3. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

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  4. D_Evans

    D_Evans UKBF Newcomer Free Member

    7 1
    400+ VAT,

    I am perhaps underestimating the work, it is only because of the lack of any real activity in the business that I was surprised by the figure. I can see from a quick search online that filing year end accounts would normally be more than this, but that is for an operating business.

    I have since received an offer via PM to complete these services for £150+VAT, which from my relative layman's point of view was more in line with what I was expecting.
     
    Posted: Aug 1, 2020 at 5:37 PM By: D_Evans Member since: Aug 10, 2018
    #4
  5. D_Evans

    D_Evans UKBF Newcomer Free Member

    7 1
    I would be happy to put a day or two of work into filing these myself (CV-19 has provided me a lot of free time), if there is a good resource online or perhaps something like an online software that makes the process more self explanatory?
     
    Posted: Aug 1, 2020 at 5:40 PM By: D_Evans Member since: Aug 10, 2018
    #5
  6. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

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    that's sneaky someone sponging of this site for leads.
     
    Posted: Aug 1, 2020 at 6:21 PM By: UK Contractor Accountant Member since: Sep 18, 2013
    #6
  7. Rawlinson Pryde

    Rawlinson Pryde UKBF Contributor Free Member

    60 17
    There are several others things to do:

    1. Obtain ID for Money Laundering Regulations
    2. Issue an Engagement letter
    3. Register as the company agent with HMRC
    4. Set up the business on their software, which can take some time initially

    This is all before thinking about actually starting the work,
    1. Preparing the accounts - what is the bookkeeping data like? Is it straight off the bank statement or have you kept records? Some correspondence with you.
    2. Maybe 2 or 3 CT600s
    3. Writing a letter and providing some trivial advice
    4. Getting your approval
    5. Submitting the documents

    You submit a less detailed set of the accounts to Companies House than you do to HMRC.

    £150 + VAT seems on the cheap side and cheap isn’t always best.
     
    Posted: Aug 1, 2020 at 6:43 PM By: Rawlinson Pryde Member since: May 9, 2020
    #7
  8. D_Evans

    D_Evans UKBF Newcomer Free Member

    7 1
    It has happened almost every time i have asked for some advice on accounting here - I had assumed it was kinda par the course!

    Thanks for the breakdown Rawlinson - is it right to say it is slightly more work for an accountant than it is for the Director, as you have to set up as the agent?

    I do understand cheap is not always the best (rarely, if ever) and i have applied for more quotes to get a better idea. I have been with the accountant who offered the initial quote for quite some time for my other business and been very happy with them, and I pay them around 150pm for this business. I am not averse to paying for good service in any way, I had just hoped to bleed a little less cash from this other company before I actually do something with it.

    It is a lesson on leaving a company hanging in any case - such an action does not come free (or cheap, relatively speaking).
     
    Posted: Aug 1, 2020 at 6:50 PM By: D_Evans Member since: Aug 10, 2018
    #8
  9. Rawlinson Pryde

    Rawlinson Pryde UKBF Contributor Free Member

    60 17
    Setting up as an agent is not a necessity and is relatively quick. We would say it is wise to do so and it can be helpful for both the client and accountant, as we will sort issues that sometimes arise without having to hassle the client.

    It is easier for an accountant to do the work than a Director with the software and knowledge. If you haven’t been trading then the some of the costs may have to be treated as management expenses and the interest as Non-Trade Loan Relationship entries on the Corporation Tax Return.

    We would probably be a fraction cheaper, but if you are happy with your current accountant, perhaps ask them if they could be a little flexible with the price as they wouldn’t want to risk losing your other business you have with them.
     
    Posted: Aug 1, 2020 at 7:13 PM By: Rawlinson Pryde Member since: May 9, 2020
    #9
  10. D_Evans

    D_Evans UKBF Newcomer Free Member

    7 1
    Thanks, I'll bear that in mind and see what other quotes I receive as well, I appreciate the advice.
     
    Posted: Aug 1, 2020 at 7:15 PM By: D_Evans Member since: Aug 10, 2018
    #10
  11. Rawlinson Pryde

    Rawlinson Pryde UKBF Contributor Free Member

    60 17
    One final comment is that your current accountant may have already done some work or answered questions during the year etc, so May have unbilled time that they had already factored into the quote.
     
    Posted: Aug 1, 2020 at 7:28 PM By: Rawlinson Pryde Member since: May 9, 2020
    #11
  12. D_Evans

    D_Evans UKBF Newcomer Free Member

    7 1
    A valid point, but the only questions they have answered were regarding loaning money from the company I do pay them for, the new company has quite literally done nothing else worthy asking a question over! (I do hope that will change this year, otherwise it will be a venture I'll have to give up on)
     
    Posted: Aug 1, 2020 at 7:41 PM By: D_Evans Member since: Aug 10, 2018
    #12
  13. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,032 889
  14. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,032 889
    Place in Tenders section or DM contributors to your thread if after quotes. Ignore the cold callers.

    There is also a Directory you can use with listings from Full paid Members.
     
    Posted: Aug 2, 2020 at 7:02 AM By: UK Contractor Accountant Member since: Sep 18, 2013
    #14
  15. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    6,132 2,008
    Seconded. It tends to be people with something to hide that skulk around in the shadows
     
    Posted: Aug 2, 2020 at 8:48 AM By: Ian J Member since: Nov 6, 2004
    #15
  16. Jaydee

    Jaydee UKBF Enthusiast Free Member

    1,070 278
    £400 sounds reasonable for what you have described, and is possibly circa what my practice would charge for such a modest volume of transactions.

    But I would have thought that your current accountants could sharpen their pencil from there as they do not have to do any KYC or MLR work. If you were a client of mine at £1,800pa then I would probably only quote £250 for this little bolt-on, at least until it has more significant levels of activity.
     
    Posted: Aug 2, 2020 at 10:48 AM By: Jaydee Member since: May 27, 2007
    #16