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    Default Accounting Fees...Too much?

    Hi, I have a question about accounting fees as the one I'm with seems to be charging an extortionate amount.

    I'm an IT contractor and I switched from an umbrella company to going LTD in August after being talked into going with their LTD service, earn £100 week extra etc. I'm paying £145 per month for a full accounting service and as my contract comes to an end at the end of December I intend to close the company, they have told me that they will charge me £750 to do this. So I'm going to have paid a total of £1475 for 6 months of accounting work.

    They will also charge me £260 just to leave them.

    Is this too much or pretty standard?

    P.S. I know now that setting up a LTD company for just 6 months was a stupid idea but went on the advice of the accountants.

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    More time posting than coding

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    Why are you closing the LTD, are you going perm? £100 a month would be about average for fees.
    Last edited by Major Hassle; 28th September 2016 at 07:27.

  3. #3

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    If you continue contracting, I can recommend a FreeAgent accountant that I am happy with who charges GBP 49 per month +VAT and no hidden charges. Yes, you are being royally ripped off. Please name and shame.

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    £145 is probably on the high side. Accountants allow you to pay monthly but it generally will cost you £1200 for a yr of accounts.

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    Quote Originally Posted by Fred Bloggs View Post
    If you continue contracting, I can recommend a FreeAgent accountant that I am happy with who charges GBP 49 per month +VAT and no hidden charges. Yes, you are being royally ripped off. Please name and shame.
    I am guessing it is SJD, i would be very careful with using the term "royally ripped off" as there are plenty of customers who are happy to pay this amount, I pay zero in accountancy fees so I think FreeAgent @ £60 a month is too much, but then again I know that my cover is limited in case things go tits up.

    You pay for a service, if you look at the bottom line everytime you will end up getting Suity rather than NLUK
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

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    Quote Originally Posted by Fred Bloggs View Post
    If you continue contracting, I can recommend a FreeAgent accountant that I am happy with who charges GBP 49 per month +VAT and no hidden charges. Yes, you are being royally ripped off. Please name and shame.
    Just to be transparent - "and no hidden charges" - if you wanted to close your company after 6 months would the total bill be 6*£49+VAT inc company closure and all accounts completed?

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    Quote Originally Posted by DucknDog View Post
    Hi, I have a question about accounting fees as the one I'm with seems to be charging an extortionate amount.

    I'm an IT contractor and I switched from an umbrella company to going LTD in August after being talked into going with their LTD service, earn £100 week extra etc. I'm paying £145 per month for a full accounting service and as my contract comes to an end at the end of December I intend to close the company, they have told me that they will charge me £750 to do this. So I'm going to have paid a total of £1475 for 6 months of accounting work.

    They will also charge me £260 just to leave them.

    Is this too much or pretty standard?

    P.S. I know now that setting up a LTD company for just 6 months was a stupid idea but went on the advice of the accountants.
    I don't know what your plan is next year so make sure that closing your Ltd is the best option. You could make it dormant as an alternative option.

    Perhaps they're rolling up other fees into the £145/month charge, such as the fee for setting up your Ltd. £260 for leaving is ridiculous but as other posters have said above, annual accounts would be around £1000 / £1200.

    My accountant charges £80/month and I'm happy to pay that as he's good and always available for queries. Having said that, accountancy for IT contractor services surely has to be one of the simplest jobs ever in accounting terms. I guess that's why many contractors choose the DIY route.

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    Quote Originally Posted by SimonMac View Post
    I am guessing it is SJD, i would be very careful with using the term "royally ripped off" as there are plenty of customers who are happy to pay this amount, I pay zero in accountancy fees so I think FreeAgent @ £60 a month is too much, but then again I know that my cover is limited in case things go tits up.

    You pay for a service, if you look at the bottom line everytime you will end up getting Suity rather than NLUK
    Pay your money etc....... I have switched from one of the big name firms. The deal I have actually provides a far better service (partly due to FreeAgent) for less than half the price. Some may like the illusion that paying more is better. In this case, I actually disagree. You do not always "get what you pay for" with accountants.

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    Quote Originally Posted by pr1 View Post
    Just to be transparent - "and no hidden charges" - if you wanted to close your company after 6 months would the total bill be 6*£49+VAT inc company closure and all accounts completed?
    Frankly, I don't know, it never occurred to me to ask. An educated guess would be that be that the deal is for a 12 month term or equivalent, that's how most of the others work if I'm not mistaken.

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    Quote Originally Posted by ChimpMaster View Post
    I don't know what your plan is next year so make sure that closing your Ltd is the best option. You could make it dormant as an alternative option.

    Perhaps they're rolling up other fees into the £145/month charge, such as the fee for setting up your Ltd. £260 for leaving is ridiculous but as other posters have said above, annual accounts would be around £1000 / £1200.

    My accountant charges £80/month and I'm happy to pay that as he's good and always available for queries. Having said that, accountancy for IT contractor services surely has to be one of the simplest jobs ever in accounting terms. I guess that's why many contractors choose the DIY route.
    And also why FreeAgent is becoming the tool of choice.

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