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Poor Accountancy Service has crippled me in my first year of trading

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    Poor Accountancy Service has crippled me in my first year of trading

    I am a freelance web designer who started my own ltd company last year.

    I honestly do not know what i'm paying my accountant for. I've literally had no help at all since starting up my business in April 14, i've been left to get on with everything myself, i've literally had no support and when i ask questions all i ever get in response is financial jargon that goes straight over my head.

    Since day one there's never been any trust and i've felt their sole purpose was to try and catch me out and bring me up on anything they possibly could in order for me to pay out the maximum amount of money to the HRMC. I've never felt that they have once worked for me or put me and my business first. To this ruthless accountancy firm, i am literally a nobody, a minor number on their books that they wished they never had.

    In the past they asked questions deliberately knowing i will answer them truthfully which has resulted in me paying the maximum amount of tax possible another example of miss managed and miss guided accountancy.

    I've worked really hard to build my business and thought i'd had a really good first year only to be sent my business and personal tax return which has alarmingly high personal tax.

    I've not been happy with their services since day one, and as a result I will be taking my accounts else where with immediate effect.

    So my question to this forum is, where do i stand if they have not yet filed or submitted my returns but have prepared them for my review. Should I dispute them and let them know i'm not happy with the level of service provided and the lack of information given throughout.

    I believe i've not had the support and service required and as a result I could be looking at bankruptcy after my first year of trading, how has this happened when i felt the company had done so well and had a gross turnover of nearly £80k

    They are wanting £1200 + VAT for completing these returns for me, which took them all of 2 days, as I kept very good book keeping and all my receipts were in month order.

    I don't believe i should pay this and should fight them tooth and nail.

    Any advice would be much appreciated.

    Thanks

    #2
    Originally posted by jaykay1982 View Post
    In the past they asked questions deliberately knowing i will answer them truthfully which has resulted in me paying the maximum amount of tax possible another example of miss managed and miss guided accountancy.
    Oh so your accountant acted professionally and with integrity and calculated the correct amount of tax you are due?

    Comment


      #3
      If you have queries over the accounts you should raise them with the accountants in question.

      Have you raised any of your concerns with them throughout the year, if so have they tried to improve the service accordingly.

      As they have prepared the reports the fee is likely to be payable to them, however if amendments are required they should also complete these for you and amend the accounts accordingly.

      I find it very unlikely that they are looking to make you pay as much tax as possible, as they should be working to reduce your tax burden and advise you accordingly.

      Regarding the questions asked by them you should be honest and truthful as you have been, they are possibly not trying to catch you out, instead understand what the items relate to and if they are business related.

      If you have drawn every penny possibly from the company it is likely that the personal tax payable is correct and you could possibly have a directors loan, however this is difficult to confirm based on the limited information available.

      Comment


        #4
        Originally posted by jaykay1982 View Post
        I am a freelance web designer who started my own ltd company last year.

        I honestly do not know what i'm paying my accountant for. I've literally had no help at all since starting up my business in April 14, i've been left to get on with everything myself, i've literally had no support and when i ask questions all i ever get in response is financial jargon that goes straight over my head.

        Since day one there's never been any trust and i've felt their sole purpose was to try and catch me out and bring me up on anything they possibly could in order for me to pay out the maximum amount of money to the HRMC. I've never felt that they have once worked for me or put me and my business first. To this ruthless accountancy firm, i am literally a nobody, a minor number on their books that they wished they never had.

        In the past they asked questions deliberately knowing i will answer them truthfully which has resulted in me paying the maximum amount of tax possible another example of miss managed and miss guided accountancy.

        I've worked really hard to build my business and thought i'd had a really good first year only to be sent my business and personal tax return which has alarmingly high personal tax.

        I've not been happy with their services since day one, and as a result I will be taking my accounts else where with immediate effect.

        So my question to this forum is, where do i stand if they have not yet filed or submitted my returns but have prepared them for my review. Should I dispute them and let them know i'm not happy with the level of service provided and the lack of information given throughout.

        I believe i've not had the support and service required and as a result I could be looking at bankruptcy after my first year of trading, how has this happened when i felt the company had done so well and had a gross turnover of nearly £80k

        They are wanting £1200 + VAT for completing these returns for me, which took them all of 2 days, as I kept very good book keeping and all my receipts were in month order.

        I don't believe i should pay this and should fight them tooth and nail.

        Any advice would be much appreciated.

        Thanks
        What exactly did you expect them to do?

        They ask you questions because they need to know the answers in order to complete your accounts and returns. Accountants have no interest in making you pay *more* tax, only in ensuring that your accounts and returns are an accurate and honest representation of the financial status of your company.

        What do you regard as alarmingly high personal tax? What were your expectations? What were those expectations based on?

        Did you ask them for projections of your tax bill based on your earnings?

        Did you ask them for advice on minimising your tax liabilities?

        I would say you have little to no chance of contesting the costs involved. They have provided the service you signed up for and agreed to pay for in your contract with them.

        Unless you can show that they have not done something they agreed to do, there is little you can justify as justification for not paying it.

        Have you in fact simply taken money from the company account without allowing for Corporatrion Tax or properly applying PAYE and Dividend rules and then spent it?
        "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

        Comment


          #5
          all i ever get in response is financial jargon that goes straight over my head.
          have you tried asking them to clarify, or googling this "jargon"?

          They are wanting £1200 + VAT for completing these returns for me, which took them all of 2 days, as I kept very good book keeping and all my receipts were in month order.
          I presume you agreed a price beforehand, it doesn't matter if it took them an hour or a month if you've agreed the price

          Since day one there's never been any trust and i've felt their sole purpose was to try and catch me out and bring me up on anything they possibly could in order for me to pay out the maximum amount of money to the HRMC.
          Accountant's dont make money out of making you pay more money to HMRC, they make money by you paying them and them advising you to walk between the lines set out by the law (and them providing a good enough service that you'll keep paying them)

          I believe i've not had the support and service required and as a result I could be looking at bankruptcy after my first year of trading, how has this happened when i felt the company had done so well and had a gross turnover of nearly £80k
          How, indeed. Have you been taking out the corporation tax/VAT and putting it in your pocket? Have you been taking max dividends and not setting aside anything for your personal tax bill? The only way you can be going bankrupt is if you've spent money that wasn't yours to spend

          Why has it taken a year to realise they're not good enough? why haven't you moved sooner? why havent you posted here sooner? (there's lots of accountant's here who would be happy to sign you up)

          Comment


            #6
            The only reason you will be looking at bankruptcy is if you had taken all the money from the company and hadn't saved anything to pay the bills.

            The solution to that is to get another contract asap, don't spend anything and save up to pay the bills.

            You really won't get any sympathy here as we continually warn people :-

            Your company's money is not your own.... Don't treat it as if it is...

            Personally I thrown 35% of any invoice payment straight into a savings account. That covers VAT (flat rate) and corporation tax. The rest is then there for a rainy day (I don't spend it all at once)...
            merely at clientco for the entertainment

            Comment


              #7
              As others have said... how can a webdesigner be facing bankruptcy on £80k turn over?

              That implies you spend more than £80k on servers and hosting(or staff?) , or more likely - took £80k out of the company to spend on beer and cars forgetting that you will still owe VAT and Corporation tax. Note if you have spent the money and left the company insolvent - then it's not just oh I'm bankrupt. As a director you are held accountable for being able to understand your finances and HMRC might want to pursue you.

              Either way you can't get to the end of the year and go - oh my accountants made me bankrupt. It's not too hard to work out 20% of somethign in VAT. Knock off some rought costs and then knock 20% off that to work out CT. And then be pessimisitic still when thinking about dividends and salary.

              My old accountants never tell me my profit and loss till hte end of year but I had a rule of thumb to take less than 50% of the money invoiced before VAT was added. And never more than would take me into the 40% bracket.
              Signed sealed and delivered.

              Comment


                #8
                Originally posted by jaykay1982 View Post
                I am a freelance web designer who started my own ltd company last year.

                I honestly do not know what i'm paying my accountant for. I've literally had no help at all since starting up my business in April 14, i've been left to get on with everything myself, i've literally had no support and when i ask questions all i ever get in response is financial jargon that goes straight over my head.

                Since day one there's never been any trust and i've felt their sole purpose was to try and catch me out and bring me up on anything they possibly could in order for me to pay out the maximum amount of money to the HRMC. I've never felt that they have once worked for me or put me and my business first. To this ruthless accountancy firm, i am literally a nobody, a minor number on their books that they wished they never had.

                In the past they asked questions deliberately knowing i will answer them truthfully which has resulted in me paying the maximum amount of tax possible another example of miss managed and miss guided accountancy.

                I've worked really hard to build my business and thought i'd had a really good first year only to be sent my business and personal tax return which has alarmingly high personal tax.

                I've not been happy with their services since day one, and as a result I will be taking my accounts else where with immediate effect.

                So my question to this forum is, where do i stand if they have not yet filed or submitted my returns but have prepared them for my review. Should I dispute them and let them know i'm not happy with the level of service provided and the lack of information given throughout.

                I believe i've not had the support and service required and as a result I could be looking at bankruptcy after my first year of trading, how has this happened when i felt the company had done so well and had a gross turnover of nearly £80k

                They are wanting £1200 + VAT for completing these returns for me, which took them all of 2 days, as I kept very good book keeping and all my receipts were in month order.

                I don't believe i should pay this and should fight them tooth and nail.

                Any advice would be much appreciated.

                Thanks
                So how much tax did you pay, and ho much do you think you should have paid?

                That's a LONG post to not actually say anything meaningful.

                Comment


                  #9
                  Originally posted by SpontaneousOrder View Post
                  So how much tax did you pay, and ho much do you think you should have paid?
                  Yep - without knowing the rough figures involved we can't guess if they are "alarmingly high" or if you simply misunderstood what you should expect to pay.

                  What salary and dividends did you take, and what personal/CT tax is due (approx)?
                  Originally posted by MaryPoppins
                  I'd still not breastfeed a nazi
                  Originally posted by vetran
                  Urine is quite nourishing

                  Comment


                    #10
                    Sockie. Next.

                    Comment

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