SJD: Yay or Nay?

[Alan @ BroomeAffinity]

Are you sure about that Alan. Isn't it a case that many will charge if it's in the first year? It's included from then on?

I know for certain we don't charge a set up fee and there are many others who do the same. It costs us £20-odd to incorp a company. We're willing to absorb that cost as a part of acquiring the client.

(However, if we incorp and do the rest of the set up and the client doesn't sign up with a monthly agreement within 3 months we reserve the right to charge a cancellation fee - only done it three times though.)

[Waldorf]

Are you sure about that Alan. Isn't it a case that many will charge if it's in the first year? It's included from then on?

Nixon Williams do not charge for setting up a limited company, VAT registration etc.

I also noticed an advert somewhere for SJD that they were following Nixon Williams (both owned by the same company), in offering a free limited company etc. Can't see it on their website so perhaps they are doing some selective advertising rather than offering to everyone.

The lesson seems to be that if you are adamant on paying high fees to SJD, then ask about the free formation and set up.

[john@UKCA]

Free Company Formation

Nixon Williams do not charge for setting up a limited company, VAT registration etc.

I also noticed an advert somewhere for SJD that they were following Nixon Williams (both owned by the same company), in offering a free limited company etc. Can't see it on their website so perhaps they are doing some selective advertising rather than offering to everyone.

It's in a nice red and orange banner at the top of their website -Free Limited Company Formation Package worth £150!

[Waldorf]

It's in a nice red and orange banner at the top of their website -Free Limited Company Formation Package worth £150!

So it does! Impressed that you've awoken from your slumber from the last 2 and a half years to make this posting. Welcome back, perhaps you'll get on with your website now? 🤔

[Maslins]

I know for certain we don't charge a set up fee and there are many others who do the same. It costs us £20-odd to incorp a company. We're willing to absorb that cost as a part of acquiring the client.

(However, if we incorp and do the rest of the set up and the client doesn't sign up with a monthly agreement within 3 months we reserve the right to charge a cancellation fee - only done it three times though.)

It's horses for courses really. At Maslins we do charge a fee for incorporation...but quid pro quo is there's no contractual tie in. Where it is "free", perhaps it's arguably not actually free but included in the first X months fees...as if you don't proceed with the accountant you get a cancellation fee (which is basically charging for the cost and time involved doing the incorporation/tax registrations). No such thing as a free lunch?!

Another thing which intrigued me from this thread is SJD's apparent 50% profit margin. Not disputing it, sure that helps explain why the VC paid (I believe) ~4 times turnover, rather than the more common ~1 times turnover accountancy firms are often valued at. I realise their profits will be of no benefit to their clients...but you don't make big profits by running a shoddy business. From my own firm I'm aware client retention is key to success, as clients leaving/joining are more work than those ticking along...so they can't be treating customers that badly!

PS I'm sure many of the very small accountancy practices will make >50% profit margins...but that'll mainly be because the owner does the majority of the work and just takes a salary of ~£8k for it, no different to many contractors. For a big firm, 50% is virtually unheard of as far as I'm aware. Unless my calculations are mega dumb, looks like PWC made circa 21% profit.

[john@UKCA]

Slumber

So it does! Impressed that you've awoken from your slumber from the last 2 and a half years to make this posting. Welcome back, perhaps you'll get on with your website now? 🤔

The slumber was 'deep' but slowly awoke from it when the sun came up over the horizon this morning!

Re website- would do but in dispute with my 'nutty' french web designer at the moment who is claiming copywright over everything!

[northernladuk]

The slumber was 'deep' but slowly awoke from it when the sun came up over the horizon this morning!

Re website- would do but in dispute with my 'nutty' french web designer at the moment who is claiming copywright over everything!

What does your contract say?

[john@UKCA]

Copywright website Design

What does your contract say?

Verbal contract only - build, host and maintain website for £X + accountancy services for her web design company.

[SueEllen]

Verbal contract only - build, host and maintain website for £X + accountancy services for her web design company.

"On that basis I'm out."

[Lance]

Hi all,


However, the recruitment company put me in touch with SJD. They seem on the pricey side. Any alternatives I should consider?

Regards,

I'd say Nay. I'm with them, it's fine, but pricey. Too much of a PITA to change though. So pick one you want to stay with.