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Accountant Pre Liquidation Closure Fee

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  • Maslins
    replied
    Originally posted by kookachoo View Post
    Is there something I'm missing here?
    Not really. There will be a trivial amount of extra work, like you suggest VAT/PAYE de-registrations, and perhaps a small amount of discussion re balance sheet tidy up, how/when to best take final funds. I'd anticipate if you've been with an accounting firm a while, most would do those for no extra fee...but an additional fee of (say) £100-200+VAT wouldn't seem unreasonable.

    You'll see many of the big firms harp on about how they'll incorporate/register your company for VAT/PAYE etc for free. Anything that's done at the outset, when you're choosing who to go with. A shame they have a very different view on tasks at the end of a company's life when you're already tied.

    Legally I'd anticipate the accountancy firm is doing nothing wrong. There are some tasks that aren't part of the agreed work for agreed monthly fee. So even if the extra work is trivial, I'm sure their terms will allow them to charge extra. Sadly it seems some firms now see this as a great opportunity to milk clients. As more demonstration of how unethical it is, some will waive this closing fee if you go with their preferred liquidator. Reason being their preferred liquidator will be giving them a hefty kick back from the liquidation fee (which will no doubt be higher than other firms offering similar liquidations, due at least in part to having to pay this big commission to the accountant).

    The unfortunate reality is you're in a weak position. It's unlikely a new accountant would be keen to take you on just to do these final tasks given all the admin hassle/checks involved in client take on. You attempting to DIY them could be a false economy if you make a hash of it.

    I'm nervous this could become a growing problem. It's basically an exit/leaving fee. Normally I'm not a fan of naming and shaming, but part of me wonders if it may be the only way this "problem" can be resolved over time. Ie on the basis potentially those looking for an accountant will read horror stories about how expensive it is to leave certain accountants, hence avoid signing up with them in the first place. Maybe that might lead the firms in question to decide it's a false economy to sting clients with extra fees this way.

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  • northernladuk
    replied
    Plenty of useful threads discussing this on the boards.

    Try the google search method by typing something like the following in google. Try changing the keywords a bit if you can't find what you are looking for. They are definitely there. Might find some other useful information while you are reading as well.

    close company charge site:forums.contractoruk.com

    close company charge site:forums.contractoruk.com - Google Search

    Leave a comment:


  • kookachoo
    started a topic Accountant Pre Liquidation Closure Fee

    Accountant Pre Liquidation Closure Fee

    Good Morning

    Interested to hear about anyone else experience of this. I wrote to my accountant about closing MyCo and I've been quoted a closure fee of £695+VAT which I queried as other than closing down PAYE and VAT schemes I do not see what extra work is required of them since I pay them a monthly fee to prepare my CT returns and so on anyway.

    The response back was "Your final liquidation accounts need to be completed of which there is more work involved than a standard set of accounts."

    Is there something I'm missing here?

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