Being Ripped off? Closing Company / MVL

[ChevyChase]

Question.

Want to close down the LTD, lets say at the end of this month. MVL route is being chosen.

I currently engage an accountant at, for arguments sake £100/month. Company year end is ~8 months away. - so £800.

MVL from said accountant is, say, £2000.


Accountant wants paying for *both*. Saying that, say, £1200 for a full set of accounts is their fee, spread over 12 months, rather than engaging at £100/month.

What are they actually doing for that MVL - if it doesn't include preparing a set of accounts? They have to sort creditors / debtors out (about 25 minutes work tops). Then they have to prepare accounts (?!) and submit, taxes get paid. Then send the relevant notices to the gazette.

If they have to prepare accounts for the MVL, why the hell am I paying *twice*?


Can someone explain why I'm either being a retard (possible) or whether they're being rip-off merchants. (Suspect it's me, and that accounts need to be made up first).

[WTFH]

Question.

Want to close down the LTD, lets say at the end of this month. MVL route is being chosen.

I currently engage an accountant at, for arguments sake £100/month. Company year end is ~8 months away. - so £800.

MVL from said accountant is, say, £2000.


Accountant wants paying for *both*. Saying that, say, £1200 for a full set of accounts is their fee, spread over 12 months, rather than engaging at £100/month.

What are they actually doing for that MVL - if it doesn't include preparing a set of accounts? They have to sort creditors / debtors out (about 25 minutes work tops). Then they have to prepare accounts (?!) and submit, taxes get paid. Then send the relevant notices to the gazette.

If they have to prepare accounts for the MVL, why the hell am I paying *twice*?


Can someone explain why I'm either being a retard (possible) or whether they're being rip-off merchants.

OK, so point 1. You are paying £1200 per year for your accountants. You're not paying them on a monthly contract, but an annual one with monthly payments.

So, point 2, why you need to pay for an MVL. Well, a bit like paying for accountants, if you know what you're doing, you could do it yourself - as you appear to think it takes 25 mins, then you must know what needs doing. Since many people don't know, or don't have the time, they either get their accountants to do it, or employ an MVL company (such as MVL Online) to do it.

Are you being ripped off? Yes, if you can get it done better/quicker/for less. Otherwise no.

[northernladuk]

Can someone explain why I'm being a retard

I have absolutely no idea.

[Maslins]

Does the £2k include the actual MVL itself?

If it does, that sounds pretty good value to be honest. Prices for liquidations vary, but including the associated disbursements even the cheapest we've seen are >£1k. Most of the cheap-ish providers expect something like £1.5k. Your accountant then has some tasks to go alongside that.

If the £2k is just for accountancy/tax work leading up to an MVL, and you then needing to pay a third party separately for the MVL itself, then it does sound a lot.

[Kugel]

Can someone explain why I'm either being a retard (possible) or whether they're being rip-off merchants.

Is it £2'000 including VAT and disbursements?
Will your accountant recover VAT?