Hi all
some advice please
I have been using paystream for over a year and it's been relatively good apart from now.
I operate a limited company and they manage my accounts. In October my contract came to an end due to covid so I began the closure process. A couple of weeks later I changed my mind due to claiming furlough payments and thus cancelled the closure process. Now they charged me £450 + vat for the closure and another £750+ vat for the capital distribution method. As I still have my company operating but in dormancy I asked for a refund of the closure process only to be told that I was only entitled to £240 of the closing fee and £180 of the capital distribution fee.
This seems like a crazy amount to charge me for essentially two weeks of work which I'm sure very little happened. I asked for a break down of the work and this is what I got back.
For the closure fee of £450+VAT the following work has been completed:
- Initial closure call to discuss and advise you on the closure process and anything to be aware of regarding the closure of your limited company and your personal tax affairs
- Preparation of on-going management accounts to establish inactivity
- Completion of on-going VAT returns until the closing process is concluded
- A review of accounting records and the preparation of company cessation accounts
- Preparation of corporation tax return
- Preparation of VAT returns
- Completion of any other returns which fall due during the cessation process e.g. annual return
- Production of dividend vouchers
- Payroll returns and submissions with HMRC
- Closing Tax Review Service and report
The following work was incomplete:
- Application to de-register for VAT
- Application to remove company from register at companies house
- Closure of all company schemes
- Advice on all final company liabilities
For the Tax Planning and capital distibution fee of £750+VAT, all work was completed except for the self assessment tax return which made up £150+VAT of the total fee.
The following was completed for this service:
· Ad-hoc queries re process (which can be substantial), via phone email with client, potentially HMRC and accounts queries
Now this all seems like general work with no real meat and I'm shocked they can charge 1k for this. This will also mean paying for the same service if I come to close my company in a few months time if I cannot find a contract.
My question is. Has anyone heard of this before? Sorry for the long post
Thanks
some advice please
I have been using paystream for over a year and it's been relatively good apart from now.
I operate a limited company and they manage my accounts. In October my contract came to an end due to covid so I began the closure process. A couple of weeks later I changed my mind due to claiming furlough payments and thus cancelled the closure process. Now they charged me £450 + vat for the closure and another £750+ vat for the capital distribution method. As I still have my company operating but in dormancy I asked for a refund of the closure process only to be told that I was only entitled to £240 of the closing fee and £180 of the capital distribution fee.
This seems like a crazy amount to charge me for essentially two weeks of work which I'm sure very little happened. I asked for a break down of the work and this is what I got back.
For the closure fee of £450+VAT the following work has been completed:
- Initial closure call to discuss and advise you on the closure process and anything to be aware of regarding the closure of your limited company and your personal tax affairs
- Preparation of on-going management accounts to establish inactivity
- Completion of on-going VAT returns until the closing process is concluded
- A review of accounting records and the preparation of company cessation accounts
- Preparation of corporation tax return
- Preparation of VAT returns
- Completion of any other returns which fall due during the cessation process e.g. annual return
- Production of dividend vouchers
- Payroll returns and submissions with HMRC
- Closing Tax Review Service and report
The following work was incomplete:
- Application to de-register for VAT
- Application to remove company from register at companies house
- Closure of all company schemes
- Advice on all final company liabilities
For the Tax Planning and capital distibution fee of £750+VAT, all work was completed except for the self assessment tax return which made up £150+VAT of the total fee.
The following was completed for this service:
- Identification and review of potential personal tax savings on company closure. Several emails/telephone discussions with you determining the most efficient company exit route and consideration of all valid alternative profit distribution options which may be beneficial dependant on a client’s personal circumstances.
- Initial personal tax planning calculations showing various distribution options, as well as an estimation of the total personal tax due and potential savings whilst including all fees involved for a clear and concise comparison.
- Additional calculations internal and or submitted to the client, along with all communications that are required to support a client through the process (usually substantial)
- Guidance and support around any and all current and potentially impending legislation which may impact a client, taking into consideration alternative distribution methods, their current personal circumstances and their individual future intentions.
- Verification of any potential additional tax allowances and relief’s which a client may be entitled to, based on their individual overall personal tax situation and position held within the closing limited company. Not only then providing full guidance and support relating the any valid reliefs, but also incorporating these into any personal tax planning amendments and ensuring the claim is made through self-assessment when applicable.
- A significant level of liaising with the closing accounts department to ensure the cessation accounts fully reflect a client’s overall personal tax situation and are completely in line with outcome required to meet HMRC regulations around final capital distributions and Entrepreneurs Relief eligibility. As the portal is a guide, it means fully reviewing a clients position again and advising on any necessary amendments to ensure the maximum tax efficiency based on information provided.
· Ad-hoc queries re process (which can be substantial), via phone email with client, potentially HMRC and accounts queries
Now this all seems like general work with no real meat and I'm shocked they can charge 1k for this. This will also mean paying for the same service if I come to close my company in a few months time if I cannot find a contract.
My question is. Has anyone heard of this before? Sorry for the long post
Thanks
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