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Paystream trying to shaft me

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    Paystream trying to shaft me

    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:
    • 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


    #2
    I would ask for that supposedly completed work to be sent to me. Every page of it. I suspect you won't get any of it. In which case you refuse to pay until you see it has been done. When you see it has actually been done, you will have to pay. I think it unlikely they have done all that work. But if they really have, then that's the penalty for making a rash decision which you then reversed. And you'll have to pay.
    Public Service Posting by the BBC - Bloggs Bulls**t Corp.
    Officially CUK certified - Thick as f**k.

    Comment


      #3
      Originally posted by callum103 View Post

      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.

      <blah> <blah> <snip>


      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


      How much do you charge for 2 weeks work?
      Charging you £1k for that lot seems fine. It would be reasonable to pay £100 p.h. for qualified accountants.
      As for it being unexpected..... Well you did change your mind so that is also fair..

      Your question of "has anyone heard of this before?". Yes. Quite often I hear people complain unreasonably about services provided. HTH
      See You Next Tuesday

      Comment


        #4
        Originally posted by callum103

        Wow you're a jumped up little so and so aren't you. I was asking for advice. No need to be so rude
        No. "you're a jumped up little so and so" is rude.
        I was providing my opinion. That you asked for. Just because you didn't like it doesn't make it rude.

        See You Next Tuesday

        Comment


          #5
          Another good example of where people need to be a little smarter when managing their business rather than just knee jerk reaction and close it. Usually we see people that closed and MVL'd and now want to go outside but this is another angle to think about.

          Does surprise me why so many people are so eager to the shut the business on the status of the next gig rather than thinking of their longer term career but there is nowt as queer as folk so guess it's to be expected.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by northernladuk View Post
            Another good example of where people need to be a little smarter when managing their business rather than just knee jerk reaction and close it. Usually we see people that closed and MVL'd and now want to go outside but this is another angle to think about.

            Does surprise me why so many people are so eager to the shut the business on the status of the next gig rather than thinking of their longer term career but there is nowt as queer as folk so guess it's to be expected.
            on the bright side, the more MVLs are done, the less competition there will be for genuine outside gigs.
            See You Next Tuesday

            Comment


              #7
              Originally posted by northernladuk View Post
              Another good example of where people need to be a little smarter when managing their business rather than just knee jerk reaction and close it. Usually we see people that closed and MVL'd and now want to go outside but this is another angle to think about.

              Does surprise me why so many people are so eager to the shut the business on the status of the next gig rather than thinking of their longer term career but there is nowt as queer as folk so guess it's to be expected.
              I suspect most of those that close their company as soon as they get an Inside IR35 or Umbrella gig are pretty much accepting that they've never really been running a business, but just using the ltd company vehicle for tax purposes - exactly why IR35 was introduced.

              Comment

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