Dodgy accountant

[lamboman]

I have my own limited company and receive no salary (as I paid enough NI etc via a permanent role this financial year).

I have X thousand in my company account (have made no withdrawals so far) and have asked my accountant what the maximum dividend is that I can take, and how much I should leave in the account for taxes etc.

My accountant has full access to information about my business yet is unable or unwilling to answer this and other simple questions for some strange reason!

I am now in a stalemate as I need access to my funds but want to do everything legally with the minimum tax burden.

My question is - should accountants be able to answer such questions? And are they liable for the advice they give (mine seems to have calculated my last VAT return incorrectly)?

Thanks

[Sanyu]

Where did you find your accountant? The slogan 'You get what you give' in this case....what you pay for.....DOES ring true.
Some accountants are reluctant to provide certain pieces of advise in case they end up being liable for damages. It's all about legal protection.
You know....avoiding the....'my accountant told me so!' escape clause when the big boys come aknockin'.

Normally some will just give you all your possible scenarios with benefits and pitfalls and have you be the one to decide which one you'd like to take.

[Nixon Williams]

Your accountant should be able to provide this basic information to you, assuming that you have supplied all that they need then it is really a simple calculation.

Alan

[ASB]

You know....avoiding the....'my accountant told me so!' escape clause when the big boys come aknockin'.

I can assure you that doesn't work

When they come a knocking you are responsible for your actions. You get the flak, the fine etc. Your accountants may be liable for the advice they gave, but that is a different matter.

The first big knock we had was when corporation tax hadn't been paid. For nearly 6 years. ACT had been paid against the dividends but the accountants had never mentioned anything else was due. Just sat in the liabilities growing. The man from the IR was decidedly unimpressed.

Second big knock was when my next accountants had me claiming the rent a room scheme for the company office - recommended in writing. Nice wheeze, I thought. Can't remember how much that incident cost in penalties and interest but it wasn't a small sum to me. The complaint went nowhere.

Then I found yet another accountant. His advice was good. "Do you understand all this", "no", "well at least investigate the basics so you can understand what I am presenting".

[turbo]

I can assure you that doesn't work

When they come a knocking you are responsible for your actions. You get the flak, the fine etc. Your accountants may be liable for the advice they gave, but that is a different matter.

The first big knock we had was when corporation tax hadn't been paid. For nearly 6 years. ACT had been paid against the dividends but the accountants had never mentioned anything else was due. Just sat in the liabilities growing. The man from the IR was decidedly unimpressed.

Second big knock was when my next accountants had me claiming the rent a room scheme for the company office - recommended in writing. Nice wheeze, I thought. Can't remember how much that incident cost in penalties and interest but it wasn't a small sum to me. The complaint went nowhere.

Then I found yet another accountant. His advice was good. "Do you understand all this", "no", "well at least investigate the basics so you can understand what I am presenting".

I hope none of those accountants were any of those that post on this board!

turbo

[Sanyu]

I can assure you that doesn't work

When they come a knocking you are responsible for your actions. You get the flak, the fine etc. Your accountants may be liable for the advice they gave, but that is a different matter.

The first big knock we had was when corporation tax hadn't been paid. For nearly 6 years. ACT had been paid against the dividends but the accountants had never mentioned anything else was due. Just sat in the liabilities growing. The man from the IR was decidedly unimpressed.

Second big knock was when my next accountants had me claiming the rent a room scheme for the company office - recommended in writing. Nice wheeze, I thought. Can't remember how much that incident cost in penalties and interest but it wasn't a small sum to me. The complaint went nowhere.

Then I found yet another accountant. His advice was good. "Do you understand all this", "no", "well at least investigate the basics so you can understand what I am presenting".

1st accountants? 2nd accountants?? 3rd accountant???????????

See - that's why I decided to become an accountant. I've never been one to trust other people to make decisions about my money. If only I'd had some basic accounting knowledge at uni. I wouldn't have ended up with all these damned debts!!!!
And my goodness .... talk about a profession that can make a fortune ripping you off.... Ok...clearly I'm not making a good name for my newly found career but in all fairness, it's true. It's incredible how many successful business owners there are out there who know nothing about numbers.
It's a scary situation that I didn't want to be in.

[lamboman]

Thanks for your responses.

I have basic knowledge of accounting, but just want my accountant to *confirm* how much I can take out of my account and how much I should leave in it for paying my taxes.

This is not a difficult question, and given my accountant is SJD they have more than enough details given their wonderful spreadsheet!

Do I have to pay more than £99.88 a month to get some basic advice?

[simondolan]

Thanks for your responses.

I have basic knowledge of accounting, but just want my accountant to *confirm* how much I can take out of my account and how much I should leave in it for paying my taxes.

This is not a difficult question, and given my accountant is SJD they have more than enough details given their wonderful spreadsheet!

Do I have to pay more than £99.88 a month to get some basic advice?

OK, assuming you are a genuine poster and not one of the usual competitors trying to put the boot in, then please email me directly simonatsjdaccountancy.com

I do find this a little odd to say the least though as we do these calculations as a matter of course for our 4000+ clients.

[andy]

Second big knock was when my next accountants had me claiming the rent a room scheme for the company office - recommended in writing. Nice wheeze, I thought. Can't remember how much that incident cost in penalties and interest but it wasn't a small sum to me. The complaint went nowhere.

what's wrong with this ? My accountant also advises me to charge about one third rent for home office. Is that wrong ?

[itcontractor07]

Hi lamboman,

It would be great if you can post the outcome of your conversation with Simon@sjdaccountancy.com. I am currently in the process of finalising my accountant between SJD & Nixon Williams, I wanted to be sure I am joining the right people.

It will be really helpful if you can post the outcome in the forum.

Cheers