Permie to freelance

[Dave_handy]

Hi all,
Any help on this would be greatly appreciated.

I've had a limited company for a couple of years now, set up when I started contracting. After a year I took a permanent job and kept my company going for freelance work in my spare time.

Last month, I was made redundant (for the 4th time, that should tell you something about permanent jobs). Anyway, I've decided I've got enough work coming in now for me to give the freelance a go and work from home.
My problem is, I've stayed with the same accountants since I started contracting. At the time I was charged £85 a month, which seemed reasonable for the work involved. They agreed to halve the cost when I was freelancing in my spare time, but I've got an idea they'll want to charge £85 again when I declare myself full-time freelancer.

Is this a reasonable rate for someone who's income is a little unpredictable?

Also, any advice you can give someone in my position would be very welcome.
Thanks.

[david@purpleaccounts.com]

£85 per month is reasonable, but as that was the rate from 2 years ago don't be too surprised if its a bit more.
If they have done a good job in the past and they are up to date with legislation affecting the freelance market, then stay with them. If you are in any doubts, then do a bit of ringing around to see what others are offering - PM me if you want to discuss

[max]

Hi all,
Is this a reasonable rate for someone who's income is a little unpredictable?

The amout of forms/work the accountant will need to do is not affected by how much you manage to bring in.

[malvolio]

The amout of forms/work the accountant will need to do is not affected by how much you manage to bring in.

And as I have said at boring length, if an accountant costs you money, get a new one. Good ones cover their fees in saved effort, rework and penalties for wrong submissions as well as keepig up to speed on our shambolic tax law

[david@purpleaccounts.com]

And as I have said at boring length, if an accountant costs you money, get a new one. Good ones cover their fees in saved effort, rework and penalties for wrong submissions as well as keepig up to speed on our shambolic tax law

well said Malvolio. Even more reason to ring around and compare!!

[Dave_handy]

And as I have said at boring length, if an accountant costs you money, get a new one. Good ones cover their fees in saved effort, rework and penalties for wrong submissions as well as keepig up to speed on our shambolic tax law

It is a good point. I've been very happy with the work my accountant has done. Just wanted to make sure I wasn't paying more than any decent accountant would charge for these services. I think you've all answered my question. Cheers.

[tim123]

And as I have said at boring length, if an accountant costs you money, get a new one. Good ones cover their fees in saved effort, rework and penalties for wrong submissions as well as keepig up to speed on our shambolic tax law

This depends how much you value the 'saved effort' at.

There are some people who value it at zero (including some who have posted on this board saying so). These people are never going to 'save' money employing an accountant, as the other things don't add up to a grand a year.

tim

[malvolio]

This depends how much you value the 'saved effort' at.

There are some people who value it at zero (including some who have posted on this board saying so). These people are never going to 'save' money employing an accountant, as the other things don't add up to a grand a year.

tim

True, but how many of them understand cost accountancy? The crude costing is that if you do it yourself, you can (and should) value the time at double your usual rate, since you are doing work for free when you could be earning and also using up your unpaid leisure time...

It's all marginal at that level of course, but I prefer to let the professionals deal with the legal stuff while I stick to my own area. YMMV...