URGENT HELP, accountant is a nightmare

[yasyas]

Hi people,
I am trying to change my current accountant.
When I met them for the first time 3 months ago, they quoted £550 for setting up company+ VAT registration and tax returns. I clearly noted that in my notebook during the meeting.
I paid them £150 initially for getting the company set up and registered coz that is what they asked. The rest they said I could pay in small monthly installments. They did set up the company and did all the registrations. Now I want to move on to a new accountant recommended by my colleague since my current accountant tried to push me to go for an offshore based scheme and I didn't want to go for it.

Now when I notified them of my intention to move on, they said that I still owe them the other £400 pounds. They now claim that £550 is just for setting up company and getting registrations. I feel betrayed now, I have no proof other than what I wrote in my notebook.

Their invoice says

Our charges for professional services generally, including the following:
Company formation work including Inland Revenue & VAT registration forms

When they said professional services, I assumed that they meant what they said in the meeting that they would do for that fixed fee for the whole year other than setting up company and registrations , i.e., tax and vat returns etc. Now they are claiming that the invoice is just for setting up company and registrations and demanding the payment.

What shall I do now?

What is the best way to deal with them?

[pmeswani]

Hi people,
I am trying to change my current accountant.
When I met them for the first time 3 months ago, they quoted £550 for setting up company+ VAT registration and tax returns. I clearly noted that in my notebook during the meeting.
I paid them £150 initially for getting the company set up and registered coz that is what they asked. The rest they said I could pay in small monthly installments. They did set up the company and did all the registrations. Now I want to move on to a new accountant recommended by my colleague since my current accountant tried to push me to go for an offshore based scheme and I didn't want to go for it.

Now when I notified them of my intention to move on, they said that I still owe them the other £400 pounds. They now claim that £550 is just for setting up company and getting registrations. I feel betrayed now, I have no proof other than what I wrote in my notebook.

Their invoice says

Our charges for professional services generally, including the following:
Company formation work including Inland Revenue & VAT registration forms

When they said professional services, I assumed that they meant what they said in the meeting that they would do for that fixed fee for the whole year other than setting up company and registrations , i.e., tax and vat returns etc. Now they are claiming that the invoice is just for setting up company and registrations and demanding the payment.

What shall I do now?

What is the best way to deal with them?

Did you sign an agreement with your accountant before you took on their services? If not, it should be your mistake, not the accountant. If you agreed to pay them £550 for certain services, and then you decide to move on, then you pay them the £550. Don't forget, the accountant is also betrayed by you leaving them before you have paid up the agreed fee. Cough up, pay up and move on.

My advice to you is, don't get into an agreement with someone unless you intend to honour it.

[NotAllThere]

My word. Last time I set up a UK company it cost me £50.

Don't make assumptions, read what your contract with them says. You'll probably have to cough up. Consider it a learning experience.

[aalvarez]

Did you sign an agreement with your accountant before you took on their services? If not, it should be your mistake, not the accountant. If you agreed to pay them £550 for certain services, and then you decide to move on, then you pay them the £550. Don't forget, the accountant is also betrayed by you leaving them before you have paid up the agreed fee. Cough up, pay up and move on.

My advice to you is, don't get into an agreement with someone unless you intend to honour it.

I think the issue here is that he payed the £550 for services and the Accountant retroactively reduced the scope, but nothing is in writing so its word against word.

Have a friend call them saying that he is interested in an accountant, meet up with them and get the prices in writing.

[yasyas]

No I haven't signed any agreement. They told me that it is the fixed fee they are charging for everything. How can they now say that it is only for the set up? Is this not misleading clients? My mistake is that I did not ask for a written doccument which says what all is included specifically and not a generic one. I am surprised that things like this happen here in UK where standards and professionalism is high.

When I went there, they did not provide me with the service I wanted. Instead they tried to intimidate me with IR35 (please read my previous post in this forum) and insisted continually on some offshore scheme without even reading my contract properly.

I did not agree to pay that sum just for set up, I agreed to pay that for all services including set up. I feel helpless though I know that they are not treating me right in every way.

[MarillionFan]

This doesnt help but I did mine for £30 last month. But then again, in the past I had gone down the accountant route.

£200 is a normal fee.

Frankly, I would just dispute it. As said, I have quotes for £200 for this and you need to state quiet strongly that the £550 was for the whole year and that you will only pay them the going rate.

Have you got another accountant sorted yet?

[yasyas]

I have no agreement or contract with them yet. I haven't signed on anything. It was all done verbally. All I got is the invoice which says
Fee for professional services including set up and reg = £550

[Wanderer]

I paid them £150 initially for getting the company set up and registered coz that is what they asked. The rest they said I could pay in small monthly installments.

Technically, you should read your contract with them and see what it says.

But in reality, I would just tell them you've paid them what you owe (a fair price too) and the rest was for doing your accounts (also a fair price, but they won't be doing that job so you are not paying). Thank you very much and good bye.

Make it absolutely plain that if they want to take it further they can take it to court and argue the point there. There will be a load of bluff and bluster letters in the mean time, debt collectors, solicitors letters, bulltulip extra charges etc. Just insist that they go to court as they don't really have much of a case.

If it goes to court then set up a new company and let the old one cease trading. They are trying it on and they know they are beating a dead horse here.

[MarillionFan]

If it goes to court then set up a new company and let the old one cease trading. They are trying it on and they know they are beating a dead horse here.

Sneaky.

[TheFaQQer]

Technically, you should read your contract with them and see what it says.

But in reality, I would just tell them you've paid them what you owe (a fair price too) and the rest was for doing your accounts (also a fair price, but they won't be doing that job so you are not paying). Thank you very much and good bye.

Make it absolutely plain that if they want to take it further they can take it to court and argue the point there. There will be a load of bluff and bluster letters in the mean time, debt collectors, solicitors letters, bulltulip extra charges etc. Just insist that they go to court as they don't really have much of a case.

If it goes to court then set up a new company and let the old one cease trading. They are trying it on and they know they are beating a dead horse here.

If the accountants went to small claims court and won, isn't there a chance that the OP would be held jointly liable for acting in a negligent manner in running the company deliberately into the ground?

The £400 that they are charging may well include additional fees (which they have not specified) for sorting out the paperwork etc. for moving to the new accountants and any other work they have needed to do outside of the setup costs.

Edit - additional - if you are going to run the company into the ground, make sure you get an accountant that isn't going to charge more to do the new one. Now that would be ironic - avoid paying your bills, move company, and then get an even more expensive accountant