problem with accountant

**jmo21** · 14 April 2010, 13:13

what are you asking him?

Only then can we know whether or not he is being reasonable or not.

**bcsltd** · 14 April 2010, 14:04

Sure, I appreciae your help.

Firstly, I recently (trading started in March this year) moved into contracting career so I was not very well aware of best way of drawing and other accounting aspects of this field. My accountant was aware of it but he did not advise me on how much I can withdraw realistically and did not helped me in initial calculations I have done. Basically I have provided him calculation in excel to show projected earning, projected cost and possible earnings, all I was asking him to advise on projected earnings in the context.

Secondly, he did payroll for fiscal 09-10 even before I have advised my March withdrawals and I do not understand how he has calculated PAYE and NIC and asked him to provide me details on this calculation.
I think an issue is that because I am new to this field; my accountant is not resolving my initial queries as otherwise it will be smooth monthly balance sheet. Due to lack of some initial advice, I have issues now with my PAYE and NIC calculation and he is asking more fees to re-do payroll or for any advice on accounting structure although it was proposed to be included in my fees. Moreover, if I wish to change my accountant he is stating he will charge me even more which is bullying and was not agreed ever.

Many thanks,
PB

**Sally BFCA** · 14 April 2010, 14:54

Hi bscltd

In my personal opinion, what you are asking is not unreasonable for the fees that you are paying, and you should have the right to understand how your salary has been calculated.

If you do not get the responses you need you may wish to consider moving accountants, provided that you are not tied into a contractual period with them.

For your information, if you did move, the work they need to do is:

1) Write giving the new accountant professional clearance (standard letter)
2) Provide accounting information (usually a breakdown of balances in the year end accounts) which will not really be applicable if you started in March.

I trust you get a satisfactory outcome.

Best regards
Sally

**bcsltd** · 14 April 2010, 15:09

Hi,
Thank you for posting me replies. When my accountant proposed me his services he did mentioned that I have no obligation to stick to him and I can leave anytime I wish. Also, he mentioned to me that fees are applicable only when company does trading.

However, now he is bullying me that if I wish to change my accountant he would charge me some ￡1200.00 for whatever advise he might have give me so far. This is complete absurd and I do not know what to do in such situation.

All I want to do is to ensure that I understand how can I withdraw and how is my PAYE or NIC is calculated and have a smooth accountancy going forward.

Is there any way to handle this (arbitration / litigation / what else)?

Is there any accountant out there who could be trusted to make this switch if I wish?

Many Thanks,
PB

**jmo21** · 14 April 2010, 15:09

Originally posted by bcsltd View Post

Secondly, he did payroll for fiscal 09-10 even before I have advised my March withdrawals and I do not understand how he has calculated PAYE and NIC and asked him to provide me details on this calculation.

Clearly, your first language is not English.

Most contractor focused accountants will advise you on the salary to take, it is up to you if you wish to follow this advice - they'll then give you a schedule to follow.

What withdrawals did you make? random amounts, or did you calculate your own salary, paye and nics based on what you wanted to draw as salary?

Did you tell the accountant what you wished to pay, and to adjust the schedule accordingly?

**Darren@UptonAccountants** · 14 April 2010, 16:14

Originally posted by bcsltd View Post

Hi,
However, now he is bullying me that if I wish to change my accountant he would charge me some ￡1200.00 for whatever advise he might have give me so far. This is complete absurd and I do not know what to do in such situation.

eek

eek Blimey, that's one heck of an additional fee from your "all inclusive" monthly retainer!! Something not right there, you can ask for a breakdown of this amount and request full details of what has been supplied in addition to the all inclusive fee.

**Vallah** · 14 April 2010, 16:23

Originally posted by Darren@UptonAccountants View Post

eek

eek Blimey, that's one heck of an additional fee from your "all inclusive" monthly retainer!! Something not right there, you can ask for a breakdown of this amount and request full details of what has been supplied in addition to the all inclusive fee.

Good advice. It looks like he's trying to charge more just because you're threatening to leave. Tell him to shove it, and if he's a qualified accountant (ACA, ACCA, CIMA etc) threaten to report him to his institute.

**Sally BFCA** · 14 April 2010, 16:27

Originally posted by Vallah View Post

Good advice. It looks like he's trying to charge more just because you're threatening to leave. Tell him to shove it, and if he's a qualified accountant (ACA, ACCA, CIMA etc) threaten to report him to his institute.

I second that.

bcsltd, feel free to call me on 0207 015 2146 or email [email protected]. I'm always happy to give general advice (I would have to carry out an anti-money laundering check to give you specific advice to your circumstances) even if you stay with the current accountant.

**Stag Cozier** · 14 April 2010, 16:41

Originally posted by bcsltd View Post

However, now he is bullying me that if I wish to change my accountant he would charge me some ￡1200.00 for whatever advise he might have give me so far. This is complete absurd and I do not know what to do in such situation.

That's a bargain

£99 "fixed" fee is exactly that I would have thought. What's in your T & C's with your old accountant? Have they broken down the £1,200?

problem with accountant