SJD just stuffed fees up by over 10%

[Waldorf]

I easily benefit from being on the flat rate scheme, I appreciate the gain is to compensate me for not reclaiming vat. Every £ of vat I do incur eats into this benefit, so the cost to my business and I guess most other contractors would be £1512.

Which ever way you choose to look at it, the new fee is very high and looking at the margin, there appears to be no reason for the price hike other than to cream more from their clients.

At the end of the day, each client will make their own choice, whether to stay and pay the increase or look around. My guess is that most will stay and pay.

[Alf W]

If you don't understand about VAT, you should really get a better accountant.

I'll await the email. Alf wasn't clear if he was reacting to an actual rise, or just mistakenly taking what was said on the website as applying to him (as seemed to be the case on the last thread). Still, not many things haven't increased by at least 10% in 3 years, and angrily demanding justification seems rather childish. A business makes as much money as it can. Get over it.

For clarity, I received an email informing me about the rise. The reason given was "we haven't increased our charges for three years". That's not good enough. I'm not getting any more for my money and the upward clients in the supply chain are demanding more for less. Therefore everyone in the chain has to find a way to deliver or alternative suppliers will be sought.

The question to ask is is it worth me spending a couple of hours effort to save my company £150 per year? Probably yes. Is it worth using this forum for many of us to challenge these increases? Yes again.

[Mr.Whippy]

For clarity, I received an email informing me about the rise.

I've not had one...yet.....They're already one of the more expensive accountants, so when/if I do get an email, I shall be moving to either InTouch or Nixon Williams.

Is it much hassle to move mid-year? or would I be better waiting until year end?

[MarillionFan]

£1260 plus vat is £1512.

I am not with SJD but judging my the comments on here, existing clients have already started receiving notice of the fee increase.

I assume you are with SJD perhaps your increase is on its way?

Actually, my two pennies worth. I was paying a £90 per week 12 years back, so £1260 isn't huge. We tend to say on the board £100 per month, which is £1200 per year for accountancy + VAT.

If you don't like the fee(and the extra VAT is an issue) then do your own VAT & book-keeping & get an accountant to draw up your accounts at the end of the year. The cost of an accountant at year end would be £450-£600 and that may or may not include your self assessment(which you could do yourself) otherwise about £90.

Seems to be, that if you're in a situation where the £1500 per year is a lot of money to you, then you're going to be at the lower end the contracting scale, so learning to do the VAT/Bookkeeping yourself would be financially beneficial. If the last option is, I don't have time/don't want a mess around/wanna pay some else to do it. Then balls to you. Pay the fees and shutup.

[Mr.Whippy]

Seems to be, that if you're in a situation where the £1500 per year is a lot of money to you, then you're going to be at the lower end the contracting scale, so learning to do the VAT/Bookkeeping yourself would be financially beneficial.

It's doesn't matter which "end of the contracting scale" you're at or whether £1,500 is a lot of money..... why pay out more than you have to when there are cheaper alternatives that provide the same or perhaps even better service?

If the last option is, I don't have time/don't want a mess around/wanna pay some else to do it. Then balls to you. Pay the fees and shutup.

Charming....

[MarillionFan]

It's doesn't matter which "end of the contracting scale" you're at or whether £1,500 is a lot of money..... why pay out more than you have to when there are cheaper alternatives that provide the same or perhaps even better service?

Charming....

£1500 is dependent on what you earn. So no it's not necessarily a lot of money. It's not a lot of money if you're on £150k, it is if you are on £30k.

Dont bleat on about them being greedy. They're charging more because you're too lazy to go elsewhere. It's like people who moan about banks. They're are plenty of options. The main gist of this thread is that SJD is taking the piss by putting his fees up. If you don't like it. Move or do some of it yourself. Most people are better the devil.

End of the day. Your choice.

[Mr.Whippy]

£1500 is dependent on what you earn. So no it's not necessarily a lot of money. It's not a lot of money if you're on £150k, it is if you are on £30k.

See what I put before, whether it's a lot of money to you or not is irrelevant it's about the value for money you're getting whatever it's costing.

Dont bleat on about them being greedy. They're charging more because you're too lazy to go elsewhere. It's like people who moan about banks. They're are plenty of options. The main gist of this thread is that SJD is taking the piss by putting his fees up. If you don't like it. Move or do some of it yourself. Most people are better the devil.

End of the day. Your choice.

I haven't said they're being greedy. They're a business and if they feel they want to increase their fees that's up to them. If they increase mine, I'll be moving because I don't think it would be value for money for the amount I actually need to use them.

[d000hg]

A 10% increase on its own may not be the issue, however based on the current profit of £600 per client, after this increase, this presumably will be £720 per client.

So out of the £1260 annual fees paid, £720 is pure profit, that seems excessive, a profit margin of 57% - Tesco has a profit margin of about 5%

Really, what exactly is YOUR company's profit margin?

It seems there are two separate issues here. The price, and the increase. And really the price itself appears to be the main issue, because 10% isn't a big change. If SJD aren't doing anything extra than you could get from a £60-80/month accountant then look to change, if they provide extra services you find useful, don't. I certainly find they don't which is why I originally signed up with Quay, and then moved to InTouch when ClearSky (as they were now called) instigated a big price increase.

[MarillionFan]

A 10% increase on its own may not be the issue, however based on the current profit of £600 per client, after this increase, this presumably will be £720 per client.

So out of the £1260 annual fees paid, £720 is pure profit, that seems excessive, a profit margin of 57% - Tesco has a profit margin of about 5%

I would imagine his costs have gone up. Making a profit though. Shocking. What a bastard.

I've heard that some contractors make a profit of 85%!!! Come the revolution we should start with them.

[ratewhore]

...so learning to do the VAT/Bookkeeping yourself would be financially beneficial.

It's beneficial for all of us with Ltds, given we are ultimately responsible for the figures that go to HMRC and Cos House.