Hi, I am with one of the reputed accountancies and I have decided to close down my company after my contract expires early next month. my accountant is charging me £125 + VAT for company closure and also £210 + VAT as "balancing charge" (in their words "to complete company year end accounts and corporation tax return part way through the company year"). Are these charges reasonable? can I challenge them? since I am closing down the company, I can't change my accountant now.
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Looks fair enough to me. I'd pay it. -
Hard to say unless you provide the dates of your accounting year etc, but it doesn't sound too bad."The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance." CiceroComment
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Is the bank empty or do you have a lot of cash to dish out? Are you applying for ESC as liquidation costs considerably more.'CUK forum personality of 2011 - Winner - Yes really!!!!
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Sounds reasonable to me.
Remember that the monthly fee you probably pay should be thought of as an annual fee broken down into monthly instalments. Closing your company does not reduce the workload for the company year by very much.Comment
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Just echoing others. The cost definitely does not sound 'high' but quite fair and reasonable.Comment
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I pay £126 (including VAT) every month to the accountant. These extra charges mentioned in my post, are just for closing the company. they also charged me earlier for giving references and submitting tax returns. since I am paying them £126 every month (even though most of the work they do is only in the year-end to prepare accounts, they aren't busy throughout the year), charging so much extra didn't sound reasonable to me.Originally posted by Gonzo View PostComment
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You need to provide some dates so that we can comment with all the facts.Originally posted by ramap View Post
If you have just had your year-end and are now closing, then there will be extra costs to prepare accounts etc, if you are effectively closing after say 10 months trading then the extra costs do sound puzzling.
If you are paying £105+VAT for the monthly fee, ask them to justify the fee if you are still not happy."The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance." CiceroComment
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Thanks. I started my company in May 2007 and I normally pay corporation tax by end of February every year. I haven't paid the corporation tax for this year yet and need to do it by end of this month. my contract is expiring in first week of March and I told them to mark the "cease to trade" date as end of March this year.Originally posted by Waldorf View PostComment
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So, assuming that your yearend is May, then by March you will have done 10 months of the current year.Originally posted by ramap View Post
If you are paying £105 per month (I assume you use SJD?) then they are wanting to charge you a full years fee for the accounts, being 105 * 2 = 210?
Sounds a bit much but you probably have no choice, as it will not be worth moving. You could try and negotiate?"The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance." CiceroComment
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