Ltd Company Formation and Accountant services Costs

**Nixon Williams** · 8 May 2011, 12:49

Originally posted by dagenheis View Post

Hi,
I have been working through a brolly for about a year now. I am thinking to set-up a limited company now as i am expecting a renewal.

I have been looking into some good local account but I have not been able to find someone (West london/south west).

I have received a quote from one chartered accountant (FCA) who is a partner in a firm as follows:

>The company formation is 150 +VAT
>The charges are 1450 + VAT per year (ca 120 + VAT per month). Even If don't get another contract after first one, I will still need to pay the charges for the year..

I have another quote from Nixon Williams for 75 GBP per month and the company formation is included in that.

Can someone advise about the charges I have been quoted for ? I am inclined to choose someone I can easily meet and discuss things if needed. But I feel that 1450 plus VAT is on the higher side.

Does it really cost this much to form a company? I saw online company offering registration for as low as 25 quid. Would it be possible to form a company on my own and use an accountant afterwards. I am told that company formation may need some expert view for company structure and all registrations.

Any input is much appreciated.

You can form the company yourself but I would advise you at least talk it through with your accountant first, we have seen some people who have done it themselves with a share capital of £1,000,000 and this needed some paperwork to sort out!, share capitals of £100,000 & £500,000 have been seen.

A share capital of £100, £1000 at most is sufficient.

You may also wish to discuss the share structure prior to the formation.

In our experience the requirement to meet face to face rarely happens, ask your friends and colleagues if you do not want to take my word for it.

We are happy to meet up with clients if they wish, but in the 16 years of doing this we have probably seen 0.5% of our clients face to face.

£120+VAT is on the high side, check what they will do for that and then compare it what someone like ourselves offer, speak to a few accountants and see what you feel.

I hope this helps.

Alan

**TykeMerc** · 8 May 2011, 12:53

I use Nixon Williams and am happy with their service, any time I have a question or need advice I just give them a call or email and get quick responses.
Company formation is pretty uncomplicated and most contractor company structures are incredibly simple, I don't see what extra value you would get from a £150 service.

**dagenheis** · 8 May 2011, 14:12

I don't intend to turn this thread into NW services evaluation topic. With NW, do you know if we deal directly with an accountant or is it more of a contact centre (customer service staff) who take your queries to back office accountancy people if needed?

I have also been told that there is a 1 month notice period if I don't want to use their service anymore. I am not sure if its straight forward enough to switch accountants during/end of the tax year and whether, or not, it involves any costs and possible hassles. Do we normally sign an agreement with the accountant, including the level of professional service we would get?

Any tentative accountancy costs from other contractors, I can have for comparison of full service?

Has anybody heard/worked with Nyman Linden?

**Nixon Williams** · 8 May 2011, 14:33

I don't intend to turn this thread into NW services evaluation topic. With NW, do you know if we deal directly with an accountant or is it more of a contact centre (customer service staff) who take your queries to back office accountancy people if needed?

We do not operate a contact/call centre operation, our clients are assigned an account manager for who you will have the direct phone and email of for when you need to make contact etc.

Sometimes, if the question is specialised, they may refer to a team manager before responding but this is unusual.

I have also been told that there is a 1 month notice period if I don't want to use their service anymore.

Yes, we only ask for 1 month's notice, unlike many other accountants, we do not insist on a full 12 month's fees being paid if you decide to leave or cease trading.

I am not sure if its straight forward enough to switch accountants during/end of the tax year and whether, or not, it involves any costs and possible hassles.

It is quite easy to switch although much of the ease depends on the co-operation of the current accountant. Depending on who the transfer is from we do not make any transfer charge, we do however make a small charge for transfers from some accountants where we know that the co-operation is limited and extra work is involved.

In these cases we have other options available to assist you.

Do we normally sign an agreement with the accountant, including the level of professional service we would get?

Our clients do sign an Engagement Letter setting out our terms and what you can expect from us.

**TestMangler** · 8 May 2011, 17:58

I pay £500 plus VAT per annum for acountancy (includes everything but I do my own VAT return by choice). Used the same accountant for 17 years now. No complaints.

**tranceporter** · 9 May 2011, 07:46

I use Danbro. Professional indemnity insurance and accounting for £100 + VAT monthly. Thats for the first employee of the limited company. Add a second, and its £80 + VAT including insurance. Without the insurance, it is £80 + VAT for the first, and £60 + VAT for the second. Let me know if you interested and I can put you through..
The company formation costs were £85 + VAT (if I remember correctly), and that included VAT registration. Danbro did everything for me.

**dagenheis** · 10 May 2011, 20:30

Another question about having my wife as an employee of the company to assist me with managing the administrative tasks. I am being told that HMRC does not like that and it is deemed that she can't work for more than 2 hours per month anyway, so it's not recommended to have wife as an employee (Secretary). Any views on this ?

Presumably, it's OK to have 50-50 share structure with wife. Is it important that her dividends are paid to her personal account rather than our joint account?

**dagenheis** · 14 May 2011, 21:41

Hi all,
I have actually started looking at Nixon Williams website. I can't find any information about their partners. I am interested to know their qualifications etc.

Also, do you know if they have an online interface that allows clients to view the companys accounts, much like online banking?

I can't imagine using hard copies in this era now. Perhaps some of their existing clients can shed some light.

Ta!

**SueEllen** · 15 May 2011, 09:26

Originally posted by dagenheis View Post

Hi all,
I have actually started looking at Nixon Williams website. I can't find any information about their partners. I am interested to know their qualifications etc.

Also, do you know if they have an online interface that allows clients to view the companys accounts, much like online banking?

I can't imagine using hard copies in this era now. Perhaps some of their existing clients can shed some light.

Ta!

I suggest you contact the firms directly via email and ask them these basic questions.

The ones who don't answer you - remember they want your business - are obviously not worth dealing with.

Ltd Company Formation and Accountant services Costs