Reply to: Accounting Fees...Too much?

[Waldorf]

Don't get hung up on the monthly fee. Correct, compliance advice will save you £,000's! Most of the 'cheap' boys out there still don't know the principles of IR35 which is scary! - then again I'm sure the government doesn't either!!!

I'm sure there are enough seasoned pro's on here who will share this sentiment.

Also, watch out for hidden fees

Not just the cheap boys who didn't know about IR35. I know of a very large accountancy group that didn't ask new clients what their IR35 position was, didn't ask to see the contract and assumed all clients were outside IR35! [emoji33][emoji33][emoji33]

[Dan@OrangeGenie]

Being enjoying the advice you are sharing Fred I'm very new to contracting and interested to know whether you are operating as a sole trader or a limited company? Had a browse today and seems like for limited companies it does got up to 100 pounds/month including VAT...yesterday I got quoted 33 pounds/week +VAT which is up there in the clouds...

Don't get hung up on the monthly fee. Correct, compliance advice will save you £,000's! Most of the 'cheap' boys out there still don't know the principles of IR35 which is scary! - then again I'm sure the government doesn't either!!!

I'm sure there are enough seasoned pro's on here who will share this sentiment.

Also, watch out for hidden fees

[Chart Accountancy]

Being enjoying the advice you are sharing Fred I'm very new to contracting and interested to know whether you are operating as a sole trader or a limited company? Had a browse today and seems like for limited companies it does got up to 100 pounds/month including VAT...yesterday I got quoted 33 pounds/week +VAT which is up there in the clouds...

A typical full service accounting fee is from £69+vat pm. If you plan to contract for at least one year, you will benefit from a vat registration and you will be able to reclaim the vat or register under the flat rate in your first year and you can make a sureplus over the vat you will normally be able to recover from purchases.

[Fred Bloggs]

Being enjoying the advice you are sharing Fred I'm very new to contracting and interested to know whether you are operating as a sole trader or a limited company? Had a browse today and seems like for limited companies it does got up to 100 pounds/month including VAT...yesterday I got quoted 33 pounds/week +VAT which is up there in the clouds...

I am not operating in the UK at the moment so I am neither of those. Thank you for the compliment about my postings, I try to share my experience with others for better or worse, you can get better services at lower costs if you look around like I did. For FreeAgent accountancy
services look at my recommendations. You could save yourself significant money over the years.

[kaiser78]

Being enjoying the advice you are sharing Fred I'm very new to contracting and interested to know whether you are operating as a sole trader or a limited company? Had a browse today and seems like for limited companies it does got up to 100 pounds/month including VAT...yesterday I got quoted 33 pounds/week +VAT which is up there in the clouds...

This is about the norm for a typical IT contractor Ltd company setup. Any higher and you are paying to much.

[tananq]

If you continue contracting, I can recommend a FreeAgent accountant that I am happy with who charges GBP 49 per month +VAT and no hidden charges. Yes, you are being royally ripped off. Please name and shame.

Being enjoying the advice you are sharing Fred I'm very new to contracting and interested to know whether you are operating as a sole trader or a limited company? Had a browse today and seems like for limited companies it does got up to 100 pounds/month including VAT...yesterday I got quoted 33 pounds/week +VAT which is up there in the clouds...

[Fred Bloggs]

It's definitely on their "to do" list, don't think that's a secret...it's just a relatively complex task so not something a couple of developers can knock up in a few days.

There used to be a big divide between "bookkeeping software" and "accounting/tax software", with only accountancy firms traditionally having the latter, due to it being very complex and often expensive. These two are increasingly blurring, with VAT and payroll being an inbuilt part of many bookkeeping packages these days, some also doing self assessment, and within a few years I'm sure a few will offer statutory accounts and corporation tax too, at least for fairly straight forward small businesses.

However, I agree with Martin @Contratax. As with so many things in this world, just because you can DIY (which people have been perfectly able to for yonks) doesn't mean everybody will, or indeed should.

I agree, that's why I think what I have is a neat compromise not costing a fortune each month.

[DucknDog]

Thanks for the reply's, for those that are curious its ClearSky (Parasol).

For the sake of a few months I think I'll just stay, it's the £750 closure fee that really winds me up though, at the end of it all I probably would have been better off just staying with the umbrella.

[Alan @ BroomeAffinity]

Churchill knight per chance?

[Wijay@WISAccountancy]

Hi, I have a question about accounting fees as the one I'm with seems to be charging an extortionate amount.

I'm an IT contractor and I switched from an umbrella company to going LTD in August after being talked into going with their LTD service, earn £100 week extra etc. I'm paying £145 per month for a full accounting service and as my contract comes to an end at the end of December I intend to close the company, they have told me that they will charge me £750 to do this. So I'm going to have paid a total of £1475 for 6 months of accounting work.

They will also charge me £260 just to leave them.

Is this too much or pretty standard?

P.S. I know now that setting up a LTD company for just 6 months was a stupid idea but went on the advice of the accountants.

Even though you contracted for 6 months - the work involved in filling accounts is the same. But I agree its on the higher side.

[northernladuk]

Suity

Take my money!!!!

[Maslins]

Probably. FreeAgent is not so free; £30pm for a book keeping service which might only have a few entries per month for the typical contractor seems a bit of a rip off too. If they took the logical step of doing annual accounts and CT I'd certainly sign up.

It's definitely on their "to do" list, don't think that's a secret...it's just a relatively complex task so not something a couple of developers can knock up in a few days.

There used to be a big divide between "bookkeeping software" and "accounting/tax software", with only accountancy firms traditionally having the latter, due to it being very complex and often expensive. These two are increasingly blurring, with VAT and payroll being an inbuilt part of many bookkeeping packages these days, some also doing self assessment, and within a few years I'm sure a few will offer statutory accounts and corporation tax too, at least for fairly straight forward small businesses.

However, I agree with Martin @Contratax. As with so many things in this world, just because you can DIY (which people have been perfectly able to for yonks) doesn't mean everybody will, or indeed should.

[Lance]

I am guessing it is SJD, i would be very careful with using the term "royally ripped off" as there are plenty of customers who are happy to pay this amount, I pay zero in accountancy fees so I think FreeAgent @ £60 a month is too much, but then again I know that my cover is limited in case things go tits up.

Sounds like SJD. I use them. If I was starting again I'd use another firm but as I cannot complain about the service, and cannot see that c. £70 a month is good reason to go through the pain of changing I'll stay.
That notwithstanding they are only one bad service incident away from me leaving for that reason.

[Fred Bloggs]

Probably. FreeAgent is not so free; £30pm for a book keeping service which might only have a few entries per month for the typical contractor seems a bit of a rip off too. If they took the logical step of doing annual accounts and CT I'd certainly sign up.

"Free" as in freelance. Not "Free" as in no charges. For my minimal outlay each month, being able to email an accountant and get a reply in an hour or two is worth what I pay. And as they do the self assessment and company annual accounts, it's a bit of a bargain, IMO.

[LondonManc]

But.. But who can I ask??

Suity