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Previously on "MVL - Accountant fees"

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  • Maslins
    replied
    If there's nothing fancy in there that we don't know about, and this is a normal contractor company, where you've been paying a normal contractor accountant monthly, and their quote doesn't include the cost of the MVL itself, then that does sound outrageously high.

    Typically I'd have thought most such accountants would do the handful of extra bits for free. However, a fee of (say) £500+VAT wouldn't seem unreasonable for the small amount of extra work, especially to include 1-2 personal tax returns further down the line to declare the distributions.

    If they quoted you £1k, I'd say that was harsh/OTT...but in reality probably not worth the effort to move over at this very late stage. Remember that any new accountant will have a whole load of admin to deal with on top of the actual bits of useful work you require, so they won't be prepared to do it for a few hundred quid, and also won't be able to turn it around in a week, as will need to get various authorisations etc in place.

    I note they say their fee will include "Process Capital Distribution". Worth checking with them, as if they're actually including the cost of a liquidation in this £2.5k (ie not just the accountancy bits around it), then that fee doesn't sound too bad.

    I agree with what AR tax says in terms of what fees might be reasonable if things are typically contractor type stuff we'd expect.

    Do bear in mind we're in last week of January...so if you're looking for immediate quotes and work to be turned around ASAP, kinda the worst week of the year to hope for that!

    Leave a comment:


  • amrhady
    replied
    Thanks all for your replies.

    Fees do seem a bit excessive based on your replies and looking around, I will ask them for clarification and further breakdown.

    I assume they realise that they are losing a big part of the their business which relies on IT contractors with the upcoming changes, hence the high fees.

    But basically I think my options are:

    - Ask them to justify the fees and hence revise them. Not hopeful, unlikely they would.

    - Find another accountant to do it. No clue how much of a hassle that'd be to switch to/appoint another accountant, or how long it'd take.

    - Suck it up. Because I am concerned about immediate ER changes in the coming budget, so I am trying to MVL hoping that initial distribution can occur prior to that date. So basically, time is not on my side.

    Leave a comment:


  • ChimpMaster
    replied
    You're being ripped off.

    I pay my accountant £80/month and he is plenty good for IT and property stuff. And there is no additional fee for when I liquidate, though I think it's fair to pay a little more (even up to £500 say), due to the work not being in the normal course of business.

    Leave a comment:


  • AR Tax
    replied
    Originally posted by amrhady View Post
    Hi all, searched the forums a bit but some answers regarding this were either a bit old, or not quite similar. Apologies though if I missed one.

    My accountant is quoting 2.5k for cease of trade, final accounts. I am already their client for few years, paying £100 a month . They are offering:

    Cease Trading accounts - Companies House
    Cease Trading accounts - HMRC
    Corporation tax return to HMRC
    PAYE deregistration
    VAT deregistration
    Self-Assessment to all shareholders (2)
    Process Capital Distribution
    Liaise with the liquidator

    It seems a bit much to me just on the bases that I am already a client of theirs, and that's equivalent to two year fees.

    But if that's what being charged mostly everywhere, then I guess I won't have many options.
    I used to work for a contractor firm of accountants who did all the above (excluding personal tax returns) for £200+VAT. This figure is what was specified in the letter of engagement. The tax returns would cost £90+VAT, i.e. £180+VAT for two people. Therefore £380+VAT in total. In my opinion the £380+VAT charge was a bit steep because our clients had been paying us £95+VAT per month throughout their time with us.

    I would be pretty sure if you changed accountants you could probably get all of the above for around £1,000+VAT:
    Cessation accounts to Companies House? This is not even required! You can call Companies House to confirm this!
    Cessation accounts to HMRC + Corporation Tax: £500+VAT
    PAYE Deregistration: £100+VAT
    VAT Deregistration: £100+VAT
    Self Assessment: £150+VAT x 2 = £300+VAT
    Process capital distribution? The liquidator does this!
    Liaise with liquidator? You mean email them the accounts and confirmation of the de-registrations above!

    The above assumes your accounts and tax affairs are nothing out of the ordinary.

    I believe there is a firm called Aardvark accounting that advertises on the front page of this website that would probably charge you around (maybe less than) £1,000+VAT for all the above (even though you have never paid them a monthly retainer).

    Just out of interest, who are the accountants and did they specify this charge in their letter of engagement to you from 5 years ago when you joined them?

    Alternatively, have they provided you with a letter of engagement for the £2.5k charge and how it is calculated (e.g. how much does each item cost)?

    Assuming they are a qualified firm, they can't just charge you without a letter of engagement (i.e. a contract) in place for the work.

    Leave a comment:


  • amrhady
    replied
    Originally posted by Lockhouse View Post
    I have heard (IANAA etc) that it's easier if you transfer all the shares back to one person (if they're split to a spouse) before MVLing.
    Not sure what you mean by easier. Easier for whom? Wouldn't that mean that we'd lose on one capital gains allowance?

    Leave a comment:


  • Lockhouse
    replied
    I have heard (IANAA etc) that it's easier if you transfer all the shares back to one person (if they're split to a spouse) before MVLing.

    Leave a comment:


  • amrhady
    replied
    Originally posted by cojak View Post
    And don’t forget sorting out ER on your SA.

    My accountant quoted over £800 for my final SA with them.
    Thanks...I suppose in my case they would be sorting this for 2 people. Were you also paying your accountant a monthly/yearly fee prior to that ?

    @northernladuk thank u, planning to do that on Monday, but also wanted to get an idea while I am doing some research over the weekend.

    Also to be clear, I am talking specifically about accountant fees, and not liquidation as per the link you shared.

    Leave a comment:


  • cojak
    replied
    And don’t forget sorting out ER on your SA.

    My accountant quoted over £800 for my final SA with them.

    Leave a comment:


  • northernladuk
    replied
    Why not ring around a few MVL providers and compare the prices?

    Even better, why not look at their websites....

    Total cost of members voluntary liquidation | MVL Online(R)

    Leave a comment:


  • amrhady
    started a topic MVL - Accountant fees

    MVL - Accountant fees

    Hi all, searched the forums a bit but some answers regarding this were either a bit old, or not quite similar. Apologies though if I missed one.

    My accountant is quoting 2.5k for cease of trade, final accounts. I am already their client for few years, paying £100 a month . They are offering:

    Cease Trading accounts - Companies House
    Cease Trading accounts - HMRC
    Corporation tax return to HMRC
    PAYE deregistration
    VAT deregistration
    Self-Assessment to all shareholders (2)
    Process Capital Distribution
    Liaise with the liquidator

    It seems a bit much to me just on the bases that I am already a client of theirs, and that's equivalent to two year fees.

    But if that's what being charged mostly everywhere, then I guess I won't have many options.

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