Reply to: Accountant fees for closing Limited Co

[ShuttingDown]

So I'm a Limited Co providing services to financial insititutions. I have recently given my accountants notice that I would like to close my company. My company ceased trading end of July 2019 when I went permanent employed. My previous tax year ran from April 1, 2018-March 31, 2019, so I still have Corporation tax and Self Assessment due for April-July 2019. The company has no assets.

So to produce the final accounts, file my self assesment, submit a DS01 form (strike off a company from the register), and issue a P45, I'm being charged a grand total of GBP 385+VAT as part of their (appropriately named) "wind-up" procedure.

I pay £84 monthly fee and additional £60 year for Self-Assesment.

Apart from the £10 to Companies House, has anyone else had to pay accountancy fees to close their Limited Co ?

Who is your accountant if I may know? Can I get the details in private please? I think this is a fair price....
I was paying double a monthly fee that was double than that and was also unhappy with their services, since I had to do the job myself at the end... and to strike off the company they asked me for £1000+VAT...
Any help would be appreciated. Thanks.

[MrButton]

Afaik they will put together the final accounts and deregister VAT/PAYE But don’t think they will liaise with the liquidator on your behalf.

I started this process with Intouch 3 weeks ago and gave them everything they need. So far they have deregistered as an employee. They are estimating another 4 weeks to get the accounts done and VAT deregistered.

IMO vastly overpriced. But not worth my effort to find someone else to do it.

Aaaannnnnddddd 11 weeks after instructing them they’re still saying “soon”.

[MrButton]

Accountant fees for closing Limited Co

Would this include MVL assistance where your accountant might be required to liaise with liquidator? Otherwise, it does seem high if the fee is to just cover closedown of the payroll scheme, VAT de-registration and the DS01 striking off application. We charge £150 plus VAT and will include also our tax efficient advice on the strike off but the fee might be higher if it is a more complex case.

Afaik they will put together the final accounts and deregister VAT/PAYE But don’t think they will liaise with the liquidator on your behalf.

I started this process with Intouch 3 weeks ago and gave them everything they need. So far they have deregistered as an employee. They are estimating another 4 weeks to get the accounts done and VAT deregistered.

IMO vastly overpriced. But not worth my effort to find someone else to do it.

[Chart Accountancy]

I had a quote from InTouch to shutdown my company recently - 695 + VAT!

Seemed pricey.

Would this include MVL assistance where your accountant might be required to liaise with liquidator? Otherwise, it does seem high if the fee is to just cover closedown of the payroll scheme, VAT de-registration and the DS01 striking off application. We charge £150 plus VAT and will include also our tax efficient advice on the strike off but the fee might be higher if it is a more complex case.

[rectifier]

I had a quote from InTouch to shutdown my company recently - 695 + VAT!

Seemed pricey.

[mogga71]

£395 + VAT seems expensive, and surely they shouldn't continue to charge monthly until the accounts are completed.

I was in the process of closing before I was told I could continue outside of IR35, my closure fee was £250 + VAT but no further monthly charges.

Thought about cancelling the closure too but the risk is just too big of a HMRC investigation in my case. The flip from outside to inside to outside again is a risk IMHO .... especially in a post COVID world whereby the Tax People will be after everything they can get....and with the news that iR35 legislation is not going to get cancelled.

[JHamp82]

I am in the same boat as you. May I ask how long they say it will take to prepare the final accounts?

LBH the accountants want to draw the process out for as long as possible. I started things rolling about 6 weeks ago. They got back to me last week saying that I must pay the last VAT payment and it will be automatically sent via direct debit at end of June. I say 'hang on a minute can't I just pay it now and save 6 weeks in time?' They say yes you can. ehhh so why didn't they recommend this to begin with? ... you know why.

They have already taken £395 + vat to close the company ... will take a further £134 a month till accounts created ... which I am told today will likely be 12 weeks .... 12 weeks.

It's a rip off.

The thing is I have been incredibly impressed by these accountants up to the closure of the company. I won't be recommending them to anybody else....thats for sure.

£395 + VAT seems expensive, and surely they shouldn't continue to charge monthly until the accounts are completed.

I was in the process of closing before I was told I could continue outside of IR35, my closure fee was £250 + VAT but no further monthly charges.

[mogga71]

So I'm a Limited Co providing services to financial insititutions. I have recently given my accountants notice that I would like to close my company. My company ceased trading end of July 2019 when I went permanent employed. My previous tax year ran from April 1, 2018-March 31, 2019, so I still have Corporation tax and Self Assessment due for April-July 2019. The company has no assets.

So to produce the final accounts, file my self assesment, submit a DS01 form (strike off a company from the register), and issue a P45, I'm being charged a grand total of GBP 385+VAT as part of their (appropriately named) "wind-up" procedure.

I pay £84 monthly fee and additional £60 year for Self-Assesment.

Apart from the £10 to Companies House, has anyone else had to pay accountancy fees to close their Limited Co ?

I am in the same boat as you. May I ask how long they say it will take to prepare the final accounts?

LBH the accountants want to draw the process out for as long as possible. I started things rolling about 6 weeks ago. They got back to me last week saying that I must pay the last VAT payment and it will be automatically sent via direct debit at end of June. I say 'hang on a minute can't I just pay it now and save 6 weeks in time?' They say yes you can. ehhh so why didn't they recommend this to begin with? ... you know why.

They have already taken £395 + vat to close the company ... will take a further £134 a month till accounts created ... which I am told today will likely be 12 weeks .... 12 weeks.

It's a rip off.

The thing is I have been incredibly impressed by these accountants up to the closure of the company. I won't be recommending them to anybody else....thats for sure.

[ladymuck]

Only thing I'd say to that is you still have a company, so still have obligations even if there's currently no income going into it. Creating a company is a bit like getting a dog. You've taken on a responsibility, which doesn't disappear as soon as you no longer want it. It needs to be disposed of properly

And that doesn't mean chucking it in a canal with a bag of bricks

[Maslins]

Wouldn't have batted an eyelid if I was still contracting but I have to save the pennies now that I'm a permie

Only thing I'd say to that is you still have a company, so still have obligations even if there's currently no income going into it. Creating a company is a bit like getting a dog. You've taken on a responsibility, which doesn't disappear as soon as you no longer want it. It needs to be disposed of properly

[ih8ir35]

Typically there's also:
- de-registration for VAT,
- submission of final VAT return,
- de-registration as an employer (typically a separate step to marking you personally as leaving hence issuing P45),
- possibly doing accounts/CT return for a short period rather than a full year (ie so they won't have had 12 monthly payments towards it),
- advice around closing, eg assessing final net assets, considering tax planning options such as pension/MVL.

Personally I do feel "closure fees" are a bit unfair. Firms will tend to offer all kinds of stuff for free at the outset to lure you in, despite it taking time for (hence costing) the accountant. However, when you're towards the end, no accountant would be prepared to take you on from scratch at this stage, and do all the closing bits for £315. Hence the existing firm has an advantage, and can "get away with" charging an extra fee. You'll grumble, but virtually always your most sensible option will be to suck it up and pay it. They know that...plus they do have some legitimacy in it given the multiple extra tasks required.

Most sensible advice I've recieved, thanks. I guess the only saving grace is that its a business cost. Wouldn't have batted an eyelid if I was still contracting but I have to save the pennies now that I'm a permie

[Maslins]

So £315 to submit a DS01 and issue a P45. Seems legit

Typically there's also:
- de-registration for VAT,
- submission of final VAT return,
- de-registration as an employer (typically a separate step to marking you personally as leaving hence issuing P45),
- possibly doing accounts/CT return for a short period rather than a full year (ie so they won't have had 12 monthly payments towards it),
- advice around closing, eg assessing final net assets, considering tax planning options such as pension/MVL.

Personally I do feel "closure fees" are a bit unfair. Firms will tend to offer all kinds of stuff for free at the outset to lure you in, despite it taking time for (hence costing) the accountant. However, when you're towards the end, no accountant would be prepared to take you on from scratch at this stage, and do all the closing bits for £315. Hence the existing firm has an advantage, and can "get away with" charging an extra fee. You'll grumble, but virtually always your most sensible option will be to suck it up and pay it. They know that...plus they do have some legitimacy in it given the multiple extra tasks required.

[ih8ir35]

Did you expect them to do this for free?

REALLY?

Did not say I expected it for free. As I said, the self assessment cost me £60 before, so thats expected. So is the £10 fee to Companies House. The accounts have never incurred an additional cost when filed in previous years, last one as recently as January 2020. So £315 to submit a DS01 and issue a P45. Seems legit

[wattaj]

I'm thinking more of a cross between Keith Floyd (but with vodka rather than wine) and DIY SOS

With added Borat "Sexy Time".

[ladymuck]

I would just like to point out that I would have paid cash to see this. It would be an epic Netflix series. "Tarby Builds"; just like James May's "Re-assembler", but with added sweaty bloke and the high risk of heart attack.

I'm thinking more of a cross between Keith Floyd (but with vodka rather than wine) and DIY SOS