Unethical accounting?

[Waldorf]

Sounds like a MSC, you do not say which one, but they have taken advantage in the past of people especially from overseas who are not fully aware of the set up.

You should have full and sole control of your bank account, and you should pay the taxes etc. A colleague I know worked through one msc that is still operating who took the taxes from his account and kept the money in their account!!

Set up with your own company with you in full control.

[ofutur]

Thank you for your answers.
It was a managed Ltd. I was the sole Director, but they were taking care of all the admin tasks and managing the bank account (that's why I found out about this late).
Nothing in the terms and conditions talked about keeping HMRC incentives, that's why I'm so surprised.

[Robot]

Hello,

I'd like some feedback on something that I recently discovered about my accounting company. I find their behavior unethical, but maybe what they did is common practice and I shouldn't complain.

I started a business in the UK a year ago. As I was new at this I opted for a Ltd company, managed by this accounting company. 6 Months later I closed it down to go unmanaged. When going through the bank statements, I noticed an extra transfer to my accounting company for a substantial amount.
When I inquired about it, the initial answers where a bit fuzzy (at least to me) and then it was explained to me that they would keep any HMRC incentive to cover other fees they do not charge for.

To me, this is unacceptable because my accounting company should work FOR me, to save me from paying too much tax and not "steal" any extra savings my company can make by being smart about the way you manage the company...

So, what do you think?

O

Did they keep the bank interest the company received as well? Remember the corporation tax wasn’t due for some time after the company ceased to trade.

Well worth taking this up with our previous provider, as I know of other contractors who complained enough to get their £250 back, in some cases it was £500.00!

As previously stated, “Check the terms and conditions that you agreed to”.

[Gonzo]

Hello,

I'd like some feedback on something that I recently discovered about my accounting company. I find their behavior unethical, but maybe what they did is common practice and I shouldn't complain.

I started a business in the UK a year ago. As I was new at this I opted for a Ltd company, managed by this accounting company. 6 Months later I closed it down to go unmanaged. When going through the bank statements, I noticed an extra transfer to my accounting company for a substantial amount.
When I inquired about it, the initial answers where a bit fuzzy (at least to me) and then it was explained to me that they would keep any HMRC incentive to cover other fees they do not charge for.

To me, this is unacceptable because my accounting company should work FOR me, to save me from paying too much tax and not "steal" any extra savings my company can make by being smart about the way you manage the company...

So, what do you think?

O

Eh?

Mmmm, from your very vague explanation I would bet that you were with an MSC and the MSC put yourco on the flat rate VAT scheme and pocketed the difference between the flat rate and the full rate.

From what I understand, I think a lot of the MSC providers did this. Ethical? Check the terms and conditions that you agreed to.

At least you are not with an MSC any more (I hope).

[ofutur]

Hello,

I'd like some feedback on something that I recently discovered about my accounting company. I find their behavior unethical, but maybe what they did is common practice and I shouldn't complain.

I started a business in the UK a year ago. As I was new at this I opted for a Ltd company, managed by this accounting company. 6 Months later I closed it down to go unmanaged. When going through the bank statements, I noticed an extra transfer to my accounting company for a substantial amount.
When I inquired about it, the initial answers where a bit fuzzy (at least to me) and then it was explained to me that they would keep any HMRC incentive to cover other fees they do not charge for.

To me, this is unacceptable because my accounting company should work FOR me, to save me from paying too much tax and not "steal" any extra savings my company can make by being smart about the way you manage the company...

So, what do you think?

O