Reply to: Does your accountant charge you for general advice?

[David Parker ACMA]

I am with purplecontractor.com, they provide an online service additionally to being available up to 11pm and at weekends. They don't charge for additional advice, as it is all included in the monthly 'fixed' fee of £95. Details on how much you can draw down etc is all part and parcel of an accountants providing a true service to contractors.
Give them a try.

[Hiram King Of Tyre]

OK thanks. I'm beginning to realise that these guys that I'm using aren't cheap. I'm not sure they're interested in saving me money either.....

[Old Greg]

Who are they?

SJD, Nixon Williams, Upton Accounting. They post regularly in the Accounting/Legal section, and I seem to realise Simon (SJD) offering recently to do someone's end of year accounts for about half of the figure you quote but I may have the details wrong there or the circumstances may be different.

[Hiram King Of Tyre]

Who are they?

[Bluebird]

I asked them for an estimate to produce my first year accounts (although the co has only been trading 6 months). £800-£1000 + VAT. Is that expensive?

SJD charge £100 pcm inc vat, so that works out about the same, plus you get advice all year - Nixon Williams are even cheaper, so I would guess that £800-£1000 IS too much.

[Old Greg]

I asked them for an estimate to produce my first year accounts (although the co has only been trading 6 months). £800-£1000 + VAT. Is that expensive?

Yes - pm Simon, Alan or Darren to see if you can get a better deal.

[Hiram King Of Tyre]

I asked them for an estimate to produce my first year accounts (although the co has only been trading 6 months). £800-£1000 + VAT. Is that expensive?

[fridge]

Get rid of them as they are just riping you off. Find out if they are a member of the institute of chartered accountants or institute of management accountants etc. Tell them that you are going to complain to there professional body about there treatment of you + ask them for a breakdown of their bill. Just HOW did they arrive at the figure they quoted you. I mean BREAKDOWN on the bill (bit by bit etc.....)

[r0bly0ns]

It's one thing being charged by the hour for advice, it's another being charged by the hour for bad or incomplete advice.

If you hired a plumber to change a pipe, and he installed the wrong one causing a leak would you pay him?


Personally I would write a letter detailing every instance you feel agreved with, and why you feel agreved.
Send the letter to the accountant's who charged you (all of them, so that every person you have dealt with knows that all their collegues are giving shoddy service) and send a copy to your mate as well.
Make sure you put a CC list at the top of the letter so everyone knows who has got it.

[Hiram King Of Tyre]

I wouldn't name & shame for 2 reasons:

Firstly they are only acting witin their T&Cs (albeit it would seem seeking every opportunity to charge). I do object though that they let it run up for 2 years without billing me...

Secondly the CEO is a personal friend of mine

I will subtract one thing though as I was shown a hair brain method (scam??) of avoiding (evading?) tax. I called my friend and offered to run it past him so he was aware of it. He invited me up to the office and invited one of his accountants in. She charged me for that......

My company end of year is September so I'll probably let them finalise my accounts etc for this year and then make the severence...

[The Lone Gunman]

Take it on the chin. Pay his bill and sack him. Explain why you are removing your business.

Name and Shame here.

[Hiram King Of Tyre]

Well I got a reply basically just reminding me that they work on an hourly rate for all work. I guess the only answer is to pay up and re-evaluate my choice of accountant. I'm not expecting anything for nothing but I do object to paying £90+vat for incomplete and conflicting advice.

[zathras]

I've been with my accountant for 2 years now and have just received a bill for over £300 for general advice, phone calls, emails etc. It seems that whenever I ask them a question, they charge me anything up to £90ph worked out on a pro-rata basis. Is this normal or should I look to chanhe accountant?

Depends on the contract with your accountant. My original accountant was the same as yours. Fired him when he charged me when confirming something I told him (he said we could not claim travel expenses when at a client for less than 2 years - I told him not, he charged me to write a letter to the taxman).

On the other hand my current accountant charges a monthly fee.

Trouble is often I know about things before him

Current accountant is also under strict instructions not to discuss IR35 with the Infernal Robbin you. I have insurances to deal with that kind of thing.

[Hiram King Of Tyre]

Thanks guys.

Changing accountant is an option of course. My accounts are due end Sep so I wouldn't change before then.

What I didn't say before is that the reason that I chose this company is because a friend of mine is the CEO. That's no reason to stick with them though if they're not right for me. After all, my bookkeeping is pretty straight forward and I don't really need a £90ph accountant to advise how and when to pay a dividend do I (especially if the advise changes depending on who you speak to).

I must admit though that I did feel safer under an accountant who doesn't specialise in IT contractors believing it would keep me further away from any IR35 radars.

[eddiegee]

iam quite shocked they billed you for general advice!!!. with the accountant i am at, iam paying £55 per month and i ring up all the time for advice with no extra charge etc, i guess that comes with the service i am paying for!! maybe you should look around for a different accountant!