I'm being fleeced by my High St Accountants

[Alan @ BroomeAffinity]

For the total year inc accounts that would be ok but for those seems steep. Company formation? you can get that for 35 quid.

Typically, an accountant will charge up to £200 for the set-up. This would include incorporation, VAT reg, PAYE reg, bank account etc. Yuo can normally knock us down if you do some of it yourself.

£80 seems to be about the average monthly fee - although it can be as low as £50 and as high as the sky.

The bigger issue is that high street accountants will generally (but now always) leave you alone throughout the year and get you at the y/e.

[xoggoth]

For the total year inc accounts that would be ok but for those seems steep. Company formation? you can get that for 35 quid.

[Scuddy]

The accountant should have give you a quote for the work they were doing in the same way a solicitor would give you a quote for the costs associated with selling a house.

If you didn't agree for them to carry out work don't pay them, they might write you a very agressive and threatening letter but tell them to get stuffed, unless they can provide evidence that they informed you of all the costs and options associated with it, they haven't got a leg to stand on.

[thelace]

Yup, You've been stitched up there...

But!

Didn't you ask first what you were gettiong for your money?

[Alan @ BroomeAffinity]

You won't get any help from the Institute. My undertsanding is that they don;t get involved in fee disputes.

You have been royally shafted right enough so yuo hsould ask them for a full breakdown of the fee. If they charge on an hourly basis, you'll then be able to see the hourly rate and the times taken for each process and yuo should be able to pick it apart.

[adestor]

Ditch 'em

Glaringly on the take, that lot.
Pay the £295 and tell them to feck off if they want the rest - you didn't authorise it.
Startup is generally the least costly thing - it's usually year end when most of the work is done (and charged for).

[BrilloPad]

I use a small accountant who is VERY expensive (but in my view worth it). But for the entire list above he charged £200.

You have been fleeced.

[thunderlizard]

That's certainly a steep bill for something that doesn't include year-end accounts. But you've just been charged somewhat over the odds for legitimate services (except the £100 registered office fee - no idea what that is) - you haven't been scammed as such. By all means see what the Institute... reckons, but I doubt the senior partner in the firm will take your side.

But company formation definitely does not include helping you hook up with new customers, which is what talking to agencies would be. So that is an unreasonable expectation.

[chris79]

Ditch them.

If they are taking your eyes out now, do you really want to let things get more complicated with them further down the line when you decide to bail out?

[SueEllen]

Did you ask them to and give them permission to:
1. Set up your business bank account?
2. Liaise with your agency?

Setting up a business bank account took me an hour mainly due to waiting around. Giving agencies documentation is just a case of photocopying the relevant paperwork and sending/delivering it to them.

You already told them (hopefully you put it in writing) that you don't want to use them as the registered office so you don't pay the £100 charge whatever happens.

Enquire (in writing) about all the other charges including the registered office and sent them the cheque for £295. As they should be a member of a professional body if they kick up a fuss about the other things then contact the professional body to make a complain.

[jmo21]

that's insane!!

what's the liaising with agency part all about?!

imagine what you would say to the guy at the garage if they tried to charge you for a bunch of repairs on your car that you did not authorise?!

[DonaldG]

I work for a medium sized Accountants and we would charge about £300 for all of this so it is very steep.Was it a big 4 accountant - ie Ernst & Young, Deloittes, KPMG, PWC? As it hard to see a smaller accountant charging this.

They should have issued you an "engagement letter" which should have set out how they were going to charge you. I would at least ask for a breakdown of the staff and their hourly charge out rates - that did the work for you - which you would be entitled to see.

[zara_backdog]

Didn't they tell you the costs prior to you agreeing to the doing the work?

Why anyone would pay this amount for setting up their Ltd company and bank account is beyond me. Why didn't you do this yourself?

[Hex]

If you didn't authorise them to do the other stuff they're charging for for a seperate cost and they didn't make it clear to you that this was not covered by the £295 fee then I would write them a letter including the cheque for £295 and stating that this was full payment for the work you authorised. If they did other work without OKing the fee with you first I reckon you're within your rights to tell them you are not willing to pay.

They may try to pursue it further or they may just take the £295.

[Zara]

I started a new contract recently and had to set up a new ltd company. An accountant friend recommended a high st accountants, who assured me they'd dealt with IT contractors before. They've just presented me with a bill for £983.

The fee breakdown is as follows:

Company set up costs £295
VAT application £125
Bank account set up and related admin £126
Company forms and related admin £34.80
Liaising with agency and admin £156
Registered office fee £100

I thought that I was only paying for company formation of £295 which I thought was a bit steep, but I assumed all the other things listed above were part of this setup fee.

They notified me that it would be £200 to use their offices as my company head office so alarm bells rang and I said that I would use my home address instead and hadn't agreed to the £200 fee. I switched to another accountants who charge a monthly fee. However, I'm now faced with this large bill which I can't really afford.

Is it unreasonable to think that company formation would include providing the information to the agency, such as comp reg number, bank account setup and some admin?

I'm now faced with having to write and complain to the senior partner and if I don't get satisfaction then go through the Institute of Chartered Accountants Complaints Procedure.

Any advice would be gratefully received.