What fees do we charge for our accounting services?
We charge a range of fixed fees to contractors which are based on average time spent. The exact amount charged will depend on the services a client requires, but a contractor who maintains reasonable records, has a turnover under £100,000 and who draws a salary once a month from his company will pay £775 plus VAT for his annual accounts and £15 per month for payroll services. Extra charges will be made for other services that may be required such as completing VAT returns.
What work do I have to do and how long will it take me?
We want you to deal with all aspects relating to you billing for your services and we want you to regularly record your financial transactions. We also expect you to retain prime accounting records such as bank statements and receipts. We can then help you with PAYE and VAT as necessary during the year. Most of our clients handle their own VAT but ask us to deal with PAYE. Your work on administration is likely to take about 1 hour per month.
Will I have to file a tax return and if so is this something that you can help me with?
At present, HMRC require directors to file self assessment returns. Because you become a director when your company is formed, you will need to file tax returns. Many people starting a company already file tax returns and for most the process is not complicated. Nevertheless about 70% of our clients ask us to assist them in this respect and we are please to do so. The fee for a straightforward return is typically around £200 plus VAT.
How do I form a company?
By far the cheapest way of doing this is to do it yourself at companieshouse.gov.uk. The fee is just £15. Alternatively we can do this for you. We charge £150 plus VAT, but if you use us we provide advice on the share structure and provide statutory records complete at day 1. We also then assist with your first VAT return at no extra charge.
Should I involve my spouse or partner within the company?
This is ultimately for you to decide, but we will discuss this with you from a tax planning point of view and explain where appropriate the tax advantages of that person being a director, employee and/or shareholder.
What if HMRC opens an enquiry into my accounts or tax returns?
This does happen from time to time and we know how stressful it can be. We pride ourselves on having a good track record of resolving enquiries quickly and professionally. Furthermore, if you are a client and have paid us for the return or accounts in question, and the enquiry doesn’t find that you have made a deliberate error, the first £2,000 of our costs will be provided free of charge. This means, in practice, that you are highly unlikely to pay us a penny.
What if I decide that your services aren’t right for me and I want to switch to another accountant?
Obviously we hope this doesn’t happen but if that is what you do decide, we won’t stand in your way and won’t try to bill you for any work not yet done. We will cooperate with your new accountant by providing all the handover information he requests in a timely manner.