Accountant now levying VAT

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Legacy_user
Legacy_user Posts: 0 Newbie
in Cutting tax
My accountant has become VAT registered because his turnover has passed the magic threshold requiring him to do so. He charged me £280.00 including VAT to check my accountants and make up my tax return, but not "audit" the books as such. Is this expensive? Should I be looking round for a new one?

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  • D_P_Dance
    D_P_Dance Posts: 11,503 Forumite
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    How long is a piece of string?

    I was quoted over £1500 each (incl vat) for my and my wife's self-assessmant for three rental properties in the UK and one abroad, investment interest, etc.

    If accountants charge, say, £150 per hour that is approximately 20 hours work.

    I do the return myself, but it takes me considerably longer that 20 hours.
    You never know how far you can go until you go too far.
  • Plumpud_3
    Plumpud_3 Posts: 132 Forumite
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    £280.00 seems very reasonable. Remember though that it is not the cost that is the most important thing, it is the quality of the service.

    I don't mean does he have a nice office and offer you a cup of tea ;)

    Does he genuinely provide a service that you couldn't do for yourself? I am a Director of a Limited Company and it has an accountant, although I do all of the payroll and will complete the Self assessment Tax Returns.

    As a recently ex-employee of the Inland Revenue, I have seen literally thousands of tax returns and accounts. Of which at least 20% needn't have bothered paying an accountant. Their affairs were either so simple that it just didn't warrant it, or by the time they had got all of the receipts and expense details together, they had done 95% of the work for the accountant.

    Remember that advice and guidance from the local Tax Office is free.
  • bj-sailaway
    bj-sailaway Posts: 972 Forumite
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    Really interested in your post, my husband needs to do his self assessment form, he is a self-employed plasterer, I have spreadsheets with all his materials costs, petrol costs, mobile phone and income. That is about it. Could I do the form myself, rather than pay £350 to our decidedly dodgy accountant (not chartered and now only deals with a PO Box and mobile telephone number!!!). I hate him! My husband has used him for years. I am sure he is a rip off and have no more confidence in his ability than my own. Any advice on how to fill the form in or book/website to assist would be great.
  • Aark
    Aark Posts: 247 Forumite
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    http://www.inlandrevenue.gov.uk/sa/
    for all the Inland Revenue's guidance notes and help sheets.
  • itslougher
    itslougher Posts: 20 Forumite
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    Mine cost me £20 a month, what i didn't realise is that everytime i popped in with receipts etc and asked a quick question taking no more than a 2 minute reply, i was charged.
    Bill ended up a lot more than £240. Beware!
  • SmileyKL
    SmileyKL Posts: 4 Newbie
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    The accountant may have registered voluntarily in order to be able to reclaim the input vat paid on the purchases for his business, at any rate £280 does seem reasonable.

    Accountants will not 'audit' your books if preparing accounts and tax return - this is a seperate engagement and only a statutory requirement for Limited companies with turnovers greater than £5.6m.

    You could ask him to carry out a sanity check on your books, but it will only cost you more money!
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