Cost for Small Business Accounting

pdarc

Hi

I am considering starting a limited company and I have an accountant who has quoted me for services. I was wondering if someone could let me know if this sounds like a reasonable cost?

£974 per annum
(He is not VAT registered)

He said this should include everything as far as accountancy is concerned.

Includes preparing:
CT600, Review and claim back on allowable expenses, PAYE Payroll, P60, P35, apply for P11D exemption, Dividend documentation with declaration, deal with company secretarial matters, including preparing my annual return and meet all of my other statutory obligations with
Companies House. Also will register and incorporate the new company with Companies House and HMRC. Also Flat Rate VAT Scheme if applicable.

Other than that, he has completed my tax return for a couple of years, nice to deal with, responsive and can sit and talk with him face to face on tax matters so I am hoping the price is right :-) but would like to hear any opinions please.

Thanks

cotswoldaccountant

This sounds like a reasonable quote. You don't mention whether he will prepare your statutory accounts? I assume so, but it might be worth checking. I would ask if he intends to file abbreviated accounts with Companies House and also whether he will provide full accounts for the members and HMRC.

pdarc

Good point, yes statutory accounts included.
He said he will submit abbreviated accounts and basically submit everything required to HMRC but no specific mention of full accounts to members. I will ask next time I speak with him.
I'm wondering if I should register for VAT from the onset or wait to see if I get close to the threshold?
Any advice?
My customers are not consumers, they are all business clients, most of which in the EU and registered for VAT.

lazer

pdarc wrote: »

Good point, yes statutory accounts included.
He said he will submit abbreviated accounts and basically submit everything required to HMRC but no specific mention of full accounts to members. I will ask next time I speak with him.
I'm wondering if I should register for VAT from the onset or wait to see if I get close to the threshold?
Any advice?
My customers are not consumers, they are all business clients, most of which in the EU and registered for VAT.

If your customers are all going to be VAT registerd, then it is best for you to be too - assuming you have suppliers

pdarc

lazer wrote: »

assuming you have suppliers

I will have supply costs but will be minimal.
Mobile phone, some travel, internet and a couple of laptops.

I provide consultancy and training services for 3 clients but hoping that'll soon grow. I am guessing on this flat rate scheme I get to make a little amount on the VAT?

LET1891

pdarc wrote: »

I will have supply costs but will be minimal.
Mobile phone, some travel, internet and a couple of laptops.

I provide consultancy and training services for 3 clients but hoping that'll soon grow. I am guessing on this flat rate scheme I get to make a little amount on the VAT?

I'm an accountant and it sounds like a fair fee. Mine may be slightly cheaper but I'm VAT registered probaby then putting the overall fee in the same region. Flat rate VAT is generally best for people in your line of work as you are correct in stating that a little extra money can be made from it.

One thing I would ask is...is the accountant qualified and does he have both a practicing certificate and professional indemnity insurance? It's not essential but does offer you some assurance/protection if the currently good relationship sours.

Pennywise

If you're happy with the accountant from past experience, I'd snap their hand off. That's a very reasonable quote for a full limited company service assuming he's qualified.

You could easily find yourself paying twice that for a qualified accountancy firm. The lowest you'd expect to find for that full service would be maybe £600 p.a. and for that probably not a fully qualified accountant doing the work, and you've no idea as to their service quality either.

As for VAT, yes sounds worthwhile on the flat rate scheme - should give you a nice little profit assuming your customers are VAT registered and can reclaim the VAT you charge them.

pdarc

LET1891 wrote: »

One thing I would ask is...is the accountant qualified and does he have both a practicing certificate and professional indemnity insurance? It's not essential but does offer you some assurance/protection if the currently good relationship sours.

Hello - yes he is a current qualified and registered with ACCA and has insurance cover. Thanks I had to check but all looks in order.

LET1891

pdarc wrote: »

Hello - yes he is a current qualified and registered with ACCA and has insurance cover. Thanks I had to check but all looks in order.

Being a member of that fine reputible accounting body myself I would say snap his hand off too! The key thing is feeling comfortable with the fee and the relationship. Judging by your OP concerning the relationship and others about the fee, you should be happy with both!

The advice regarding flat rate VAT and setting up your remuneration structure correctly should pay the fee in itself through tax and VAT savings!

cotswoldaccountant

I would definitely agree about the flat rate VAT scheme - will make you a bit of a profit and will minimise administration of VAT returns. I charge a similar level of fee to my small limited company clients, and would include all of the VAT returns in that fee, so you might also want to check that he is willing to prepare your quarterly VAT returns as part of his fee (in addition to setting up the flat rate scheme). If you do join the flat rate scheme, you will receive a 1% discount in the flat rate percentage for your first year of VAT registration.

pdarc

Thanks all... well I did it and I am up and running.
I did have a question about this flat rate VAT...

Under hmrc classification I am in Management Consulting which means a flat rate 14% -1% for the first year.

I have agreed with my clients that they will pay my travel.
My Clients are VAT registered (some are on flat rate and some are not, UK based and some are EU).

Examples of expenses include: Domestic and international flights, Hotels abroad, rail, food.

I don't know how to handle VAT on the invoice when I charge the expenses.
I want to try to do this as fairly as possible so that the client doesn't end up paying more than they would have if they just paid for it directly and I also don't want to be out of pocket.

Thanks again guys and gals.