Being ripped off by my accountant...

Phamous

Hello All,

Apologies if this is the wrong place for this...

I need your help and advice if you can spare a moment.

I have been with a good (but expensive) accountant for a few years now and so in the spirit of money-saving, decided to find a more competitively-priced service.

I went to see someone who was highly recommended and said one of the reasons I was moving accountants is that my last one was so expensive. The accountant said he would do my first year's accounts for £100. (Yay!)

So - I sent off my numbers to him in early January (I know, I was a bit close to the wire - I'm not normally late like that but hadn't been well. I was assured that my accounts were simple and that there would be no problem...)

So - the accounts done and dusted and ready to be filed, I receive the forms to be signed. Along with a bill for £550!!!

I disputed this (citing the £100 offer) and was told that he didn't say £100 - he said £200 but as my accounts were so close to the wire (27 days until deadline) it meant the bill would be higher. I was sent a revised bill of £400.

This feels so unfair! They have never said "£200, unless you file your accounts with us in January, then it will double!"

I'd really appreciate your feedback and advice.

Thanks in advance
Phamous

Tixy

Do you have an engagement letter with the accountant?

Does it include anything regarding the fees / hourly rates for staff members etc?

Did he quote £100 (or £200) verbally or in writing/email? Did he specifically state that this would include preparation of your accounts and also your tax return? or was that just the accounts cost?

Does the bill for £550 (or revised at £400) breakdown for different elements (e.g. X amount for accounts, X amount for completion and submission of tax return, X amount for a meeting)?

It is bad practice for them to rack up greater costs than quoted to you without discussing it with you first.
E.g. if when you handed the books in he said, in order to be able to complete your accounts and tax return in a short space of time our staff will have to work overtime and so the cost will be greater than previously suggested - that would be better practice.

Your engagement letter should state who to complain to if you are not happy with the service - it could be another partner in the firm (if its a partnership) or it could be his accounting institute/association (assuming he is a qualified accountant).

Phamous

Thank you so much for your advice...

1. I do have an engagement letter. it doesn't mention the fees.

2. He quoted the £100 verbally. When questioned on this, he emailed me his handwritten notes from that day which has written on it £200 in his handwriting. I am 99% sure he said £100 - but if I have remembered this wrong would give the benefit of the doubt and agree to £200.

3. The bill breaks down like this:

Accounts: £300
Tax returns: £150
Total fee: £450
Disbursements (postage, etc) £18.45
VAT: £93.69

TOTAL £562.14

No mention anywhere of anything being £100 or even £200.

I've just seen on the terms and conditions that I should take it up with the accountant himself or his partner if not happy (which I am definitely not!)

It seems like he is just making up prices on the spot and moving the goal posts!