Changing accountant

Smasher

Hi,

I want to use a different accountant to do my returns this year. I have a Ltd company, just me and my brother directors/employees.
The company I use are very expensive and another accountant has offered to do my accounts for around half what it cost me last year

The thing is, my existing accountant has already done my PAYE for the year. I don't really understand how tho because I haven't sent him any accounts yet.

Will I owe him money for this, or can I just say now that I have another accountant and walk away? We don't have any contract in place.

Thanks

Pennywise

PAYE is nothing to do with annual accounts. An RTI submission has to be sent to HMRC for every pay period. Most will be set up monthly, so behind the scenes, he'll have been submitting a RTI return each month. He may have also done other routine repeating work. Of course he deserves to be paid for whatever work done/time spent.

If he's a qualified accountant, his professional body will require that he has a "contract" with you, usually in the form of a letter of engagement. It's not optional, it's a regulatory requirement. Maybe you should check what you agreed when you first appointed him. A contract doesn't need to be a signed paper, it can be verbal or maybe just an agreement out of an email exchange. Such regulations also prescribe how they must provide your new accountant with the usual changeover information. Of course, if he's not qualified/regulated, then that's a risk you've chosen to take as to whether he's adhering with professional standards at all.

Smasher

Ah ok I understand.

Of course if he has been doing work, then of course I'm happy to pay him for that. Sorry if it came across like I was looking to make a run for it.
It's just that I can make a significant saving for this year's accounts using someone else.
I guess my concern is that I might get a bill for what he has done for the PAYE that might negate that saving or maybe even cost me more.

Last year my bill was £1500 for a ltd company of 2 partners and turnover of £45,000. From most others I have spoken to, that is around double what I should be paying..

Danceswithhorses

That bill does sound a little expensive, but don't move purely for 'cheapness', as you might find you are paying less, but getting an inferior service.
If you're happy with the service your accountant provides, maybe have a chat with him, before jumping ship ?

DigForVictory

+1 for talk to the existing incumbent. Which no matter how much or little you're paying them, you should be doing fairly regularly anyway - talking, not just dumping papers with.

Sure it's your business, but your accountant has their own social network which can help route clients to you, advise you on suppliers, warn you away from really bad ideas & so on.

If you aren't leaning on your accountant, don't need or want that closer relationship, your call & maybe a cheaper numbercruncher will do, but while I don't know how you started with the current one: you surely picked one you got on with?

So talk. To your brothers first, perhaps, as you wouldn't want to be blindsided on a change of accountant yourself? Then to your seems a bit expensive accountant.

Just consider how expensive The Wrong Accountant could be, though?