Simple Limited Company Accounts

smallzoo

I have had a limited company for 20+years purely for IT contracting. I only turn over around £35k and my accounts are very simple..around 1 invoice a month and very few expenses..

now the question..I am looking for another accountant as mine has moved country...the sort of quotes i am getting are £700+vat for company accounts and about £300 for mine and my wife's personal tax return.. am I naive in thinking it seems a lot of money for very simple accounts ?

Any general advice or recommendations would be great. I was told a few years ago with such simple accounts I should be looking for a tax advisor instead..

I am based near Crewe in Cheshire

Pennywise

Those prices are about average. You'll find accountants that will charge less, and some smaller firms won't be VAT registered, so that would save you 20% too. Assuming good book-keeping, we'd probably charge £500 for simple year end accounts/corporation tax and £150 for two simple personal tax returns and we don't add VAT. I know that some people would charge even less. You probably just have to avoid the High Street firms who tend to be a lot more expensive. Try the small one man bands on street corners or online firms instead.

Another thing is to watch out for unqualified/unregulated "accountants" - unlike solicitors, anyone can call themselves an accountant and many won't have insurance (a requirement for qualifieds). Some unqualified may also have been thrown out of their institute for criminal activities. Of course, lots of the unqualifieds will be competent, have insurance, etc., but it's more of a risk if you're just randomly searching rather than having a personal recommendation. Look for "chartered" on accountants' websites and letterheads which covers the main professional bodies and gives you some measure of comfort that they're properly regulated. Don't fall into the trap of thinking the unqualifieds will be cheaper - some are, some aren't - I've seen unqualifieds charging more by relying on Joe Public not understanding the difference!

firefox1956

The figures you quote a very similar to what I pay my accountants.
Small Ltd company & personal tax returns of wife & I.
This also includes ( for me anyway ) various advice on simple accounting & Ltd company / VAT / matters throughout the year.
I have to say it is worth every penny of what I pay............
HTH

chrismac1

A decent accountant will be paying subscriptions, PII cover, the costs of regular training updates to keep up with legislation every year. For each new client there is an anti-moneylaundering review to do.

So there is a certain level where fees can't go below, unless you have found someone who is a bit rubbish.

AbbieCadabra

we pay £648 inc vat per year for basic accountancy services (annual accounts, corporation tax return & our 2 directors tax returns). email/phone support is also available for general queries.

this is an online service via cheap accounting (not linked to them in any way, apart from being a happy customer )

MataNui

So thats about £1000 plus vat for what seem like very simple accounts. I would definitely say you could do better by shopping around. Like about £400 better. Mine are simple like yours but i wouldnt like to try doing it myself.

trailingspouse

We pay £1200 per annum, plus about £150 for our personal taxation. Our tax is quite complex, and having shopped around I feel we're at about the right price point. And this year they've saved us £4,000.