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Accountant over charging?

Blasie
Blasie Posts: 22 Forumite
Sixth Anniversary 10 Posts Name Dropper
edited 10 May 2020 at 3:05PM in Cutting tax
Hi, I have been charged by my accountants for advice that I didn't ask for, for example she has sent emails explaining why and how and when I should pay VAT, corporation tax, etc etc, but I didn't ask for this advice, all I ask for her to do is liaise with HMRC and tell me how much I need to pay.  I am then charged the fees for this work as set out in the contract between ourselves, which is what I would expect.
I asked her for a breakdown of the 'advice' costs and she has been vague again - for example I was late paying VAT and she has charged me for an email telling me the implications of late payment of VAT, even though I could find this out for myself and didn't ask for this advice.
First time I have used an accountant so any advice appreciated.
Also I must mention, I never phone or email her for advice.

Comments

  • uknick
    uknick Posts: 1,857 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 10 May 2020 at 4:06PM
    It does seem strange to charge for some of the items you mention.  We only charge extra if it's clearly not covered in the annual engagement letter as part of the standard fee.  We also include an hour's phone call each month in our charges to discuss how the business is going and if there are any issues we can help with.

    We definitely wouldn't charge for explaining the implication of late VAT returns.  Well, not the first, second or third time.  Maybe the fourth time  :D

    What is in the letter of engagement you signed with regard to ad hoc work?


  • Blasie
    Blasie Posts: 22 Forumite
    Sixth Anniversary 10 Posts Name Dropper
    Hi
    Thank you for the reply, I remember that ad hoc advice /work is charged by the hour, but I suppose my question is:  if my accountant chooses to email detailed information about the process/HMRC guidance etc, and this has not been asked for by me, is it right that I should be charged ( a lot) for it?
    Also am I within my right to ask for a detailed invoice broken down with dates of advice, and the topic of the advice?  At the moment all I have is an overall note on the invoices with 'advice'  even though I had asked that the invoices be re-sent with more details. 
  • Jeremy535897
    Jeremy535897 Posts: 10,797 Forumite
    10,000 Posts Sixth Anniversary Photogenic Name Dropper
    In my experience, this sort of issue, if not addressed promptly, will lead to an irrecoverable breakdown of the accountant client relationship. From your point of view, you don't want to pay for what you don't want. From her point of view, if you make her aware of actions or inactions on your part that could lead to interest or penalties from HMRC, she has to set out her advice in writing, for her own protection at least, without you asking. That can be done in a comprehensive, tailored way, at some cost, or just by a standard couple of lines that take 2 minutes to put in an email and cost nothing. You need to pick up the telephone and have a friendly chat sooner rather than later, so you both understand what is expected of each other.
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