Direct Debits paid in advance for a service not received yet - can I change my mind?

Monkeybum123

I've paid DDs to an accountant in advance and sent the information on Friday for them to do the job (an annual thing). But recent events mean that I really have to save money, and I've found a way to get the same work done way cheaper (and probably get a better more reliable service). Can I ask for a refund of my money in order to take my business elsewhere? 

Brie

You can ask but whether you get your money back or not have to continue to pay will depend on the T&Cs of any contract signed.

MyRealNameToo

Monkeybum123 said:

I've paid DDs to an accountant in advance and sent the information on Friday for them to do the job (an annual thing). But recent events mean that I really have to save money, and I've found a way to get the same work done way cheaper (and probably get a better more reliable service). Can I ask for a refund of my money in order to take my business elsewhere? 

What does your contract state? 

the_lunatic_is_in_my_head

What is the service OP and how did you agree the contract (in person, phone, internet, etc) and if not in person when did you agree the contract (i.e shake hands, not when will the service start)? 

la531983

Direct debits to an accountant? Seems a strange arrangement. Have you used the incorrect terminology?

MyRealNameToo

the_lunatic_is_in_my_head said:

What is the service OP and how did you agree the contract (in person, phone, internet, etc) and if not in person when did you agree the contract (i.e shake hands, not when will the service start)? 

Thankfully re-read the opening post before posting what I was going to...

1) Was this just a random accountant or the accountant you regularly use? Obviously if its a regular arrangement it may fall under a standing T&M contract rather than it being a new contract

2) Is this in relation to a personal or business matter? Your statutory rights will be different

3) Echoing the above, DD would be an odd way to pay an accountant in general and an even odder one if you say this is a one off service

the_lunatic_is_in_my_head

MyRealNameToo said:

the_lunatic_is_in_my_head said:

What is the service OP and how did you agree the contract (in person, phone, internet, etc) and if not in person when did you agree the contract (i.e shake hands, not when will the service start)? 

Thankfully re-read the opening post before posting what I was going to...

Oops, I read "paid DDs to an account in advance".

Other question OP, as above, would be is it a personal matter or related to a business? Or perhaps more accurately are you a consumer, defined as an individual acting for purposes that are wholly or mainly outside that individual's trade, business, craft or profession?

MyRealNameToo

the_lunatic_is_in_my_head said:

MyRealNameToo said:

the_lunatic_is_in_my_head said:

What is the service OP and how did you agree the contract (in person, phone, internet, etc) and if not in person when did you agree the contract (i.e shake hands, not when will the service start)? 

Thankfully re-read the opening post before posting what I was going to...

Oops, I read "paid DDs to an account in advance".

Yeah, I read it was to their accountant - ie someone they are already in contract with before adding this extra task... guess we're all human

DE_612183

I would guess this is a contract to perform services, and the OP has opted to pay via instalments in advance.

Providing the accountant has done no work yet, then they should be entitles to a refund - however just because they haven't actually prepared and submitted accounts doesn't mean they haven't done any work.

Accounts for small Ltd Companies, you are probably paying for advice as well ( regardless if you take it or not ).

as others have said - what is the contract for will determine if you get your money back - if you've already sent all the info my guess is they say they've already started the work.

Monkeybum123

Thanks for all the comments. 'Accountant' was just shorthand for a tax preparer.

I have used the company (in the UK, allegedly US and UK tax specialists) for 4 years to handle US tax returns - as a very ordinary, working, poorly paid individual, not for any business.  For the last two years they gave me the option of paying interest-free by DD, from Feb to Jan with the deadline for submitting the forms in October. So this year I have paid 7 out of 12 months, but only just sent my figures.

They offerred the DD arrangement by email, and I accepted by email in January '25. They send a new 'Engagement Letter' each year, but I can't actually find one for this year. A January email said they would send it in the next few weeks, but I can't find it (on paper, in email or in their new client portal, or the old one which I can still access), and I'm pretty sure I didn't sign anything. The Engagement Letter in the past has set out what returns they will prepare and return, their fees, methods of communication, data protection etc, and at least once I have signed and returned it. (Can't actually find one for '22 or '23 either but that doesn't necessarily mean they didn't send it.)

I've taken my eye off the ball this year for horrendous personal reasons. Tbh, the service I've received has been shockingly bad. The whole thing has been so stressful for so long, that I just want out and to use an online service which has very good reviews and costs a fraction of their fees. 

eskbanker

If you're hoping to get out of the contract seven months into this year's cycle, purely for change of mind, then you'll need to check the terms of the agreement and the cancellation policy.

If you're wanting to claim that they're failing to deliver, that'll potentially give you more rights but will rely on being able to construct a case that their performance is substandard - have you given them any indication that you're unhappy?