How much should I pay for an accountant?

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If my company turns over approx £40k per year, has only one employee with no PAYE or NI issues to handle, how much would you expect to pay an accountant for secretarial services and the annual returns to be compelted?

Total transactions per month approx 20.

Steve@taurusutilityconsultants.co.uk
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That  depends on the accountant, their skills and the time they would devote to you.

You have accountants at very cheap scale and others on opposite side. The rest fall in between.

I suggest you use FreeIndex's Business Lead facility. That will give a clear idea of the scale of fees.

Southside Accountants

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Hello

If the £40k is made up of hundred of small invoices I would charge approximately £1,000 but this would not cover personal tax return. If the turnover is made up of a handful of invoices that would reduce to £600.


Regards


BOOKS 2 BALANCE

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Would you recommend that I take out an insurance policy in case HMRC want to investigate my books?
I have been told that this could cost tens of thousands through the Courts and has been recommended (£180 premium per year)
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Steve,

You do not need an Accountant.

Your post tells me that you are self employed (trading as Taurus Utility Consultants) with an annual income of 40k.

Transactions - incoming and outgoing? Keep a record of business revenue received and business expenses paid out. The former should be higher so the difference will be your gross profit. If you are taking this as a salary you will pay income tax and national insurance tax out of this. Do a self assessment return - very easy to do.

Buy a simple tax guide that will show you where you can keep more of your money.

Regards

Andrew

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Steve

I understand your situation differently - I believe you are running a company and not a sole trader. If you have a company you definitely need an accountant.

Regarding your query about insurance - I do not believe there is a need for this at the moment. Are you trading in the UK only? With 20 invoices there is hardly much work. We usually set things up and than ask the client whether they want to maintain the monthly records or wish us to do this. As a start up it is always good to be fully involved in your financial affairs but let the accountant provide spreadsheets etc to maintain.


Books 2 Balance

tel 0785 248 6235

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Hi Andrew,
No I am employed by The Taurus Corporation Ltd t/a Taurus Utility Consultants Ltd.
I own the company and I am the only employee.
Steve
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Steve

You own the company

Are you a Director and shareholder too?

Regards

BOOKS 2 BALANCE

078 524 86235

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Dont forget the company will receive tax relief on accountancy charges.

Penalty charges are now applied to late returns and errors made in their submission which can amount to thousands of pounds and in excess of an annual accountancy charge.

Business advisors (not accountants) recommend appointing a good accountant as they can save you time and money.
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Hi, Steve

if the bookkeeping is done for example cashbook is written and bank reconcile then i believe it should not take much time to produce annual accounts. With regards to the annual return it is not difficult at all. The bundle price should not be more then £400+vat excluding bookkeeping. Personal tax return is included if only income is dividends and emplyment from your company.

Habib
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I do not work in this industry but have family member that do and family members in a similar situation to you. They have always decided to get an accountant as the term better safe than sorry. You can have a go at self assessment tax forms but all depends on the time you have. I'd say get an accountant easier.

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I believe the work for your industry is quite straightforward, I will say it can well be less than £700-800 mark. Some accountant can definately do around £300-450


Thanks


SC Lee Accountant Ltd

info@scleeaccountant.com

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i will complete your accounts of that turnover just under £299.00 plus vat

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Hi Steve

I guess that you will appreciate from the replies given that indications of fees vary widely.

For the level of activity that you have the record keeping requirement is not onerous and if the records are presented in a format that eases the accountants job the secretarial services and annual accounts and returns services that you ask about can be done at a very reasonable price on an annual basis and the lower end of the indications given can be achieved with perhaps an additional fee for setting up costs in year 1.

You need to consider if you require a full professional service that should address your needs e.g. no NIC to handle does not appear to be in your best interest unless of course this is a matter that you are dealing with your self. There are also traps that could catch you out if you are relying on alternative methods to take monies out of your company without having to deal with PAYE. Fall in to these traps and the consequences could be painful.

In a start up scenario many accountants will offer a fixed fee to assist you in year one and cover these and other issues associated with owner managed companies.

Get a couples of quotes by all means but do set out your requirements in some detail or ask the professional to do so. A first meeting, generally offered by professionals at no cost, will give you an opportunity to ask questions and be advised so that you have a better understanding of the services offered and the price.

Bear in mind that if you intend to be in business for the longer term inevitably things change, not least in the budget each year, and you would be well advised to choose a professional to support you for the longer term, not necessarily based on the cheapest quote.

Kind regards

Barry

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We pay about £700 a year for a partnership with a turnover under the VAT threshold.

On their recommendation we use www.xero.com for our online book-keeping which they dip in and out of as necessary and then file our returns.

Xero is great because it also connects to your bank feeds so is always up to date.

Jo

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Hi Steve

Did you manage to get this sorted out?

Whatever you pay, if you keep a spreadsheet and there are plenty of free ones on the web with income and expenses and put all receipts/invoices in a folder, your accountants fees will be dramatically reduced.

We do a number of small companies accounts and I can tell you that accountants charge a fortune no matter if you use a cheapr one or an expensive one. Having paperwork in a mess means the accountant needs to go through it all. Once they have done that, they will have a number of queries. Once these are resolved, they can then get on and prepare your accounts.

As a guide, if you work out how long it would take you to put the paperwork in order and their hourly fee, this will give you an idea of how much you need to pay, plus the returns on top.

Your accountant should have a spreadsheet they can give you, if not, please let me know and I can send one over. Nothing complicated, just income and expenditure.

Many thanks

Toni
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