Do I need an accountant if I'm taking a break? Advice needed Do I need an accountant if I'm taking a break? Advice needed
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  1. #1

    Nervous Newbie


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    Default Do I need an accountant if I'm taking a break? Advice needed

    Hello
    i'm a newbie to the contracting world and need some advice on accounting matter please.

    Contract started : April 2018
    Contract ends: end of June 2019
    Company year end accounting date: end April 2019

    I've been with a local small accountancy for LTD runs and they recently sent me a letter to asking for an extra payment to purchase new software for their biz. to alieng with tax go digital stuff which I rejected the idea hence handed over the notice.

    Since my contract is finishing by end June, I'm wondering whether it makes sense to move onto the new accounting firm at this point and can anyone advise whether i need an accountant if I'm going to take a break for a while ? ( half a year or more until find new contract after travelling)

    I personally find the local accountact who charged me the same cost as big one isn't specifically great hence thinking to move onto the Gollia accounting who advised they charge half of the monthly cost for non-active LTD account. e.g. around £45 / month

    I've asked current accountancy to complete the year end accounting which received no answer (but i've been with them for a year hence they should complete the work as Gorilla accountacy said no for this work if i move them now) and wondering whether it's sensible to stay with them until i finish the contracting by end june.

    What happens after I finish contracting? Do I even need an accountant if i don't have income comes into the LTD? What's the best way in this situation?

    Many thanks in advance.

  2. #2

    More time posting than coding


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    Quote Originally Posted by genji7 View Post
    Hello
    i'm a newbie to the contracting world and need some advice on accounting matter please.

    Contract started : April 2018
    Contract ends: end of June 2019
    Company year end accounting date: end April 2019

    I've been with a local small accountancy for LTD runs and they recently sent me a letter to asking for an extra payment to purchase new software for their biz. to alieng with tax go digital stuff which I rejected the idea hence handed over the notice.

    Since my contract is finishing by end June, I'm wondering whether it makes sense to move onto the new accounting firm at this point and can anyone advise whether i need an accountant if I'm going to take a break for a while ? ( half a year or more until find new contract after travelling)

    I personally find the local accountact who charged me the same cost as big one isn't specifically great hence thinking to move onto the Gollia accounting who advised they charge half of the monthly cost for non-active LTD account. e.g. around £45 / month

    I've asked current accountancy to complete the year end accounting which received no answer (but i've been with them for a year hence they should complete the work as Gorilla accountacy said no for this work if i move them now) and wondering whether it's sensible to stay with them until i finish the contracting by end june.

    What happens after I finish contracting? Do I even need an accountant if i don't have income comes into the LTD? What's the best way in this situation?

    Many thanks in advance.
    You still need to file your accounts, so yes. Most of the work is done end of year, thus you're mostly paying for that, so it makes sense for Gorilla to say no. I've had a similar half charge for leaving my company largely inactive*, which was nice of my accountant.

    * Technically the Ltd was active, and I assume yours will be too. Probably a bad deal for the accountant if you're only inactive for a few months and I wouldn't ask for that, my inactivity was for more than a year.

  3. #3

    Still gathering requirements...


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    If Ltd is registered for PAYE and VAT then these submissions need to be made monthly and quarterly respectively so an accountant is recommended. They’ll also be able to advise on how to close Ltd and extract any profits tax efficiently.

    Also I would get your existing accountant to confirm in writing they will prepare your year end accounts before terminating services.

    Finally, I switched to Gorilla too and it was a seamless process, especially after year end. If you do go ahead I wouldn’t mind a referral.
    Last edited by rocketjet; 28th April 2019 at 03:22.

  4. #4

    Nervous Newbie


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    Quote Originally Posted by rocketjet View Post
    If Ltd is registered for PAYE and VAT then these submissions need to be made monthly and quarterly respectively so an accountant is recommended. They’ll also be able to advise on how to close Ltd and extract any profits tax efficiently.

    Also I would get your existing accountant to confirm in writing they will prepare your year end accounts before terminating services.

    Finally, I switched to Gorilla too and it was a seamless process, especially after year end. If you do go ahead I wouldn’t mind a referral.
    Thank you for the information, I got the written confirmation.
    Regarding referral, I already got in touch with Gorilla accouting about two weeks ago - do you think it's still valid on this case?

  5. #5

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    Quote Originally Posted by fool View Post
    You still need to file your accounts, so yes. Most of the work is done end of year, thus you're mostly paying for that, so it makes sense for Gorilla to say no. I've had a similar half charge for leaving my company largely inactive*, which was nice of my accountant.

    * Technically the Ltd was active, and I assume yours will be too. Probably a bad deal for the accountant if you're only inactive for a few months and I wouldn't ask for that, my inactivity was for more than a year.
    Thanks for the info, yeah, Gorilla seems have a good reputation and they were the one I was considering before chose the local accountant. I am not sure how long it's going to be in-active, all depends on my holidays plus the prospective next contract which always takes time to get the right one..

  6. #6

    Still gathering requirements...


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    Also bear in mind accountancy monthly fees are usually comprised of annual fee / 12, so if you only pay 6 or 9 months of fees they may require additional top-up fees to produce year end accounts.

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