Additional fee for year-end tax filing Additional fee for year-end tax filing
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  1. #1

    Nervous Newbie


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    Default Additional fee for year-end tax filing

    Hi,
    I started contracting through a limited company in Feb this year. When I signed up with my accountant, they promised that the year-end tax filing and all services would be included in their package and I pay them a monthly amount. Now when filing tax for the year 2018/2019, they are charging me additionally. The rationale being since I joined only in Feb - this service will be chargable. For the tax filing for next year (2019/20) it would be part of the package for which I pay them monthly.

    I believe this is incorrect and I should not be charged for the tax filing for 2018/19. Had I signed up with the accountant after the 2018/19 financial year i.e. from April - I agree with their statement. Would like to know the view from the experts here? Is the accountant in the wrong or is my understanding incorrect? If the accountant is in the wrong, what are my rights here? And how best can I proceed from here?

    TIA

  2. #2

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    Their rationale is fair. When you're paying an accountancy company monthly, what you're really doing is spreading the cost of the end of year accounting, which is 90%+ of the work they'll do for you in the year.

    However, this is a business to business relationship, and fairness isn't a very big factor. What matter is - what does your contract with them say?
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  3. #3

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    Quote Originally Posted by NotAllThere View Post
    Their rationale is fair. When you're paying an accountancy company monthly, what you're really doing is spreading the cost of the end of year accounting, which is 90%+ of the work they'll do for you in the year.

    However, this is a business to business relationship, and fairness isn't a very big factor. What matter is - what does your contract with them say?
    Completely agree with all of this.

  4. #4

    Should post faster


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    Quote Originally Posted by TheKnight View Post
    Hi,
    I started contracting through a limited company in Feb this year. When I signed up with my accountant, they promised that the year-end tax filing and all services would be included in their package and I pay them a monthly amount. Now when filing tax for the year 2018/2019, they are charging me additionally. The rationale being since I joined only in Feb - this service will be chargable. For the tax filing for next year (2019/20) it would be part of the package for which I pay them monthly.

    I believe this is incorrect and I should not be charged for the tax filing for 2018/19. Had I signed up with the accountant after the 2018/19 financial year i.e. from April - I agree with their statement. Would like to know the view from the experts here? Is the accountant in the wrong or is my understanding incorrect? If the accountant is in the wrong, what are my rights here? And how best can I proceed from here?

    TIA
    If you have just started your LTD in February, your year end accounts should not be due until February 2020 + 9 months. You would have been with your accountant for well over a year. What am I missing?

    Are they charging for your personal self-assessment for 2018/2019? Fair.
    Last edited by zonkkk; 7th June 2019 at 07:52.

  5. #5

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by zonkkk View Post
    If you have just started your LTD in February, your year end accounts should not be due until February 2020 + 9 months. You would have been with your accountant for well over a year. What am I missing?

    Are they charging for your personal self-assessment for 2018/2019? Fair.

    He possibly means his personal tax return
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  6. #6

    Contractor Among Contractors


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    I would hope that the accountant would discuss this with you at the outset, before you sign up with them. However more generally, yes we charge a monthly fee, and if a client joins us near the end of their accounting year then we would suggest a one off fee to reflect the fact they hadn't been with us that whole year.

  7. #7

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    Quote Originally Posted by WTFH View Post
    He possibly means his personal tax return
    Hi,
    Thanks for getting back. Thats correct. I meant my personal tax returns.

  8. #8

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    Quote Originally Posted by Maslins View Post
    I would hope that the accountant would discuss this with you at the outset, before you sign up with them. However more generally, yes we charge a monthly fee, and if a client joins us near the end of their accounting year then we would suggest a one off fee to reflect the fact they hadn't been with us that whole year.
    Hi,
    Thanks for getting back on this. When I joined, we had a lengthy verbal agreement that year-end tax returns would be taken care of as part of the monthly fee that I'm paying. Unfortunately, it was not a written contract and neither was the exact details of whether 2018/19 tax returns be also included discussed.

    Since I've joined in Feb, I've also been paying a monthly fee for Feb & March. So my understanding is the personal tax returns for 2018/19 also would be included. The full year accounts maintenance, and year-end tax returns for 2019/20 will only begin by April 2019.

  9. #9

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    Quote Originally Posted by TheKnight View Post
    Hi,
    I started contracting through a limited company in Feb this year. When I signed up with my accountant, they promised that the year-end tax filing and all services would be included in their package and I pay them a monthly amount. Now when filing tax for the year 2018/2019, they are charging me additionally. The rationale being since I joined only in Feb - this service will be chargable. For the tax filing for next year (2019/20) it would be part of the package for which I pay them monthly.

    I believe this is incorrect and I should not be charged for the tax filing for 2018/19. Had I signed up with the accountant after the 2018/19 financial year i.e. from April - I agree with their statement. Would like to know the view from the experts here? Is the accountant in the wrong or is my understanding incorrect? If the accountant is in the wrong, what are my rights here? And how best can I proceed from here?

    TIA
    We base payment of your SATR on whether you're with us at the end of that specific tax year. For example, if you joined us in March 2019 on a package that includes SATR, you would get your 2018/19 SATR free of charge BUT this is really generous. As you're paying on a monthly basis, I would say if you've not made at least 6 months payments in that tax year, most accountants would charge extra as standard.

    Is it a simple enough return that you could do it yourself using HMRC guidance? Or find a separate accountant who would do it as a one-off cheaper?

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