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Accountant fees for closing Limited Co

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    #11
    Originally posted by wattaj View Post
    I would just like to point out that I would have paid cash to see this. It would be an epic Netflix series. "Tarby Builds"; just like James May's "Re-assembler", but with added sweaty bloke and the high risk of heart attack.

    I'm thinking more of a cross between Keith Floyd (but with vodka rather than wine) and DIY SOS

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      #12
      Originally posted by ladymuck View Post
      I'm thinking more of a cross between Keith Floyd (but with vodka rather than wine) and DIY SOS
      With added Borat "Sexy Time".
      ---

      Former member of IPSE.


      ---
      Many a mickle makes a muckle.

      ---

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        #13
        Originally posted by wattaj View Post
        Did you expect them to do this for free?

        REALLY?


        Did not say I expected it for free. As I said, the self assessment cost me £60 before, so thats expected. So is the £10 fee to Companies House. The accounts have never incurred an additional cost when filed in previous years, last one as recently as January 2020. So £315 to submit a DS01 and issue a P45. Seems legit

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          #14
          Originally posted by ih8ir35 View Post
          So £315 to submit a DS01 and issue a P45. Seems legit
          Typically there's also:
          - de-registration for VAT,
          - submission of final VAT return,
          - de-registration as an employer (typically a separate step to marking you personally as leaving hence issuing P45),
          - possibly doing accounts/CT return for a short period rather than a full year (ie so they won't have had 12 monthly payments towards it),
          - advice around closing, eg assessing final net assets, considering tax planning options such as pension/MVL.

          Personally I do feel "closure fees" are a bit unfair. Firms will tend to offer all kinds of stuff for free at the outset to lure you in, despite it taking time for (hence costing) the accountant. However, when you're towards the end, no accountant would be prepared to take you on from scratch at this stage, and do all the closing bits for £315. Hence the existing firm has an advantage, and can "get away with" charging an extra fee. You'll grumble, but virtually always your most sensible option will be to suck it up and pay it. They know that...plus they do have some legitimacy in it given the multiple extra tasks required.

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            #15
            Originally posted by Maslins View Post
            Typically there's also:
            - de-registration for VAT,
            - submission of final VAT return,
            - de-registration as an employer (typically a separate step to marking you personally as leaving hence issuing P45),
            - possibly doing accounts/CT return for a short period rather than a full year (ie so they won't have had 12 monthly payments towards it),
            - advice around closing, eg assessing final net assets, considering tax planning options such as pension/MVL.

            Personally I do feel "closure fees" are a bit unfair. Firms will tend to offer all kinds of stuff for free at the outset to lure you in, despite it taking time for (hence costing) the accountant. However, when you're towards the end, no accountant would be prepared to take you on from scratch at this stage, and do all the closing bits for £315. Hence the existing firm has an advantage, and can "get away with" charging an extra fee. You'll grumble, but virtually always your most sensible option will be to suck it up and pay it. They know that...plus they do have some legitimacy in it given the multiple extra tasks required.
            Most sensible advice I've recieved, thanks. I guess the only saving grace is that its a business cost. Wouldn't have batted an eyelid if I was still contracting but I have to save the pennies now that I'm a permie

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              #16
              Originally posted by ih8ir35 View Post
              Wouldn't have batted an eyelid if I was still contracting but I have to save the pennies now that I'm a permie
              Only thing I'd say to that is you still have a company, so still have obligations even if there's currently no income going into it. Creating a company is a bit like getting a dog. You've taken on a responsibility, which doesn't disappear as soon as you no longer want it. It needs to be disposed of properly

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                #17
                Originally posted by Maslins View Post
                Only thing I'd say to that is you still have a company, so still have obligations even if there's currently no income going into it. Creating a company is a bit like getting a dog. You've taken on a responsibility, which doesn't disappear as soon as you no longer want it. It needs to be disposed of properly
                And that doesn't mean chucking it in a canal with a bag of bricks

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                  #18
                  Originally posted by ih8ir35 View Post
                  So I'm a Limited Co providing services to financial insititutions. I have recently given my accountants notice that I would like to close my company. My company ceased trading end of July 2019 when I went permanent employed. My previous tax year ran from April 1, 2018-March 31, 2019, so I still have Corporation tax and Self Assessment due for April-July 2019. The company has no assets.

                  So to produce the final accounts, file my self assesment, submit a DS01 form (strike off a company from the register), and issue a P45, I'm being charged a grand total of GBP 385+VAT as part of their (appropriately named) "wind-up" procedure.

                  I pay £84 monthly fee and additional £60 year for Self-Assesment.

                  Apart from the £10 to Companies House, has anyone else had to pay accountancy fees to close their Limited Co ?
                  I am in the same boat as you. May I ask how long they say it will take to prepare the final accounts?

                  LBH the accountants want to draw the process out for as long as possible. I started things rolling about 6 weeks ago. They got back to me last week saying that I must pay the last VAT payment and it will be automatically sent via direct debit at end of June. I say 'hang on a minute can't I just pay it now and save 6 weeks in time?' They say yes you can. ehhh so why didn't they recommend this to begin with? ... you know why.

                  They have already taken £395 + vat to close the company ... will take a further £134 a month till accounts created ... which I am told today will likely be 12 weeks .... 12 weeks.

                  It's a rip off.

                  The thing is I have been incredibly impressed by these accountants up to the closure of the company. I won't be recommending them to anybody else....thats for sure.

                  Comment


                    #19
                    Originally posted by mogga71 View Post
                    I am in the same boat as you. May I ask how long they say it will take to prepare the final accounts?

                    LBH the accountants want to draw the process out for as long as possible. I started things rolling about 6 weeks ago. They got back to me last week saying that I must pay the last VAT payment and it will be automatically sent via direct debit at end of June. I say 'hang on a minute can't I just pay it now and save 6 weeks in time?' They say yes you can. ehhh so why didn't they recommend this to begin with? ... you know why.

                    They have already taken £395 + vat to close the company ... will take a further £134 a month till accounts created ... which I am told today will likely be 12 weeks .... 12 weeks.

                    It's a rip off.

                    The thing is I have been incredibly impressed by these accountants up to the closure of the company. I won't be recommending them to anybody else....thats for sure.
                    £395 + VAT seems expensive, and surely they shouldn't continue to charge monthly until the accounts are completed.

                    I was in the process of closing before I was told I could continue outside of IR35, my closure fee was £250 + VAT but no further monthly charges.

                    Comment


                      #20
                      Originally posted by JHamp82 View Post
                      £395 + VAT seems expensive, and surely they shouldn't continue to charge monthly until the accounts are completed.

                      I was in the process of closing before I was told I could continue outside of IR35, my closure fee was £250 + VAT but no further monthly charges.
                      Thought about cancelling the closure too but the risk is just too big of a HMRC investigation in my case. The flip from outside to inside to outside again is a risk IMHO .... especially in a post COVID world whereby the Tax People will be after everything they can get....and with the news that iR35 legislation is not going to get cancelled.

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