MTD Accountant Costs

[wilky27]

Hi,

Just been informed by my accountant that my monthly fee will be going up by £20+VAT per month due to their software costs they've incurred to be MTD compliant. Does this seem excessive?

Thanks.

[craigy1874]

Hi,

Just been informed by my accountant that my monthly fee will be going up by £20+VAT per month due to their software costs they've incurred to be MTD compliant. Does this seem excessive?

Thanks.

Depends what your normal monthly charge is to start with?

But as an accountant, I think not.

Who is your accountant? A local one or a well known online one?

[Maslins]

Depends what your normal monthly charge is to start with?

This...and what bookkeeping software you currently use.

Eg if you already use something FreeAgent, then MTD should add negligible extra work. There's an element of famous last words here as the pilot has only just launched so nobody really knows what will be involved...but the FreeAgent developers should be doing the heavy lifting.

If on the other hand you just keep paper records, or a spreadsheet, then it's likely a much more significant upheaval is required. In turn this is likely to lead to additional costs.

[Alchemy Accountancy]

Do you feel like you will get value from them at their proposed price?

As a guide, you should be able to get a contractor accountant that will do everything you need (and comply with MTD) for about £100+VAT per month – if you’re paying significantly less than that then they’re just coming up the market rate (as I’m sure you would if your rate was low); if you’re paying more than that then it may be worth having a look around at what else is available.

[wilky27]

Do you feel like you will get value from them at their proposed price?

As a guide, you should be able to get a contractor accountant that will do everything you need (and comply with MTD) for about £100+VAT per month – if you’re paying significantly less than that then they’re just coming up the market rate (as I’m sure you would if your rate was low); if you’re paying more than that then it may be worth having a look around at what else is available.

£90+VAT pm, and has been that for the last 7 years, so you're probably correct. He's been a good accountant so will probably just pay it. Would rather he just say he's putting his costs up rather than blame it on some imaginary costs he's incurring.

Thanks for the reply.

[wilky27]

Depends what your normal monthly charge is to start with?

But as an accountant, I think not.

Who is your accountant? A local one or a well known online one?

He's a local one, who I pay £90+VAT pm. I'd have thought they would already have some accountancy software that was MTD compliant.

[Dom at Fox Bartfield]

MTD

£90+VAT pm, and has been that for the last 7 years, so you're probably correct. He's been a good accountant so will probably just pay it. Would rather he just say he's putting his costs up rather than blame it on some imaginary costs he's incurring.

Thanks for the reply.

If you're happy with him then fair play......presume he's not using Freeagent where it would all be included.

[Mordac]

Hi,

Just been informed by my accountant that my monthly fee will be going up by £20+VAT per month due to their software costs they've incurred to be MTD compliant. Does this seem excessive?

Thanks.

I'm intrigued to know what software they're using that costs an extra £20 per month per client.
It sounds like they need an excuse to put their fees up, and hope nobody will notice or care.
The short answer is that either they're being ripped off, or you're about to be.

[Jessica@WhiteFieldTax]

I'm intrigued to know what software they're using that costs an extra £20 per month per client.
It sounds like they need an excuse to put their fees up, and hope nobody will notice or care.
The short answer is that either they're being ripped off, or you're about to be.

Not necessarily. Its not just the costs of renting / buying software, but also the costs of supporting the software and supporting the process of change. With MTD there is an awful lot that could go wrong, and accountants will by and large be the go between (punchbag) between HMRC and taxpayers.

Some changes are easy to accommodate cost wise as its a small extension of what already happens - eg online filing of Self Assessment / CTSA / iXbrl.

Others are more of a significant change, eg online payoll filing, online annual returns (now Confirmation Statement) - both of those were cheaper and easier from the accountants perspective off-line in my experience.

[craigy1874]

I'm intrigued to know what software they're using that costs an extra £20 per month per client.
It sounds like they need an excuse to put their fees up, and hope nobody will notice or care.
The short answer is that either they're being ripped off, or you're about to be.

That is not the short answer at all!

I agree if you use cloud accounting then there should be less additional work involved. However, some people still use spreadsheets are happy to continue doing so. You then need to look at bridging software and having this setup. To be honest I would see it more of a one-off setup fee than an ongoing charge, but that depends I suppose on who files the VAT Returns, the accountant or the client.

Seriously though £110 a month for an accountant is not a lot, its just that so many people think they can do it all themselves and the FreeAgent does everything for them. Trust me, it really doesn't!