Entrepreneurs Relief - why so expensive?

[neilson9]

My company has just finished 3 years and is now shutdown. Im changing from being a freelance IT consultant to a software vendor and so would like to claim the relief.

I find myself with +100K left in the company but my accountants (a large firm) have told me that if i wish to proceed with the entrepreneur relief they will charge 1% of the profit and then pass me onto a firm that specialise in voluntary liquidation - and they charge a futher £4K. These prices seem absurd to me - its not like they are doing my end of year books.

Can anyone recommend a firm to use - (not sure if thats against the rules - if so - maybe a PM? )

Also, what have other people see WRT fees etc, I dont see how they can justify the expense considering the process?

Any help appreciated.
Regards, N.

[Gonzo]

My company has just finished 3 years and is now shutdown. Im changing from being a freelance IT consultant to a software vendor and so would like to claim the relief.

I find myself with +100K left in the company but my accountants (a large firm) have told me that if i wish to proceed with the entrepreneur relief they will charge 1% of the profit and then pass me onto a firm that specialise in voluntary liquidation - and they charge a futher £4K. These prices seem absurd to me - its not like they are doing my end of year books.

Can anyone recommend a firm to use - (not sure if thats against the rules - if so - maybe a PM? )

Also, what have other people see WRT fees etc, I dont see how they can justify the expense considering the process?

Any help appreciated.
Regards, N.

Without being fully aware of all your circumstances it is not so easy to make an informed comment however, for information, my "well known contractor accountant that posts on here sometimes" is charging £350 for preparation of final accounts (the company year was shortened and only 4 of the 12 monthly payments had already been made to them).

As for liquidating the company, in my normal contractor circumstances I can't see that a specialist is required to do this.

All myCo has is some cash in one bank account, a couple of tax payments to make to HMRC, and a suprisingly large amount of computer equipment. So I have written cheques for the final bills and handed over the the remaining cash and equipment to the members (me).

There are still a couple of invoices to chase, some interest to receive and one further VAT return to submit, but once these are out the way we will apply to close the company. The CGT will handled though my personal tax return for 2008/2009.

Your circumstances may of course be different.

[Pickle2]

WHS, my last company wind up was charged at same rate as usual annual accounts prep (350 gbp) and this included the capital gains distribution work.

To charge 1% is crazy, I suggest they are taking the pish.

[neilson9]

Thanks guys.

My circumstance are pretty simple, 1 director (& sole share holder), final year accounts are done; and one bank account with loads of cash to liquidate. I just need to find an accountant who has reasonable rates for shutdown/liquidation with ER, ideally would like to find someone who has been through the ER process.

If anyone knows or can reccomend an account who has experience with ER - could they ping me a PM?

Many thanks,
N.

[coultog]

If you have three years of trading, then surely it makes sense to keep your company ? Three years of trading will make it easier to get loans, accounts with suppliers etc.

I wouldn't give up a company that's traded for three years, unless something has gone wrong badly.

Have you thought about changing its name?

[AtW Super poster]

I paid £40 for entrepreneurs relief, well worth the half hour with powder.

[ratewhore]

My company has just finished 3 years and is now shutdown. Im changing from being a freelance IT consultant to a software vendor and so would like to claim the relief.

I find myself with +100K left in the company but my accountants (a large firm) have told me that if i wish to proceed with the entrepreneur relief they will charge 1% of the profit and then pass me onto a firm that specialise in voluntary liquidation - and they charge a futher £4K. These prices seem absurd to me - its not like they are doing my end of year books.

Can anyone recommend a firm to use - (not sure if thats against the rules - if so - maybe a PM? )

Also, what have other people see WRT fees etc, I dont see how they can justify the expense considering the process?

Any help appreciated.
Regards, N.

Who are they? I want to make sure I don't use them, ever.

[Crossroads]

Sounds like they are pushing you down the MVL route - Members Voluntary Liquidation. Have they not heard of ESC C16?

As for the 1% bit - how can they justify that?!