Who should charge more?

[Uncle Max]

A friend of mine is currently using a well known umbrella firm and pays about £30 per week for the privilege.

I am paying about £100 per month for a (very good) accountant service and I have been told more than once that what I am being charged is on the high side. i note that a number of the accountants that post on here quote c.£60-80 per month. Accepting that the tax efficiency possible when using a limited company would make the financial arguments pretty conclusive, are umbrellas even more of a rip off than i fisrt thought, are most accountants advertising a "headline" charge (with hidden extras incurring additional cost) or is there something else to consider that i haven't thought of.

Accountants are supposed (I believe) to bespoke their advice and support to you personally and therefopre charge you for their consultancy. On the other hand an umbrella is a "one size fits all" so should mean less work, more automation and so therefore cost less, shouldn't it? Confusing....

[Maslins]

The umbrella co will quite probably also bill the end client, and physically pay you. As a Ltd Co these are your responsibility (very few accountants would include this as part of the service).

Also bear in mind you can leave an umbrella without the hassle of having to close down a Ltd Co, so for short stints umbrella's often the way to go.

I think you'll also find that contractor specialist accountants will generally stick you in a one size fits all machine. Low salary, high dividend, suggest pensions, and intimidate you with IR35. It's all standard fare!

Some accountants will be sneaky and charge you extra for lots of little things. Others offer several service packages where many clients will choose the basic one then moan the accountant doesn't do everything for them. Just check what you're signing up to.

[BolshieBastard]

A friend of mine is currently using a well known umbrella firm and pays about £30 per week for the privilege.

I am paying about £100 per month for a (very good) accountant service and I have been told more than once that what I am being charged is on the high side. i note that a number of the accountants that post on here quote c.£60-80 per month. Accepting that the tax efficiency possible when using a limited company would make the financial arguments pretty conclusive, are umbrellas even more of a rip off than i fisrt thought, are most accountants advertising a "headline" charge (with hidden extras incurring additional cost) or is there something else to consider that i haven't thought of.

Accountants are supposed (I believe) to bespoke their advice and support to you personally and therefopre charge you for their consultancy. On the other hand an umbrella is a "one size fits all" so should mean less work, more automation and so therefore cost less, shouldn't it? Confusing....

I pay about 100 a month for my accountant. But I wont change even for those who appear on here and charge 50 or 60 a month. Im certain they do a good job.

But, I've an exceptional professional relationship with him and the firm covering a number of businesses going back to when I first went limited in 1997. His advice is first class. I've never had hassle from HMRC via him (note he isnt dealing with BN66 issues).

My view is it is worthwhile paying more for certain things.