My limited company clients pay my fees by standing order, three months in arrears.
One client (IT contractor who is sole director) wishes to close his limited company. The company can pay its debts, so it will be a simple closure. I have not acted for a company closure before, so although I am well aware of the process I must follow, I am less certain of the fees that should be charged.
The client's year end is 31st March, and they will pay a final instalment of fees for the 2011-12 tax year on 30th June, which is around the date that the company will cease trading. No fees have yet been paid for the 2012-13 tax year.
I am minded to charge the client half a year's fees to close down the company, given that I will still need to prepare 2012-13 company accounts, corporation tax return, P35, VAT return, and of course carry out all of the correspondence with HMRC, Companies House etc, while of course bearing in mind that all of these processes will be quicker than usual because only one third of a year's transactions are included.
Included in the annual fee is the preparation of the director's self assessment tax return, and I am not sure whether it would be appropriate to include this work in the final fee given that the tax return will be prepared several months after the company has closed. I would prefer not to but again, am unsure of the scope of work that is usually included in a company closure.
I would be interested to hear from more experienced practitioners whether they would agree with this approach or whether my proposed fees are too high or too low.
Many thanks in advance.