Fee for closing down company
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.
- Tax free threshold on person receiving gifts 225 4
- dfgd fget 51 1
- More AE! 202 6
- New business - journal entries 603 27
- US Citizen but never resident in US 205 4
- LLP Tax Allocation Prior Year Amendment 32 1
- aia 99 1
- Is there capital gains tax for selling a church? 165 2
- How could I be identified for VAT purposes in UK? 247 3
- UK company paying dividend to foreign shareholder 437 10
- Capital Allowances and Building Improvements 449 16
- Director Personal Bank Account in company's books 225 5
- Form 17 Joint tenancy v tenants in common 247 7
- vat help for catering concession 109 1
- Merger of Two companies 549 20
- RTI and Directors' salaries 117 1
- Merging 510 12
- Excuses, excuses!!! 426 1
- Travel costs and contractors 230 1
- Why should I retain membership? 3,530 56
- Auto enrolment excuses 985
- Feedback on accounts production software for IFRS 742
- Add T&Cs to Sales Order in Sage 431
- Digita Hosted Software 248
- Problems with Sage 50 Payroll v21(2015) pension module 244
- Social investment tax relief 243
- Call Centre Data Costs 227
- Buying goods in US and selling them to company in US 181
- Are any of you agents for doctors? 145
- Petrol station franchise and VAT 135