Sole trader to Ltd co - How much to charge?

Sole trader to Ltd co - How much to charge?

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Client has been quoted £60 to £180 to convert from sole trader to Ltd liability by "other people's accountants". Client is VAT registered needs a lot of hand holding  due to regular bookkeeping errors, tax payment errors etc, etc.

I try to quote fixed prices as that is what people seem to want these days but I can't say that I do too many of these.

Before I reply in a rash manner about what you can expect to get for £60, what is a realistic range ?

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By King_Maker
08th Oct 2014 13:10

What "conversion" work would

What "conversion" work would be included in this "£60 to £180"?

I think my fee would be nearer to £500+.

 

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By Halex
08th Oct 2014 13:37

Thanks - that is a starting point. Conversion involves closing old VAT record down, deciding which parts of the business and assets to bring into the company. The business is not straight forward with a certain amount of work being done which may or may not be business work in the eyes of the client - i.e., money changes hands but client sees this as a community project! Other parts of the "business" are run separately................... and on it goes.

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By CA-London
08th Oct 2014 13:38

You get what you pay for!

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By Halex
08th Oct 2014 13:40

Indeed  CA London, but does

Indeed  CA London, but does the client always value what they get in he same way that we do.

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By Euan MacLennan
08th Oct 2014 13:47

Just getting the company set up

I can understand these fees if they refer only to setting up the limited company.

Online company formation agents charge £25 with £5 extra for all the registers and share certificates.  You still have to get the details from the client and enter them online, but £60 might cover it.

Add in registering for PAYE and for CT, when the client gets the UTR - say, £100.  Change of legal entity for VAT, perhaps another £50.  So, you could just about do the incorporation and tax registration, but nothing else, for £180.

There is no "conversion" work or specific advice in this level of fee.  In addition, you would have to charge your normal fee for the last set of sole trader accounts and SA tax return, set up costs for the payroll which the company would need, along with a monthly processing fee, and in due course, some set up costs for the company's first accounts and a higher annual accounts fee because of all the additional disclosure compliance.

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By King_Maker
08th Oct 2014 13:51

Don't forget changes needed to stationery, insurance cover, bank accounts, cessation accounts etc.

I have several clients who have remained sole traders due their psychology (using business as a piggy bank, no filing at CH, no PAYE, no Board Minutes etc).

Often the Tax & NI savings were not substantial (less than £5000) enough to temp them. :)

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By Halex
08th Oct 2014 14:09

Thanks all.  Very useful in

Thanks all.  Very useful in replying to my client

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