Share this content
16

Closing down company - accountant fees

Didn't find your answer?

I am a ltd company director with two shareholders. I pay my accounting firm 100+vat,  been with them 5 years. 

Closing down my company via MVL. They are asking for £2500+vat accounting fees.

They said this also includes claiming ER when filling for personal tax. 

My accounts are fairly straightforward, and annual return for last year has been recently filed. 

I feel that this is a bit too high, but I  not sure how much of a hassle would it be to switch/appoint another accountant to do that. 

Just wondering if anyone can shed some light. 

Are the fees too high indeed? 

Should I decide to appoint another accountant for the job at this point, how complex would that be and would it significantly delay the process? 

 

 

Replies (16)

Please login or register to join the discussion.

Hallerud at Easter
By DJKL
26th Jan 2020 17:22

Does the £2,500 include the final year /period accounts, final corporation tax and a formal liquidation process rather than merely a DS01 approach?

MVL's seem to start at circa £1,000 just by themself so context, complexity and scope will likely colour responses.

Thanks (0)
Replying to DJKL:
avatar
By Mr_awol
04th Mar 2020 17:59

DJKL wrote:

Does the £2,500 include the final year /period accounts, final corporation tax and a formal liquidation process rather than merely a DS01 approach?

MVL's seem to start at circa £1,000 just by themself so context, complexity and scope will likely colour responses.

£1k plus disbs etc. In fact ive had quotes from my list of 'tame' IPs ranging between £2,500 and £4,000 for a basic, non contentious small MVL (reserves of around £150k or so and no significant creditors).

£2,500 including accounts and IP service sounds very cheap

Thanks (0)
Psycho
By Wilson Philips
26th Jan 2020 17:40

You say that you are currently paying £100 plus VAT. For what and how often? (Just out of interest - I realise that has nothing to do with the actual question. £2,500 for a straightforward liquidation is quite reasonable. Again not directly relevant but are you sure that an MVL is required?

Thanks (0)
avatar
By mrdarcey
26th Jan 2020 18:29

To be clear, this £2,500 is the accountant fee. The liquidator fee is separate to that.

@DJKL to my understanding it includes everything related to company closure from an accounting perspective - but it does NOT include the liquidator fee itself. That's what they mentioned:

Cease Trading accounts to Companies House
Cease Trading accounts and corporation tax return to HMRC
PAYE De-Registration and closure with HMRC
Check/Claim Entrepreneur’s Relief if applicable.
Self-Assessment following dissolution all shareholders
Liaise with liquidator
Process Capital Distribution.
Deal with HMRC enquiries pre and post-liquidation

@wilson I pay £100+vat per month for everything: corp tax, annual return, personal return, quarterly vat, paye, expenses, etc..

Yes, MVL is the best option for me.

Thanks (0)
Replying to mrdarcey:
Psycho
By Wilson Philips
26th Jan 2020 18:44

You need to ask them to explain why their proposed fee is more than double the current annual compliance fee. It’s not unreasonable for the work outlined but their current fees are much lower than what we’d charge.

Thanks (0)
Replying to mrdarcey:
avatar
By lesley.barnes
26th Jan 2020 19:42

How much is the liquidators charging? Some of the work your accountant is doing the liquidators quite often would do. Perhaps it's swings and roundabouts and liquidators fees will be less.

Thanks (0)
Replying to mrdarcey:
avatar
By bernard michael
27th Jan 2020 10:28

mrdarcey wrote:

To be clear, this £2,500 is the accountant fee. The liquidator fee is separate to that.

@DJKL to my understanding it includes everything related to company closure from an accounting perspective - but it does NOT include the liquidator fee itself. That's what they mentioned:

Cease Trading accounts to Companies House
Cease Trading accounts and corporation tax return to HMRC
PAYE De-Registration and closure with HMRC
Check/Claim Entrepreneur’s Relief if applicable.
Self-Assessment following dissolution all shareholders
Liaise with liquidator
Process Capital Distribution.
Deal with HMRC enquiries pre and post-liquidation

@wilson I pay £100+vat per month for everything: corp tax, annual return, personal return, quarterly vat, paye, expenses, etc..

Yes, MVL is the best option for me.

The fee they've been charging you is incredibly low for the amount of work you say they do. I doubt anyone else would do it for that low a fee. You might get a shock when you ask another firm for a quote

In which part of the country are you located ??

Thanks (0)
By Tim Vane
26th Jan 2020 23:38

Personally I think they are taking the proverbial. I would not charge that for a long standing client who has always paid on time.

I would probably charge that to a PITA client who I’d be glad not to act for. Which are you?

Thanks (1)
avatar
By mrdarcey
27th Jan 2020 00:42

I had a good experience with them overall, paid direct debit so no issues there at all.

I can't help but think they are trying to squeeze the most out of my contract with them before I leave, which is very disappointing.

Hence my question regarding how much hassle would it be to switch/appoint someone else at this point.

Thanks (0)
Replying to mrdarcey:
avatar
By Tax Dragon
27th Jan 2020 06:06

We're getting only one side of the story - no, one side of part of the story - here. Even so, it's clear that you've squeezed them for 5 years. Maybe, likewise, they have found that disappointing?

Thanks (0)
Replying to Tax Dragon:
avatar
By mrdarcey
27th Jan 2020 11:10

I didn't negotiate a price with them, I paid what they asked, so if they were not happy they surely kept it quite.

What I have been paying them is not uncommon for a company like mine, there's only two shareholders/employees, we're in the business of translation and technical-writing, and there's not too many invoices every year.

Thanks (0)
Replying to mrdarcey:
avatar
By carnmores
27th Jan 2020 14:10

spot on, shameful

Thanks (0)
Lisa Thomas
By Insolvency Practitioner
27th Jan 2020 09:47

As an IP this seems high to me, the most I tend to pay the accountants to submit the final tax returns to HMRC is c£1k, plus VAT.

Thanks (0)
Replying to Insolvency Practitioner:
Lisa Thomas
By Insolvency Practitioner
27th Jan 2020 10:34

Having revisited the list of work, I can see that it seems to include some personal work as regards the personal tax return etc.

My comparison of £1k maximum does not include paying the Directors personal accountants for tax work as that is usually outside of the scope of what they bill the Company for and is dealt with separately between the shareholder and their personal advisors after the distributions have been paid.

Thanks (1)
avatar
By pauljohnston
27th Jan 2020 10:11

We need more infor but I agree £2500 plus liquidators fee is on the higher end of the scale.

You can change accountants easily. If you feel you are being over charged approach a liquidator direct and ask for its fee including the items you have mentioned.

Thanks (0)
avatar
By mrdarcey
04th Mar 2020 16:00

Thanks for all the replies.

Thanks (0)
Share this content

Related posts