My Accountant (A large firm in my Area) has misreported my 9 seater vehicle minibus as Plant and machinery (higher tax break and grey area with HMRC) and should have been reported as a car (9 seater minibus a car?) and now potentially owe HMRC £3786.51 for past years misreporting, to avoid paying this he suggested I cease trading at tax year end 2020 to get this money back, (Not sure how and I have an unsecured loan against two vehicles and the finance company would want the vehicles back if I ceased trading (we are a niche company with small manageable debt (vehicle finance and never used our expensive overdraft!). I feel we are being punished for a mistake we have never made!
He told me we are a 'couple of blokes with a couple of cars' (we have 5 at present) and marginally profitable to deal with (despite I apparently over report and am too thorough (we use Sage as instructed and also use our prefered QuickFile System) our turnover skips under the Vat threshold every year and his advice is 'to go on holiday' Ive identified a vat scheme that may suit us but he has no advice to give.
He has told me the price will go up to £1600.00 plus vat if I dont embrace Sage fully (it dropped my bank feed 4 times last year!!) I pay £1100 per annum and a further £180 a quarter for Paye payroll at the moment. he always sends me the final accounts and his invoice 3 days before the final deadline at my busiest period (1st Jan) with no time to peruse (I found £2.5K of expenses he didnt add and said it would cost more to rectify) was hit with a £4k corporation tax bill 3 days before i should pay it!
Am I been treated fairly? I feel at a loss in pocket and morale!