Fees

Fees for a very small limited company set of accounts

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A client of mine does really small amount of trading through his limited company - less than £2,500 of turnover. Just wondering what sort of fee we should charge - obviously we have the expertise to prepare the accounts /CT600, plus overheads etc but want to charge a fee which is reasonable for the work

As a firm we have a minimum charge which we offer to start up clients with minimal turnover, wondering whether any other practitioners out there have similar situations? 

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By SkyBlue22
29th Feb 2024 12:44

My firm's minimum cost for a trading company for accounts and CT is £750+VAT usually, but if I can bash out the accounts in about an hour I have before charged £400+VAT. We charge companies house filings etc. separately though.

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By Truthsayer
29th Feb 2024 13:16

I won't take on any trading limited company for less than £500. In this case I would quote £500-£1,000, depending on the number of transactions.

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By Tax is always taxing
29th Feb 2024 13:29

Most people have minimum fees. I would be encouraging client to either do it himself or to have a think about if he really wants / needs a limited company.

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Replying to Tax is always taxing:
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By David Ex
29th Feb 2024 13:52

Tax is always taxing wrote:

… have a think about if he really wants / needs a limited company.

Exactly! May be a good reason for operating that way but struggling to think of one!

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Replying to David Ex:
By Husbandofstinky
01st Mar 2024 11:43

David Ex wrote:
Exactly! May be a good reason for operating that way but struggling to think of one!

All I can think of is ultilising the ever diminishing dividend allowance.

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By ireallyshouldknowthisbut
29th Feb 2024 13:57

Its their problem not yours that have a company on a laughably small turnover.

I find other the "small ones" are harder work as its so badly done.

The lowest we go is £500+VAT, but I would not quote under £850+VAT and only go that low with a discount to our fees if it was genuniely a breeze to do. They can be if its very simple of its all set up and well controll. IF. Huge if.

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Replying to ireallyshouldknowthisbut:
Melchett
By thestudyman
29th Feb 2024 14:08

Yes it is their problem but this is where us (the accountants) should advise or at least ask that question - the client should appreciate the saving of fees if going sole trader for example.

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By Bobbo
29th Feb 2024 13:58

Charge them £2,500 as a punishment for being ridiculous enough to be running that much turnover through a company.

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Replying to Bobbo:
DougScott
By Dougscott
29th Feb 2024 14:28

Bit harsh Bobbo - most companies start small and get bigger.....!

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Replying to Dougscott:
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By Bobbo
29th Feb 2024 15:07

T'is only a joke!

Like other posters, we would probably have a min fee of approx £500.

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By Paul Crowley
29th Feb 2024 15:24

I assume he took no advice

Let the company die and give him some advice

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By FactChecker
29th Feb 2024 16:06

"A client of mine does really small amount of trading through his limited company - less than £2,500 of turnover."

Two (obvious but unasked I believe) questions:
1. Is that trading the only capacity in which you represent them?
2. Is that t/o a sign of regular but minimal activity, or just 'year 1' with plans to grow?

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By SXGuy
29th Feb 2024 16:17

An existing client of mine recently set up another ltd company in a different trade. Her first year her turnover was lower than 1k.

In reality the accounts took all of an hour to complete. Would I charge over £500 to do them? No I wouldn't.

But had she not been an existing client who's already paying a substantial amount I may have had to decide whether I go in with my usual min fee or not take it on at all.

I guess it's whatever you feel is justified. No point comparing it to anyone elses fees as they could range from what the job is actually worth, to the reputation and status of the practice.

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By mikebrooks
01st Mar 2024 13:17

A good few years ago, I took on a small OMC for a very low fee – in the hope they would recommend me to their clients. They did, and it’s paid off handsomely! BTW – my client chose Ltd Coy status to “impress” his clients, which seems to have worked well (albeit tricky to prove).

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All Paul Accountants in Leeds
By paulinleeds
01st Mar 2024 13:19

As others have said, if very few transactions, and a few hours work, £400 - £500.

However, if it's a new client, I'd charge £250 minimum for AML and setup on top of that.

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