Anything served to eat on the premises is standard rated. Only carryout cakes are zero rated.
Staff training and a good till are essential.
Limited company accounts, payroll and everything else for £60 to £70/mth - no chance. It's simply not worth the hassle and I think your original fee quote is quite reasonable. We focus on quality service and regular contact and information flow to the clients. We are told they value and appreciate it and they are prepared to pay for it.
A good level of service makes me happy at my work and given the tiny number of clients we lose, it seems to be what the clients want too.
As things are now annual accounts may be prepared & filed at Companies House without the involvement of anyone with accounting / company law / tax knowledge or skill.
As a result such accounts are utterly unreliable.
We have seen on Any Answers questions from non-accountants which reveal a complete lack of understanding of accounts which are being prepared by them.
That's bad for business & bad for HM Government because the right amount of tax is not being paid.
The difficult bit is working out what can be done to improve matters - especially when there is no generally accepted method of determining whether an 'accountant' has adequate knowledge & skill to prepare annual accounts for small businesses.
But I agree that reimposing a statutory audit on all companies would be overkill.
This surely just adds strength to the argument that only suitably qualified members of specified accounting bodies should be allowed to call themselves accountants. It would also make sense that there should be a requirement to have an accountants report of some sort on the abbreviated accounts lodged at Co's House (although Abb A/Cs are going to become a thing of the past soon), so that it can be seen who produced the accounts.
As for small company audits, they are largely a waste of time. Clients of mine, up to £5/£6m turnover are still run and managed by the owners, who are involved in most aspects of the business. If there were to be anything wrong in the business it would be very likely to involve a member(s) of management which tends to mean it would be buried and hidden from an auditor, whose small number of samples would require a massive stroke of luck to find anything. In small businesses like this, systems and internal controls rarely exist in a manner which is formal enough to test with any certainty.
I have never understood why subbies should be any different from other self employed individuals and why they think it is acceptable to "make up" their expenses each year. I have already turned away 2 enquiries since 5th April because that's the approach they wanted to take. Their indignation that they might need to keep contemporaneous records of "real" expenses just increases my resolve that I want nothing to do with them.
In any case I reckon a 10% deduction is probably generous.
The guidance I referred to was just the guidance on HMRC's website relating to eligibility to claim Employment Allowance. Your thoughts just confirm what I thought but contradict the actions of the payroll departments of at least two other firms of accountants I know (and those nursing homes receive more than 50% of their fees from the local authority).
I'm not sure how you manage to get a repayment of er's NI in month 12 because as far as I am aware, that's not the way NI works - it is calculated on pay periods i.e. weeks or months with no cumulative calculations, so no refunds (Directors can use an alternative method but that doesn't give refunds either)
Did they change the calculation method to Director's method in Mth 12?
Basically the Employment Allowance is a maximum of the Er's NI paid up to £2,000.
Likely to lead to more hassle
I don't see this being a priority for 3rd party accounting/tax software producers and obviously HMRC don't care what havoc it reaps. I can only see this leading to more hassle for us in providing lenders with information which is reviewed by those that don't have a clue what they are looking at.
Why accountants can't get a copy of an SA302 from HMRC's website (in the same way we can't see PAYE payments etc) is beyond me and it would save everyone lots of time and trouble if we could see the same as someone who logs in directly to HMRC's portal.
Buy some each year
If you think you are worth more then why not agree with your partner that you receive a bonus each year (if you bring in more than an agreed amount) which you can then use to buy more of his shares. If the bonus is less than £11K net and your partner doesn't have any other capital gains then he will receive the proceeds tax free. There will be an NI cost but you will take ownership of a bit more of the company each year.
It is all about negotiation but remember that this was his practice built up by him at what was probably significant personal and financial cost. You don't have those worries because of the costs he has borne and as such you should pay a premium to take ownership - that is effectively what your arrangement is doing.
Just remember that he is inviting you into his firm and like he did when he started, you are going to have to put much more in than you get out in the early stages. I've been there and done it - just don't fall out about it and don't make him feel you are trying to steal it from him.
The next thing you need to think about is how are you going to manage one he has retired. Do you need to bring in someone like yourself further down the line?
As Euan said above there is no exclusion of advances and guarantees to directors so they must be included in the abbreviated accounts.
I have had a look and can't find any statutory references for you but my Co's Act checklists and various course notes all confirm that this is the case.
Transcations with Directors or Related Parties
Transactions with directors need to be disclosed in the Abbreviated Accounts (Advances to and guarantees for directors). Related party transactions do not need to be disclosed.
Both require disclosure in the full accounts.