Member Since: 23rd May 2007
23rd Apr 2013
I'm a registered auditor and have a joint venture with another firm which is not qualified to do audits. We set up another firm with their name plus "audit", owned just over 50% by me, with separate audit registration & PII, and I do the audits and sign them off in the name of this similar sounding firm - effectively subcontracting some of their staff (via the share of profits) to help with the audit work.
It seems to work well, provided there's enough joint work to make it worthwhile. Independence is maintained, but they can effectively offer a semi-in-house service. And I get extra fees!
22nd Jun 2012
Maybe I just wasn't used to it, but it seemed a bit primitive - maybe he was using the 1995 version! Value for money, maybe - it was certainly cheaper - Amazon charged me about £20, from memory.
22nd Jun 2012
I took over a client from an ill accountant who died before handing anything over, but fortunately his niece gave me access to his computer to take what I needed. Not as helpful as it might have been because of the quality of the records there - and I needed to invest in WordPerfect & Lotus 123 (remember them?!) before I could read most of the files. However, HMRC were understanding in allowing time to sort things out,, including a repayment claim for a previous year where he'd completely failed to claim £20k or so foreign tax.
Incidentally, the accountant was in prison for fraud when he died - so I was alert to possible discrepancies - but I found only apparent incompetence.
28th Mar 2012
Transfer of business
Another thing to consider (apologies if I've missed someone already saying it above!) is that he's effectively selling his soletrader business to the company, so there may well be Goodwill to calculate and account for. This can then lead to a healthy amount owed to the director in the new company for him to draw against ("tax-free" in his eyes). OK, there'll perhaps be a bit of CGT, but hopefully only at 10%.
This is all part of the follow-on of incorporation and should be properly remunerated. You may be able to justify quite a substantial fee (hence perhaps the higher fees mentioned above) based on the tax-saving over the next few years of having transferred into the company. The original £18 is only the tip of a large iceberg.