Tonight I'm a bit irked.
Discussion
This evening my self assessment has dropped on the doormat.
My accountants of 25 years, who have recently been taken over by a much bigger outfit, have informed me that I'm due a sub 1K refund.
The letter informs me they have given their bank details to HMCR and will pay me the balance after deducting their fees.
Is this normal practice?
If it is fair enough but it doesn't seem right to me.
Over to you.
My accountants of 25 years, who have recently been taken over by a much bigger outfit, have informed me that I'm due a sub 1K refund.
The letter informs me they have given their bank details to HMCR and will pay me the balance after deducting their fees.
Is this normal practice?
If it is fair enough but it doesn't seem right to me.
Over to you.
Our accountants send us an invoice with the calculations for us to look at and query/sign so that they can submit to HMRC. I settle invoice by BACS there and then and send our response within a few days. Sadly I've always got tax to pay on account and my wife's rebates have always been smaller than her accountancy fees so they couldn't use that system.
Perhaps it is normal practice - in my limited experience solicitors pay the estate agency fees and their fees from the proceeds of the sale of one's house prior to passing on the residuum to you from their client account, but presumably one has signed a contract to that effect. When your accountancy firm was taken over/merged with the larger one were you sent new terms and conditions? I suppose that the advantage for you is that you don't have to pay them up front, only indirectly once they get your rebate back from HMRC.
The accountants on the forum will be able to give it from the horses' mouth.
Perhaps it is normal practice - in my limited experience solicitors pay the estate agency fees and their fees from the proceeds of the sale of one's house prior to passing on the residuum to you from their client account, but presumably one has signed a contract to that effect. When your accountancy firm was taken over/merged with the larger one were you sent new terms and conditions? I suppose that the advantage for you is that you don't have to pay them up front, only indirectly once they get your rebate back from HMRC.
The accountants on the forum will be able to give it from the horses' mouth.
bingybongy said:
This evening my self assessment has dropped on the doormat.
My accountants of 25 years, who have recently been taken over by a much bigger outfit, have informed me that I'm due a sub 1K refund.
The letter informs me they have given their bank details to HMCR and will pay me the balance after deducting their fees.
Is this normal practice?
If it is fair enough but it doesn't seem right to me.
Over to you.
It doesn't seem right to me either.My accountants of 25 years, who have recently been taken over by a much bigger outfit, have informed me that I'm due a sub 1K refund.
The letter informs me they have given their bank details to HMCR and will pay me the balance after deducting their fees.
Is this normal practice?
If it is fair enough but it doesn't seem right to me.
Over to you.
My accountant charges me an annual fee for his services. I've had a couple of refunds over the years, and they have always come directly to me.
I'd be looking for a new accountant.
Interesting replies, thanks.
Their fees for completing my self assessment are what I would call reasonable so I have no issues with that and the company over the years have always treated me very well. Since their amalgamation with the new mob things seem a bit different, I've decided to ring this morning and ask why they are doing it like this.
Their fees for completing my self assessment are what I would call reasonable so I have no issues with that and the company over the years have always treated me very well. Since their amalgamation with the new mob things seem a bit different, I've decided to ring this morning and ask why they are doing it like this.
Having an accountant deduct his fees from tax refunds is something that accountants have done for years and is perfectly legitimate.
HOWEVER, before such a methodology is put in place, the accountant must have the following permissions IN WRITING -
authority from the client to allow tax refunds to be paid to the accountant rather than himself. This authority is given by the TAXPAYER to HMRC, not to the accountant.
authority from the client that the accountant can deduct his fees from such refunds before he pays the balance to the client. This is a separate arrangement between the client and the accountant and should also be in writing
Based on what the OP said in his original post, it sounds like the accountant has done this without the required approvals from the client or he obtained the approvals from the client but didn't explain to the client properly what was actually being authorised.
HOWEVER, before such a methodology is put in place, the accountant must have the following permissions IN WRITING -
authority from the client to allow tax refunds to be paid to the accountant rather than himself. This authority is given by the TAXPAYER to HMRC, not to the accountant.
authority from the client that the accountant can deduct his fees from such refunds before he pays the balance to the client. This is a separate arrangement between the client and the accountant and should also be in writing
Based on what the OP said in his original post, it sounds like the accountant has done this without the required approvals from the client or he obtained the approvals from the client but didn't explain to the client properly what was actually being authorised.
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