Accounting Costs

[playerone]

I have been trading since January and I have reached the point where I need some professional guidance.

It is a small finance company (ltd) so i collect payments regularly with interest calculations and customer details recorded in an excel spreadsheet. Very few other costs and I am currently not paying myself via PAYE.

What should I expect to pay for a basic accountancy service? I have been recommended someone by a guy who owns a very similar business to mine. This guy charges £70 ex vat a month but Ive been told by a couple of people this is fairly steep for my requirements.

Cheers

[Eric Mc]

Why aren't you set up for PAYE?

[playerone]

Eric Mc said:

Why aren't you set up for PAYE?

Im not paying myself at all Eric. I am living off my own savings and reinvesting all the profits for growth of my loan book.

[smartie]

£70pcm doesn't sound too bad to me.

If they are preparing Co accounts and all the various co house & in rev bits that go with that, and also your own personal tax retunr, most accountancy firms are going to want £600/700 per year however good your records are!

[Eric Mc]

playerone said:

Eric Mc said:

Why aren't you set up for PAYE?

Im not paying myself at all Eric. I am living off my own savings and reinvesting all the profits for growth of my loan book.

Do you claim expenses from the company?
Do you reimburse yourself for Expenses paid out of Pocket?

These types of transactions need to be returned to the Revenue under the PAYE system, even if no wages are being put through.

Is the company making a profit?
Is the Company paying Corporation Tax?
If the answer to the above two questions is yes, maybe it might be worthwhile processing a salary up to the Tax and NI levels in order to reduce your CT bill. This would depend on your personal levels of income from sources outside the company.

On the Accountancy Fees front, anything up to £1,000 per annum is not totally out of question for a small one man company.

Edited by Eric Mc on Tuesday 27th May 16:34

[playerone]

Thanks for the advice Eric.