Accounting terms question and possible overcharging

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    Accounting terms question and possible overcharging

    Hi

    I've finally managed to get the guy doing my accounts to get them sorted and he's now hit me with his invoice. I don't mind paying for work done, but think he's trying to overcharge me.

    When I first contacted him, it was to say I had all my accounts done up on a spreadsheet and I was wondering what login details he used to access HMRC website to do the returns as he has done the submissions over the last 2 years.

    He replied to me that he could give my accounts a check over and charge me a set price for submission to Companies House and HMRC, which I thought was reasonable and therefore agreed.

    He emailed his invoice today and said that there was an additional charge (50% extra from his original price) for the Corporation Tax Return.

    My question is, is this an additional return from what he originally said? I thought the Companies House return and HMRC return would have included the Corporation Tax return.

    Any help is appreciated.

    Thanks

    Brendan

    #2
    You would have an income tax return to HMRC for job earnings , directors fee, and rental profit from property held in your own name.( paid by you ).

    Your company has obligations for submitting annual returns to Companies House and HMRC. ( cost paid by company )

    Comment


      #3
      Hi Gordon

      Thanks for the reply.

      I already submitted myself, my own personal accounts to HMRC detailing any rental profit and paid the tax.

      The guy doing the accounts was only doing those for the company.

      I guess from what he is charging me is that there are 3 separate accounts for the company:
      • HMRC accounts
      • Companies House accounts
      • Corporation Tax Return

      Thanks

      Brendan

      Comment


        #4
        There should only be one set of accounts.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          So I'm getting charged 50% extra just for the submitting of the accounts rather than the make up of them?

          Once the accounts are produced, what effort does it take to submit the Corporation Tax Return to Companies House? Is it a matter of just uploading the accounts, or do you have to jump through multiple screens? Basically, would it be a 5 minute piece of work or would it take an hour or more?

          I want to try and see why the extra charge is so high.

          Thanks

          Comment


            #6
            I'd ask your accountant.

            The effort of uploading a tax return to HMRC doesn't justify the fees I pay my accountant for the service.
            But I pay for the knowledge its been done properly (and corresponding lack of stress) and for the insurance if it isn't.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #7
              He has replied to my query with:

              Hmrc and companies house receive a set of abbreviated accounts in the same submission. For corporation tax there is an additional tax return together with a set of specially formatted accounts that have to be submitted through 3rd party software.
              I guess its the 3rd party software and the specially formatted accounts that justify the extra fee.

              I don't mind paying for a service, but just need to know I'm getting some kind of value for money.

              Thanks again for all the help.

              Comment

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