No i'm not obliged to stay with them, i have indeed looked at other like for like comparisons. There isn't much in it, the cheapest I found for another company doing exactly what mine did was around £700 less, and yes ok there are cheaper ones I can use, but i'm sure i could find a cheaper one, and then find someone cheaper than that, and just go down an ever increasing cycle of finding the cheapest accountant like many of you seem to seek, forgetting the fact that its all tax deductible, and the correct accountant will cover all avenues of taxation legality and outcome and you have to weigh up whats best for your goals, and mine are to grow into a big company eventually, much like Lee Pryor but at a slower rate. I will also be seeking investment into my business ideas and specific processes for my business, and this firm can realise that for me through partnerships, investments and capital injection from investors. I have a wonderful case study to use now, and he has demonstrated to all on this forum what can be done with a cash injection and the right strategy.
Many of you on here clearly think i'm crazy, with my next date system on my bills (which work perfectly i hasten to add) and my focus on having the right sort of people working for & advising my business instead of buying the latest hose reel, or lightest pole, or flashiest pump controller. To me spending a fair amount on money on business advice, taxation advice, and doing things the correct way with a paperwork trial is more important, than these other trivial mundane matters.
For example, going back to transfer of sole trader to ltd company status. Many of you who did this probably thought its a case of just registering as ltd company and then trading from a set date as ltd.. and on the surface that is true..it is that simple. But there are hidden tax ramifications for doing it if you don't do it correctly. One of which is the personal tax liability you can set for yourself should and investigation into your affairs arise. if its not done the correct way, it can ruin your chances and lend you to be paying back a debt that is huge.
Say Mr Jones (sole trader) has a window cleaning business of 30k a year, and over the last 6 years his personal tax returns say he made a profit of around £144k over that period. Taking for example the amortisation of goodwill value over 6 years, to value the business the figure works out to be valued at £50k. Now of course goodwill is very subjective, and will vary from one person calculating it to the other, but say its HMRC asking about your tax affairs and the transfer of the business from your termination of sole trader status, to that of your ltd company ( it does happen) they will do the calculations that the sole trader business was worth £x at the time of transfer to the company, and will send you a personal tax bill for the value of that transfer as income, as you effectively sold the goodwill to the company when you became a director, and it will owe you on the DL account.
My accountants have basically handled the above, legally, through the correct channels and means at the most efficient tax saving point possible and saved me from a fairly substantial personal tax bill, to a rebate with marginal corporation tax to pay.
Now of course, i could have just started trading as LTD and done nothing in terms of the transfer, and probably be ok, and most people do this with little or no thought about it, until an investigation pops up into the way you handle your affairs..problem time..
and of course in everything there is always someone cheaper.. something we can all relate to when we are asked to quote by others...
