IT Contractors: How much is your accountant's fees?

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pinoy

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Will start contracting next month and currently looking around for the best rate I could get for setting up Limited Company and annual accountant's fee.

1. Company A. Setting up Limited Company EUR500 (plusVAT) - one time.
Annual Fee EUR1600 (plust VAT).
2. Company B. No cost in setting a Limited Company. Annual Fee EUR1750 (plus VAT).
3. Company C. Setting up Limited Company EUR EUR460 (plus VAT). Annual Fee EUR EUR1900 (plus VAT).

Please advice if yours is cheaper than these. I would appreciate recommendations based on personal experience.

Thank you very much.
 
most accountants get an outside agency to set up a company so anything up to €500 seems reasonable. in relation to the annual fee what exactly will the accountant be doing for you? if its just the annual set of accounts as opposed to everything else i.e. paye and vat this will make a big difference.
 
Set the company up yourself with a company called companysetup.ie it costs 252+vat it is very straight forward fill in the details and this company take care of the rest, takes about a week as regards the annual fee can you give details of what is included.
 
From the price of company (B) I'm guessing that's the company I used to be with. Does it have numbers in the name?
I have just left them and moved to a smaller guy for 1475. He has said he will drop the price next year if he finds there is less work involved in putting the accounts together. I suppose he has had to put in a few extra hours to take over from the previous company.

I would compare the costs without the company set up fee as this only applies to year 1. Changing accountant is a lot of hassle and causes confusion so I wouldn't recommend going with someone because they incorporate the setup fee, then changing the following year.

Shop around and try to find someone around the 1200 - 1400 mark, I wasn't able to find anyone cheaper, although I didn't do an extensive search.

I will PM the details of my new accountant if you wish. I got his name from this board ages ago, he seems ok, but I've only started using him, so you'll have to make up your own mind.
 
I paid €895 including VAT last year for basically end of year accounts and P35 returns. I do the month-on-month administration myself via www.ros.ie
 
Brouhahaha, do you do your own payroll every month?
How about your personal tax return?
Can you send me a PM with the name of your accountant?

I've just set up a direct debit for the revenue commissioners for estimated PAYE, VAT which means you don't have to do bi-monthly VAT returns. You just need to do a reconciliation at the end of the year. That might be easier for you.
 
Hi Helen - I'll send you the accountant's details but perhaps it won't be of use to you as I'm based in Galway - I assume you're in Dublin. Also if it's your first year you should expect to pay more than in subsequent years as the accountant will have more to do and will need to advise you more.

For payroll I work out an estimated amount I'll be invoicing for the year, subtract the expenses I believe I'll have and that gives the amount I should pay as salary. Note this is assuming you want to have zero profit in your company to avoid corporation tax and you don't need to keep funds in your company going into next year (something your accountant should advise you on). I then workout the PAYE and PRSI payable which then gives me my take home pay. I divide everything by 12 and pay myself and the tax man monthly. I pay the tax and VAT via www.ros.ie by direct debit but not an automated direct debit - I prefer to have control when the money leaves my account as you could have a cash flow issue if your invoices are not being paid regularly. I keep track of everything using spreadsheets.

The one problem I currently have is not being able to view my company account on the web so it's tricky keeping track of what should be in the account. I'm with BOI but their online system for business accounts is aimed at big business and is a pricey as a result when you just need to view your balance.
 
Thanks Brouhahaha, I am based in Dublin so will try and find a cheaper option up here.
This isn't my first year in business so everything is ticking over fine now and I feel I could do more of the monthly work myself.
Am interested to know how you control your direct debit, I didn't know this option was available and last month I did have cash flow issues but couldn't do anything to hold the direct debit! Also, sometimes I work for UK companies where no VAT is applicable so the monthly amount can vary a lot.
Is it something you can do via the online system?
If you are only estimating your PAYE/PRSI using spreadsheets, does your accountant generate a P60 for you at the end of the year?

Brouhaha said:
The one problem I currently have is not being able to view my company account on the web so it's tricky keeping track of what should be in the account. I'm with BOI but their online system for business accounts is aimed at big business and is a pricey as a result when you just need to view your balance.
Click to expand...

I am also banking with BOI - used their online system for a while, but then cancelled it as I also felt it was too expensive for what I needed. I have a cashcard now which allows me to check the balance and print statements at an ATM machine. It's not as convenient, but better than nothing.
 
You can control your direct debit on ROS using a nominated account. You inform ROS of the account to debit from and then it's an option on the pay screens for tax/VAT etc. They take the money from your account when you submit your online payment. If your business account's cashcard has a laser facility I think you can pay directly via that also.

Yes my accountant does the P60 for me at year end.

I didn't realise you could have a card for business accounts and view the balance on ATMs - thanks for that
 
Hi Pinoy,

If you are just starting ou you may want to think about using an umbrella company which does all of your accounts for you for a flat monthly fee. I am currently with a crowd that charges €130 per month and that covers the lot as i don't know for how long i will be contracting for and i heard it can be messy closing down a company if you go back to fulltime employment. Pm me if you want their details.
 
I pay 900 no P35 just year end accounts.

Its too much for the work they use a bit of sage and pump the numbers in its not rocket science.

1900 ur off ur rocker mate.
 
Ecstatic - are you based in Dublin? Would you mind sending me a pm with accountant details?
What do you do for P35 and payroll calculations. Did you invest in Sage?
 
Value for money must be considered when deciding to availa of the services of your accountant.

I had a 'cheap' accountant many years ago. I thought I ws getting a good deal until I had a Tax Audit.

It appears that my corporation tax was not calculated correctly and that my P35 submission was not up to scratch.

You may easliy get an accountant on the cheap, but you should also consider how good is your accountant, does he/she answer your calls/are they offering sound advice and most important are they doing the job correctly.

Remember that company directors are personally responsible for the accuracy of accounts filed with the companies office and the revenue.

Don't just look for the cheapest option.

I now pay more for my accountant, but I reckon that I am getting a good deal as she does the job right.

Rascal
 
True, a good accountant is well worth the extra few bob. Try to get someone who will give you more than the bog standard routine work.
 
If there is anything at all complex about your situation (e.g. tax residency, multiple employees etc) then I agree, this is where a good accountant will be worth their fee.
However, for a usual 1 man IT contractor business, the accounts should be straight forward and simple. The rules for business expenses are straightforward so a bog standard service should be sufficient.

It's all a bit of luck really - you don't know how good they are until you sign up and use them!
 
Helen said:
I've just set up a direct debit for the revenue commissioners for estimated PAYE, VAT which means you don't have to do bi-monthly VAT returns. You just need to do a reconciliation at the end of the year.
Click to expand...

It used to be the case that a business had to make monthly paye/prsi and bi monthly vat returns for at least a year before revenue would allow someone to go on the direct debit.
 
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