How much to pay your Accountant?

19driver83

Hi,

Im an engineer and about to leave a staff position to become a contractor.

How much should I be paying my accountant?

Shane732

19driver83 wrote: »

Hi,

Im an engineer and about to leave a staff position to become a contractor.

How much should I be paying my accountant?

It really depends on the job tbh. What do you need done, just an income tax return?

19driver83

It really depends on the job tbh. What do you need done, just an income tax return?[/QUOTE]

I need help in setting up the company.
I need to be showed how to complete VAT returns.
Income tax returns.
Advice on expenses, company car, drawings, etc.

As there is only a few months left in this tax year, do you think I could agree a fee for the remainder of this year intially??

Shane732

19driver83 wrote: »

I need help in setting up the company.
I need to be showed how to complete VAT returns.
Income tax returns.
Advice on expenses, company car, drawings, etc.

As there is only a few months left in this tax year, do you think I could agree a fee for the remainder of this year intially??

An accountant/tax advisor can certainly assist you with the information you are looking for.

The setup of the company will be a once off fee. Generally you'll pay in about €500 to set a company up, although you can get one cheaper if you use one of the company formations firms.

The advice in relation to VAT returns should also be a once off fee, assuming you are going to prepare the VAT returns yourself.

Again, advice on expenses, company car, drawings etc... should be a once off fee.

The income tax return won't actually need to be until next year. An income tax return is prepared a year in arrears (i.e. 2013 return to be filed prior to Nov 2014).

I suppose if I was doing it I'd be looking for €750 - €1,150 for the advice in relation to VAT returns, expenses, company car etc...

The annual tax return really depends on how much of the work you do yourself. Assuming you'll be doing bi-monthly/quarterly VAT you'll have to be doing a reasonable amount of the work as you go along so the corporation tax return might not be too bad.

Also be aware that you'll have to filed CRO returns and you'll have to prepare annual accounts. The CT return should be prepared as part of the accounts.

Have you considered whether you actually require a company setting up by yourself or whether setting up as a sole trader would be more cost efficient? Setting up as a sole trader removes the CRO requirements.

19driver83

Have you considered whether you actually require a company setting up by yourself or whether setting up as a sole trader would be more cost efficient? Setting up as a sole trader removes the CRO requirements.[/QUOTE]

Thanks for the excellent response, much appreciated.

With regards a sole trader, my earnings will be more than €37,500 a year thus a sole trade isnt an option.

However, the companys earnings between now and end of October will not exceed this so am I better going a sole trader until then or is there any benefit?

Shane732

19driver83 wrote: »

Thanks for the excellent response, much appreciated.

With regards a sole trader, my earnings will be more than €37,500 a year thus a sole trade isnt an option.

However, the companys earnings between now and end of October will not exceed this so am I better going a sole trader until then or is there any benefit?

Why do you say the sole trader route won't be an option because you earn over €37,500? The VAT threshold doesn't affect whether you can be considered a sole trader.

As a general rule the sole trader route is more cost efficient in a start up situation.

19driver83

Why do you say the sole trader route won't be an option because you earn over €37,500? The VAT threshold doesn't affect whether you can be considered a sole trader.

As a general rule the sole trader route is more cost efficient in a start up situation.[/QUOTE]

I had an initial consultation with an accountant and he said that if your earnings are more than €37,500 than you cannot go down the sole trader route.

Shane732

19driver83 wrote: »

I had an initial consultation with an accountant and he said that if your earnings are more than €37,500 than you cannot go down the sole trader route.

Are you serious? Is there any change there may have been crossed wires somewhere?

There's no restriction on the level of income a sole trader can earn before having to incorporate.

The €37,500 is the services VAT threshold.

If there are no crossed wires - get a new accountant, the one you spoke to is either utterly incompetent or looking to increase the potential fee from you by advising you to go down the company route.

By the way, how are you quoting posts? It's not coming up properly and makes it a pain in the ars* to reply!

J.Ryan

Shane732 wrote: »

Are you serious? Is there any change there may have been crossed wires somewhere?

There's no restriction on the level of income a sole trader can earn before having to incorporate.

The €37,500 is the services VAT threshold.

If there are no crossed wires - get a new accountant, the one you spoke to is either utterly incompetent or looking to increase the potential fee from you by advising you to go down the company route....

There is no limit on the turnover that a sole trader can charge, however if you are going to be a sub-contractor (as such) in your new venture, you may be forced to incorporate a limited company (based by the company hiring you), based on how the revenue are currently treating the "employers" of such contractors (the treatment of pharmacist and medical locums are a good example of Revenue policy in this area).

Regarding what that accountant advised you, that sounds factually incorrect, however, is there any chance that (s)he gave you a lot of information, without explaining it properly and thats what you took from the meeting. If they actually said that "because your turnover is X, then you must set up a limited company", they should be avoided, unless there was other issues in you personal circumstances, that may have made that good advice.



All advice given in these forums is a general rule of thumb, that may need to be altered to suit individual circumstances.

J.Ryan

Shane732 wrote: »

...... The setup of the company will be a once off fee. Generally you'll pay in about €500 to set a company up, although you can get one cheaper if you use one of the company formations firms.....

I would imagine in the region of €250.00 to €300.00 if you use a formation agent.

19driver83

Spoke to accountant today and he is charging me €700 for setting up company, advice, excel templates and showing me how to do VAT returns.

Then charging me €1200 + VAT for doing my personal & company tax returns each year.

J.Ryan

What does your gut tell you about the guy, the relationship you have with your accountant is an important one, do you feel you can work with him?

Shane732

19driver83 wrote: »

Spoke to accountant today and he is charging me €700 for setting up company, advice, excel templates and showing me how to do VAT returns.

Then charging me €1200 + VAT for doing my personal & company tax returns each year.

Both are very cheap quotes.

The €1,200 fee is particularly cheap. I suppose it really depends on how much work you do yourself.

19driver83

J.Ryan wrote: »

What does your gut tell you about the guy, the relationship you have with your accountant is an important one, do you feel you can work with him?

Ive meet him and asked a few people about him and it all appears positive. He is def. someone I could work with.

19driver83

Shane732 wrote: »

Both are very cheap quotes.

The €1,200 fee is particularly cheap. I suppose it really depends on how much work you do yourself.

Got on offer on boards.ie (via private msg) for;

€500 for formation and templates and advice

Company accounts, CT, income tax at €750 plus vat per year

Does this appear very cheap?