Accountants’ fees can vary greatly, depending on the size of your business. The scale of your activities, and the services you require. But once you know these things, it’s pretty easy to estimate your accountant’s likely cost. Accounting fees for a new limited partnership can vary greatly depending on the types of services you require. The size of your business, and the scale of your activities. So in this article, let’s talk about how much an accountant charge to set up a limited company. And you will definitely get valuable information.
Accountants in a limited partnership usually charge a monthly fee; Fees will vary based on package content but are likely to range from £ 65 to £ 200. Aside from the monthly fee structure, there may be accounting providers that charge an ad-hoc or service-based fee.
Company formation methods
There are three ways to incorporate a limited company:
- Do it yourself through Companies House. This costs £ 12 for the electronic service (and £ 40 for the paper service). If you choose the paper version, you will need to complete the application form and submit the supporting documents yourself.
- Pay a training agent to do it on your behalf. You can pay from £ 30 for a very basic service (with all documentation sent electronically) to £ 100 and up.
- Your accountant will be able to set up a business on your behalf for a fee or free of charge by registering with their accounting service.
Why do some accountants charge to start a business?
Your prospective accountant will absorb your company’s training costs in an ongoing monthly fee or charge a one-time fee for the service. This can vary greatly between companies, from £ 50 to over £ 200. So why pay for this service?
The answer is that your accountant will do much more than start your business through Companies House to offset this initial setup fee. In addition to the incorporation itself, you will need to register your new business for corporation tax, value added tax, and appoint your accountant to handle HMRC on your behalf. The accountant should also advise you on structuring the company’s capital stock, appoint directors (and possibly a company secretary), and guide you on the most tax-efficient way to establish holdings.
Over time, some contractors will already have an active limited partnership or will have formed a company before appointing an accountant. Some accountants prefer to charge a one-time fee to start a new business, as including this service in regular monthly fees can penalize contractors who have already established a business.
Do I need an accountant?
Some business owners can handle small, simple types of limited partnerships, but once the business begins to grow, it can handle too much. You will want to run the business and do an accountant job. And because? To save the price of a daily cup of coffee? Your time is more valuable than that! Instead of spending hours working on receipts, preparing VAT returns, and processing weekly payroll, you could be at the gym, spending time with family members, or taking the time to grow your business.
Many companies like to pay a monthly fee to their accountant, as this provides certainty. However, you can pay your accountant by the hour or for individual services. You can also mix and match, paying for some services through a fixed price or monthly fee, while paying more personalized services by the hour. An accountant performing basic accounting services will normally work between £ 25 and £ 35 per hour. More specialized services such as tax planning and business planning advice can be much more expensive, between £ 125 and £ 150 per hour.
Before you go, I hope this above article how much an accountant charge to set up a limited company is helpful and beneficial for you.