Terms & Conditions

Introduction

When anyone thinks of hiring a professional service, the most emotive subject is that of billing. The concern on the client's side is how much they are going to be billed, how the total has been reached and how they as the client can keep the bill as low as possible. Our concern is to bill in a fair and reasonable manner, whilst expecting prompt payment for the job when it is done.

It has therefore been decided to compile this guide of our billing structure, how the bill is reached and the various payment options open to clients. There is also a note of the possible penalties that could be incurred if there is late payment of that invoice.

How much will you charge me for a normal set of accounts?

When asked by a new client, or prospective client how much they can expect to be billed in a year, it is very difficult to give a straight answer as we only ever charge on the time spent on an individual case. However we are able to say that a minimum charge for an individual's Tax Return and set of accounts is £395 plus VAT.

The first component of this bill is the charge for doing the actual accounts themselves. This charge however can be almost any amount as it completely depends on how the accounts are presented, whether they arrive in a carrier bag or on a nice neat single sheet of paper containing all the information required.

There is then the charge from the Tax Return department for the completing of the Tax Return, compiling of all of the information, checking that the regulations have been complied with and ensuring that the relevant acknowledgements have been received. As each case varies and the Inland Revenue themselves sometimes cause additional work, this charge varies substantially.  The other charges levied include the typing of the letters and the accounts before they are submitted, as well as costs relating to the smooth running of the process. There will almost always be some form of discussion or even a meeting to charge for as well.

Partnerships

Moving on to Partnerships, the costs are slightly higher at approximately £530 per annum as there is a minimum of three Tax Returns that need to be submitted rather than just one, whilst information concerning the accounts is fairly much the same. There is only ever a recommendation to set up a Partnership if the rise in the bill is outweighed by the tax savings to be achieved.

Limited Companies

If you are seeking to purchase, or have been recommended to set up a Limited Company to go hand-in-hand with the Partnership, the costs are broken down into two sections:-

1. The purchase itself is £270 plus VAT and includes the set-up, change of name and relevant filing and document preparation.
2. It also includes all the necessary paperwork required for a Company. (This work is not done by the average off the shelf Company sales outfit). The current yearly compliance costs concerned with running a basic Limited Company set up to run a small company averages at £550 per year plus VAT.

Again like the Partnership, a Limited Company is only recommended to those clients who will benefit significantly more from having a Limited Company than it will cost in compliance. Combined running costs for a Partnership and Limited company are in the region of £1,000 per annum.

Chasing the Client for Information

Another charge that is sometimes levied is for chasing for the relevant Accounts and Tax Return. This is to ensure that everything is filed on time. Anyone wishing to keep their bills down should realise that the sooner the information is sent in after it is requested, the less calls are required and lower the bill. Those clients who submit information just before the filing deadlines will see quite sizeably increased fees.

Payment Methods

For maximum flexibility we have set up several methods of payment:

1. By cheque - the traditional way - Payee ´Christopher Lunn and Company´.
2. By card - all major credit and debit cards can be dealt with by the Finance team over the telephone.
3. Electronic transfer (BACS) - by direct payment into our bank account.  Please telephone the Finance team for account details and appropriate reference.
4. Standing Order - in certain circumstances staged payments can be negotiated with the Credit Controller.

Penalties and Surcharges

First and foremost, we understand that sometimes, even the most successful businesses go through cash flow problems from time to time and we are happy to consider any arrangements that you might suggest concerning outstanding amounts.

For limited companies and sole traders, we understand and will exercise our statutory right to interest under the Late Payment of Commercial Debts (Interest) Act 1998 if we are not paid according to the agreed credit terms. In the case of individuals we reserve the right to levy interest equivalent to 2% per month or part thereof on invoices exceeding the 30 day period.

We are not responsible for paying Late Penalties if Accounts are not returned in good time to enable us to submit them to the Inland Revenue by the due date.