Accountant's fee/ standard practice query

[Sgt_Pepper]

I filed my first years accounts last week showing 30k earnings. My tax bill from my accountant came in considerably higher than I expected as I had overlooked the fact my wife had been claiming my credits as I've been the stay-at-home parent the last 6 years. The accountant's bill was €350 for an initial consultation lasting about 30 mins during which he gave me some broad advice and registered me with revenue. This was back in September 2016. Between then and 2 weeks ago I heard nothing from him. I was getting a little anxious so I contacted him asking him what he needed from me. I emailed him out the documents he requested...bank statements, invoices, expenses, medical expenses, my work equipment list, and my wife's p60. We are jointly assessed - it was at his insistence as he said it's easier.

A week or so later I got 2 copies of my accounts from him (I couldn't make head nor tail of it), and a few days later he sent me a short letter detailing simply what I had to pay in income tax, plus how much preliminary taxes I needed to lodge with revenue. I did that. He also included his bill which was a further €800

At no point did he ask me if I had kids, or in any way ask for any personal information about me or my circumstances. I found that odd as I had thought that would be very relevant information when calculating returns?

Could it be the case the he is simply taking my wife's p60 and getting all the relevant information he needs from that?

Secondly, I feel a little hard done by with this jointly assessed route as my own tax credits have been eaten up and now I have to pay more than i thought out of my own pocket rather than sharing the burden with my partner. Is there any real disadvantage to going to assessed individually? We are married with 2 kids under 5. Thanks all.

 

[RedOnion]

Hi, you're probably better off jointly assessed as if either if you doesn't use the full lower tax band, the other benefits from the increased tax band.

You can call Revenue and ask them to reallocate credits between you if you're having trouble getting money back from the wife!!

Having children doesn't impact on your tax as your income level removed your eligibility for the home carer tax credit.

Without knowing the specifics of the nature of your work, 800 sounds reasonable for preparing accounts and tax computation from raw invoices. My advice is agree the cost up front for next year.

Most self employed people only engage their accountant when they need something. It's up to you to be proactive and get your accounts prepared earlier, and ask for his advice on any ad-hoc matters (e.g if you were getting a work can and wanted to understand different tax implications of buying Vs leasing, etc).

 

[GabbyTheKing]

An accountant isn't going to chase you. 800 seems very reasonable for accounts and tax returns 500 + 300 I assume that is ex VAT. Including VAT is extremely cheap. Probably even a little too cheap but that would depend on the level of transactions etc. I'm afraid at that sort of fee your not going to get a much better service from anybody worth having.