Is this accountant's fee reasonable?

[MichaelCOH]

If you think cheaper is better then by all means, ring around and go with the lowest price

There's no question of believing cheaper is better, just like it's wrong to assume the most expensive service will necessarily be the best! He knows the fee will be sizeable to sort this out, it's just a question of finding out if this is a reasonable fee for the work involved or if it's excessive. If it was the standard going rate, he'd pay it.

 

[Bronte]

I think he can cut 1500 off this quote by shopping around.

Doing eight years returns in one batch is nothing near the work of doing eight single years at separate times.

The work involved is of a very basic nature and the charge out rate should be at the lowest level.

There is no special skill required in agreeing a payment plan of this nature with revenue.

Maximum work involved is one hour per year for eight years, say 10 hours @ 100 per hour = 1000

Advise your brother to go to two other accountants for a quote.

I'm with you on this. Especially as it's only one property. An accountant I hired from on here did a couple of years returns for me ( got caught up with young kids and stopped doing my own returns, but I knew I owed no tax) and it was a lot more complicated than what the OP is talking about. And any accountant knows exactly what to do to deal with revenue.

 

[dublin66]

I'd have a simple response here - if someone asked me to do 8 tax returns for a €1,000 and said that they had an accountant that could do it I'd suggest that they'd use that latter person. I might be persuaded to do 8 tax returns for a €1,000 if it were only P60s - anything else I'd be passing.

 

[cremeegg]

The accountant justified his fee by stressing he would work on getting the best deal possible from Revenue in terms of negotiating a payment plan, likely to be a lump sum up front and then the rest in instalments.

Whatever about the size of the fee the above is BS. Stay away from this guy.

 

[Jon Snow]

And any accountant knows exactly what to do to deal with revenue.

Ah Bronte, I'm flattered that you have such a high regard for the entire profession, but I could tell you stories that you wouldn't believe - be in no doubt that there are plenty of accountants out there who routinely make things worse rather than better for their clients.

 

[Jon Snow]

Whatever about the size of the fee the above is BS. Stay away from this guy.

May be BS but not necessarily, if the financial circumstances warrant it, and someone who understands the criteria that the tax office and the Collector General's have to operate by, presents the thing in the correct way they could end up in a phased payment arrangement on terms much better than a term loan.

 

[MeathCommute]

Is every accountant a tax agent ? Seems to me that some of them will pump the figures into the Form 11 and press a button, and whatever figure comes out, is what you owe the revenue. The tax agent is able to help you with an audit and other negotiation with the revenue. On the basis that this accountant is a tax agent as well, I'd pay the €2500

 

[cremeegg]

Is every accountant a tax agent ? Seems to me that some of them will pump the figures into the Form 11 and press a button, and whatever figure comes out, is what you owe the revenue. The tax agent is able to help you with an audit and other negotiation with the revenue. On the basis that this accountant is a tax agent as well, I'd pay the €2500

Some people will believe anything.

I'm a Tax Consultant, not only can I help you with an audit and other negotiation, I can pro-actively plan your tax affairs so as to minimise the tax burden arising from your on-going activities.

That will be €4,568

 

[MeathCommute]

Some people will believe anything.

I'm a Tax Consultant, not only can I help you with an audit and other negotiation, I can pro-actively plan your tax affairs so as to minimise the tax burden arising from your on-going activities.

That will be €4,568

For one year ????

 

[Bronte]

Ah Bronte, I'm flattered that you have such a high regard for the entire profession, but I could tell you stories that you wouldn't believe - be in no doubt that there are plenty of accountants out there who routinely make things worse rather than better for their clients.

Actually I know too many stories, but I tend to employ people I can trust, so far this is working out. This is not rocket science as accounts go in any case.

 

[T McGibney]

This is not rocket science as accounts go in any case.

Are you serious? There's an actual risk of prosecution here which multiplies if the case (including, but not limited to, the actual submission to Revenue) is mishandled. If I were the OP's brother, I'd be leaving it in the most capable hands I could find.

 

[Bronte]

I'm not afraid of revenue as you seem to be Tommy. You're not giving a good impression of the competence of your profession?

 

[Gordon Gekko]

I'm not afraid of revenue as you seem to be Tommy. You're not giving a good impression of the competence of your profession?

There are terms on which one must engage with Revenue. If that does not happen, the penalties increase. It would be delinquent to engage in a race to the bottom with something like this. A taxpayer should look for someone who is reputable, qualified, and experienced at dealing directly with Revenue. One could pay Big 4 north of €8k for a job like this. Equally, I'm sure we could find some punter who'd do it for €500. A fair price is somewhere in between, and in my view €2,500 represents decent value, assuming that the practitioner is reputable, qualified, and experienced.

 

[jim]

I think the OP's starting point is the 2,500 quote he has. Now he should seek 2 or 3 further quotes and make a decision. Too much speculation above complicating what should be an easy decision given enough quotes.

 

[T McGibney]

They'd need the get the finger out if they're going to look for more quotes before having any work done. Especially as they have already ill-advisedly notified Revenue of the default.

 

[T McGibney]

I'm not afraid of revenue as you seem to be Tommy. You're not giving a good impression of the competence of your profession?

It's hardly my job to proselytise on behalf of my profession. Why should I? There's good bad and ugly in every walk of life.

I stand over my statement that the OP's brother remains at risk of a Revenue-initiated criminal prosecution for failure to file returns for 8 tax years. The quarterly defaulters lists contain long lists of court fines imposed on foot of such prosecutions, the going rate generally being €750 per year. This could cost upwards of €6,000 here, and also involve publication. Because of this risk, they can't afford to mishandle it, either directly themselves or indirectly on the part of their accountant or advisor.

 

[Gordon Gekko]

They'd need the get the finger out if they're going to look for more quotes before having any work done. Especially as they have already ill-advisedly notified Revenue of the default.

One of the salient points of this discussion. Contacting Revenue was crazy, but it's the type of thing that happens when people "nickel and dime" by trying to do things themselves or by looking at cost alone. There is a level of professionalism at which clients get optimum service and optimum results. In my experience, that does not happen in a race to the bottom. And that is not the professionals closing ranks - It is based on years of experience of saving clients from themselves and from bad advisors.

 

[Palerider]

I think it shows like everything else shop around, I have heard so many times Accountants going on about their 'special' relationships with Revenue, a lot of twaddle, I have family in Revenue and hear the other side too often, late submissions, unnecessary penalties etc .

This is an easy return to compile in one sitting with all info available at time of completing the returns, Revenue are not the monsters that us Taxpayers sometimes think they are. Quote is ridiculous for work involved, shop it around.

 

[T McGibney]

Accountants going on about their 'special' relationships with Revenue, a lot of twaddle,.

Which of the accountants here have made such a claim?

 

[Gordon Gekko]

Some special relationships aren't that helpful. I used to go out with someone who worked for Revenue...she'd definitely look for a 100% penalty if she was the case manager and I was the advisor on this one.