RE: PAYE Agent Fees/Process

P

Porsche356ss

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I am about to open a new company (currently I am the only employee) and have been directed to a Financial Services agent.

I have two questions that I hope forum members could assist me with as it is the first experience of working with a tax agent.

My first question is that the agent has requested that any refund or repayment of USC/PAYE/Income Levy is paid into a bank account nominated by the agent. This includes that the agents bank account details will be on the Revenue record. Isn't that unusual - why wouldn't the repayment go directly to my business account?

The second question I have is with regards to fees. The agent has indicated the fee to be the higher of €30 per annum or 10% of the rebate received plus VAT at 23%. I did some research this morning and found companies offering tax refund services for 7%. I am looking for some advice if the 10% is the norm. I understand the agent would be filing a PAYE2A form on my behalf.

I would genuinely appreciate any advice so that I can be sure I keep my costs down as the business starts to evolve.
 
What's the story, why have you been referred to a Financial Services agent? By whom?

Are you mixing them up with the Tax refund companies who take a % of a rebate they get for filing your tax return?

Have you an accountant that advised you of the merits of a company v sole trader.
 
Utterly unethical for an accountant or tax agent to take % based commission from tax refunds receivable by a limited company client or its owner.

Ditto to insist (or suggest) that repayments of USC/PAYE/Income Levy are paid into a bank account nominated by the agent
 
@Joe_90, a "friend" recommended I contact this person who turned out to have a multiple number of companies offering various financial services. Tax rebate advice was just one of the services he provides. He also insisted on giving me life insurance and critical illness quotations while I was with him. I've had the advice from two sources now to set up as a single member company. I will also need to register for VAT as my earnings will exceed the threshold. I do think the company route will be more earnings versus tax efficient. After reviewing the CRO requirements today for setting up a company I will save the €500 charge and do the filing myself.

@T McGibney. The reason I posted on here is due to my lack of experience. I felt it wasn't appropriate regarding the requirement for the repayment to be paid first to his bank account. Additionally the 10% commission was in my opinion high for a single member company. Today however I was quoted €2,000 p/a by an accountant to have all company/personal accounts processed some perhaps it does all add up?

Do I have to get an accountant to sign off on company accounts or can I file them to the Revenue independently? The business model would be very simple of issuing an invoice (or more) per month, receiving payment, deducting training/business expenses and filling VAT returns every two months.
 
Unless your company requires an audit or your are in a regulated sector then you don't need an accountant.

You can do the P30s, P35, VAT3s, CT1s, Form 11s, B1s, RTDs, 46Gs, Full Accounts and abridged accounts yourself.

But I would suggest getting an accountant to do it. You concentrate on what you're good at and leave accounts to the rest of us.

Singe member co returns and income tax returns should cost around €1,200 plus VAT.
 
T McGibney said:
Utterly unethical for an accountant or tax agent to take % based commission from tax refunds receivable by a limited company client or its owner.

Ditto to insist (or suggest) that repayments of USC/PAYE/Income Levy are paid into a bank account nominated by the agent
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I think the OP is referring to the refund of their personal taxes to the agents bank account which revenue facilitate via PAYE A2 agent link http://www.revenue.ie/en/tax/it/forms/authorisation-form-paye-a2.pdf

I also think the OP is getting his wires crossed btw the fee for their personal income tax refund and the fee for the company accounts etc.
 
brenbrady said:
I think the OP is referring to the refund of their personal taxes to the agents bank account which revenue facilitate via PAYE A2 agent link http://www.revenue.ie/en/tax/it/forms/authorisation-form-paye-a2.pdf

I also think the OP is getting his wires crossed btw the fee for their personal income tax refund and the fee for the company accounts etc.
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Agree with you, but the fact that this agent/insurance salesman (alarm bells!) hasn't managed to make everything clear to their prospective client is still very worrying...
 
Joe_90 said:
Are you mixing them up with the Tax refund companies who take a % of a rebate they get for filing your tax return?
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I've never heard of this, why would someone go down this route?

Brenbrady why would someone allow their accountant/advisor to get the refund, isn't it much easier to pay revenue directly and refunds back to tax payer also. My accountant calculates my returns and how much I owe, then does the figures in RAS, and revenue then take the money from my bank accountant but I have to sign for it first etc. I wouldn't like an accountant to have anything to do with managing actual monies.
 
Joe_90 said:
Unless your company requires an audit or your are in a regulated sector then you don't need an accountant.

You can do the P30s, P35, VAT3s, CT1s, Form 11s, B1s, RTDs, 46Gs, Full Accounts and abridged accounts yourself.

.
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I disagree as he certainly sounds like he most definitely needs a proper acccountant and not some kind of financial advisor who is also trying to sell him products, it all sounds very dodgy to me.

That's a heck of a lot of form filling and while it might be easy to some, it sounds like Porsche353 should be concentrating on making money and paying a relatively reasonable sum that you mentioned of 1200€ to an expert. Which is also tax deductable. It's far better to be getting things on a proper footing from the get go. Especially if a Porsche is on the to acquire list.

He should get a recommendation for a decent accountant, perhaps from his solicitor, or hire one of the two accountants on this thread.
 
Via Engineers Ireland recent post on LinkedIN I made contact with contractors.ie They provide the full service as you suggested for €120 per month; that includes a personal tax review as well. It is as I understand it only an introductory price whilst this division of Taxback Ireland rolls out this new service.
 
Bronte said:
I've never heard of this, why would someone go down this route?

Brenbrady why would someone allow their accountant/advisor to get the refund, isn't it much easier to pay revenue directly and refunds back to tax payer also. My accountant calculates my returns and how much I owe, then does the figures in RAS, and revenue then take the money from my bank accountant but I have to sign for it first etc. I wouldn't like an accountant to have anything to do with managing actual monies.
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I think the main tax refund websites operate this way to ensure that they get paid. Considering that they take a % of the refund it would be very difficult for them to recover their fee if the entire amount was remitted directly to the customer.
 
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