Is a 60% Increase in Accountancy Fees Justifiable? A Self-Employed Contractor’s Dilemma
As a self-employed contractor operating through a limited company with an annual turnover of approximately £90,000 to £100,000, I have always valued the importance of transparent and fair pricing for essential services like accountancy. However, I find myself grappling with a significant rise in my accountancy fees that has increased by over 60% over the past four years. Is this level of increase reasonable, or should I consider looking for alternative options?
When I first enlisted the services of my accountants in 2021, my monthly fee was set at £140 plus VAT. This fee covered a comprehensive range of services, including corporate taxes, personal taxes, and the cost of utilizing Xero software—an accounting tool I manage primarily for my bookkeeping. At that time, I felt that the pricing was fair for the services rendered.
However, with the passing of time, I experienced a gradual increase to £160 plus VAT. While I initially accepted the change citing a rise in VAT returns and general inflation pressures, I remained vigilant regarding how my fees would progress.
Recently, I was confronted with an unexpected charge of £250 plus VAT for my corporation taxes. After raising my concerns about this undisclosed fee, my accountants retracted it, stating it had been a mistake related to my legacy payment plan. While I appreciated their prompt response, it left me wondering about the overall transparency of their fee structure.
Unfortunately, this incident appears to be part of a concerning pattern. Shortly thereafter, I received an announcement regarding my personal tax returns, accompanied by a new fee of £250 plus VAT. It seems that these additional costs are not only becoming frequent but are also becoming more burdensome.
This steep climb in charges—from approximately £1,500 plus VAT per year to nearly £2,420 plus VAT—is unsettling, especially since my accounts are reportedly straightforward and uncomplicated. The question now is: Am I just a passive recipient of these rising costs, or is there a broader issue at play?
As I consider my options moving forward, I find myself pondering whether I should remain loyal to my current accountants or seek a new firm. Are they taking advantage of their knowledge of my financial situation, or is this a standard escalation for their services?
This experience raises important questions about the nature of accountancy fees, especially for individuals like myself who strive to maintain high standards of professionalism while managing
