Asking what is a reasonable tax agent fee for a tax return or amend a tax return? Only complexity is 2 tax calendars because of foreign income.
I got one for $175 and one for $700??
What Is a Reasonable Tax Agent Fee?
reactor-au on 04/09/2020 - 06:28
Comments
additional service ? I like :)
yeah depends how complex ur foreign income is, check my gov and see how much is pre populated too
also I'm sure u can tax deduct tax agent fees
Well to me it seems excessive that's why I'm asking because last year was 175 and the new accountant is 700x2 because they have to amend the previous year due to calendar difference and submit the current year.
I'm just an individual contractor not a business, to pay 1400+gst is a lot every year, not to mention I also have to pay 500 every year in the other country for another accountant.
I'd do it myself but I'm not confident I have the necessary knowledge or experience.
Basic Salary and wage return (no investments) will cost anywhere between $130-$250
Throw in an investment property or shares and that might increase by $100-$200
Really it's all got to do with time. Accountants charge anywhere between $100-$300 an hour depending on the type of service.
I'm just an individual contractor not a business
My interpretation of someone being a contractor is someone in business. So if they have to prepare a P & L then yes there could be more time involved…
what about the 50 bux booth outside of woolies
Pay peanuts - get monkeys -_-
I pay $380 for 2 tax returns (which includes an IP and shares)
Just about impossible to say without knowing exactly what you are dealing with.
For some context, my personal tax return is pretty straight forward (i.e. it's basically just salary income with minor investment income and deductions) and runs about $200. My business return, which is not super complex, but needs to produce a lot more paperwork if nothing else, runs around $1,500.
Whether or not I'm getting the best deal on the above, who knows? But the point is that what you're talking about certainly sounds like a step up on your "basic" return given the interplay with your offshore arrangements and the need to redo a previous return.
You'll need to work out whether you think the one at $175 actually understands what needs to be done … equivalently, you'll need to work out whether you think the one at $700 is over-egging it.
They are probably charging you a premium because they don't really want to do your return.
Spending time on an individual tax return that has a different financial year, an overseas accountant, doing amendments etc is painful and usually ends up being a write off. The client often then complains about the bill, so they need to spend even more time chasing up a couple of hundred dollars.
Instead, they could be spending that time working on one of their bigger clients who they can bill tens of thousands of dollars and the client pays happily.
So they are charging you $700 in the hope you will go somewhere else, or if not, at least they won't make a big loss on your tax return.
Why did you leave your old accountant who only charged you $175?
that, plus all the time understanding your finances etc. there is value is staying with the same professional as the "inferred knowledge" means you don't have to pay through the nose every year. As above your new accountant has to relearn your structure and so is charging you for it.
That's a difficult question. Your interpretation of reasonable may be different to someone else's. There could be additional advice or services included in the $700 one.