Is this normal: huge “on account” tax invoice

Finance, Taxes, Banking, Insurance and Retirement
1
I’m trying to do taxes in St Gallen. Hadn’t thought my tax situation was especially complex: I’m a dual UK-US citizen; I rent a house in the US and still have savings there, and that’s pretty much it.

The tax consultant I’ve been referred to sent me an engagement letter in which he’s enclosed an on account invoice for close to 3’000 CHF. I almost keeled over. That’s almost six times what I pay to get my US taxes done - even before the clock has started ticking on his hourly rate.

First of all, are these “on account” invoices a standard practice, as he tells me?

Second, 3,000 CHF?! Is anyone paying that much to get their taxes done or is this really off?

2
I had mine done the first time here and it was nowhere near that (also having a house abroad etc etc). I ́d call that a rip-off.

3
It depends on the hourly rate. Thats about 5.5 hours of my time...

The "on account invoice" is simply an advance, avoids him having to chase you for payment.

I suggest you have a frank discussion on (i) his rates, and (ii) his estimate of the costs involved, to avoid discussions and disappointment all around.

4
Is this person only doing your Swiss taxes?

If you had to pay anywhere near 3000CHF it would be a complete rip off.

Personally I would recommend spending a bit of time and doing your taxes yourself. I'm guessing you'll need to anyway do your US taxes in addition. Swiss tax declarations are extremely simple.

5
If you are a private individual and your financial affairs are of low complexity (eg you are not a millionaire with lots of assets and investments all over the place) then you are being completely and shamelessly ripped off by a cowboy as the usual price is generally 250chf or less.

Ask for a detailed invoice of where the time has been spent and how this amount is justified. Also, in future use some common sense and ask for a quote or indication of price before you give them the work.

6
I know people whose companies paid for the first two tax returns. That was typically a couple of thousand francs. Which came as shock for their third year's tax return...

It's as it is in the UK or US - you don't need a fully qualified chartered accountant to do your taxes. Usually. And certainly not one from Deloitte, PwC etc...

7
Do it yourself!

https://sg.tax/

8
This question is a bit like "How long is a piece of string" without far more details, most of which are probably private it is impossible to answer you.

Is property involved ?

You are over 3 jurisdictions, UK, US & Swiss

Stocks and share dealings

Incomes

Businesses

The list is very long

9
He did say it was simple:

10
Sorry about long pause before replying - thanks! This was a good piece of feedback to go on. Did some digging around and it's ended up costing less than it did in the US. (Swiss tax forms incredibly straightforward, and my US taxes are already in.). I can get it done for about 10% of that original quote.

11
I would thank you, because you raise a really interesting point and make me realise I shouldn't try to oversimplify, but I can't seem to find the darn thank you button.

It does sound complex, but luckily it isn't as awful as it sounds, since I don't pay tax in the UK - I've been away for so long - and all I 'own' there are pensions now. Wish I could say that renting out my little house in the US is a business, but it doesn't quite qualify as such under US tax law. "Share dealings" would make me sound much grander than I really am. (I simply had to sell something as a one-off to deal with an unforeseen event).

Next year, however, things get more complicated as I have to leave Switzerland - GROAN - to take care of a family member in the UK. So then I really will have to deal with triple jurisdiction fun.

It's not that private, or perhaps I've spent so much time in the US now that I've fallen prey to oversharing.

12
The thank you button disappears after a post is a day or two old. Not sure that's a good decision but it is what it is.

Glad you got things sorted out.

13
My tax situation is similar to yours (i.e. quite simple) and I have always paid 300-400 CHF for app. 3-4 hours of work. Yours seems like a total rip off.