What should I charge my client - The Book-keepers Forum (UK)

alfie · Veteran Member

What should I charge my client

gbm · Guru

Hi Alfie,

Hard to say, not sure of the scale of the business (5 transactions p/m, or 500?), but would say that your accounts fee is low and your payroll is high:

10 person payroll = £50 p/m, then £200 for P35/P60's, I would probably charge £30 p/m & £50 for P35.

alfie · Veteran Member

What do you think of my charge for all his registrations and work building up to his tax assessment .
There are 4/5 staff at the moment all on cash

Thanks

-- Edited by alfie on Friday 28th of January 2011 05:04:18 PM

gbm · Guru

Hi Alfie,

i think it's great that you list what you are doing, as we often do things for clients that we either don't charge them for or don't even tell them about (or maybe it's just me!).

As I understand your quote, you're going to do all the registrations, 1st period accounts and tax return for £200. As I mentioned before, it's hard to say as I don't know the work involved, but it's obviously up to you whether you think it's going to make you money.

The registrations shouldn't take too long and are one off. I wouldn't mention about the 64-8, it's a bit like charging someone to photcopy their passport for ID purposes or for doing a Letter of Engagement.

I'm not sure why you're doing the accounts quarterly, but if it's for management accounts or VAT, think it needs to be more. Re the £20 for the tax return, that's simply ignoring the work involved in pulling it all together.

But it all comes down to what kind of business you are building.

HTH

RSBookkeeping · Veteran Member

As Nick says, it all depends on what sort of business you are trying to build and what the workload will be for the accounts.
What I will say is not to under-value your services. You may get into a situation where you get some word-of-mouth referrals but they expect you to do it mega cheap - these clients are the ones that will more often than not take up the most of your time.

Good luck!

BudgetB · Guru

Agree with Nick that the payroll charge is high. The S/A charge for the first year may be ok, but would very much depend on how much work needs doing. Personally I wouldn't do a tax return for £20.

PaulC · Veteran Member

I'd also say your charges are on the low side - you're definitely not overcharging. The payroll cost I think is reasonable.

Donna CBK · Senior Member

Sorry come back to the old, you have to be happy with the figure you have quoted. Personally, payroll seems low for 1 staff however if not careful 5 staff @ £5 would seem high.
A good customer is worth their weight in gold for word of mouth and new clients, only you know if they are going to prove a good advertising block.

alfie · Veteran Member

What should I charge my client

Thank you for all the repies to my problem.

Alf Lyons

HendyPhilhendy · Guru

Firstly the fee to do the accounts is way too low. If he has 4-5 staff, he must be turning over a reasonable amount in the first place. You also have not explained what the business is and how many transactions there are.

I actually think your quote is badly worded and not particularly professional. Registrations of Tilemaster with Revenue - this should be written 'Registration of Tilemaster with HM Revenue and Customs'

Also, have you considered whether a sole trader is the best structure for the business. To me, when you have employees you really need to consider Limited Liability. Also a company is likely to be much more tax efficient.

This is where a bookkeeper really needs to consider whether they are the best people to advise a client on accounts and tax issues.

LizzieT · Veteran Member

I am a new start up too and my fee's have ranged upwards of £35/month (for a very very organised friend who just requires me to input his purchase receipts onto sage - he inputs his sales as he uses Sage to generate the invoices -, recconcile the bank and complete his VAT return along with paying suppliers invoices which are due and producing a debitors report. > )

I have just quoted for a sole trader (turnover

LizzieT · Veteran Member

Oh, my post seemed to go AWOL!

Meant to read:
I have just quoted for a sole trader (turnover !!

Liz

LizzieT · Veteran Member

OK I give up! Something strage happening!
Basically was wondering what to charge a husband wife combination for their Self Assessments, had quoted £135 when I thought it was just one. But now its 2 not sure what to charge as they share some rental property so some of the work will be duplicated?

Liz

alfie · Veteran Member

Liz
If they are a partnership they have 3 self assessments to have done.
One each as individuals and one for the partnership

Alfie

Dalbir · Senior Member

Hi Alfie

I dont feel you will earn a crust from the contract,

You should cost out how much it will cost you to do the job.

(1) Bookkeeping
software (~£4.50 plus vat per client per month. min 5 clients- quoting cost to you for our system which is one of cheapest and easiest to use: Arithmo online bookkeeping system).

You processing the books (should charge £15 upwards per hour)

(2) Payroll
Cost of payroll software (try Tom's 12Pay for easy to use and cost effective product, again ~£4.50 plus vat per month for 3 companies- Premier edition)

You processing payroll (should charge £15 upwards per hour)

(3) Self Assessment
Cost effective Tax assessment software (various you can try: Forbes or Keytime) when you do returns

Your time in completing and subitted SA (again £15 upwards per hr)

(4) Indeminity Insurance
should be spilt equally between your clients

(5) Finally your time in answering ad-hoc queries

Hope this helps in giving you an idea of how much you should quote to enable you to provide a good accounting service to your clients and provide you and your loved ones with an income.

Dalbir