I have a client who was a self employed business, and has now became a partnership.
My fees I thought are very reasonable, I was charging obviously for one self assessment before, am they have always been completely happy with this price, and now I am charging the same for the first self assessent, then the second one is 10% cheaper, then the partnership form, I've gone in at a further 30% reduction as compared on the first self assessment return, I have done this to keep the cost down for the client as they are a returning client and it is a nice easy and straight forward client. I am also happy to earn the amount too.
Would you charge like this, for each return, this is my first partnership,so first time pricing it up.
I believe in effect I am doing 3 forms, hence why I've charged 3 times!.
Depends where you see the time. To be honest, it tends to be in completing the accounts. There is little time difference between doing 1 tax return and doing 1 partnership and 2 partners returns.
EG if i was completing a sole trader's accounts and tax return for £400, I would probably charge £500-£550 to do the same accounts and 3 x tax returns.
Hopefully Lor, a partnership will be more than the sum of its parts - more entries, more complexity, more profits than two separate traders. With a bit of luck, more to pay increased accountancy fees.
don't think they are happy, after quoting them, I have this feeling, as she said that she thought it was only one return so didn't expect the increase so much.
Hopefully Lor, a partnership will be more than the sum of its parts - more entries, more complexity, more profits than two separate traders. With a bit of luck, more to pay increased accountancy fees.
My numbers would be very like Nicks - £400 + £100-150 for 2 extra tax returns, but that is if all else is equal. I always like to know the reason for going into a partnership.
Say it is because premises are unaffordable separately, then the turnover and profits are likely to be higher once they get a shop front or factory.
If it is because they've got married and want to use up the spouse's tax allowances, then you wouldn't envisage an increase in complexity as part of your quote. You would, though, want to charge for 2 extra tax returns. Lots of people don't realise the SA is not just on the business, but the individual.
Not sure what tax software you're using but many do standard questionnaire letters. Might be a good idea with this one for them both to get separate standard request letters and one for the partnership too, so they can be in little doubt about the 3 Returns.
Hopefully Lor, a partnership will be more than the sum of its parts - more entries, more complexity, more profits than two separate traders. With a bit of luck, more to pay increased accountancy fees.
Hope I haven't done the wrong thing here!
No, I don't think you've done anything wrong at all, Lor. I don't know what your percentages amount to, but I wouldn't want you (or anyone else) needlessly panicking on here.
Hopefully Lor, a partnership will be more than the sum of its parts - more entries, more complexity, more profits than two separate traders. With a bit of luck, more to pay increased accountancy fees.
Hope I haven't done the wrong thing here!
No, I don't think you've done anything wrong at all, Lor. I don't know what your percentages amount to, but I wouldn't want you (or anyone else) needlessly panicking on here.
