I am starting out in practice soon, and am wondering what sort of fee to charge for a self assessment. Local practices seem to be quoting £100 plus for a simple self assessment plus an additional hourly rate for any bookkeeping required. Is this not a bit high ?
Think about everything that you need to do around the self assessment such as MLR checks and other engagement procedures.
Think of the overheads that you have suffered in order to be able to help this client (MLR, Professional Subscriptions, PII, Software licences, training, etc, etc).
I personally would not charge for the self assessment... But, it comes free on the basis that I do all of the bookkeeping so that I know that there is no threat to my image or reputation by a client attempting to hide something (and trust me, you will encounter that!).
I certainly would not consider £100 to be expensive. (And indeed I would not take on a client for less than £350 (plus VAT)).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I dont do self assessments - prefer to stick with the Limited stuff. Its hard when you are starting out but you just have to dive in there and decide what is right for you - Shaun is spot on with his advice not to undersell yourself.
I do often say on here - how can you do someone's self assessment without seeing and assessing the numbers behind it? Its not just a form filling exercise despite clients thinking it is.
With my first client I had no idea where to pitch it, decided on what I thought I was worth, added a bit, then some more, expecting to be knocked back during negotiations but wasnt knocked back at all. Some Ive listed to, appreciated that as a brand new business with no money nor profits that I cannot go in at that high price, but Ive firstly told them what price they should be on (ie the higher price) and then offered a reduced rate but agreed a stepped increase either just over a period of time or to be reviewed in line with profits. the latter obviously I have no control over, but Ive always been happy with the lower rate so Im not losing out - they of course think they are getting a good deal. Which of course they are (well I have to say it as no-one else will, lol)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Thanks for your reply. I have been thinking about offering a 'introductory rate' say for 6 months to get started with the understanding that my fees will increase after this period is over.
Hi Lorraine
How about do it for 3months and note it in each and every invoice, as well as any engagement letter - clients have a habit of forgetting if you leave it too long and dont remind them often!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
