Is anyone charging extra for this ? The reason I ask is one of my VAT clients who has their accountant do PAYE for them has reported being charged an additional £90.00 per month to process 3 x employees. Am I missing something here ?
I have not charged any of my PAYE clients for this, feeling that as we are all feeling the strain / pinch on the purse at the moment, not feel it appropriate to make on it !
Hi Julie
There have been a couple of very interesting debates on Aweb about charging with the minimum being zero, for probably about 2/3rd of folk who responded and the rest charging additional fees as per the above (Ive seen a higher figure).
Out of interest, is this Accountant an ICAEW practice?
My view was and always has been, if we do not value ourselves and our own work at any time, but now as its more crucial, then we cannot expect clients to value what we do.
Plus we are not charities and have to keep our own businesses afloat/feed our families. All these freebies will make it so much harder to implement price increases when life goes back to normal, or instills in folk the fact that they can ring you up and get a freebie.
But, I also accept that the above has to be balanced with the fact that some folk do not have the cashflow in the business to be able to pay us and are genuinely struggling.
Clients fall into different categories
-The Ive squandered all my business cash by stripping the business for personal gain and bought all the latest gadgets and gizmos on a personal level, so those that have the 60 inch TV on their walls can actually afford to pay me. Sell the TV!
-Those who tell me they cannot afford to pay me, but oh wait....remember I see your Bank statements. You just had £10k in rates rebate when you paid nothing before. Plus a Bank loan that got dumped to your account before Covid hit so you are sitting on £000s and my bill is a small fry.
-The few inbetween.
As a small personal practice Ive viewed each on its merits. Ive done a lot for free for clients, but have also done the usual work at the usual rates. In between Ive charged for the furloughing and grant claims at an hourly rate, slightly lower than usual.
I think the quoted fee is taking the mickey, BUT, the client does very easily have the opportunity (and likely the time) to do the furloughing him/herself to avoid this fee.
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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
The practice I work for is doubling their usual payroll fee if a furlough claim has been done.
Personally in my own small practice, we are charging a small fee in addition to the usual. The fee doesn't come close to the time I've spent on it, but I feel that clients need to realise that our work has value, so a small additional fee felt right to me.
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All thoughts are my own and should not be used as professional advice.
Double Rachel! Mind you double on what base, I guess is the question as to whether or not it is extortionate or not.
Other thing I forgot to add, with us smaller practices....I think we will all know who will be appreciative and remember the goodwill engendered, who will repay us with loyalty, as opposed to those who will just clear off at the sign of a cheaper quote, so deal with them accordingly.
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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
I havn't been charging any extra but then all of mine are relatively easy with either 1 or 2 Director Companies or a few that have apprentices, most of the claims have not taken more than 10 minutes a time, the only one I have had grief with is the one I mentioned in my 'not eligible' post which I am still trying to sort out but I still will not be charging.
But I can understand why others will be charging
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Thanks for your comments, it is interesting to see how others are dealing with this.
Joanne,
Yes they are ICAEW - the plus for me is that the client wants me to take over PAYE, will have to charge an additional fee for taking over / setting up but going forward, price will be as per my normal rate.
I hear what you are saying in terms of clients falling into different categories. I certainly have had my share of difficult clients over the years and can now work out more easily those who want something for nothing. But saying that, I cannot help but sympathise with some who really do not have a clue about navigating around dealing with this Covid 19 crisis and keeping their business going.
I take on board what Joanne has said, and I think she has it about right, viewing each one on their personal circumstances. I took the choice not to charge, but all but one has been severely affected and lost income overnight, including three catering business that have absolutely no idea when they will be allowed to re-open again. I was also fortunate to receive the sbrr grant so it's just my way of paying that back a bit.
An extra charge at the hourly rate for time involved I certainly wouldn't have any objection to, but when you read on aweb about one accountant charging a minimum £250 per payroll and another £50 per employee, well frankly that's taking the piss in my opinion and profiting on others misfortune. I think you will find a lot of clients vote with their feet after all this is over from those who have ripped their clients off.
Blue bit amended. I did put an hours charge but then realised for those who have lots of employees it could take longer.
-- Edited by Leger on Tuesday 5th of May 2020 12:55:14 PM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
They certainly do value their worth. Rightly so after achieving that level of knowledge and the service they can provide.
But there are times like this, as you all say, when a giving some leeway goes a long way with clients. Besides, I only deal with folk I like, so that alone makes me want to help them more. Although someone did warn folk the other day about remembering they are clients and not friends.
Interesting times.
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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
