I had a client that prepared her own accounts/tax return but wanted me to review what she had done for her.
I quoted her a fee of £100 for the review which she was more than happy with - she then sent me her paperwork and the fee in full.
I have had a look through and come up with some various points as to what she could do to reduce her tax bill - so I emailed her regarding these points which I felt were useful but she has just sent me an email back telling me she wants to 'cancel the matter, take no further action, return her fee and promise that I will securely destroy all her documentation'?
Has anyone come across this situation - seems to be she could well have taken the advice, adjusted her own tax return but now wants her money back - what would you do?
Replies (22)
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You have done the work requested for the fee agreed
.. and therefore I would politely explain this to your client.
refund in full
Tell her you will refund the fee in full for the review, but unfortunately there is a £100 fee for destroying the paperwork.
Try to think of a polite way to phrase "beat it"
You did the job you were engaged to do. If she did not like the results and/or choses to disregard your recommendations then that is not your problem.
Must try your clients approach...
when I go out to dinner tonight.
Walk into restaurant ( which requires you to pay in advance)- order dinner and allow the chef to prepare it. Eat dinner and then say " I'm sorry I have decided I did not really want that meal - could you just clear away my plate and refund my money".
Agree with the above posts
You've done what she paid you for. End of. If she'd wanted to cancel she should have said sooner.
Tell her you will refund it ...
... if she agrees to being brainwashed so as not to benefit from your advice ;)
Back to reality .... tell her she should have cancelled earlier, the services have already been provided now. Also, tell her you cannot destroy her documents (it may provide some proof, or defence, if she decides to invent a formal complaint!), but you are required to retain them for 6 years but also duty bound to honor the Data Protection Act.
Simply email her back
Acknowledge that the enagagement has been terminated in accordance with her instruction, but that you have carried out the work as instructed and therefore no refunds will be forthcoming. Tell her that your costs were greater than £100, but the fee restricted in accordance with your agreement with her. I wouldn't destroy the records - copies or otherwise - she sounds like the kind of person that would turn round and ask for them back in a week's time and blame you for 'losing' them. Send them back recorded delivery and tell her to do with them as she pleases.
Word of caution
Just one thing to be wary of here is not to expect any support from your institute here. For one thing, I assume you did not issue an engagement letter for this which they will blow out of proportion.
Did you carry out all the usual MLR stuff? Again, if a complaint is made agaisnt you they will probably use this as another stick to beat you with.
Dear Client
Dear Madam X
Thank you for your e-mail.
I'm sorry to inform you that because the work has been undertaken as you instructed our agreed fee is due. We are obliged to retain notes and copy documentation to refer to in case any matter arises in future as a result of the work we have done.
Yours sincerely
@Jaybee
Send the letter Andy suggested, and then if she messages you again, just ignore her, or say you have already given your reasons.
I once had a similar client and they wasted hours of my time while I tried to explain it from my point of view and all it achieved was them throwing different arguments at me time and again, so don't let her pull you into a long debate!
re cash up front
jaybee - I always do it for one off items of work, especially low value items and advice. advice is the worst as 2 minutes after you tell them the answer its suddenly public knowledge and not worth paying you for as they already know the answer.....
Had you not had the cash we would all be saying "move on, its not worth it"
If she argues...
go with the broken record approach and cut & paste your previous response(s). She'll tire of it faster than you :)
Make sure she collects records.
Don't send the records back even if you send them recorded she will claim that the important bits were not there.
Ask her to call to collect and list everything that she is taking hopefully with a witness with you
and make sure she signs for them.
There is no question of returning her money if anything she should pay more
These people are lethal and will do anything not to pay. I have met a few over the years.
You say that you are seeking the right words but I can think of one but I don't want to insult my lovely female doggy.
Good luck.
It takes all sorts
Following my review of your accounts and tax return for the agreed fee of £100 I acknowledge your request to cancel the matter, return your fee and destroy your paperwork.
I must admit I have not come across a situation like this before.
Unfortunately I cannot cancel the invoice because the work has been completed. I will also not destroy the paperwork you su8pplied because this is the basis of my review and in the event there are questions I will need to refer to this.
However, in the circumstances I feel in best you seek advice and support from another firm as I have closed my file.
Any further correspondence from you or any other party will be subject to an extra work order and additional fee.
Bob Harper
Blinking cheek
I'm with everyone else, you've done the job so you deserve the money.
Nothing further to add but to confirm I also think you are definitely in the right.
Ensuring payment ...
i started my practice in june 2010 & not had much bad debt so far. here are my simple but so far effective ways of avoiding non-payment risk ...
1. engagement letters for all clients - without exception - and we don't do any work at all until the signed EL comes back.
2. although we discuss technical queries etc, any notes i make at the intitial meeting are not written up, nor do i allow the client to take them (they often ask this - "can i take those notes?").
3. for personal tax clients, 30% of the agreed annual fee upfront - the bill goes out with the EL, so we get back the signed ELs, the cheque, and the client ID in one hit.
4. for companies, 50% of the agreed annual fee upfront - see (3)
5. 14 day payment terms - email when 21 days old, phone call at 28 days (along with a stern talking to!)
6. don't take on clients that i think are financially shaky!
lancsboy
Do you get 50% when they sign up even if the accounts are not due for quite a few months?
always get 50% upfront for ltdco
yes, we alwasy take 50% upfront. for start-ups, this can mean that we get paid for the 1st and 2nd 6-month periods before we do any real work other than intitial record-keeping advice/set-up, a few email / phone queries etc.
for me, its about minimising the additional payment risk that companies present ... plus it tests the mettle of the client. if they cant pay, i dont want a skint client, if they wont pay, i dont want a beligerent client .... they do as they're told!! LOL
in the first 6-9 months i had a few clients that we took 2-3 months to finish the work to filing stage, and thats just too long to wait to get paid. so, 30% down or 50% down for most clients seems fair. i dont remember my website designer feeling embarassed about asking me for 50% up front, nor the trade shows that i go to asking for 20 / 30 / 50% upfront in stages as the show gets nearer, nor the landlord who wanted the rent & bond upfront before we got the office keys ... so why should accountants take unnecessary credit risk?