What should I do for 'free'

What should I do for 'free'

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A client has appointed an IP. His small company is irredeemable. Much as I want to help the client, I do not want to be the IP's unpaid assistant.

What am I obliged to do 'for free' and at what point should I say, 'happy to help, my fee is £x per hour'?

Replies (9)

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Red Leader
By Red Leader
17th Sep 2014 11:31

well look

Do as much or as little as you would do for free when handing over to a new accountant.

The IP may incur professional fees in the course of the work, e.g. legal fees, so no reason why you shouldn't charge for further work.

 

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By andy.partridge
17th Sep 2014 11:57

Fair enough

Thanks, I was thinking of the hassle fellow member Steve McQueen has had recently. I wondered if there was a 'legal minimum', but from what you say I guess there isn't.

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The triggle is a distant cousin of the squonk (pictured)
By Triggle
17th Sep 2014 12:08

Agree with Red Leader. Treat it largely as a hand-over.

The IP will present a questionnaire to the client asking for details about the business which the client should have no problems completing himself (company name, company number, reg office address, names, address and telephone number of utility suppliers, meter readings, landlord name and address, company insurance details, shareholding etc.) and also a list of the company's creditors.

They will ask for, usually, the last two year's completed accounts. The client should have those as well. If the last two year's accounts are for 2010 and 2011 you don't do the 2012 and 2013 accounts! The IP will just have to cope with what's been done even though it may be well out of date.

You could, to cover yourself, say to the client that if he requires your assistance then you will charge him personally at so much a quarter of an hour or part of a quarter of an hour. The reality is, however, that if an IP has been appointed the IP should be giving him this advice anyway. He will be paying them anywhere between £3k to £5k.

One area that the client may need assistance from you is the Chairman's Statement - a short written history of the company explaining how it was capitalised, what it did and why it went down the pan. However, once again the IP would be capable to assist in this.

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By Tosie
17th Sep 2014 12:59

Work with IP

The IP that I have worked in the past has instructed and paid me to provide info,

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By Steve McQueen
17th Sep 2014 13:05

Recently had a very awkward IP who things are on going with...

See here:

 

https://www.accountingweb.co.uk/anyanswers/question/awkward-ip

 

 

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Glenn Martin
By Glenn Martin
17th Sep 2014 16:20

Like Tosie

I have passed clients onto local IP and he has gave me part of his fee for preparing statement of assets and liabilities, company history, putting books in order etc.

Some however are not so personal like Steve suggests and expect you to be at their beck an call for no money.

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Replying to KH:
Red Leader
By Red Leader
18th Sep 2014 10:39

P35

I just remembered, further to my earlier post, on a couple of occasions I've been asked by the IP to do the P35 (of fond memory).

The IP asked me what my fee would be for doing it, so there was no presumption of free work.

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By merlyn
18th Sep 2014 10:53

Getting paid

The IP will be getting paid for the work they are undertaking so should (if they are any good) have budgeted for any accountancy fees they will need to incur.

By not charging for your work you will just be increasing their recovery rate.

 

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By Vaughan Blake1
19th Sep 2014 09:30

The trick is....

To court a couple of IPs that play the game your way.  You then recommend them to clients when needed!  The client doesn't get ripped off, you don't end up working for free, the IP may use you for other work he is involved in and you get a free lunch. What's not to like!

Part 2 of the trick is to know when the problem is brewing so you can either solve it or recommend said IP before the client starts Googling.

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