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What kind of clients do you want at this time of year?

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24th Oct 2011
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In a follow up to his last article on Self Assessment marketing opportunities, Mark Lee explores how accountants can target niche prospects.

My article Are the SA filing deadlines a marketing opportunity? highlighted the publicity surrounding the new SA late filing penalty regime. I explained how growing practices could use it as an opportunity to show how they can help people avoid the penalties and keep their tax bills to a legal minimum.

If you are inclined to promote your services in this way I would encourage you to focus on one or more distinct niche audiences. Marketing gurus will confirm that this will be more successful than simply trying to target anyone and everyone. For example, you might choose to focus on a specific business sector such as property owners or retired taxpayers with investment portfolios.

At a more generic level, here are three distinct types of prospective clients. In each case I’ve suggested an outline promotional message and an explanation of what this implies about the work and advice you might provide:

1.  SA taxpayers fed up that their present accountant leaves things to the last minute

 “We don’t just file your return in good time we will give you advice on how to reduce your tax bills.”

Be clear and confident that you will do more than the previous accountant. If you simply offer to do the same at a lower price you will struggle to build or sustain a profitable practice.

2.  New businesses that have yet to file their first tax return

“We’ll set you up properly, take away the fear of the taxman and help you budget for your tax bills. We’ll also suggest ways you can pay less tax than you might have thought.”

New businesses typically have a long time lag before their first SA tax is due. The first payment on 31 January after the end of their first tax year will also include an interim sum due for the second tax year.

I believe that a crucial role of the first accountant appointed by a newly self employed person is to help them to budget for the SA tax they will have to pay. They need to be told how much of their income they should put aside in this regard.  If their affairs are more complicated, you may also need to keep in touch and update estimates of the sums required. I would be inclined to be prudent so that the final bill is lower than earlier estimates. This may even be the result of your efforts to reduce the tax due – a priority for most clients and one that many accountants fail to fulfil or to take credit for doing.

You might also offer to consider whether incorporation would benefit the client. Is this something you will do for free or will you want to charge a fee for comparing alternative projections, identifying the possible tax savings, explaining that these may change in the future and discussing all of the issues? And helping the client decide whether or not they want to incorporate and if so, when would be the ‘best’ time to do this? And what the difference will be in your fees?

There are plenty of occasions where incorporation might appear attractive in the long run, but less so in the short run. For example where the reduced taxes on corporate profits become payable before the SA bill, where additional fees are payable before the client sees any tax savings. And especially where losses mean that there are no distributable profits such that any monies drawn out have to be identified as additional salary and bear both PAYE and NICs.

3.  Self employed ‘ghosts’ who want to come clean

“We’ll sort you out, get you straight with the taxman and give you peace of mind. And we’ll ensure you don’t have to pay the 100% penalties that the taxman can charge if you continue to evade your taxes.”

Recent HMRC campaigns have raised awareness of the level of penalties that could be charged if someone fails to notify HMRC of taxable income. And more and more people are talking about the need to “come clean”, to get their tax affairs in order and to be able to sleep with an easy conscience. Those who have not previously notified their self employment to HMRC are known as “ghosts”.

Do ensure you only offer to help ghosts if you have experience of doing so and are confident that your advice and predictions accord with latest HMRC practice. Yes of course you should be able to ensure that the 100% penalty is reduced. But the level of the reduction these days will depend on a combination of the published abatement table and whether the client should have come clean during an HMRC amnesty. For example, the position will be different for plumbers, doctors, online traders, tutors and those with offshore accounts

If you find yourself with a client in this position, consider your PI policy and whether you have the expertise to give advice yourself or if you should introduce a specialist. You can then take on the recurring compliance and advisory work once the past mess has been sorted out.

Mark Lee is Consultant Practice Editor of AccountingWEB.co.uk and Chairman of the Tax Advice Network of independent tax specialists. His personal website and blog are at: http://www.BookMarkLee.co.uk

Replies (22)

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By johnjenkins
24th Oct 2011 14:47

Very Interesting

piece of marketing.

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By carnmores
24th Oct 2011 16:53

anyone got any eggs

! you should get out more you lot

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By johnjenkins
24th Oct 2011 17:51

Oh dear Mark

haven't you learnt anything on Awebb!

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Mark Lee headshot 2023
By Mark Lee
24th Oct 2011 22:58

Oh Dear John

Haven't you?

Is this supposed to be another of your constructive comments?

If my articles are of no value to you please don't feel compelled to read them or to comment unless you have something to share that will help other readers.  Your continued sniping is getting rather tedious. Where you find the time I don't know.

Mark

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Replying to User deleted:
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By carnmores
25th Oct 2011 12:47

doh

bookmarklee wrote:

Haven't you?

Is this supposed to be another of your constructive comments?

If my articles are of no value to you please don't feel compelled to read them or to comment unless you have something to share that will help other readers.  Your continued sniping is getting rather tedious. Where you find the time I don't know.

Mark

 

Mark - as a general rule of thumb I do read them before I comment how else would I know whats in the piece

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ghm
By TaxTeddy
25th Oct 2011 08:45

Niche marketing

Some nice comments Mark, common sense as always.

However, I can't help thinking that some accountants will take your comments literally. I'm reminded of an instance some 15 years ago when there was an article published suggesting that as part of a marketing campaign for Yellow Pages (which was popular in those days) accountants should say.... “and we serve great coffee".

Well, you guessed it, the next issue of Yellow Pages was full of accountants adverts -  all saying..........“and we serve great coffee".

Ah well.

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Mark Lee headshot 2023
By Mark Lee
25th Oct 2011 09:05

@TaxTeddy

Thanks for that.

I remember seeing those ads too. It was Chris Frederkison whom I first heard advocating the idea of teling prospects you served great coffee. Almost 20 years ago I think.

Maybe that's why I spent no time crafting the italicised messages in this article. They are simply draft and rough ideas that I hoep will inspire readers to create something more specific,  more effective and more likely to be unique.

Mark

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By johnjenkins
25th Oct 2011 09:17

Most Accountants

do make great coffee. We've had plenty of practise.

I actually enjoy reading your articles cos it's nice to know that what I have been doing for the last 46 years is spot on.

I will always find time to help others, Mark. You should try it sometime.

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By User deleted
25th Oct 2011 09:52

Terrible coffee

I think my coffee is fairly atrocious as most of the people who try it seem to leave half of it! But then I don't drink coffee myself so have no idea of the perfect mix. And my tea is only suitable for those who like half a cup of milk.... Good job I don't invite clients round :)

As for the article I found it interesting. It may not necessarily apply to me but that doesn't matter. If you're not interested don't read it....

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By johnjenkins
25th Oct 2011 10:05

@ flash gordon

Try making perculated coffee. Start with one spoonful of coffee per cup and add or subtract until you find the right taste. Equally try different blends till you find the one that suites you.

As for tea. Sugar, teabag, freshly boiled water, then leave for 2 minutes, bosh and add milk. Again by trial and error on adding or subtracting milk you will reach the desired taste. Then watch your client base grow.

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By User deleted
25th Oct 2011 10:12

Milk first

Sorry JJ but it has to be milk first even if that means no clients!

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By johnjenkins
25th Oct 2011 11:05

One of my

trainees always puts the milk in first because she thinks I can't tell the difference. As far as she is concerned as long as the colour is right then it must taste ok. Mind you there's nothing like market stall tea on a cold day.

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Mark Lee headshot 2023
By Mark Lee
25th Oct 2011 17:06

eh? Sorry to disappoint you @carnmores

Of course.

The quote you've picked up was not directed at you. It was a response to @JohnJenkins - which is why it is titled, in his style, 'Oh Dear John'.

This is the second article in a week he has chosen to criticise. Although he later goes on to say he enjoys them. Each to their own.

Mark

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By johnjenkins
25th Oct 2011 17:27

What I said was, Mark,

I enjoy reading them. Perhaps if you didn't write any articles I wouldn't be able to criticise them Anyway how's your tea and coffee making or don't you get the time?

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By justsotax
25th Oct 2011 17:55

JJ has a client upset you this week...?

We can all criticise, that is easy....but if you are going to take such a stance then perhaps you should reflect your own experiences in an article on Aweb for members to digest and respond on - I am sure judging by your experience we could all learn a thing or two.

On other matters I trust you have sacked the said trainee.....milk in first...how dare she!!!

 

 

 

 

 

 

 

 

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John Stokdyk, AccountingWEB head of insight
By John Stokdyk
25th Oct 2011 18:09

Time Out for the coffee, please

We have nothing against idle conversations about different methods for making coffee and tea - evenm within the context of accountancy marketing. But please don't hijack an article with constructive suggestions other members might like to pursue with irrelevant digressions.

Feel free to continue the coffee and tea thread in the Time Out discussion group, where it belongs. Thanks.

I'd also like to thank Mark publicly for his patience, and would ask that members show him some professional courtesy. We asked him to tackle these topics because we thought they were issues practitioners mighht like to consider at this time of the year.

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By carnmores
25th Oct 2011 18:45

Mark -i dont think you object to

a little bit of patter ! its all part of the training for TMC isnt it - keep on posting but some sifters need to  develop a thicker skin.....

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By johnjenkins
26th Oct 2011 11:14

Accountants banter

is like a blend of coffee beans that can give you a bit of a bite or just leave a wonderful mellow taste.

@John I understand where you're coming from but doesn't the lack of response from the profession (apart from the Mark Lee appreciation society) over the 2 articles tell you something? Come on John if an article can get highjacked over tea and coffee what chance has it got? 

@justsotax My views are well aired on Awebb and get criticised all the time, and so they should, I believe that Awebb is all about conflicting views and diverse comments. Can you imagine the sort of views that will be bandied about in Brussels today?

I've already given her a dozen verbal and 2 written warnings and still she continues, but how can you sack your grandaughter when she gives you a big beaming cheeky smile and says sorry grandad? (cheesey bit of marketing there Mark)

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By justsotax
26th Oct 2011 12:04

For sure life would be boring if we all agreed....

and comments from different views point should be welcomed...i guess I just have a different approach to 'constructive' criticism.

So you do have a soft center.....guess I can't really argue with that.

 

 

 

 

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By johnjenkins
26th Oct 2011 13:36

@justsotax

from tea and coffee we go to chocolates (soft centres) and I do like coffee creams.

 

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John Stokdyk, AccountingWEB head of insight
By John Stokdyk
26th Oct 2011 18:08

Oi, you lot!

Where is Becky Midgeley when the firm smack of discipline is required? I was serious about not wanting Mark's article to be swamped by silliness - but equally serious about encouraging tea/coffee and snack-related discussions.

Could anyone who wants to pursue this topic please come and join me for a Free Trade tea and HobNob biscuit in the Time Out thread, What is the ultimate beverage/snack combination?

You know, I think there might be some genuine marketing mileage in this dialogue after all.

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By johnjenkins
26th Oct 2011 19:45

Becky might be having

a tea or coffee break. join you there John.

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