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Big fall in fee income

How hard will you be hit?

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Crystal ball time

It's an unusual situation where we've never been busier but our future is not looking very bright, I estimate we will probably lose between 30% and 50% of our fees as the high fee larger clients are suffering and everyday we are getting a few going under. 

EDIT: This is due to not just COVID-19 but IR35 too. 

How hard do you think you will be hit?

Replies (10)

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By James Green
03rd Apr 2020 18:16

Depends how long the lockdown lasts

3 months - 10%

6 months - 40%

12 months - 75%

We’re getting very different reactions when we rings clients (and we’re ringing everyone of our 1750)

30% are busier than ever

60% have plans to survive 3 months

10% have already given up hope (indeed one poor soul has sat in his living room with little food and a case of scotch the last 10 days thinking that BoJo had died because he has CV19 and that the food had run out in the supermarkets and he was really just awaiting death himself any time now...)

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By memyself-eye
03rd Apr 2020 18:12

Some, but I'm looking to wind down the practice anyway.

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RLI
By lionofludesch
03rd Apr 2020 18:28

As James says, depends how long it lasts. If it ends next month, it'll mainly be a delay in the existing work, with little or no effect on profit in the long run.

I've no IR35 clients so that doesn't bother me.

I don't really need the self employed support so, if I get some, I'll use it to do some pro bono work.

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By JimLittle
03rd Apr 2020 18:54

Yes there will be a few bad debts and will lose a few clients. I not really bothered but more concerned at some of my clients and friends that have a long road to recovery (if they get there)

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By Whatisname
03rd Apr 2020 19:45

I am just glad that I finally retired last year. I hung on longer than I had anticipated to ensure continuity for the clients.

Sincere good wishes to those of you who have little choice but to continue.

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By leicsred
03rd Apr 2020 21:42

Hopefully not 30 - 50%...

I am hoping only about 10%, a lot of clients seem to be hibernating so hopefully a lot will be a deferral.

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ALISK
By atleastisoundknowledgable...
03rd Apr 2020 22:49

I’ve a handful of IR35 clients being lost (but I don’t think that really counts for this).

I’ve about 55% of my income from the food & beverage and events industries, which are obviously my high risk category, I’ve also earmarked about 20% as mid-risk. Most of my FB&E are hibernating and in the majority paying their monthly fees that are consultancy / YE. Bkpg work/fees has obviously been stopped on those. I’ve lost about 25% of monthly income (hopefully only short-term and they restart once we’re out of this). Furlough & reduced hours means my staffing is 3/4 of what it was to try and balance the books.

As with everyone else, it all depends on the length of this thing. Most of my FB&E will probably see our 3 months of hibernation, but virtually none 6 months.

I’m spending most of my time dealing with financial support questions & similar (so no business growth, just retention work), the team are doing YE work that we don’t even know if we’ll get paid for - I know that some clients that are doing fine are using Covid-19 as an excuse not to pay for the next few months.

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By SXGuy
04th Apr 2020 08:48

50% of clients who usually book in this month have decided to wait a month or two longer. Too early to tell yet whether I'll lose any of them next year.

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bike
By FirstTab
04th Apr 2020 09:19

It is early to assess the extent of fee losses. It is not going well so far. I have cut my business expenses where I have been able to. Some help but not much. I need my employees, they will not be on furlough. Me preparing accounts and tax returns. No thanks.

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By Moonbeam
05th Apr 2020 14:37

Could be 70% reduction in fees very soon. Am assuming will have to live off savings for quite some time.

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