Share this content

Charge clients for furlough

General question - goodwill or charge?

Didn't find your answer?

In general, are accountants etc. charging for the furlough calculations & submissions during the year?

Appreciate employers with a high number of staff will be obviously get billed for time however what about one man band directors for example?  Gesture of goodwill considering the year some companies have had or charge regardless?

Replies (22)

Please login or register to join the discussion.

By Duggimon
25th Mar 2021 11:11

I charge my clients for the time it takes me to do the work they ask me to do. OMB furlough claims typically took about 10 minutes a month, so I'll bill them an extra 2 hours of time for the full year.

If they were furloughed the whole time I can probably knock that off their accountancy fees since there'll be significantly less activity to plough through.

Thanks (0)
Giraffe
By Luke
25th Mar 2021 11:12

I charge a flat £20+VAT per claim, all clients have less than 5 staff on furlough. It is a nominal charge as I also have bills to pay but it doesn't feel like profiting from them.

Thanks (0)
Replying to Luke:
avatar
By mbee1
25th Mar 2021 13:53

Luke wrote:

I charge a flat £20+VAT per claim, all clients have less than 5 staff on furlough. It is a nominal charge as I also have bills to pay but it doesn't feel like profiting from them.


At £20 a claim you're profiteering!
Thanks (0)
Replying to mbee1:
Giraffe
By Luke
25th Mar 2021 14:15

Seriously?

By the time I have asked them who was on furlough when (which is often a fairly lengthy conversation while they try and remember who has done what, rarely a quick answer), done the flexi furlough claim calculations, sent it to them to approve, then submitted it to HMRC, if I was charging proper rates it would be way higher than that.

Thanks (3)
Replying to Luke:
avatar
By mbee1
25th Mar 2021 16:00

Luke wrote:

Seriously?

By the time I have asked them who was on furlough when (which is often a fairly lengthy conversation while they try and remember who has done what, rarely a quick answer), done the flexi furlough claim calculations, sent it to them to approve, then submitted it to HMRC, if I was charging proper rates it would be way higher than that.


Why do you need to ask them who was on furlough? When flexi furlough came in I devised a spreadsheet that they fill in and send to me each month. Tells me any changes to salary, employees who are fully furloughed and, if flexi furloughed, the hours they would have worked and the hours they did work. They know when to send it to me in time to run the payroll each month. It's all about education to make my life as easy as possible.
Thanks (0)
Replying to mbee1:
Giraffe
By Luke
25th Mar 2021 19:44

I assume you don't have any builder clients?? Education is all very well and works for most but for some it is far easier to ask the questions and fill in the spreadsheet myself than let them attempt to fill in a spreadsheet then have to go back to them to check whether they really meant what they had written when it doesn't make sense.

Thanks (0)
Replying to Luke:
avatar
By PandoraSleeps
25th Mar 2021 16:12

I totally agree. Way more than £20 if you are doing all the calculations and checks properly.

Thanks (3)
Replying to mbee1:
avatar
By legerman
06th Apr 2021 16:05

mbee1 wrote:

Luke wrote:

I charge a flat £20+VAT per claim, all clients have less than 5 staff on furlough. It is a nominal charge as I also have bills to pay but it doesn't feel like profiting from them.

At £20 a claim you're profiteering!

Whilst I haven't charged anything myself (about 5 claims a month max 4 employees) I think £20 is very reasonable. You should have seen some of the eye watering amounts flying around last year.

Thanks (1)
avatar
By loverboyfullofjoy
25th Mar 2021 11:15

I just do it has part of my Payroll duties for my clients, a lot of these businesses are suffering hardships never known before and I am just happy to have some extra income on top of my state pension.

Thanks (0)
Replying to loverboyfullofjoy:
avatar
By mbee1
25th Mar 2021 13:55

loverboyfullofjoy wrote:

I just do it has part of my Payroll duties for my clients, a lot of these businesses are suffering hardships never known before and I am just happy to have some extra income on top of my state pension.


Same here particularly if you have software that was updated to do it for you, although I always check it to ensure I arrive at the same answer. Most of my payrolls are small businesses that have suffered. We're largely unaffected so it's my way of helping them out.
Thanks (2)
Stepurhan
By stepurhan
25th Mar 2021 12:08

This was done to death last year, though I'm not sure how easy it will be to find those threads among other furlough threads.

Two broad camps.

We should support our clients in their time of need and not charge anything.

We should charge for the extra work in the same way that we charge for any other extra piece of work.

Most fell into one of these two camps. Where you fall will probably partially depend on your client base and current relationships.

Thanks (0)
avatar
By DaveyJonesLocker
25th Mar 2021 13:55

I kept my fixed fees the same on the basis less accounts work at the year end which will cover the time on furlough claims

Thanks (1)
avatar
By Ken Howard
26th Mar 2021 00:12

I havn't charged until now. I've emailed clients this month saying I'll be charging £25 per claim from now on. All have since replied saying that's fine and they understand. I was losing 3 or 4 days per month of chargeable time to do the furlough claims and that's not sustainable for more than a year.

Thanks (1)
avatar
By BigBadWolf
26th Mar 2021 16:29

I charge most, but do some as a goodwill gesture where they are struggling.

Thanks (0)
avatar
By sumo69
06th Apr 2021 10:19

I have charged all of mine - 1.5% for regular claims and 2% if flexible furlough involved, all with a minimum of £50 per claim.

For context, my largest cumulative claim is just under £150k, and the client has paid me £2k exc VAT.

I don't think that is profiteering, just a reflection of time spent and value to the client.

Thanks (1)
Replying to sumo69:
avatar
By DaveyJonesLocker
06th Apr 2021 10:32

But the value of a claim isn't always reflective of the time involved?

Thanks (0)
Replying to DaveyJonesLocker:
By Charlie Carne
06th Apr 2021 15:30

DaveyJonesLocker wrote:

But the value of a claim isn't always reflective of the time involved?


Exactly! It's reflective of the value to the client, which is usually a better metric than time-based billing.
Thanks (0)
Replying to charliecarne:
Morph
By kevinringer
06th Apr 2021 16:06

Most clients would value Tax Return work at £nil.

Thanks (2)
Flag of the Soviet Union
By thevaliant
06th Apr 2021 10:49

We've charged, but many of our clients have significant payrolls (20 - 50 staff in many cases) and when Flexi-furlough came along to not do so would've been insane.

We have a rate depending on the number of payrolls processed (weekly or monthly) and the number of staff on furlough.

I do know at one point last year, our largest client was 'Furlough claims'.

I also know we lost one client after they insisted we make their furlough claims for free (with a payroll of about 20 staff, coming and going on the three weekly furlough and flexi-furlough rules last year). We refused, and they parted ways. Oh well.

Thanks (1)
Kitten
By Hazel Accounts
06th Apr 2021 12:17

I didn't charge at first, wanted to help etc but who knew how long this would last! I started a nominal charge from late last year for most clients when it started to get more complex (was going to be JSS) although for a couple of clients I know are really struggling still FOC. A lot are back to work anyway now so less claims, but I'll be glad once it stops!

Thanks (0)
avatar
By Cathy Milligan
06th Apr 2021 12:48

At the start no one knew really what was involved, or how long it would take, or how complicated it would be - so we decided we would invoice at the end - Nov 2020.
That then all changed so we decided to invoice 6 monthly, based on £15 a month for any month with a furlough claim. No one has complained so far, everyone has paid promptly, a few have said "way too cheap" but realising about £250 a month, for a couple of days work is ok with me - not as profitable as normal work, but these are difficult times for everyone.

Thanks (0)
Morph
By kevinringer
06th Apr 2021 13:36

We handle a lot of payrolls and had a huge number of clients' employees on furlough. It was massively disruptive and we had to take staff of SA to support payroll for the whole of the last 12 months. So we've charged. Everyone has paid and grateful we took the work on immediately so the funding was received swiftly. No complaints.

Thanks (0)
Share this content