Charging to register someone as self employed

Charging a client

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Hello, does anyone charge to set someone up as self-employed?  As in, register them to obtain a UTR number and file a tax return?  

Replies (16)

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By OurPlace
20th Jun 2024 15:35

Why wouldn't you?

Thanks (3)
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By Paul Crowley
20th Jun 2024 15:39

It is the submission of just one form.
I would not bother.
More important to get the pricing correct for the accounts preparation.

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By Missaccountant00
20th Jun 2024 15:47

What would you think is a reasonable price?

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By AdamJones82
20th Jun 2024 16:09

It takes me a couple of minutes to fill in the form. No

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By Tom+Cross
20th Jun 2024 16:53

I'm assuming that you're 'onboarding' the new client, including all that this process entails; initial interview, general advice, taking instructions, setting up the file record, AML processes, followed by the application, for self-assessment/self-employment.
If all of the above represents the actual process, then I'm suggesting at least an hour of time is expended.
Now, from what I can see, you have a couple of choices.
Make a separate charge for the initial involvement. Or, inbuild into your initial fee estimate (which I presume you discuss with your potential new client) the 'extra' time engaged.
Much depends where the fee sits, in relation to the overall work required, from what I can see.

Thanks (2)
Replying to Tom+Cross:
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By Missaccountant00
20th Jun 2024 17:22

Tom+Cross wrote:

I'm assuming that you're 'onboarding' the new client, including all that this process entails; initial interview, general advice, taking instructions, setting up the file record, AML processes, followed by the application, for self-assessment/self-employment.
If all of the above represents the actual process, then I'm suggesting at least an hour of time is expended.
Now, from what I can see, you have a couple of choices.
Make a separate charge for the initial involvement. Or, inbuild into your initial fee estimate (which I presume you discuss with your potential new client) the 'extra' time engaged.
Much depends where the fee sits, in relation to the overall work required, from what I can see.

Yep all this and up until now I haven't been charging I've had time wasters recently I've set them up then off they go not a word from them to find out they are going to try doing their own tax return.

Thanks (1)
Replying to Missaccountant00:
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By bettybobbymeggie
21st Jun 2024 08:34

Missaccountant00 wrote:

Yep all this and up until now I haven't been charging I've had time wasters recently I've set them up then off they go not a word from them to find out they are going to try doing their own tax return.

Yes very frustrating when this kind of thing happens but to be fair it is rare. I personally wouldn't adjust my billing approach for everyone because of the odd cheapskate.

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RLI
By lionofludesch
20th Jun 2024 19:27

I wouldn't have charged specifically but it's part of the larger onboarding process.

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By williams lester accountants
20th Jun 2024 21:20

Yes

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boxfile
By spilly
20th Jun 2024 22:03

Why not charge a nominal upfront fee, say £50 or so, for getting them set up with HMRC. Then, if you do further work for them, that fee gets reduced accordingly.
That way you won’t be working for free if they try to diy on their tax returns.

Thanks (4)
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By mbee1
21st Jun 2024 07:31

We don't charge for onboarding at all either for new or existing clients. A CWF1 takes a couple of minutes to complete!

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By Truthsayer
21st Jun 2024 08:09

I don't charge separately for this, I just factor the time into the fee quote for the first two years' work. Sometimes the appointment does not last that long, but that's swings and roundabouts. If a new clent tries to back out after I have registered them, I will still charge them for the proportion of the work done.

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By JD
21st Jun 2024 10:11

Worthwhile making a small charge early on in the engagement as it establishes your relationship as a commercial one (rather than small favour for a mate) and if they are willing to pay you.

It would my second test, after making a request for information, no matter how small, to see how responsive and open they will be with you, if at all.

Thanks (2)
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By Software Seeker
25th Jun 2024 09:16

I would charge for the CWF1. Doesn't take long, but why should that make a difference (clients pay for our expertise and knowledge, don't they?). I don't charge for on-boarding, however I don't view submitting a CWF1 as part of the onboarding process (which ceases when the LoE and AML procedures have been completed). I would expect to pay a plumber for a very small job such as replacing a rubber seal on a tap, so why shouldn't a client expect to pay for a very small job of submitting a CWF1?

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By webpoints
25th Jun 2024 09:52

At the moment we don't charge for onboarding and build that into our general charges. To cut out timewasters we do ask for a retainer equal to the first year fee to be paid to us when the client agreement and AML documents are sent back to us. Works well and if the retainer isn't paid we don't act.

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By Jack the Lad
25th Jun 2024 17:38

I have always charged a fee for setting up a new client, which includes initial due diligence re ID etc, letter of engagement, UTR, etc etc, usually about £250. It is included in my post-meeting pre-engagement letter, which also includes an estimate of annual fees for basic accounting and tax work, as well as hourly rates for additional work.

In 99 cases out 100, this is accepted and initial fees paid. The remaining 1% move on. That is when you discover their commitment to you and your offer of service.

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