moaning client

how to respond

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patnership client - 15/16 had a large tax bill to pay, profits had increased and they hadnt needed payments on account for the year

at the time we advised them that the next years profits were going to be higher, potentially tax due will be higher and gave them advice as to what they could do to migitiate the tax

they didnt follow any of the advice provided and 16/17 profits and tax are both up considerably

client is now emailing, having a whinge at the level of tax due and if things were done differently they could have saved some tax

not really sure how to respond? we clearly feel that sound advice has been provided to legimatley reduce their tax, but in light of the fact that the client has not takn it on baord, what else can we do?

Replies (12)

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By Tim Vane
12th Jun 2017 09:26

Tell them the simplest way to reduce their tax bill is to reduce their profits. Oh, and don't forget to disengage. Nobody needs clients like that.

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By User deleted
12th Jun 2017 09:54

"they didnt follow any of the advice provided and 16/17 profits and tax are both up considerably"

I think you have your answer here? If you provide advice and, client's chose to ignore it, the relationship won't last.

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By ireallyshouldknowthisbut
12th Jun 2017 10:12

Dead bat it back to them.

"Further to me email of the XXX, when I advised you to YYYY, this would have helped you reduce your tax bill for the past year. It is now too late to do this for the past, but for the future you could ZZZZ. Ultimately profitable business pay a lot of tax, you should see your tax bill as a badge of your success, not as a mark of something going wrong"

Or "I told you so, you bunch of idiots". Said posh like.

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By mrme89
12th Jun 2017 10:15

If you'd disengage at every client quibble, you wouldn't have any clients.

Just be honest with them and tell them that the you have already explained the anticipated increase in profits and tax, and also provided advice on how to mitigate the tax burdon. Explain that if they choose to ignore your advice, or don't seek further clarification on that advice, then what do they expect you to do?

There's no magic wand, and there has to be some effort on their part.

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By bernard michael
12th Jun 2017 11:10

Sympathise with their predicament and offer to increase your fee to reduce future profits.
If done correctly it'll either produce a
a laugh or won't have the problem from your ex client

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By Maslins
12th Jun 2017 11:20

What mrme89 said.

Sure, if this client is persistently a pain, you may decide to bin them. However, we have lots of situations where:
- we email client in Feb/Mar discussing current dividend levels and tax to expect,
- 6 months later we do their tax return, and they're horrified at the tax, despite it being as we flagged.
That's life. If we sacked every client like that we wouldn't have many left!

The hypothetical tax bill has become a real tax bill, and hence unsurprisingly feels much more painful.

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Worm
By TheLambtonWorm
12th Jun 2017 15:04

Just let it go over your head give them an honest professional response, and let it run it's course.

I wouldn't choose to lose a client just because they are a bit of an [***], but I also wouldn't care if they left either. There are benefits either way.

EDIT: Why a.s.s is deemed to be a naughty word is beyond me.

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Replying to TheLambtonWorm:
paddle steamer
By DJKL
12th Jun 2017 16:00

Re your edit point I blame the Americans, if we stopped importing their slang you would not have the issue.

Frankly it is not Anglo Saxon enough.

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Replying to DJKL:
By ireallyshouldknowthisbut
12th Jun 2017 17:56

b*llocks is ok

If you are going to swear, swear British.

Or do it in french. Merde is equally OK.

That said our ever vigilent moderators do take out my swears sometimes. The use of an underscore works too.

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By morgani
13th Jun 2017 09:50

I'd go with the being honest option.
Engage with them and explain what you told them before and that they have not utilised that advice. Maybe explore why? Maybe they thought these were only estimates and didn't really think it would happen?
Going forward this for me outlines the positives of MTD. Clients will be forced to do more regular bookkeeping which we can then utilise 'in year' to give timely tax advice.
The only thing is either clients need to pay for that bookkeeping to be done or need effective training to do it properly.

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By ohgoodgodno
13th Jun 2017 10:26

thanks for the replies

to update, I've bitten the bullet and spoken to the client directly, they were much more friendly in conversation than their email suggested!

client has conceded that we have given advice and that they just haven't followed through with it due to being too busy

also turns out they've been talking to every Tom, Dick & Harry who happens to have 'tax savings' advice and has completely the wrong end of the stick as to what is and isn't possible

all in all a positive discussion, client is now clear that we are and always have been working in their best interests and that its usually the case that Dick's down the pub exaggerate their own tax position / savings etc to try and look good

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Replying to ohgoodgodno:
By mrme89
13th Jun 2017 10:34

The man down the pub is everywhere.

I had Friday off and was in the pub at dinnertime. Got talking to a plasterer who said he hasn't paid tax in years. Apparently, he puts everything in his wife's name. When I said, 'ah, so your wife is taxed on the income?' he responded 'no because she doesn't work'.

You couldn't make it up.

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