Anonymous
Share this content
0
1886

What are people charging for MTD?

what people are charging for MTD conversion. Especially in relation to tranfer to cloud?

I have attended many MTD seminars and have been told that companies are charging clients for MTD. I just wantde to get an idea on what people are charging on on what basis. We still have clients that are old fashioned and not using any software or are using excel.

Any indications woudl be really helpful.

Thanks

Replies

Please login or register to join the discussion.

avatar
By Mr_awol
25th Apr 2019 10:51

What do you mean 'charging for MTD'? I imagine there are some of the AWeb practice gurus who would advocate a flat fee per client for 'MTD compliance' or some other meaningless term, or add a tenner a month to their subscription wheeze.

We have spent ages identifying clients who need help, segmenting them according to the help they need and communicating with them. That's not billable time.

We will have a brief chat with any of them to explain the options available (deal with it themselves, we submit, be take on bookkeeping etc) and that isn't billable time either.

They might need bridging solutions which will be chargeable at about an hour's work per quarter, there will be bookkeeping quotes which we will work out using our normal methods. Some might need training on new systems or assistance as they go, and will be billed like any other ad-hoc work.

Thanks (1)
25th Apr 2019 11:14

The lass from HMRC said about £30 a year, didn't she ?

including software costs.

Thanks (3)
avatar
to lionofludesch
25th Apr 2019 18:18

There is, for a smaller business operating on a cash basis, no reason why it need be more than this.

Thanks (0)
to johnhemming
26th Apr 2019 08:57

Quote:

There is, for a smaller business operating on a cash basis, no reason why it need be more than this.

What MTD compliant software would they be using that only costs £30 annually?
Thanks (1)
avatar
to stepurhan
26th Apr 2019 09:14

There are various companies offering free bridging software. HMRC say there are 11. Open Office provides free spreadsheet software which works with some of the free providers (it works with my software) I offer a free (this year) online cashbook that is MTD compliant, but unsurprisingly only works on a cash basis at the moment. I am wondering how to do EC acquistions as part of the reporting is on an accruals basis. Otherwise it does normal VAT, Flat Rate and Margin Schemes.

The reason I did the online cashbook was that I found that some clients find it quite difficult to ensure that the right formulae are in the right place in their spreadsheets. Hence I have written something that is not flexible and locks down the formulae.

I won't charge more than £30 a year (2020 values) for the cashbook. I have not decided yet what to charge.

Thanks (0)
to johnhemming
26th Apr 2019 09:23

Quote:

There is, for a smaller business operating on a cash basis, no reason why it need be more than this.

Rubbish.

Thanks (1)
avatar
25th Apr 2019 11:50

I was just thinking that myself - its seems to be taking over my life at the moment.

Thanks (1)
avatar
25th Apr 2019 13:22

seems most clients don't have the first idea what MTD involves - apart from watching those Quickbooks adverts with Sanjeev Baskar telling them how easy tax is going to become from now on- which undermines accountants costs (and time) for setting this crap up!
I'll probably divide the cost of extra software by the (few) clients that I submit for as agent - if I can find software for a minimal cost to me of course.

Thanks (1)
25th Apr 2019 13:53

Didn't you think to ask others, while you were at these "many" seminars?

Thanks (0)
25th Apr 2019 14:23

MTD will be yet another farce to add to every other disaster which occurs every time HMRC (or any other government department) goes near a computer.
It was one of the reasons I decided to retire, I just don't need yet another source of ulcers when confused clients totally [***] it up and come running for help that they don't want to pay for.

Thanks (2)
avatar
to Retired Dave
25th Apr 2019 14:37

I’m 58 and could retire on a modest sum . Feel very down would you recommend it ?

Thanks (0)
to GHarr497688
25th Apr 2019 15:28

Depends what you call modest. I'm ancient enough to get the state pension too which helps.
Would I recommend it? If it makes financial sense then yes I'd totally recommend it. I'm now doing all the things I always wanted to do but didn't have time for and I wish I'd been able to retire years ago (about 50 years ago :) ).

Thanks (0)
avatar
to Retired Dave
25th Apr 2019 15:59

I would have enough to buy and invest but would need to move to a smaller house so yes it’s possible with lifestyle changes . At the moment I’m awake in the night worrying and getting a totally negative attitude from clients and staff alike . Life has no quality and I’m totally depressed by it all . I used to enjoy my job !

Thanks (0)
By 0098087
to Retired Dave
25th Apr 2019 15:29

Wise I could retire. Don't know what's wrong with current system.

Thanks (0)
to Retired Dave
29th Apr 2019 19:37

Rams Fan?

Thanks (1)
25th Apr 2019 15:15

I spoke to that bookmark bloke and we've decided to charge all clients a £1,200 MTD assessment charge whether they are VAT registered or not. Any clients that are assessed as positive (NB thats them all) will incur a value added set up charge of £1,500. Ongoing its a mere £125 for the bronze MTD tier, £750 for the silver, £1500 for gold and £3,000 for the platinum, per month.

Thanks (4)
to MissAccounting
25th Apr 2019 15:30

Is that all? We have identified that if we put up our prices by 92% per month, compound, we only lose 32% of our clients, so in 10 years we have one client paying us £4 million a year in fees, and its only one days work a year!

Thanks (5)
to MissAccounting
25th Apr 2019 15:34

Sounds more like a Bob Harper scheme than a bookmark bloke scheme :)

Thanks (0)
avatar
to MissAccounting
25th Apr 2019 15:54

What do they get for that fee ? Not really inline with what Hmrc forecast is it . Will they get china cups with your service and a silver teapot .

Thanks (1)
avatar
to MissAccounting
25th Apr 2019 17:02

Really?
what are you supplying in your different tiers then? I was told that people are charging anything from £250 to £2,000 but on what justification I am unsure on.

Thanks (0)
avatar
By Mr_awol
to MissAccounting
25th Apr 2019 17:40

I've had more GoProposal SPAM (about waffles ironically) today so am thinking of signing up to their idiots' guide to pricing accountancy services. I'm going to offer a special rate for VAT registered businesses but as soon as you tick the 'MTD compliance' option, the prices will treble. Then I'll blame the government - or the client for ticking expensive options.

Then I'll move to bronze/silver/gold pricing and then I'll make the suckers aware of clause 48.7 (b) (iii) (h) which says I get to keep their 'subscriptions' if they go to a proper accountant.

Thanks (1)
to MissAccounting
25th Apr 2019 19:16

Ha ha great post.

I do sometimes wonder where these Guru guys get their ideas from about we actually do.

I need to look at my gold pricing if that’s the sort of cash you can get

Thanks (1)
avatar
By Matrix
25th Apr 2019 17:25

I will offer to register clients for MTD for a small fee in the hope that it will make them register themselves. I am not going to put my fees up for using a different part of the software so no MTD fees.

I have already gained one client so the main way to make money would be from new clients who can’t file themselves. If I had to put these clients on software then that would be a bookkeeping cost not an MTD cost.

Thanks (1)
avatar
25th Apr 2019 21:51

I might do a one-off £25/£50 MTD registration charge, but I can’t justify to myself charging extra each month for doing the same thing I do now.

Like Matrix, I’ve just gained a client due to it - tiny (in terms of no of transactions) YE client has asked us to prepare & submit their returns.

Thanks (0)
to atleastisoundknowledgable...
25th Apr 2019 22:19

For me, it's mixed.

For some clients, I'll be doing pretty much what I do already.

For others, I'll be doing a lot more and will be charging accordingly.

I'm surprised that folk are trying to fit different sized pegs into the same hole.

Thanks (0)
26th Apr 2019 09:20

Why is MTD any different to other work you price for, and your basis for your charges should not be "well thats the firm down the road charges"

If your clients are on software there is very little to do other then get the submission to work so charge accordingly.

If you are taking someone desktop software tidying it up, converting it say Xero then checking the new system is as it should be, thats a piece of work price it + plus a monthly fee to maintain it going forward.

It was discussed a few weeks back that £40 per VAT submission was the going rate for submission only of vat returns.

Personally I would not want to offer that service as the management and control of it for that fee level is not attractive. I also suspect that if it comes off the rails and there is an error in the submission the client will have expected you to do some checking of the numbers but are not prepared to pay for it.

As we are effectively in MTD now should you maybe not have thought about your cost structure before now?

Thanks (0)
avatar
26th Apr 2019 12:07

If its an existing client there shouldn't be an additional charge; should be part of their retainer/monthly fee.

Thanks (0)
to Guilford Accounting
26th Apr 2019 12:12

It's nice that you assume that everyone charges a retainer/monthly fee but not everyone does that.

Thanks (0)
avatar
By Janski
26th Apr 2019 12:59

Splitting the cost of the software between the MTD clients and charging them that annually.

Thanks (0)
to Janski
28th Apr 2019 20:33

Are you not in business to make a profit? Do you recharge your staff by splitting the costs of their wages between your clients and charging that?

There are three key, alternative scenarios:
(1) You migrate your clients to MTD-compliant software, in which case you are providing a valuable (and labour-intensive) one-off service and should charge accordingly. The ongoing bookkeeping and quarterly VAT filing can be done by you or the client, as before (and charged as before).
(2) If they already use compliant software, then you simply need to register them for MTD as a one-off process and should, again, charge accordingly.
(3) If they continue to use non-compliant software and you purchase bridging software to file their returns, then you will be reviewing their data, copy/pasting it into the bridging software and submitting it every quarter, in which case you are providing a valuable (and labour-intensive) service and should charge accordingly each quarter.

What's so complicated about how (or if) to charge? We are providers of professional services and this is just another service.

Thanks (0)
26th Apr 2019 13:12

We're going to charge £25 to register the client for MTD whether we do the VAT or they do the VAT and want us to register them for them. For clients for whom we prepare the VAT using spreadsheets we are charging an extra £10 per VAT return to cover the cost of software etc (the bridging software is a licence per filing). For clients for whom we currently use Sage or QBO we won't charge anything extra because it's covered by the cost of the software. For clients who do their own VAT on spreadsheets and email them to us we are charging £25 per VAT return to cover the software licence and our time.

Thanks (0)
avatar
to kevinringer
29th Apr 2019 15:47

For the smallest SME on manual records this involves a major shift in record keeping that is costly to say the least . Hmrc say no one will be forced on digital records that has genuine reasons not too and also says a client will not face significant cost increase . With my bunch costs will increase and standards will drop . Where is the sense in that . Clearly this is unfair !

Thanks (0)
to kevinringer
29th Apr 2019 16:34

Quote:

We're going to charge £25 to register the client for MTD whether we do the VAT or they do the VAT and want us to register them for them. For clients for whom we prepare the VAT using spreadsheets we are charging an extra £10 per VAT return to cover the cost of software etc (the bridging software is a licence per filing). For clients for whom we currently use Sage or QBO we won't charge anything extra because it's covered by the cost of the software. For clients who do their own VAT on spreadsheets and email them to us we are charging £25 per VAT return to cover the software licence and our time.

Blimey, can I send you over all of my VAT clients to do each quarter and then I'll bill them a proper amount?

Thanks (2)
to MissAccounting
30th Apr 2019 13:37

Quote:

Blimey, can I send you over all of my VAT clients to do each quarter and then I'll bill them a proper amount?

So what are you going to charge?
Thanks (0)
01st May 2019 15:27

Base your charge upon the cost of buying a MTD for VAT software solution and the time it takes to get 9 VAT figures into a spreadsheet and click a few buttons.

Based upon what we charge for our solution (easy MTD VAT - https://easymtdvat.com) that charge could be as little as a few pounds. Add some profit into the equation and I guess £20 is a good ball park figure!

Thanks (0)
Share this content