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What Fees to Charge

What Fees New Practice Midlands Based

Hi I am in process of setting up a new practice working on own and wanted to seek some advice on pricing ( I am based in East Midlands).

For a self assessment for a sole trader what would be reasonable to charge .. I was thinking of £150 for SA tax return 

If you complete a return for an individual how much extra would you charge for one rental property does an additional £75 sound reasonsable 

Finally, if you are presented with a lot of book keeping work ( bag of receipts)  to get the figures for the SA tax return do you charge for this at a book keeping rate per hour in addition .

Any guidance would be much appreciated 

Thanks 

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03rd Feb 2019 15:01

There are lots of threads about fees - and specifically some in the last week about fees for clients with property income. From memory, £150 for an SA return would be cheap. Obviously, the type of client (complexity and volume of affairs) and quality of information are major factors.

I'm not sure it makes sense for you to charge less for bookkeeping (assuming that you would be doing it yourself). You are using time that could be used for higher value work.

You need to be clear about your charging. If you say £150 for a SA return, do you mean £150 to include anything and everything that the client wants/needs in the year? That's a very different proposition.

Search the site and read what others have written about fees.

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By ALM1
to Accountant A
03rd Feb 2019 17:14

Thanks for your quick response many thanks for your help

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03rd Feb 2019 16:15

Yes, yes and yes.

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By Matrix
03rd Feb 2019 17:59

I would read up all the posts as previously advised and work out your hourly rate. Simplify your fees as much as possible.

There are luckily a few months before tax returns so you need to find other work to do. You need a lot of tax returns to make a living at that fee (and at any fee actually).

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04th Feb 2019 00:49

Agree with the comments so far.

When you say a sole trader SA tax return, this implies that you will be at least preparing an income & expenditure analysis / summary, in which case I would certainly be charging more than £150.

To give you an idea, I am in South Manchester and my base price for the most basic of tax returns is £150. This would be where a client has for example employment income and not a lot else.

Below that level, it's really not worth my while taking them on, applying for auth codes, set-up admin etc. I have software costs and other overhead to cover, as will you.

Look at what sort of annual income you would like to be earning, then divide that by the number of hours you would like to be working, to give you an idea of hourly charge out rates.

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04th Feb 2019 12:39

What is the local market price? Get a friend to phone around to get a feel.
What service are you offering, how are you presented on your website. Are you cheap and cheerful or do you consider it a premium service? If you have sufficient knowledge and want to pitch yourself as a specialist in a particular niche, you might be able to charge extra.
Don't grab every client going, work out how you want to value your time and calculate how long things should take. Build in admin and chasing time. Bookkeeping I would definitely do on an hourly rate

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04th Feb 2019 13:20

What would you say to a client who sat in front of you and asked the same question?

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By mrme89
to MissAccounting
04th Feb 2019 14:14

Surely at that point you've already asked them to bring their last set of accounts in so that you can have a sneaky peak of what they have been paying?

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to mrme89
04th Feb 2019 16:38

mrme89 wrote:

Surely at that point you've already asked them to bring their last set of accounts in so that you can have a sneaky peak of what they have been paying?

The thing is they fall for it everytime ha!

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to MissAccounting
04th Feb 2019 17:53

That's 'cos half of them don't even realise that the accounts show the accountancy fees.

Ok probably a slight exaggeration there ?

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05th Feb 2019 09:58

Someone on this site suggested that their real rate was £50 per hour having taken in to account admin. Different practices have different % of admin so when working out what you should charge you need to add this in. For a new commer this could be 40%. So that pushs the £50 to nearly a £100. Therefore if you feel that you can meet a client annually, prepare their annual self-employment accounts and Tax return for £150 you have 1.5 hours to do this.

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05th Feb 2019 09:58

double them fees... or you will make no money.... when one day yuou have to hire helpers

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05th Feb 2019 12:08

£150 is what I charge for a simple return, such as a pensioner with some bits of investment income. For self-employed people I charge a minimum of £200, but that is only if the accounts preparation can be done in a couple of hours. Certainly you should not charge less than £150. I don't charge per hour for book-keeping work, I instead quote a fixed fee that includes it.

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05th Feb 2019 14:56

Two things really.
Firstly do a bit of market research and ring around a few competitors to see what the going rate is.
Secondly, do some maths, establish what you need to earn and how many clients you can get or handle and take it from there.
Good luck with your venture - we all started somewhere and had the same quandary.

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By Mr_awol
to Yorkshireblue
07th Feb 2019 13:09

We all started somewhere but I don't see any reason for not knowing the market rate in your area for your work - unless:
1) You've just moved from quite far away
2) You've not done this work as an employee before

If the former, then by all means charge the going rate in your new location. If the latter, then you should probably charge quite a bit less than the going rate for an experienced competitor.

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By ALM1
07th Feb 2019 21:00

Many thanks for your replies and advice I will definitely do some market research

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08th Feb 2019 17:12

I am an Agent Bookkeeper and have only a few clients mainly self employed CIS workers or just plain self employed with lots of receipts, they have absolutely no interest in tax. I normally charge £260 per annum that covers doing their bookkeeping (all those receipts) and their self assessment return, I base my charge on approx £20 per hour for the bookkeeping and then £80 for the submission of the self assessment, and it usually works out around the £260, some clients are significantly less hours as not many receipts (the CIS clients) so better profit in those. When I have asked around the trades people who are not with me and I ask what they pay it is usually the £260-£300 mark depending on whether their Agent is VAT registered (which I am not). Hope that helps.
I might add I also have a Ltd Co client and for them I charge £650 per annum as slightly more work.

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By ALM1
to Psychic Sue
09th Feb 2019 10:40

Hi Many thanks for your reply and for sharing this information.

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13th Feb 2019 09:29

A lot of the fees bandied about on this thread seem really cheap to me.

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