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What to say to a new client...

Any tips of what to say to a new client with lettings & dividend income who wants us to act for the company only but not their own tax affairs :-/  Thanks!

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07th Feb 2019 18:31

Who does the personal tax? Do they do it themselves? What's the story?

If I was in practice, I'd rather have the whole picture.

I guess there's nothing wrong in theory but is he/she missing some 'economies' and do you get caught doing extra work because you only see part of the client's total affairs?

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07th Feb 2019 18:37

I agree - I've seen things fall through the gap even between departments in larger firms where one does the company areas and the other does the tax side.

Remind them that things can get missed, not efficient in terms of time costs having to swap info with the other accountant (if there is one) and harder for you to suggest tax planning ideas without the whole story.

Be interested to know why they want to keep things separate?

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07th Feb 2019 19:09

I think they want to DIY just to save money..thinking it's just a case of 'form filling'.

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to kevinread
07th Feb 2019 21:26

kevinread wrote:

I think they want to DIY just to save money..thinking it's just a case of 'form filling'.

In that case, you can disabuse them of that notion! I am sure you can make them see sense. The point is, it really is in their interests and if it is a straightforward job, it's not that expensive.

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07th Feb 2019 21:27

What’s the problem? Let them screw it up and you can be the premium priced cavalry and rescue them.

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08th Feb 2019 09:21

I act for several businesses where I do the limited company accounts but not the personal tax. Also vice versa. We also have one or two where we only do the partnership accounts and return but no self assessment.

I don't see a problem with it, you just give them the info they need to know from your work and let them handle the rest. And refuse to handhold them through DIYing it, when it's come up in the past I tell people it's easier and quicker for me to do their return than to teach them to do it and I'll charge them less as a result.

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08th Feb 2019 09:44

Id say thanks but no thanks.

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By CJaneH
08th Feb 2019 11:14

Most clients do not understand accounts or tax.

Without knowledge of personal income you can not advise on salaries, benefits & dividends to pay from company.

I am not sure I would trust them to fill in return correctly, problems of competence & honesty.

My view is all or nothing when acting for a client

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08th Feb 2019 13:15

thanks everyone for your comments...reinforces my thinking :-)

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09th Feb 2019 15:14

Could be a cost thing if their own tax affairs are simple. Your fees to the company are tax deductible (and some/all of the VAT might be as well), those to them individually are not. Therefore the personal cost is quite a bit higher. One of the many odd anomalies in our tax system.

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