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MTD and client pricing

3rd Dec 2018
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Last time I was at "I will get back to burying my head in the sand until the end of February 2019" for MTD but I have extended my February holiday until 4th March so I will look at it when I get back.

I'm not too worried as there seem to be a lot of software providers doing work for us.

I'm still waiting for HMRC to frighten any of my clients into action. The few that I have talked to so far  seem very disinterested and I believe they think it is my problem.

I still do not know how (much) to charge for MTD work.

I charged everyone a flat £500 to set up AutoEnrolemnt (incl. compliance returns), so maybe a flat fee would work?

My alternative would be an uplift to their monthly fees- maybe £20 p.m.?

Any thoughts out there?

 

Replies (5)

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By GHarr497688
03rd Dec 2018 18:39

I would imagine clients at the age of 50ish will want the Accountant to complete the books, I would think that to use the modern technology will take time. For now clients using manual records will need one set of computer records for VAT , manual records for Income Tax. How Accountants can sign everyone up and do all the books is beyond me . Costs will double . HMRC are not in touch with reality and have been sold MTD by Software Companies and those out to profit from the Taxpayer .

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By Glenn Martin
04th Dec 2018 14:58

How hard is it going to be?

At the minute you will prepare VAT returns up to a standard then file them through .GOV website

Under MTD you will do the same then use bridging software instead of .GOV for those that have not adopted software.

So apart from the cost of the bridging software is there much of any additional cost to the client.

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By nodrogbir
04th Dec 2018 15:06

well yes , as my client are older 50/60 and trades people or in service industry they prefer manual records and maintain them on a daily basis - they do not want spread sheets or cloud based products . They are not educated to use them and feel this force changed unfair. This means they want uf to transfer the information onto a computer by individual entry. In effect this really is four sets of Accounts per year. I am not gainst technology but MTD has not been thought out properly and pushed through far too quickly . Interested point though .

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Replying to nodrogbir:
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By MissAccounting
04th Dec 2018 16:47

nodrogbir wrote:

well yes , as my client are older 50/60 and trades people or in service industry they prefer manual records and maintain them on a daily basis - they do not want spread sheets or cloud based products . They are not educated to use them and feel this force changed unfair. This means they want uf to transfer the information onto a computer by individual entry. In effect this really is four sets of Accounts per year. I am not gainst technology but MTD has not been thought out properly and pushed through far too quickly . Interested point though .

As you are just providing them with the same 9 figures why do you need to prepare the VAT any differently? In the future that might change and then you may indeed have a problem but until then just add them up on your adding machine and journal into some software.

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Steve Edwards
By stevo5678
18th Dec 2018 21:12

I think it's a lost opportunity not to revisit your pricing structure overall with MTD. We have used it as a driver to get everyone we do bookkeeping for onto Xero, also using Receipt Bank and moving to at least monthly bookkeeping (tended to do it quarterly to get the VAT done previously). This is seeing our fees increase from 30 to 100% on average with not that much friction! It's not that we are charging for the sake of it but are using it as an opportunity to push clients into out way of working, with our tech, our deadlines etc. This is going to be a game changer for us now, even without MTD we'd be going this route but having that in the background has made it easier to sell.
Having pricing software makes it easy to send a new proposal, we use Goproposal for this (I'm sure there's others out there too). For clients already on Xero and Receipt bank it's not much of a change just the insistence that we need to do it more often (and charge more still).

I'm going to avoid bridging software like the plague, this isn't the direction the industry is going and is only a temporary solution. We may have some really old clients that will struggle to move to proper software but want consistency in our practice rather than various random spreadsheets.

I see VT have finally reacted to MTD, surprised they are still going if I'm honest with all the more modern minded tech out there that was born in the cloud.

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