Use you age to your advantage! I don't think you're too young at all - I set up when I was 30 so I was a bit older (I still had one client say it was like having Harry Potter as his auditor though).
I think the main thing to do is to concentrate on getting clients who are a similar age to you - they don't necessarily want someone in a grey suit!
A number of my younger clients say that their old accountant didn't take them seriously or looked down their noses a bit at them - I think the fact I'm a bit younger and I don't wear a suit and tie helps drop the barriers a bit.
The other piece of advice would be to try to get a niche that you can specialise in. You'll get loads of referrals that way!
Talk to Practiceweb Our web site is handled by Practiceweb - and has the calculators on - I think they're pretty accurate but they are only a 'hook' to get people interested.
Early notification of problem When I've had this sort of problem I've sent the local tax office a letter (with the client's consent of course!) straight away outlining the problem. It can often take a bit of time putting the accounts for several years together and I'm always a bit nervous that in between the client deciding to come clean and submitting the information to the Revenue that they'll get a knock on the door. I wouldn't then expect the Revenue to be quite so lenient if we explained that we were just about to tell them!
The Nifty Fifty I agree pretty much with everything that's all ready been said. Get a niche but be flexible. You should also remember that most people will assume in the first instance that you know what you're talking about. The things they will judge you on are therefore far more personal. Do you return their calls? Do they trust you? Have you got a good sense of humour?
On the networking level, when I started I wrote down 50 people that I wanted to make sure knew what I was up to and the services I offered. The list, known as the 'Nifty Fifty', had a range of people from my Dad (so far 5 people from his golf club) to people I'd barely met. Most people will know someone who is looking for a 'good accountant' - they just need to think of you!
Thanks Robert Thanks for your comments. The Inspector is not challenging the self employed status - which is under a normal Equity contract. He is challenging where the client's business is based - given that the actor travels to the studio everyday for work. He is arguing that the place of work is therefore the studio and the home to studio element is not allowable. I'm struggling with an argument against this as it seems fair enough!
From your points about incorporation of an actor I would be concerned about the IR35 implication. I know that IR35 wasn't intended to catch out this sort of thing but, if you take a step back, the contacts between the company and the production company could be seen as IR35'able. Call me a coward but I wouldn't want to be the test case!
Hurdles to jump We've not had any voluntary registration refused but we have experienced a long drawn out process of providing evidence of trading before registration. In the end Customs registered the client.
Iris I use Iris and have been very happy. It's not cheap but if you are also preparing tax returns it does make the job a lot easier as everything is connected.
Thanks for all your replies. I think 'Yo Ladies' wins the day combining the best of a forward looking, young, practice together with the traditional values one would expect from a firm of chartered accountants.
The honest approach! You should advise your client that Customs need to be told of the late registration. I would be amazed if a control visit didn't pick this up. The penalties and time to pay would be much harsher if the 'error' was detected by Customs. Your client would be able to claim back input VAT incurred during the period provided all the normal conditions apply so the equipment purchase will be ok. The fact that she was badly advised in the past won't particularly help to mitigate the circumstances - but it is your chance to be the knight in shining armour to sort out the problem now so they can sleep at night. If the client would prefer to ignore your advice I'd be inclined to walk away!
What work did he do? If your accountant just had to write to the mortgage company confirming your profit per your last accounts then a fee of £0 to £50 seems reasonable - depending on whether you're on a 'fixed fee' basis or not. Sometimes mortgage companies ask for much more information than this including comments from your accountant about your ability to meet payments, future income etc. Occassionally, accounts may need to be prepared especially for the purpose of satisfying the mortgage company. If this is the case then it's very difficult to predict what would be a reaonable fee.
My answers
Use you age to your advantage!
I don't think you're too young at all - I set up when I was 30 so I was a bit older (I still had one client say it was like having Harry Potter as his auditor though).
I think the main thing to do is to concentrate on getting clients who are a similar age to you - they don't necessarily want someone in a grey suit!
A number of my younger clients say that their old accountant didn't take them seriously or looked down their noses a bit at them - I think the fact I'm a bit younger and I don't wear a suit and tie helps drop the barriers a bit.
The other piece of advice would be to try to get a niche that you can specialise in. You'll get loads of referrals that way!
Talk to Practiceweb
Our web site is handled by Practiceweb - and has the calculators on - I think they're pretty accurate but they are only a 'hook' to get people interested.
Cheers
Jonathan
Early notification of problem
When I've had this sort of problem I've sent the local tax office a letter (with the client's consent of course!) straight away outlining the problem. It can often take a bit of time putting the accounts for several years together and I'm always a bit nervous that in between the client deciding to come clean and submitting the information to the Revenue that they'll get a knock on the door. I wouldn't then expect the Revenue to be quite so lenient if we explained that we were just about to tell them!
The Nifty Fifty
I agree pretty much with everything that's all ready been said. Get a niche but be flexible. You should also remember that most people will assume in the first instance that you know what you're talking about. The things they will judge you on are therefore far more personal. Do you return their calls? Do they trust you? Have you got a good sense of humour?
On the networking level, when I started I wrote down 50 people that I wanted to make sure knew what I was up to and the services I offered. The list, known as the 'Nifty Fifty', had a range of people from my Dad (so far 5 people from his golf club) to people I'd barely met. Most people will know someone who is looking for a 'good accountant' - they just need to think of you!
Thanks Robert
Thanks for your comments. The Inspector is not challenging the self employed status - which is under a normal Equity contract. He is challenging where the client's business is based - given that the actor travels to the studio everyday for work. He is arguing that the place of work is therefore the studio and the home to studio element is not allowable. I'm struggling with an argument against this as it seems fair enough!
From your points about incorporation of an actor I would be concerned about the IR35 implication. I know that IR35 wasn't intended to catch out this sort of thing but, if you take a step back, the contacts between the company and the production company could be seen as IR35'able. Call me a coward but I wouldn't want to be the test case!
Hurdles to jump
We've not had any voluntary registration refused but we have experienced a long drawn out process of providing evidence of trading before registration. In the end Customs registered the client.
Iris
I use Iris and have been very happy. It's not cheap but if you are also preparing tax returns it does make the job a lot easier as everything is connected.
Thanks for all your replies. I think 'Yo Ladies' wins the day combining the best of a forward looking, young, practice together with the traditional values one would expect from a firm of chartered accountants.
The honest approach!
You should advise your client that Customs need to be told of the late registration. I would be amazed if a control visit didn't pick this up. The penalties and time to pay would be much harsher if the 'error' was detected by Customs. Your client would be able to claim back input VAT incurred during the period provided all the normal conditions apply so the equipment purchase will be ok. The fact that she was badly advised in the past won't particularly help to mitigate the circumstances - but it is your chance to be the knight in shining armour to sort out the problem now so they can sleep at night. If the client would prefer to ignore your advice I'd be inclined to walk away!
What work did he do?
If your accountant just had to write to the mortgage company confirming your profit per your last accounts then a fee of £0 to £50 seems reasonable - depending on whether you're on a 'fixed fee' basis or not. Sometimes mortgage companies ask for much more information than this including comments from your accountant about your ability to meet payments, future income etc. Occassionally, accounts may need to be prepared especially for the purpose of satisfying the mortgage company. If this is the case then it's very difficult to predict what would be a reaonable fee.