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Getting paid by clients

DcollinsDcollins Well-KnownRegistered Posts: 179
Hi everyone,

I currently charge my clients in full on completion of work, and haven't had any problems with that so far, but don't want my luck to run out. I'm considering a monthly payments system, but would rather not pay the Consumer Credit Licence Fee.

I'm curious as to how other MIPs get paid, and what works best.

Thanks

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    50% up front and 50% on completion for existing clients.

    All new clients are invoiced monthly (continuous service) so spreading the cost over the year - good for them, good for us.

    As long as the monthly payments are in advance, as you go, or less than 3 payments behind, you don't need a CCL.

    Edited to add - I really wouldn't get into the habit of 100% on completion. We used to do that, and wrote off some hefty bad debts last year. You need to protect yourself. :)
  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,440
    Most of mine pay by monthly standing order.

    I do have some of the smaller fee clients that pay on completion but I will not file until paid.
    Regards,

    Burg
  • PsychePsyche Well-Known Registered Posts: 187
    I would say the same as Ian. Ongoing clients pay by monthly standing order, one-off clients (for instance someone with an annual self-assessment return and that's it), depending on the size of the job, I would either get a down payment and invoice on completion (but before providing them with all the work that I have done and filing the returns), or just invoice on completion, if it's something like a £100 self-assessment return. So far only one client has not come up with the down payment, so I have ceased work on his accounts. I have a feeling he'll find the money quite quickly as the Companies House filing deadline nears ;)
  • DcollinsDcollins Well-Known Registered Posts: 179
    Thanks for the replies.

    Being the cynical skeptic that I am, I suspect that invoicing on completion encourages clients to wait until the last minute before supplying info. Has anyone noticed if monthly standing orders make a difference to this?
  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,440
    I would say it helps but I also tell clients that work in to me after 31 October will mean they are liable for any penalties should it be late (it is very unlikely it would but it gives them an incentive). For limited Companies I split the 9m 1d deadline so they have until 5m post y/e to get the info to me. I do warn them as well that I may charge more at my discretion should it be very near to the deadline.

    I had around 70 SA100 tax returns to do last year. I only did 10 between Christmas and 31
    Jan.
    Regards,

    Burg
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Dcollins wrote: »
    Thanks for the replies.

    Being the cynical skeptic that I am, I suspect that invoicing on completion encourages clients to wait until the last minute before supplying info. Has anyone noticed if monthly standing orders make a difference to this?

    "Because of the pressures of the Jan deadline, we reserve the right to charge a premium on books delivered after 30th September.... 20% in October/Nov and 50% in Dec/Jan. Please provide your information early."

    Works like a charm!! :lol:

    We don't want to charge a premium (and haven't ever) but it pushes people to get their stuff to us by Sept ;-)
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