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Fixed fees In various
sections of this web site, there are fixed fee levels set for particular
kinds of work. These
include Payroll Services, Asking a Question on Line, Tax Return Preparation, and various factsheets
that are referred to in various places. Reference should be made to the
particular web pages involved. There are a
number of other areas of work where we charge a fixed fee, such as filing
certain company forms, or preparing certain certificates. In all cases
the fixed fees are calculated on a basis that. on average, we calculate will
provide an adequate return on an hourly rate for the time spent by the
particular staff involved. In most
other areas of professional work, the fees are based on the time spent, and the skills required,(which will determine the level of staff
required), and hence the hourly rate to be charged. The fee will also be
affected by the degree of risk involved, and also the value of the work to
the client. Fees for
accountancy and audit work It follows
that fees for accounts production and audit work will be related to the
quality of the accounting records, the number of transactions and the
complexity of the work required. We will
advise a client whenever we become aware of improvements to the system of
record keeping, so that fees for accountancy and audit work can be
controlled. See ‘Bookkeeping Advice’. The number
of transactions involved and the complexity of the work will depend very much
on the nature of a client’s business, and therefore are largely not subject
to as much control as the system of record keeping. This is why fees will
differ for different types of trades, and trades having different legal
structures, such as sole traders and limited companies. With a new
client, we will usually be able to assess the likely fee level, based on our
understanding of similar trades, after we have reviewed the actual system of
record keeping adopted. We are therefore usually willing to give a fee
estimate to a new client, and even agree to cap a fee at a particular agreed
level in the first year. In subsequent years, we would discuss the actual
time spent and the actual fee that should have been charged with the client,
so that the client can the fully understand the future fee levels and the
factors that govern them. Other areas
of professional work. The basic
principle of charging for the time spent will be followed, but depending on the
nature of the work, we may be able to negotiate a fixed fee or a fee
calculated according to a pre-defined formula, to help the client in
budgeting. In most cases, professional rules would prohibit us for charging
fees on a results basis, as this could affect our objectivity, for example in
making claims for tax allowances. |
Last revised 22/12/02