Charging for Services Flashcards
You charge higher fees as a client would like their tax returns as soon as possible, is this prohibited by the PRPG?
This arrangement is not covered in PRPG however you are not prohibited from using it if appropriate.
You should make it clear from the outset at which point fees will arise
What level of detail is needed in the fee note?
A fee note ned not be fully detailed unless the client has requested this
Records enabling full details to be provide should be kept
According to PRPG, where a client is slow to pay, is it acceptable for an adviser to inform the client that they will cease to act unless payment is received in what timescale?
A reasonable, specified time period
Which body will not arbitrate in the event of a fee dispute between a tax adviser and their client?
ATT or CIOT
By what point at the latest should a new client be made aware of the basis on which fees for preparation of tax returns will be charged by their tax adviser?
Before any work is begun
When you don’t know how much time a piece of work will take or how much it will cost, how should your fee be calculated?
Time and expenses
You are visiting a client one day each month to give tax advice, your day may finish earlier than expected and you want to be paid for a full day’s work, in what ways could you calculate the fee?
Retainer arrangement
Fixed fees
If a tax adviser is considering charging a client a fixed fee, what should the adviser base the fee on?
A proper costing of the work to be done
What should you consider when charging a contingent fee?
HMRC may regard contingent fees as affecting the member’s independence
A member should have in mind the requirements of the disclosure of tac avoidance schemes when agreeing a contingent fee
What is the last resort when a client has unpaid fees?
Exercise a lien to retain property belonging to the client
What is the first course of action when a client has unpaid fees?
Consider taking legal action to recover the debt and notify the client that you will be ceasing to act unless payment is received within a reasonable, specified period
What is a lien?
A lien is the legal right to retain possession of property until a financial claim that the holder of the property has against its owner has been met
What should be considered before exercising a lien when a client has an unpaid fee note?
Whether appropriate step shave been taken to remove nay genuine sense of grievance on the client’s part
Whether the member should take specialist legal advice
Which fee arrangement could affect a member’s ability to fulfil their obligations to other clients?
Working on a retainer basis
When it is not clear what the cost of work will be, what clause should be included in the engagement letter?
When the arrangement is to run for any length of time, say beyond one year, there should be an appropriate variation clause in the engagement letter to enable additional work to be charged and cost escalation to be recouped
