Thanks Shaun, I'm aware of the lien aspect and he is a sole trader so will certainly not be releasing the paperwork until paid.

On the standing order front, yes a good idea even for the yearly ones, although they are mainly subbies with not much paperwork so a doddle to do.  One lad didn't pay me one year and apart from a letter threatening court action, I never followed it through.  A pleasant surprise then when the following year he humbly apologised and paid the previous year and the current one.  He now knows he has to pay up front.

 

Incidentally, I don't know whether you're aware, but the pre action protocol to taking a sole trader to court has changed from this month. Further details here.  http://www.ukbusinessforums.co.uk/articles/how-to-follow-the-new-pre-action-protocol-for-business-debt.650/

I only found out about it in September otherwise I would never have given him the extra month to pay 

Thanks Doug, much appreciated.

What a bummer John. Yes keep hold of their paperwork. Before you start the court action - email and ring them daily for at least a week, maybe two!!!!!! They generally cough up to get some peace. Suggest a payment plan to spread the cost over a couple of weeks and if no response threaten court action. Do you have a deadline that is imminent for something - eg payroll, VAT? Im guessing not, although that often also spurs them into action. Good luck, I hope you get it sorted. For the ones where it is hard to get the payment up front when there is a lot going on (the awkward ones I mean) I have even suggested they pay me a set amount - say £500, then I will work until its exhausted, then tools down until the next advance (whilst telling them that if that is mid time critical episode and they dont pay quickly enough then that is there look out if a deadline is missed!)

If someone asks for more time to pay - always get them on some kind of payment plan so that you are at least then starting to cover your actual costs even if the eventual debt goes bad.eg you agree a month to cover it but get a payment each week.

Dont forget to mention the lack of payment/delays if you ever get a prof clearance letter (lol, yeah I reckon they wont find someone else until its really time critical, at which point you can phone them and try again for a payment!)

Leger wrote:

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Hi Doug, Can that be done still? I read somewhere (and I can't find it now) that HMRC had stopped issuing refunds to agents.

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 Hi John

I done quite a few this year so I hope its okay, as far as I remember it asks if the person receiving the refund is your agent

If you can find anything that says it has stopped let me know please

Cheers 

Hi John, I had a client earlier this year, used up all my usual tactics to get payment on a 6 month old invoice and ended up sending a solicitors letter before action notice. They paid but not before ringing me up and calling me a 'despicable weazle ' for going to such lengths to recover !!!! They rang me last month to see if I will prepare their year end and suggested half fee up front..... I'm still thinking !

Hi Doug 

I wasn't dreaming after all, but from what I can see it's only new clients. If you've previously received tax refunds then it should be ok.

https://www.accountingweb.co.uk/any-answers/requesting-refund-to-go-to-agent-online

https://www.accountingweb.co.uk/any-answers/clients-refunds-to-agent-hmrc-changed-policy

 

 

Leger wrote:

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Hi Doug 

I wasn't dreaming after all, but from what I can see it's only new clients. If you've previously received tax refunds then it should be ok.

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 Hi John

Thanks for the links had a read through them but nothing seems definitive, some posters say you cant anymore whilst others say you still can, I cant find anything on the HMRC site to say that it has now been stopped so I was going to ring them but there probably is not enough time left in the day!

I checked my records and I have had 8 refunds being paid directly to me for 2016/17 and they were all new clients, I also just checked on a clients tax return that is still open (fits in well to this post as I am still waiting for payment) and it still lets me fill in my bank details and also asks if I am his tax advisor.

Earlier in the year I also had a new client where I had not received the payment through so I phoned up and that was released into my account as well.

So not sure what to say really only that HMRC seem to be allowing some agents but not others.

Cheers

 

About 80% of our clients pay monthly DD via GoCardless so by their year end they have paid their fixed fee for the year.

We just lay out the terms at the initial meeting and so far had no objections.

Only ones we dont do this with is people who are due a tax refund where we receive the refund to our client account and deduct our fee before transferring the balance to them and some clients who's fees are less than £500 where we do the work, invoice for it and once paid we submit the tax return.

Though saying that we have some tax return only clients who pay as little as £15 per month by monthly DD.

Cheshire wrote:

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Hi Mark
For the number of clients you say you have got, if I recall correctly, have you considered traditional D/D. Does all the things and more than Go Cardless (if you pick the right bank!) but at a fraction of the price (small pennies I mean!)

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 No never looked at traditional DD but might have a look at it as paid over £4k in fees to GoCardless in last financial year.

 

Hi John

I have done a couple of subbie returns over the past few weeks but never had to use the nominee box for their rebate as they have paid me in advance but I did see that the option was still there, getting paid before submitting the return would always be my preferred method but I don't know about you but some of my subbies actually rely on the rebate money to pay me so that's where it comes in handy because without this option I would then have the hassle of chasing payments, however I do see the flipside especially with a new client who has to trust me with what sometimes amounts to several thousand pounds to take out my fee and pass the remainder on to them.

Leger wrote:

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Thanks Doug, I will always check with the client first before doing it.  If they are reluctant then they can simply pay me up front and problem solved!! 

Do you have a separate clients account for money to go into?  I'm thinking that might be best.

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 Hi John

I know I should have a separate clients account set up but to be honest at the moment I do not, but I do make sure that all my clients who will be receiving refunds give me their bank details before the tax return is submitted so that when the money goes into my account (which I check daily whether waiting for a refund or not) I can transfer it to them straight away, so that it is in my account the shortest time possible.

However now I am getting busier I will be looking into setting up a client account.

 

Cheshire wrote:

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I would say a clients account is a must. Dont forget to notify your PI insurer.

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 Hi Joanne

I know slap on wrist for me, or face or even both

Do I need to notify my PI that I am setting up a clients account and holding their money?