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Effective Date: 1st April 2025
Version: 1.0
This Payment Policy sets out how RR Accountants handles payment for services, including payment terms, methods, collection procedures, and consequences for late payment.
This policy applies to all clients and forms part of our Terms of Business.
7. Fees & Payment Terms
7.1 Basis of Fees
Our fees are calculated based on the time spent on your affairs by partners, staff, subcontractors, or consultants, as well as the levels of skill, responsibility, risk, and complexity involved. Disbursements (e.g. travel, accommodation, or third-party expenses) incurred in connection with your affairs will be added to our invoices separately.
7.2 Fee Estimates and Fixed Fees
Where we provide a fixed or indicative fee for a specific service, this will be clearly communicated via our engagement proposal. Unless otherwise stated, such quotes are not binding. Fixed fees are generally not agreed beyond a 12-month period due to the potential for changing circumstances. If the work required falls outside the agreed scope, we will notify you in advance and provide a revised quote or fee range.
7.3 Invoicing and Payment Terms
Unless agreed otherwise in writing, payment terms are as follows:
- Year-end accounts & tax returns - New clients (0-1 years): 50% deposit + balance within 7 days of completion
- Year-end accounts & tax returns - Established clients (1-3 years): 14 days from invoice date
- Year-end accounts & tax returns - VIP clients: 30 days from invoice date
- Compliance work (VAT returns, payroll, Companies House filings): Due on receipt / Direct Debit on 1st where recurring
- Bookkeeping (monthly recurring): Direct Debit - 1st of month
- Advisory/consultancy - Under £500: Payment in advance
- Advisory/consultancy - Over £500: 50% deposit + balance within 7 days
- All recurring annual services: Monthly Direct Debit on 1st (mandatory)
If applicable, we may request that you pay fees by monthly standing order or direct debit to spread the cost of annual engagements. We may bill in stages throughout the year or upon completion of work. Where work involves statutory filings (e.g. accounts or tax returns), invoices must be paid in full before signing, submission, or release of any final deliverables.
7.4 VIP Client Criteria (30-Day Terms)
30-day payment terms are ONLY available to clients meeting ALL of the following:
- 5+ years continuous relationship with RR Accountants
- Annual billing of £5,000 or more
- Perfect payment history (never missed a payment)
- Direct Debit arrangement in place for recurring services
VIP status is reviewed annually and may be revoked for late payment.
7.5 Direct Debit for Recurring Services
All clients receiving recurring annual services (year-end accounts, tax returns, bookkeeping packages, compliance bundles) MUST pay via monthly Direct Debit. Annual fees are divided into 12 equal monthly payments.
For companies: Direct Debit cycle aligns with your financial year-end.
For individuals: Direct Debit cycle runs with the UK tax year (6 April to 5 April).
Direct Debits are collected on the 1st of each month (or next business day if weekend/bank holiday).
All new clients on recurring services must complete the Direct Debit mandate via our Adfin.com portal within 14 days of engagement commencement. Work will not commence until Direct Debit is active.
If you prefer not to use Direct Debit, you may prepay the full annual fee in advance and receive an 8% discount. Payment must be received in full by the 1st of your financial/tax year.
If a Direct Debit payment fails:
- Day 0: Automatic retry notification sent
- Day 3: Second collection attempt
- Day 7: Services suspended if unresolved
- Day 14: Engagement may be terminated
You are responsible for ensuring sufficient funds are available on the collection date.
You may cancel your Direct Debit mandate at any time, however:
- You must arrange alternative payment method immediately
- Outstanding invoices remain due
- Services will be suspended if alternative payment not received
7.6 Invoicing
Unless agreed otherwise in writing:
- Invoices are payable in accordance with the payment terms stated in this Section 7 and/or on the invoice/engagement proposal.
- If applicable, we may request that you pay fees by monthly standing order or direct debit to spread the cost of annual engagements.
- We may bill in stages throughout the year or upon completion of work.
- Where work involves statutory filings (e.g. accounts or tax returns), invoices must be paid in full before signing, submission, or release of any final deliverables.
7.7 When Payment Is Due and Receipt of Payment
Payment is due on the date specified on the invoice. For standard 14-day terms, this is 14 days from the invoice date.
Payment is considered received when cleared funds appear in our bank account, not when you initiate the payment.
7.8 Late Payment
If payment is not received by the due date, statutory late payment interest applies automatically. Interest rate: 8% + Bank of England base rate (currently 12.75% total). Interest is calculated daily from the due date until payment is received.
This is a legal requirement under the Late Payment of Commercial Debts (Interest) Act 1998.
7.9 Payment Collection Timeline
We follow a structured process for collecting overdue payments:
- Day -2: Pre-due reminder (Automated email)
- Day +3: First overdue reminder (Automated email)
- Day +7: Personal contact (Phone call + email)
- Day +14: Service suspension (Formal written notice)
- Day +21: Debt collection referral (External agency + legal action)
7.10 Responsibility for Fees
If the client is a company, trust, or other entity that is unable or unwilling to settle fees, we reserve the right to seek payment from the individual(s) or parent entity that instructed us. You agree that we may enforce any outstanding fees against the party that provided instructions.
If the company is unable to meet its liability as and when fees fall due, the company directors may be held personally, jointly, and severally liable for those unpaid fees and any reasonable recovery costs incurred.
7.11 Director’s Personal Undertaking (Limited Companies)
Where the client is a limited company, the director(s) signing our engagement letter confirm personal responsibility for ensuring payment of all fees due to RR Accountants, including all fees during directorship, fees incurred within 120 days after resignation, late payment interest, and reasonable debt collection costs.
Where multiple directors sign, each is jointly and severally liable for 100% of debt.
This personal undertaking is enforceable under English law (Statute of Frauds 1677, Section 4).
7.12 Handover to New Advisers
If we are required to prepare a handover file for a new adviser, a fee will be charged in line with our standard rates, subject to a minimum of £250 + VAT. This fee must be settled in full before any transfer of information takes place. Where we are legally obliged to respond to a successor firm, you agree to meet our reasonable costs in doing so.
7.13 Third-Party Fees and Experts
From time to time, we may need to instruct third parties on your behalf (e.g. solicitors, counsel, or valuation experts). We will discuss this with you before proceeding. You will be responsible for these costs and may be asked to place us in funds before we incur them.
7.14 Tax Investigation Fee Protection
If you are covered by a tax investigation insurance policy — whether arranged by us or independently — it is your responsibility to inform us. You will remain liable for our fees regardless of whether those fees are recoverable under such insurance.
7.15 Payment Methods
Accepted payment methods:
- Direct Debit (via Adfin.com)
- Bank transfer / BACS (please reference invoice number)
- Debit card
- Credit card
- Cash up to £500
Payment methods not accepted:
- Cash over £500
- Cheques
- Cryptocurrency or digital assets
- Foreign currency (GBP only)
Card payment processing:
- Debit cards: No fee
- Credit cards: 1.5% processing fee is added to the invoice amount
7.16 Credit Cards and Lien
Where accepted, credit card payments may be subject to a processing charge. We reserve the right to exercise a lien over all documents, records, and funds in our possession relating to all engagements until outstanding fees and disbursements are settled in full, subject to applicable laws and professional guidance.
7.17 Fee Disputes
If you believe an invoice is incorrect, you must notify us in writing within 7 days of receiving the invoice, including invoice number, disputed charges, reason, and supporting evidence.
You must pay the undisputed portion immediately (within original 14-day terms). Disputed amount is held in abeyance pending resolution.
We will investigate within 14 days and provide written response. If dispute is raised in bad faith solely to delay payment, full balance may become immediately due and administration fees may apply.
7.18 Payment Plans & Financial Difficulty
If you are experiencing genuine financial difficulty, we may offer a payment plan at our discretion, typically requiring request before invoice becomes overdue, full disclosure, max 3-month repayment term, all future invoices paid on time, and written agreement.
If any installment is missed, payment plan may be cancelled immediately and full balance becomes due.
7.19 Full-Year Service Charges and Pro-Rata Billing
Unless otherwise agreed in writing, clients joining partway through a financial year will be charged the full annual fee for services that cover an entire reporting period, including but not limited to Year-End Accounts Preparation, Confirmation Statement Filing, and Self-Assessment Tax Return.
Services that are continuous or period-specific — such as Payroll, VAT Returns, Bookkeeping, or Management Reporting — will be charged on a pro-rata basis from the date of commencement.
7.20 Administrative Provisions
Invoices may be sent via email, client portal, or post (admin fee may apply).
Part payments are allocated in this order: (1) debt collection/legal costs, (2) statutory interest, (3) oldest invoice first (FIFO).
Overpayments are refunded or credited as agreed. Third-party payments may be accepted subject to authorization and compliance checks.
Version: 1.0
Effective Date: 1st April 2025
Approved by: Iftikhar Rashid [Managing Partner]
Next Review: 1st March 2026
END OF PAYMENT POLICY
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