A client asks in January whether she should have been a limited company. Her profits rose substantially in the year that has just ended, the decision would have needed making eighteen months ago, and the answer now is mostly about the year ahead.
She asked at the only moment she thinks about tax, which is the moment it is too late to act on.
Myth 1: this is a simple question
Reality: it depends on profit levels, how much is drawn, other income, plans for staff or premises, liability exposure, whether anyone else is involved and what the owner wants in five years. Any answer given without those is a guess.
Myth 2: a general comparison is helpful
Reality: a general comparison is what produces owners incorporating when they should not have, and staying as they are when they should not. Explaining that both structures exist is fine, and steering is not.
Myth 3: it is purely about tax
Reality: liability, credibility with customers, administration, cost, borrowing and what happens if the business stops all matter. Owners hear only the tax part.
Myth 4: incorporating is straightforward to undo
Reality: it is not. Moving a business into a company has consequences that are difficult and sometimes expensive to reverse, which is exactly why it needs advice rather than a page.
Myth 5: the timing does not matter
Reality: it matters enormously, and the moment to decide is before a year begins rather than after it ends. A practice that prompts clients at the right time is providing a service the client did not know to ask for.
Myth 6: only new businesses ask
Reality: established businesses cross thresholds, take on staff, buy premises or bring in a partner, and each is a moment to revisit. Publishing those triggers reaches existing clients.
Myth 7: an assistant can give a general steer
Reality: it cannot. It can explain what the options are, that the choice depends on circumstances, what the practice charges to advise and how to book a conversation.
Myth 8: clients will ask when they need to
Reality: they will ask when they file. A practice that raises it proactively, when circumstances change, is the one that keeps the client.
What to publish
What the main structures are in general terms, the triggers worth reviewing, what a structure review involves, what it costs and how quickly it can be arranged.
Prompt at the right moments
After a year end showing a material change, when a client mentions staff or premises, and before a new year begins. These prompts are what turn a reactive practice into an advisory one.
Capture what lets an accountant prepare
Current structure, rough turnover and profit, whether they have staff, what has changed and what they are planning.
Ongoing questions arrive all year
They are covered in self-employed tax questions asked throughout the year.
New businesses need the conversation first
They are covered in startup founders looking for their first accountant, fees decide who they instruct as in fee questions before hiring a tax preparer, and small business handling is covered in an AI receptionist for a sole trader.
Getting started
Publish the review triggers, what a structure review involves and what it costs, then capture enquiries at any hour without advising anyone. SpideyChat for accountants answers from your published pages. Try SpideyChat on your own site, or read about capture on the features page.