Professional fees and how they are charged

What accountants, solicitors and consultants charge, and how to control it.

What it means

Fees are charged hourly, on a fixed fee, on a retainer, on a percentage, or on a contingency basis depending on the profession and the work.

Why it matters

Professional fees are one of the few costs where the price is negotiable and the scope is often undefined, which is how bills surprise people.

What it looks like in practice

Ask for a written scope and an estimate before instructing. Solicitors must give costs information; accountants normally provide an engagement letter.\n\nFor litigation, ask about costs risk — in most civil claims the loser pays the winner's costs.

What to watch out for

Open-ended hourly work with no cap. Ask for a fee estimate and to be told when it is approaching.\n\nAnd percentage-based fees on R&D claims or rates appeals, which can be very high for the work involved.

Where to get proper advice

Ask two or three firms. Fee levels for the same work vary more than most owners expect.