Tax Advice – Imperative in This Day and Age
Tax advice from specialists should be a priority for taxpayers of the UK to ensure that tax records are updated and accurate, according to the Chartered Institute of Taxation (CIOT). This announcement was made after official statistics showed that the country has a tax gap of 35 billion at the end of 2010.
Gary Ashford, the representative of CIOT for the government’s Compliance Reform Forum, stated that with a whooping 6 million per year being lost due to taxpayer errors, it is a must for everyone to see professional help in regard with their bookkeeping.
The CIOT feels that this matter is something that requires professional tax advice. Part of tax advisers’ duties is maintaining good records and delivering accurate tax returns, Ashford added. He did, however, state that errors can also go both ways. Since HM Revenue & Customs (HMRC) is also prone to errors, the accuracy of the figures is quite questionable. For instance, we can’t be sure if these estimates include the amount that taxpayers overpay when they don’t take advantage of exemptions and reliefs they have privilege in.
How to Get Good Tax Advice
Before getting professional tax advice, many experts suggest making a background check of the company and understanding the responsibilities of a tax advisor. Generally, a tax advisor not only prepares paperwork and fills out taxes, but they also help save money in the long run.
Here are expert tips on finding effective tax advice:
1. First off, make sure the advisor specializes in tax and VAT advice, and is not a general finance advisor. Many financial consultants, although provide invaluable advice on several finance-related subjects, cover a broad field that they aren’t always updated with the latest updates on taxes and laws. It only makes sense to get advice from a specialist that’s particularly well-versed in the taxes industry.
2. Check out the advisor’s credentials. Accreditation and having a license Tax Advisors doesn’t necessarily mean that an advisor is a genius in the field, but it does mean that the professional is experienced and is most likely able to help save money.
3. Ask around for prices and fees. Taxpayers, other than tax, have other bills and expenses to pay, which is why it’s imperative to get competitively priced tax advice. On the other hand, if the matter at hand involves complicated business matters, spending a little more may be necessary.
4. Consider the tax advisor’s aggressiveness. For business owners who prefer to be conservative with operations, unaggressive tax advisors may be ideal so as to steer clear of auditing. For those who are completely fine with the possibility of being audited, working with an aggressive advisor is fine.
5. Consider entering an accountancy course. A quick accountancy course can help enrich taxpayers’ knowledge in taxes and laws. For anyone running a business, many companies offering accountancy courses can teach finance personnel on how to properly manage a company’s funds. In-house training can cost a lot, but it’s actually cost-effective since the company will have less chances of losing money due to errors and “carelessness.”