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OUR BOOK SELECTION
1 Minute Guide to ... Finding a Tax Adviser
(October 2003)
Introduction
Many taxpayers do not have professional advisers. The temptation for 'DIY' in order to save professional fees is often a false economy. Fortunately, most Taxationweb members seem to appreciate the importance of seeking proper help. For this reason, Taxationweb offers taxpayers a directory of professional advisers. However, if you are looking for a tax adviser, which one should you choose? Here is a 1 minute guide to help you decide...
10 Key Points
- What tax services are needed?
Do you need your self-assessment tax return preparing once a year, and nothing else? Are your tax affairs relatively straightforward? If the answer to both questions is “yes”, then a fixed fee tax return service (which some firms offer) is one possibility. If you are self-employed or have a limited company business needing accounts preparation, you may prefer a qualified accountant with sound tax knowledge. If your affairs are complex and/or you need tax planning advice, a qualified and experienced tax adviser will probably be the best option. - How much will it cost?
Like lots of tax questions, the answer is...it all depends! Unless you are going for a 'fixed fee' service, tax advisers will normally charge on the basis of time spent on a particular task. The adviser’s charge-out rate should reflect a number of factors, such as his or her qualifications and experience, and possibly other criteria as well, such as the size and location of firm (e.g. is it a large city centre firm, or a small local adviser on the High Street?). - Will I be able to agree fees in advance?
Yes, in many cases you will, unless for example your affairs are particularly complicated. Don't be afraid to ask for an estimate of fees, and also what charge-out rates will apply. Shop around if you can (e.g. say 3-4 advisers), but bear in mind the golden rule that you normally get what you pay for in terms of quality of service. - Large or small firm?
Again, it depends on your needs. Larger firms can call upon greater resources in terms of expertise and technical ability in a range of different disciplines. Some taxpayers also prefer the larger, better known firms to deal with their affairs. However, biggest is not necessarily best! There are many good, local independent firms of various sizes. Some of the smaller firms might seem more approachable, and be capable of providing a more personal level of service, which is the most important factor for some people. Invest time in finding the right adviser. For example, some firms offer a free initial appointment. In addition, make enquiries about their reputation, if possible. - Do I need a qualified tax adviser?
Qualifications are not everything, but they are a very important consideration. There are many highly experienced tax advisers without formal qualifications, including some ex-Inland Revenue staff. However, using a non-qualified person involves more ‘pot luck’ than engaging a qualified tax adviser. - What do the letters after my adviser's name mean?
If you decide to use a qualified tax adviser, be aware of their qualifications, and what they actually mean. For example, someone with the designated letters 'ACA' (or 'FCA') is a Chartered Accountant. An 'ACCA' (or 'FCCA') is a Chartered Certified Accountant, and ‘ATII’ ‘FTII’ or ‘CTA’ are the designated letters of a Chartered Tax Adviser. If using an accountant (as opposed to a Chartered Tax Adviser) try to find out whether he or she specialises in tax, as not all accountants are tax experts. Conversely, a Chartered Tax Adviser may have little or no experience preparing accounts. Always check first if in doubt. - Will a tax specialist be able to deal with all my tax requirements?
It depends on what those requirements are! Tax is a huge subject, consisting of a number of different areas (e.g. Income Tax, Corporation Tax, Capital Taxes and VAT). Some tax advisers have general knowledge in those areas, while others may specialise in a particular field. If you are looking for complex advice in a specific area (e.g. estate planning), a specialist in that field is recommended. If your tax affairs are complicated and encompass a number of different areas, it may be better to engage a firm with specialists in those disciplines, rather than relying upon a single adviser. - How do I engage an adviser?
Having chosen an adviser or firm, you should be provided with a letter setting out their terms and conditions (a ‘letter of engagement’). If not, ask for one. This letter broadly sets out your adviser’s services, responsibilities and duties to you, together with your obligations to them, e.g. in terms of providing full and accurate information on a timely basis. It should also cover the subject of fees, and how they are charged. You will be asked to sign the letter if approved. Read the engagement letter very carefully, and only sign if you fully understand and agree the terms. Do not be afraid to ask for clarification. - What if it all goes wrong?
The relationship between client and adviser is a long-term relationship that may be compared with a partnership or a marriage. There may be ‘ups’ and ‘downs’, and possibly a parting of the ways! Do not despair though, as the right tax adviser is out there somewhere, just waiting to be found! If you are leaving an adviser and have a complaint about their conduct, you may wish to contact their professional body, assuming they are a qualified accountant or tax adviser. The relevant body will investigate the complaint if it is considered appropriate. - Where can I find more information?
Further information on professional bodies can be found on their websites. Here are a few:
Chartered Institute of Taxation
Institute of Chartered Accountants in England and Wales
Association of Taxation Technicians
Association of Chartered Certified Accountants
And finally...
Welcome to the world of tax advisers! Or, if you are a Self Assessment taxpayer...many happy returns!
To find a tax adviser, visit TaxationWeb Directory.
Disclaimer
The content of these guides is based on tax legislation in operation at the time of publication, which may subsequently have changed. Whilst every care has been taken in its production, no responsibility can be accepted for any action undertaken or refrained from as a consequence of this material. This information is for general guidance only. Specific professional advice should always be obtained based on personal circumstances. TaxationWeb Limited accepts no responsibility whatsoever for any action undertaken or refrained from as a result of the information contained herein.