COMPLYING CASE STUDY

Over the past 20 years Paul has always prepared our annual tax returns. Initially, he was employed in an accountancy firm and we had no hesitation in following him when he established his own accountancy firm. Our tax returns have at times been quite complex, but Paul has always had a complete grasp of what is required and as such we have been very happy with his services to the extent that we have referred him to associates and relatives.

DR & BR, GU15

Issue
Most of our clients are required to complete self assessment tax returns, accounts and/or corporation tax returns.
By way of example Mr X, from Weybridge, made a capital gain for the year ended 5th April 2011 such that he was required to submit a tax return for that year. Initially we met with Mr X to discuss his individual circumstances. Further relevant information was requested, the return prepared and submitted to him for review prior to submission to HMRC. The liabilities were quantified and Mr X was advised of these so that the requisite funds could be put aside.

The benefit
The return was technical in nature. Whilst we are sure that Mr X could have dealt with it himself our involvement freed up his time and hopefully took away the pain of tax compliance. Relevant questions were asked so that it could be completed with a minimum of fuss to Mr X.

As a compliance client we check correspondence issued by HMRC and identify tax reliefs that clients are entitled to.
In addition to just completing a return we try to add value by offering a little extra. This might be a tax planning tip relevant to the client’s circumstances or in Mr X’s case we set up a spreadsheet for him to keep tabs on his day trading share transactions. This enables him to present information to us in a sensible form so that our time is kept to a minimum and, as a result, our fees.

Cost
Our time proved to be less than than anticipated and therefore the fee charged was lower than the amount originally quoted.