Setting the scene…
There is a very special accountant working in the UK. His/her clients pay little or no income tax, claim VAT back on all manner of things that our clients cannot. Generally these lucky taxpayers live the life of Riley…stress and taxman free. This special accountant of course charges minimal fees for his/her invaluable advice and knowledge which produces this happy state of affairs.
My heart sinks slightly when I hear the words:
“I was talking to a man in the pub (or customer or mate) and his accountant tells him that by doing X, Y and Z – I can achieve A,B or C….” Then my client will say “why can’t I do this”?
This will inevitably be about some matter we have already discussed at length in the past. I will have pointed out to the client that what he proposes is either illegal or proscribed by the tax law or sailing so close to the wind that we want nothing to do with it as a firm. Usually reiteration of past advice is enough to dampen my client’s enthusiasm to tread where only fools and their very special accountants are brave enough to tread. Stating the obvious can help.
Maybe the man in the pub (or customer or mate) doesn’t earn enough to pay tax or can it be that they are doing something illegal and not disclosing all their income to HMRC? And finally the old adage applies that if it seems too good to be true well then it probably is!
Everyone’s situation is unique to them, and to get a good idea of what is applicable to you, your income situation and/or your business – it really does pay to seek personalised tax advice from a professional. If you have a question please feel free to pop it in the comments section below – or contact me directly on 01788 577 613, email@example.com or @SimonGTowers.
Image courtesy of: volff / 123RF Stock Photo