"Tax compliance"- two words to cure any insomniac! Get it wrong, however, and they’re two words guaranteed to give sleepless nights to any FD or business owner.
For too many accounting firms, tax compliance is a commodity product to be supplied as cheaply as possible using the most junior staff available. Many larger firms have even outsourced tax compliance to business process outsourcing centres in India in order to reduce costs, and the chances of someone with intimate knowledge of your business casting more than a cursory glance over the completed returns are often negligible. Instead, experience shows that they will normally delegate the responsibility for ensuring that the tax return is correct to you, the client.
This approach clearly adds no value to the client whatsoever beyond ensuring that the basic compliance requirements are taken care of. Opportunities to undertake planning or to reduce the tax liabilities are missed and transactions for which tax advice has been obtained may not be reported in the manner intended by the adviser. This is terrible for clients but brilliant for us, as it gives us a clear way of differentiating ourselves from our larger competitors.
If a simple commodity tax return service is required, we have the tax software to provide that service using UK based staff.
However, we view tax compliance as a vital element of the tax advisory cycle and this is reflected in our approach. Tax computations are prepared by experienced staff and reviewed by the person with the best knowledge of your business and of any planning or transactions undertaken. Secondly, we will sit down with you to talk you through the tax computation and tax return to ensure that you understand what you are being asked to sign and that all issues have been properly recorded. This gives us the ability to explore with you whether there are any opportunities to reduce your tax liabilities or to present ambiguous items in a way that will reduce the risks of HMRC opening enquiries into the return.
We don’t charge any extra for this service- we see it simply as good practice and as an excellent way of demonstrating our commitment to you, our client. Indeed, it epitomises everything Claritas means: High quality, good value and clear commercial advice.