HMRC guidelines specifically state that any individual with income over £100,000 is required to complete a Tax Return. Given the complexity of the regulations which tend to apply to people in the higher income group, is it still justifiable to maintain that having the Tax Return professionally prepared is not a cost necessarily incurred in carrying out employment duties? By disallowing accounting fees, HMRC are implying that their helpdesk support is a satisfactory alternative (when the greeting can last over three minutes before a caller is even entered into a telephone queue.)
In essence, should accounting fees for preparing a tax return not be considered in the same way as other expenses which are commonly deducted from taxable employment earnings.
Ray Coman, FCCA, CTA