A bookeeper I got talking to at a networking event told me she quite often comes across the following:
1) putting mileage claims through which may have been stretched 2) saying expenditure is of a certain type and claiming CT releif - may/may not
3) paying fees for 'management services' from an overseas associate with a lower ct regime. 4) withholding income until following year/vat qtr
All of these may/may not be legitimate - but it seems the accountants are turning a blind eye anyway.
Is it that HMRC do not have resources to keep a tag on this?
Are chartered/practicing accountants taking advantage of HMRC lack of resources?
Is this happening on such a large scale its impossible to tackle and accountants dont give 2 hoots?
It would be very interesting to hear other views.
Anyone come across the above?
Many thanks
Replies (12)
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I do everything
by the book. End of.
Reminds me of the Shawshank Redemption, "What are you in for?"
"I'm innocent"
Ooh you are awful
. . . and I don't like it.
No blind eye turned here and, do you know what, I don't think many clients would thank me for it if I did.
But anyone can call themselves 'accountants'
But I see you are fairly new to practice - or at least from your postings I hope you are. Always carry a large bag of salt with you, just in case a client or a bookkeeper starts passing on advice.
Large bag of salt
But I see you are fairly new to practice - or at least from your postings I hope you are. Always carry a large bag of salt with you, just in case a client or a bookkeeper starts passing on advice.
And a bag of lemons and a case of tequila... oh, and a book to do things by.
True enough Chris
But anyone can call themselves 'accountants'
The unqualified accountants can plead ignorance ... what defence do the qualifed's make? I have seen some 'fiddling' and crap work from qualified accountants, but maybe they just sub all the work out to non-qualifieds!
From what I see they are also ignorant
but at least we have some one to write to.
Not as ignorant as the poor kids at the HMRC call centres though.
Oversea Associates
I don't really believe that a self employed book-keeper who by definition will be working for businesses that are not large enough to have an internal financial controller regularly sees management charges to overseas associates.
Maybe ...
Roland - you are clearly still wet behind the ears........
But I have been doing this for 28 years and have never seen that either! To be honest I have never seen any accountant try to do 2 out of 3 of the other things you mention either.
So these expenses may or may
not be legitimate but accountants are turning a blind. Surely they are either legitimate expenses or not....and depending upon that answer then the accountant is either turning a blind eye or correctly claiming the expense.
Mileage claims 'stretched'....and presumably the bookkeeper has the 'actual' mileage log which shows that the client isd overclaiming by 5,000 miles....perhaps he was in the same mtg where the accountant asked have you claimed for those trips to potential customers....the client say no....well lets at least estimate something for this then says the accountant......
I come back to the fact that it is our job to ensure the client has claimed all of the appropriate expenses and declared all of the relevant income......there will always be some expenses that remain in the grey area which may be justfiable but are on the boarder line.....are we suggesting claiming such expenses are not doing things by the book?
(does by the book mean that when calculating private use on a mobile you go trhough every statement identifying personal and business calls counting the relevant minutes spent on each in order to work out private use add back).....