Am I being paranoid?

Am I being paranoid?

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I recently read an article suggesting that from next year any errors made will attract a 30% penalty, payable by the taxpayer. ignorance or advisor not doing the work are no longer an excuse.

Are we supposed to get everything 100% correct? what about the grey areas?
or are we always suposed to take the HMRC point of view?

I get the feeling we are turning into super tax inspectors, whereby our responsibility is to get everything right irrespective which part of tax law it refers to. I don't know about you all but I as a sole practitioner I deal with a wide range of work. I cannot it see how even if i did every part of work myself and was uptodate on every part of tax law i would be able to discharge my responsibility to the satisfaction of the HMRC.
What about delegation? In order to protect myself am i now going to require that i check everything down to last bit of posting that my book-keeper has done?
This allied with money laundring and proceeds of crime legislation, I feel puts us in impossible position. I also feel very vulnerable as i can't see how a person can have any kind of relationship with a client. If you have acted for a client for 15 years then you are hardly going to have a detached relationship..... maybe we should all shut upshop and let the HMRC deal with it.
anon

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By AnonymousUser
02nd Apr 2007 18:39

Is it worth it?

Yes, you raise concerns which I am sure many sole practitioners will share.

Incidentally, which article did you read? I've not heard of this measure, and it sounds unlikely to be true as stated.

However, even so, the myriad rules and the fact that so many are 'grey' areas makes it difficult to feel comfortable you are getting everything right.

I certainly would not advise my children to make a career as a sole practitioner, as there are many other more financially rewarding and less stressful options, which still leave you free in the evenings and weekends!

I can't help but think the number of sole practitioners will reduce significantly over the years. I think the ICAEW has been saying as much in the past, predicting mergers etc.

I honestly can't see myself doing this for much longer (I am in my early forties). Merger doesn't attract me, so I will probably sell and do something else.


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By AnonymousUser
02nd Apr 2007 19:16

Probably not
I also work on my own and fro the past 6 months have been considering is now the time to quit.

I feel I offer a good service to my clients, but after having 3 tax investigations in the last 2 years am becoming quite weary, and as you state you cannot know everthing.

By the time I cover my overheads, I could take on a decent bookkeeping job and earn the same without the hassle.

No weekends, evening calls, antone got a job

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By AnonymousUser
02nd Apr 2007 19:23

Investigations
Yes, you are correct. I deal mainly in investigations or problem cases referred to me by other practices, some large some small.

The number of investigations will grow, if you notice many are now started by Revenue Officers.

I currently have 8 on the go, life I am afraid wil not get easier for the agent or tax payer.

Anon

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By User deleted
03rd Apr 2007 09:22

article
the article was in times of 31st march 2007

http://business.timesonline.co.uk/tol/business/money/tax/article1593659.ece

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Euan's picture
By Euan MacLennan
03rd Apr 2007 10:58

Short answer - Yes!
because you are hiding behind anonymity.

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By User deleted
10th Apr 2007 14:22

The sole practice
I am just finishing the last loose ends of the sale of my sole practice.

I built the business up quite large quite quickly and am looking forward to my cheque and a good six months off before I even start to consider what comes next (for something will have to as I am in my 30's and the cheque although large, is not lrage enough to do nothing ever again!)

I can honestly say that I would never set out to be in sole practice again, unless it was a real sole practice with just me (and may be a general office person)

The financial rewards are not as great as many people think, whilst the emotional cost is huge!

Regulated work is an absolute nightmare for sole practice - you just cannot complete all of the rubbish you have to and control everything and make money.

Staff are... useless (sorry, but its just my opinion) and can be traced to the cause of every problem I seemed to suffer in the last 6 years

To me, sole practice next time (if that is the route I take and right now I doubt I am even going to stay in accountancy, prefering my chances in the plumbing industry) would be more like interim management or temping whereby you undertake a series of jobs, get paid for that job and move on. ie: you will be truly self employed and not "in business".

I don't think you are being paranoid, although perhaps you are taking things personally - the burden put on accountants by HMRC, regulators and clients is intolerable and does appear as if aimed to kill us off as a body within practice.


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