Enabling letter to an accountant

Enabling letter to an accountant

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I'm a CA and have just received an enabling letter for my own tax return!

Anyone else out there care to own up to this happening to them?

Whether or not this is a mistake and whether or not I am unique in this respect, doesn't this either:

A. Make a nonsense of the Revenue's assertion that these letters are targeted (unless, that is, they believe that accountants' own accounts are no more accurate than those prepared by the man on the Clapham omnibus), or

B. Indicate that the underlying information (the SAI) is completely useless for these purposes as businesses at the smaller end of the scale all tend to have "unique" (or, at least, uncommon) factors which distort the figures.

Personally, I veer towards B and believe that the SAI in its current detailed form ought to be abandoned as a costly waste of time (I have not yet been involved in an enquiry where the Inspector has quoted "acceptable" SAI figures at me as a means of attacking the integrity of my client's accounts).

I would be very interested in what others think (and whether they've had this letter).

Adam Reeves

Replies (5)

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By tomtrainer
27th Jul 2005 13:11

I've had one........
.....and I'm chartered too. I'm tempted to give myself the sack, or at least have harsh words with myself.

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By AnonymousUser
27th Jul 2005 15:59

Unable To Grasp Enabling....
Interesting, yes it is all quite puzzling. One of our more recent enabling letters received(03/03 related) was for a Psychiatrist client employed by an NHS Trust. Pay is high, all adequately PAYE'd. Three properties rented out all correctly declared, insurance and finance costs only claimed for the houses. Here's the rub..£4160 fees received for signing off medical reports, and £180 expenses claimed against them. Enabling letter issued??

Working Against Each Other (Feb 05 Issue) outlines most of the principles which lie behind the issue of these letters, but they do not actually seem to fit many of the selected cases?

Perhaps the "Enabling Letter" receipient should have the right to appeal against the issue of the letter and insist on an Aspect Enquiry if there is an issue to resolve. IE. Seek from the Revenue a clean bill of health letter? Radical yes....

Meanwhile, avoiding issue of Enabling Letters may entail an hour's narrative and figures on SAR white spaces, plus appending to the SAR a full P&L account and balance sheet, and see what the Revenue will do with all of that. This partly takes us back of course to the pre SA system, will absorb more of the Revenue's time, and may lead to disabling the senders of enabling letters.

Finally, I thought the SA system was to make things easier, cut down of the size of the Revenue and public costs...If in doubt get hold of the 1993 Issues of the Consultative Documents "Simplified Assessing!", of which it was my great pleasure to analyse in detail for my large employer at the time.

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By User deleted
27th Jul 2005 14:03

Haven't had one myself but . . . .
I have had one for a client who ceased her self employment three years ago, and whose only income is now £3,000 a year secretarial wages from her husband's business!

Is anyone else as fed up as I am with the absence of the client's name on the covering letter?

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By AnonymousUser
30th Jul 2005 15:24

Enabling letters to CA
I had an 'enabling letter' prior to completing my 2004 tax return, and was initially concerned, and not a little nervous, although I was not aware of anything amiss in my 2003 return.
Some weeks later I read (somewhere) that such letters were being targetted at small sole traders and partnerships.
Needless to say, no comments were received when my 2004 return was filed.
I suspect that these are "phishing letters", but am reluctant to challenge the Revenue as to why they are being sent to practitioners.

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By Sherlock
27th Jul 2005 14:56

Latest Newthwire
You might find it helpful to access my latest wire, which is on the very subject of 'Enabling Letters'.

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