The World needs Accountants!

I work as a freelance VAT Specialist, and I am also a Part-time Member of the Tax Tribunal. In these roles I frequently come across businesses which have incurred penalties for failure to submit and/or to pay. VAT, PAYE, CIS, penalties seem especially common.

The typical scenario is that the taxpayer engages an Accountant, solely to prepare the Year End submissions, and neglects to deal with the periodic matters of VAT, PAYE, CIS, etc. He tries to muddle through these on his own. And, surprise, surprise, he is so committed to making his business work, that he cannot give sufficient time to making the various submissions and payments. Warning letters are ignored (or never arrive!), and soon penalties accrue.  

I suggest there are two lessons:

1. Businesses should work more closely with their Accountants, to ensure submissions and payments are made in a timely and accurate fashion, and to agree who will do them! Having seen the amounts paid in penalties, this is something of a no-brainer!
2. There is an opportunity for Accountants to educate their Clients (and non-Clients), so that they are aware of ALL their obligations. Agree at an early stage – who will make the submissions? Agree the cost of doing this, etc. Send email or text reminders, etc.

Businesses need Accountants!