New penalties: Take care now! By Rebecca Benneyworth

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Rebecca Benneyworth reviews the new regime from the advisor's perspective.

The new penalty regime for errors and omissions on returns and documents has been in force for over a month now, but taxpayers will not see penalties levied under the new regime for some time yet, as the transitional period is working its way through.

However, advisers cannot be complacent about the new regime. There is no doubt whatsoever that this new regime intends to bring about the most significant cultural change in tax compliance we have ever seen. And warning your client about it, and helping him to understand his obligations, is going to be a key role for the adviser...

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13th Jun 2008 16:10

The wrong reason to move in the right direction
I look forward to reading the suggestions of what accountants can do. However, it's disappointing that it's seems it's going to be legislation not service standards that will drive the initiative of improving client records.

We've been banging this drum for years about offering free bookkeeping software, training and support as part of a fixed fee. We've started to recommend that firms get their clients to sign a declaration to say they've been advised on this and offdered help.

Is it reasonable for the tax office to expect a typical small business to keep records to Self Assessment standards? If it is then it means all clients will need to keep at least a Cashbook with the bank and cash reconciled!!!

This is a great opportunity for accountants to bundle in "tax protection" into their proposition.

Bob
www.moresoftware.biz

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