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And there’s more!

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3rd Mar 2017
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It was with interest that I read Richard Hattersley’s article ‘How to overcome post-tax return blues’.

Richard noted some recent tax changes which are requiring practitioners to consider the impact of Making Tax Digital, tax on dividends and flat rate changes. And there’s more! To add to Richard’s list there are the client notification requirements (for non-UK tax advice), a new version of the Professional Conduct in Relation to Taxation (PCRT) and for members of the CIOT and ATT changes to CPD requirements. As a sole practitioner, there were moments in January when I wondered whether it was all worth it.

Each time this thought came to mind I saw the benefit that my clients were experiencing of seeing their tax frustrations fade away. Steve Pipe’s quote in Richard’s article certainly resonates as one of the highlights of being a tax adviser:

“the power at our fingertips to make a really profound difference to our client's businesses”

In response to Richard’s article Diana Miller noted:

“But I do think the client’s attitude has changed. I have been in practice now for 30 years and clients now expect everything yesterday - I think it's more of an immediacy culture and there is often little respect from you as a professional. “

With a new PCRT to follow this got me thinking about the need to document the considered judgement that we need to give to a client’s affairs. But how can you remember all the guidance that we are obliged to follow – here’s a phrase that I hope may help:

Ja Bloc Disc!

Mnemonics can be a very helpful way to remember something and I’m sure that many students use them. As accounting and tax students start to study the latest version of the PCRT, which became effective on 1 March 2017, they could use Ja Bloc Disc to help them remember some of the key elements.

At the heart of previous versions has been the five fundamental principles (integrity, objectivity, competence (professional competence and due care), confidentiality and behaviour (professional behaviour) – and form the I, O, C, C and B of my mnemonic) which set the ethical standards of tax advisers. The latest PCRT (which can be found here) has introduced further standards that tax professionals must observe when advising on UK tax planning, The Standards of Tax Planning (specific (client specific), lawful, disclosure and transparency, Arrangements (tax planning arrangements) and judgement (professional judgement and appropriate documentation) – and form the S, L, D, A and J of my mnemonic).

Considerations of the new standards will now need to be documented by tax advisers for all types of tax planning, a point illustrated by Michael Steed and Marion Hodgkiss in their article ‘Pick and Mix’ from the March issue of Tax Adviser. The article which examines the tax challenges created by the gig economy, highlights that advisers will need to be able to cope with a workforce in a state of flux, where many of them will be classed as self-employed and tax advice will need to be tempered in the light of the new working practices, government review and possible PCRT implications.

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