mipper
Member Since: 14th Dec 2004
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Busy guy: Currently President of CIMA North West Midlands, Vice Chairman of Federation of Small Businesses - North Staffs, Immediate Past chairman of CIMA's Members in Practice Group, Chairman of board of trustees of Gingerbread, a charity for vulnerable families.
Head of Regency, a compliance/Management accounting Practice based in West Midlands with a broad client base in SME sector.
Occasional speaker, trainer, compere, mentor, dance teacher and cyclist (but never at the same time) mainly just 'Grandad' at the weekends.
International career includes achievements such as escorting beauty queens, getting lost in the desert and sending German Investment bankers to sleep by being too serious.
My answers
Fines for late filing
I'm always amazed at the view my clients have of the fine for late filing - they get the stuff in late - fail to answer questions - are blase about what goes into the numbers but the all important fine must be avoided at all costs! Does this mean that the system actually works - I'm not sure.
I know that the extra work I have to do to get miraculous results could not be compensated by the clients paying me the fine that they would otherwise have got. Would it be unethical to tell them that the fine is actually £5,000 for one day late - 'shall we split the saving' - well probably, but it might make a difference.
Social Club exemption
This may hit your fee level but couldn't you try for an exemption with the Tax Office?
www.regency.uk.net
Up to speed on tax
I talk to a lot of CIMA qualified accountants who feel that their tax knowledge needs brushing up when they move into practice from employment- particularly on the small business/private client side of things.
I think it is good to get an overview from a book like the time honoured Walter Sinclair annual guide (used to be known as the Allied Dunbar guide) which is small enough to commute with.
Along with those you have listed, the splendid FLMemo annual tax book is clear and comes with a CD for easy reference. VAT is included but they also produce a separate and equally sizeable VAT manual with more detail.
The HMRC site is a font of knowledge - if you play with it long enough you'll use it regularly.
There is an old chestnut on this site about Tax Specialists - I use one and I can sleep at night knowing that my clients won't thank me for trying to be an specialist in everything - eg I can drive a car so why should I bother hiring a pilot for this 747 !
Good luck
www.regency.uk.net
Practice without Tax!
As a CIMA member - I'm sympathetic with the sense of feeling not properly prepared for a life in general practice despite qualifications and years of business experience when finally taking that bold step away from employment.
I would agree with the other posters on here that it would be worth going the 'extra mile' to be able put yourself in a position to offer tax services as I really think it is so difficult to leave that great hole in the list if you are handling compliance work . Your clients will certainly not want to go elsewhere for tax work and the words 'tax' and 'accountant' are so inextricably linked in the mind of the general public that you will be fighting an uphill battle all the time.
I give talks to CIMA members thinking of entering practice and 80% of the questions raised are on getting properly trained in delivering tax services so they can obtain their practicing certificates on this basis.
As I tell them, 'don't worry that you haven't covered much of this stuff in your CIMA exams - if you have qualified then you will be able to pick it up and apply it'
I hope that you go for it.
CIS deductions
David,
I'm not sure I understand your argument no 3 - the customer will surely only know the price of his subcontract labour not the cost.
The late payer argument is interesting in these difficult times - I'd like to know how you get on and please make sure that your client knows that you are a hero if you succeed.
Paul Koumi
www.regency.uk.net
Comment from HMRC
I wrote my original comment in a state of frustration - probably because the people from Longbenton who attend the online roadshows seem so professional and competent and HMRC are forever banging on about their increasing attempts to be 'joined up' - I just found that my expectations were not being met.
The official line shows that there is a different set of rules for SA, PAYE, VAT and CT - which , fair enough, we as intelligent professional people can cope with until they can get it all in one box but the problem is that ; officially the most significant element of the 3 way relationship between HMRC, Client and Agent is the paper 64-8 which is supposed to go to the Magical Kingdom for non corporate clients and the system for dealing with this is profoundly deficient.
I wonder if anyone from HMRC might like to respond to an Accounting Web request to comment on the many sensible posts here.
Still Frustrated of Stoke.
Buy a practice - definitely
I wanted to move from consultancy only (and lots of travelling) to a mixed practice with good old compliance work but just could not face the heartache of building up a client base at the same time as servicing those few who would 'trickle' in. I advertised (on here in fact) snd am very happy to be sitting on an immediate book of business and a stock of resources to service them - employees, knowledge, systems, history etc.
Of course you won't like everything you buy but you own it and you can change it.
It may not work for everyone but I suspect it is the lack of desire of accountants to invest that is the main problem. Not many practices come up for sale so, if you get the chance, just do it!