Hello everyone. I am setting up business as a bookkeeper, and I have further studied Tax Returns but I think it is a minefield! Is it? Most clients seem to want this service from their bookkeeper but I do not feel confident enough in doing so. I have not done a Tax Return as yet, and excuse my nievity but is it best practice for me to approach an Accountant to carry out my clients Tax Returns? I did approach one who told me i no uncertain terms where to go, because I was competition for his business?? I do not want to turn away customers who request this service but... I am a bit stuck as of the right thing to do and any advice is greatly appreciated.
You don't give your background or qualification but you say you studied tax returns, so it sounds like a confidence thing, rather than a competence thing and it is a bit nerve racking doing your first one or two but you need to take the first steps.
I wouldn't dream of giving clients tax advice and would point them to a Tax Adviser if they asked where they should put their money for the best tax efficiency but if you are completing a tax return you are working with past events that need to be entered on a form. The only tricky area (IMO) is making adjustments for things like annual investment allowances, write down allowances etc.
Doing it online is relatively easy as well, as you are "walked" through each box and most have help sections attached. Have you done your own SA return? It's a good place to start.
It is a good source of revenue but at the end of the day it is a decision that only you can make, whether you feel confident enough to do it. HTH Bill
THank you for the very good advice. I worked in accounts for 15 years and recently passed ICB Level 1 exam, still to do the second. Tax is in the 'Further Bookkeeping' books which I also studied, along with wages.
You are right in that it is a confidence issue, I am sure once I have done a couple I will be okay, and I would never dream of giving Tax Advice either.
I am just starting off and presently marketing to find clients, but this Tax issue has just came up with a few potential clients who want me to mainly do this. I was just looking for advice before I make a decision.
I wouldn't turn the work away. If you don't currently feel comfortable doing them you could either use a service like ours where they would be your client but we would do the work at a reduced rate so that you could make a profit on what we charge, or find an accountant that you can work with. Not all accountants are like the one you came across and most would be happy to do that work and cross refer clients to each other.
If you are an ICB member, then you shouldn't be doing work that you are not qualified for. You will need to pass the level 3 Self Assessment exam before you do SA work.
It would probably not be covered by your PI either.
If you are an ICB member, then you shouldn't be doing work that you are not qualified for. You will need to pass the level 3 Self Assessment exam before you do SA work.
It would probably not be covered by your PI either.
I got the impression she was undecided as to whether she took on clients for the bookkeeping work and sub-contract the tax return work to an accountant or to just turn the client down completely.
My own plan is sit the ICB SA exam (which I have done and await the result) and if I pass I will see what the self-assessment work each time entails. If it is going to be straightforward I will do it myself. If it is too complex I will pass it on to an accountant.
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I am thinking along those lines. But, also thinking of doing basic SA's and in all honesty, I did not realise I had to pass SA exam before I could do this (as stated by Brewsie). I will look into this furher.
