As taxation becomes ever more baffling, where can you turn to for help?
We all know that the UK tax system has been simplified over the last few years, to include reducing the number of tax rates to two (20% and 40%, not counting the 10% savings rate or the new 50% rate, naturally) and consolidating and organising the tax legislation. As a result, no-one ever needs any help when completing their Self-Assessment tax return or other taxing issue. No?
If tax really were as simple as that, no-one would need a tax adviser and you really don't want that amount of suits to be queuing up in the Employment Support Allowance office (dole). However, there are places where you can find help and guidance on your tax affairs without resorting to incurring huge professional fees.
Having said that, for one-off, unusual or complex transactions and those of high value, a little bit of professional advice would probably be a shrewd investment. Anyway, here we present the Top Three places to look before tearing your hair out. For that, you need a wig maker.
1. Your friendly Motley Fool
I am sure you have all been reading the informative and amusing articles on tax currently running on the Fool website. Although I am fairly biased in saying what a jolly good job the author has done, I do hope you have drawn benefit from them.
But this series of articles is not all the Fool has to offer. There is a dedicated forum "Taxes- Practical Issues" where fools can post questions relative to their circumstances and receive a sensible answer.
2. HM Revenue and Customs
Yes, I know this sounds like asking a loan shark how much interest he would like you to pay, but there is actually a lot of helpful information to be found on the HMRC website.
They have introduced quick guides for consumers to major taxes, such as income tax and capital gains tax. Whilst limited in their scope, and certainly unlikely to show you any loopholes, for those looking to simply fulfil their reporting obligations, this is a good place to start.
HMRC also publish their Manuals on the site. Whilst not legally binding, these do detail HMRC practice in relation to certain issues and may help if you need a more detailed answer. This does assume, however, that the answer you want is not hidden within the missing chunks that are withdrawn under the Freedom of Information Act.
However, there are some gems within the site, like the Employment Status Indicator tool, for those unsure if they, or someone working for them is employed or self-employed.
If you don't have web access, you probably aren't reading this, but just in case, you can always telephone HMRC and ask them what you should do in any given circumstances. They might even know the answer.
3. Free Tax Advice
There is precious little you can get for nothing these days, much less in the way of proper tax advice. However, many large accountancy firms will have some information on their website, ranging from articles, publications and briefings to a dedicated Budget site.
Whilst these sources may not give you all the information you need, it may be enough to tell you you have an issue, and many firms will offer a free initial meeting of up to 1 hour to discuss any implications and the cost of advice. But do check it is free first.
Paying for it
If you do decide you need professional help or advice, how much should you be paying? Well, as with everything else in tax, it depends. Smaller, local accountants and tax advisers will normally be cheaper but may not have the depth and breadth of experience you might need. Look for advisers who are CTA qualified (Chartered Tax Advisers) as this means they specialise in tax.
Conversely, large or 'Big Four' firms will charge their staff at hundreds of pounds an hour and a detailed tax planning report may cost the same as a small car. No, really.
If it helps to think of tax professionals as shirts (that's with a 'r' folks), this analogy may help you decide which level of advice, and therefore cost, would suit you.
If you need to buy a white shirt for work, you could go to Tesco. You would get a shirt that was white, at least until it was washed a few times, for under £10 which would do fine. Alternatively, you could go to Marks & Spencer or Austin Reed for your shirt. You would pay more, maybe even five times the price, but the material might be nicer, the packaging and cut trendier, the shopping experience more relaxing and the shirt may last that bit longer.
Finally, you could go to a gentleman's outfitter where you could be waited on hand and foot, measured, fitted and preened. You would pay a small fortune for what is undoubtedly a quality product, and if you have, say three arms or a six inch neck or something else out of the ordinary, made-to-measure is the only sensible choice, but you are, at the end of the day, still purchasing a shirt. Any clearer?
What do you think?
Do you think there is enough information out there to help you get the details and guidance you want? Would you like to see tax articles written in response to foolish queries on specific tax issues? Let us know using the comment box below.
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