Does your accountant work for you or for HMRC?

I have heard it suggested that a large number of accountants regard themselves as working on behalf of the Revenue. (NB: HMRC is the name of the merged departments of Inland Revenue and Customs & Excise. The merger took place in April 2005).

I suspect that this is more an issue of those accountants giving the wrong impression to their clients. But, as I have long maintained, 'perception is reality'.

Yet again this comes down to a question of how well your accountant communicates with you. Sadly not all accountants are good communicators.

Let's consider the facts:

The local office structure within HMRC has all but disappeared.
Whereas years ago local accountants might be on first name terms with local Inspectors of Taxes, this is rarely possible today. It also means that accountants need not be concerned that if they fight hard for one client that the local Inspector will get his/her own back. It is rarely going to be possible for one Revenue officer or Inspector to make life difficult for the accountant's other clients. Whether this used to happen or not, it's no longer feasible.

If your accountant needs to speak to an Inspector about your tax affairs he/she will generally only be able to speak to a call centre where an operator will call up your information on a computer screen.

Accountants have to focus on their clients
A recurring theme within this blog is the need for accountants to focus on their clients needs otherwise you will vote with your feet. Anyone who really thinks their accountant is more interested in what HMRC thinks than in fighting unfair attacks etc will look to find a 'better' accountant. That is one who they perceive is more focused on giving good client service. The switch often takes longer to arrange than would be ideal, but it does happen.

The customer is always right
Except when he/she wants to break the law. Qualified accountants know the difference between what's acceptable and legal and what's unacceptable or illegal. A good accountant will ensure that you appreciate the distinction and the consequences of choosing to do anything illegal. (I'll make that the subject of a separate posting).

If you want tips from your accountant on how to cheat the taxman illegally, you will be disappointed. If having resisted any involvement in illegal activity your accountant leaves you thinking that he or she is working for the taxman, their communication skills are letting them down.