Am I qualified enough to calculate someones tax for them

Bhavna

I have been approached by someone to calculate their tax for them, I think they own a small family run business. I have studied and passed my Technician level which included both personal and business tax modules and have just sat my exam for taxation for my ACCA but yet to receive results. I wanted some advice on how to go about this, and how I could register to qualify to work out someones vat for them

NeilH

Hi

On the surface you dont actually need any qualifications to undertake general tax work - that is to say there is no law or legislation. However, the questio to ask yourself is do you know enough to be able to carryout the work?

Also, there is professional body regulation to abide by. AAT may require you to register as a Member in Pratice if you are being paid for the work. ACCA have quite stringent regulations on what students and members not holding a practicing certficate may carry out in a self employed capcity. Generally ACCA would only allow you to carryout work on which a third party will not place reliance upon (i.e. you couldnt prepare a cash flow forecast for the client to present to the bank). Tax returns may in principle be ok since although you are preparing the form it is not based on your judgement, rather it is based on the client records and information. However, tax returns are not specifcally indicated nor prohibited as soemthing a student or member without practising certificate may carry out.

Neil

Nilesh Mandvia

NeilH wrote: »

Hi

Tax returns may in principle be ok since although you are preparing the form it is not based on your judgement, rather it is based on the client records and information. However, tax returns are not specifcally indicated nor prohibited as soemthing a student or member without practising certificate may carry out.

Neil

I would like to do a small correction here, Here is the abstract from ACCA's webiste


As an ACCA member you may provide basic bookkeeping services which include: payroll; VAT; the recording of basic accounting data; and the preparation of accounting records to trial balance.

However, you are not permitted to undertake work that falls within ACCA/s definition of public practice unless you hold an ACCA practising certificate or an ACCA practising certificate and audit qualification. ACCA's definition of public practice includes:
* accepting appointment as an auditor
* signining or producing any accounts, report or certificate or tax return, that a 'third part' may place reliance on
* holding yourseft out as being available to undertake these activities.

I am afraid you are not allowed to do the tax return, even though AAT allows you. As you are bound by ACCA's rule and if you do tax work you will be in direct breach of ACCA's rules.

Also have a look at other thread under Dual Memebership.

Kind Regards