Home For AAT student members AQ 2013 AAT Level 4 (Level 8 in Scotland)

Can Anyone do a Tax Return ?

mfernottmfernott Feels At HomeRegistered Posts: 32
Hi Guys

I've completed my AAT qualification and would like to start doing tax returns to make a little extra money on the side of my standard income.

I presume anyone can prepare a tax return as people can self assess, so surely it's OK for me to do someone elses tax return?

Am I correct in thinking this? I don't want to do anything wrong!!

Thanks :thumbup:

Comments

  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    Do you have any experience? Tax can be quite complicated, do you know how to deal with trading losses, rental income etc.

    If you don't have experience you may have trouble getting an MIP license from AAT to enable you to do it.
  • mfernottmfernott Feels At Home Registered Posts: 32
    Yes i know how to deal with trading losses and rental income etc.

    Why would I need a licence? People who file their own tax returns aren't all qualified in an accountancy qualification...? :confused1:
  • jorja1986jorja1986 Well-Known Registered Posts: 210
    One can assume that it is differen when you CHARGE to do tax returns.

    Legitimate taxation people with specialising business' have to buy insurances etc.

    Yes you can do it, but what happens if you do it wrong and your friends gets fined? Surely it would be better to wait make sure you do know what you are talking about and get experience?

    Tax is not straightforward there are many loopholes and putting 1 figure in the wrong place and the HMRC will come down and usually make an example.

    In short yes i would have said you could do your friends tax returns, but you cant charge and you leave yourself wide open if you do it wrong without insurance.
  • alkasamalkasam Just Joined Registered Posts: 2
    What you cover in technician level re the completion of tax returns only scrapes the surface and there is alot more that you need to know and get a bit more knowledge in.

    You need to gain alot more experience in their completion and at least be able to be aware of what may crop up when your completeing the tax return for the client. Clients ask alot of questions - if you want there business you need to at least be aware of the types of scenarios that may crop up.

    HMRC offer courses through their BST team, accountants regularly attend them. Contact your local office to see what courses they are running.

    You will never be able to gain experience in all areas of tax - it is too great - but I would definately advise you to think twice before offering your services at the present time unless you feel confident that you could answer questions on things such as capital allowances, foreign employment, etc.

    The notes that come with tax returns for additional pages are a good source of knowledge - they don't cover every specific but if you needed to know more accurate info you would be able to seek advice from HMRC as you would have figures available.

    Good luck:001_smile:
  • NeilHNeilH Trusted Regular Registered Posts: 547
    mfernott wrote: »
    Why would I need a licence? People who file their own tax returns aren't all qualified in an accountancy qualification...? :confused1:

    Although (in theory) anyone can file a tax return, the AAT have additional requirements for self employed members - they require self employed members to hold their MIP licence which requires additinal assessment of experience, insurance and tighter CPD regs.

    Neil
  • CelticStarCelticStar Well-Known MAAT Posts: 142
    NeilH wrote: »
    Although (in theory) anyone can file a tax return, the AAT have additional requirements for self employed members - they require self employed members to hold their MIP licence which requires additinal assessment of experience, insurance and tighter CPD regs.

    Neil

    This is true, but I think it only applies if you are a member (not just someone who has finished your exams) and if you advertise that you are anything to do with the AAT. If you don't then you are free to do people's tax returns - as long as you inform HMRC that you are working as an agent.
Sign In or Register to comment.