Claims against professionals on the rise

The fall report by the Chancellor has once again concentrated everybody's thoughts on concerns of taxation rates and VAT increases. This comes quickly following the latest reports of a tax consultancy company going through multiple claims from customers over a unsuccessful tax relief plan.

Unfortunately, these kinds of media stories are not unusual. There has been a noticeable increase in the previous several years of claims towards attorneys, accounting firms and tax consultants in regards to irresponsible tax advice and in specific, in regards to numerous smart tax saving schemes that have been found on examination, to have problems.

Not surprisingly, the hard economic climate has seen a considerable increase in both firms and persons looking to conserve tax via a variety of tax avoidance schemes. On the back of this, there has also been an boost in the number of companies and consultancies offering professional tax saving plans and making use of possibilities presented by recent legal guidelines - entrepreneurs' alleviation, enterprise investment plans and employee share programs to mention a few.

The issue with taxes however, is that the devil is in the detail and if the detail is not observed to the letter, the repercussions can be considerable. The taxes you believed you had saved is now questioned. You will possibly be faced with a Revenue examination, limited timescales to abide by, a finding that the plan is incorrect and a large tax invoice with extra charges.

The Authorities have a short while ago promised more funds to tackle tax avoidance plans. This comes in the aftermath of large critique made in the press of various well known firms over the level of corporation taxes that they pay in the United kingdom. Nonetheless, organizations and persons should not be complacent. The Revenue is no stranger to tax inspections and studies suggest that these are most likely to increase.

It goes without saying that it is always well worth trying to find professional guidance when it comes to taxation and it is also reasonable to evaluate your or your firm's tax plans consistently so that any potential issues come to light at the very first opportunity. In this way, any harmful consequences can be reduced and advice for professional negligence claims can be looked into before restriction becomes a problem.

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