What is the tax industry?
The Tax Industry
Why don't high taxes and high prices marry and settle down?
Everybody complains about taxes in one way or another but by law, we are required to contribute to the country’s finances; without taxes, we would be without many of the services we often take for granted e.g. schools, hospitals, national defence etc. It’s therefore really important that we get the figures right- this is where tax professionals come in. In the UK, it is HM Revenue & Customs (HMRC) that is responsible for tax collection, making tax credit payments and carrying out benefits payments.
Tax experts have to make sense of the nitty gritty details of their clients (individuals or organisations) to ensure that financial information is recorded and submitted accurately for tax purposes. In addition, they advise their clients on tax planning and how to structure their finances so they don't overpay tax.
And where some corporations and individuals may appear to have paid incorrect amounts of tax or evade tax they should involves investigation. Tax investigation involves intricate research and enquiries to follow up on suspicious activity and determine if any suspicious activity has taken place.
There are only two professional bodies for taxation in the UK, the Association of Taxation Technicians (ATT) and the Chartered Institute of Taxation (CIOT). The primary purpose of both institutes is to promote education in taxation with the aim of achieving a more efficient and less complex tax system for all.
Why is tax important?
Tax is a fact of life. We are required by law to contribute to the country’s finances; without this source of funding, we would be without many of the services we often take for granted on a daily basis. It’s therefore really important that we get the figures right! It’s of equal importance that no individual or company pays any more or less tax than they or is obliged to by law, and it’s the professionals who work in tax who ensure this happens.
For those times when people do try their luck with the law and attempt to avoid tax, it’s the people with a knack for investigating the numbers who can help to provide evidence to catch them in the act. It might not be quite as thrilling (or lethal) as an Agatha Christie novel or an episode of CSI, but this industry certainly offers a lot of variety and a sense of supporting the country to get the funding it’s owed.
Areas of tax…
Personal Tax – Each person in the UK is obliged to pay tax, and there can be different types of tax to be paid on different things. Tax experts in this field advise taxpayers and conduct accounting processes on their behalf for types of tax such as income tax, Capital Gains Tax, and inheritance tax.
Corporate Tax – A company is required to pay a certain amount of tax to the government according to the level of profit it makes; some in-house and external accountants specialise in this area of tax to make sure the company pays no less or more than is owed.
Expat Tax – In this area, tax experts provide support and advice with obligations like tax returns to citizens who are working and living abroad or away at sea or leaving or moving into the country, and may have their money spread across more than one country. Expats must also adhere to the tax rules of the countries they spend time in. In some instances, expats may be eligible for certain tax deductions or exemptions depending on various factors.
Tax Investigation – Work either on behalf of HMRC to conduct investigations into issues such as tax fraud and tax evasion, or support and advise companies or individuals undergoing investigation accordingly to help them reach a fair settlement where necessary. Some legal expertise are also an advantage in this field.
Tax Consulting – Working for clients across lots of different industries, tax consultants usually work for specialist tax services firms or professional services firms. They analyse a client’s financial information and apply their exceptional knowledge of tax law to help their clients tackle their tax responsibilities in a legitimate and efficient manner. If something appears to have gone wrong in accounting procedures, a consultant will advise on the best way to put it right.
Tax Compliance – Businesses must declare certain financial information be law in order that the correct amounts of tax can be paid. This area combines regulatory duties and at times elements of investigation to ensure everyone is paying the tax they should and that accounting procedures meet industry standards.
Working with companies to make sure their taxes are in order!
Helping people manage tax obligations when crossing borders!
Helping individuals safely navigate the world of tax!
Making sure all of the details are spot on!
Advising those who need to better understand their tax situation!
Investigating those who may be dodging tax payments!