Dropped!

If you’ve been dropped from the Taxman’s self-assessment system for 2005 will it mean a cut in your advisers charges?

System Removal

You’d think that because of the recent initiatives to remove taxpayers from the self-assessment system that you tax adviser’s fees for dealing with your affairs will go down. Unfortunately this is not the case.

Reasoning

The adviser will still require all the same information he normally would if he were preparing a self-assessment tax return. This information will be needed to verify whether your PAYE will need adjustments and to check your overall tax position. All in all it’s basically the same amount of work, time and effort, which is something the Taxman isn’t appreciative of.

Advice
Once you have found out from the Taxman not to deliver a tax return then it’s probably a good idea to contact your adviser and confirm what exactly you want him to do. If you still want him to check your overall tax position and whether or not the PAYE will need adjusting then you’ll still be required to provide the usual information. This will lead to a similar bill to last year – providing nothing has changed.

It is possible that the Taxman has no justification for dropping you from the system and that it is in your best interests to remain within it. The taxman will usually reinstate you into the system with just a phone call from you or your official agent.

Confusion

Try not to confuse the decision with the new tax review form for the year ended April 5th 2005. (P810)(T)(2005)). You may still be asked to fill one in.