Accountants and tax returns

[WatchfulEye]

I have an account do my personal tax return, but my affairs are pretty simple (single employment with some savings income).

This year, I investigated the issue of pension annual allowance after hearing about it in the news. Suspecting I might be over and have a tax charge, I asked them to look into it and sent them the paperwork.

They just got back saying that they are unable to calculate the tax liability as they are unable to provide pension advice,and won't be able to do my tax return until they get the figures.

Anyway, I've had a go myself and I calculate large tax liabilities which haven't been paid for 16/7 and 17/8 as well as a further liability for 18/9.

So the questions are:
What am I paying them for?
Is it the done thing to just give them my calculations?
They've suggested a financial advisor, but my previous IFA has retired, and given the size of their previous bills, I'm wondering if this is really the right job for an IFA (after all, it is just a tax calculation)

[bonerp]

Why are they giving advice? You just need to know your tax obligation?! Lazy Accountant.

[Mr Pointy]

Sack them off & tell them not to invoice you for telling you they can't work out the numbers.

[Eric Mc]

Accountants have to be careful about the type of advice they can give - especially in respect of pensions and other investments. Most of us will give general advice on what can or cant be done regarding pensions in general and the tax implications but we normally do not give advice on specific products.

[bonerp]

Eric Mc said:

Accountants have to be careful about the type of advice they can give - especially in respect of pensions and other investments. Most of us will give general advice on what can or cant be done regarding pensions in general and the tax implications but we normally do not give advice on specific products.

Lets say you invest £500 a month pension before salary. Is that advise, asking how much the tax obligation is?? No. I'd bin them.

If I'd asked "Is this the right pension to minimise my tax exposure" fair enough thats advice. WHat your tax obligation is on contributions you are making surely isn't advice?!

[anonymous-user]

bonerp said:

What your tax obligation is on contributions you are making surely isn't advice?!

It all depends. If you're concerned about "overpayment" then it's entirely possible you've also hit or may be approaching the Lifetime Allowance. I very much doubt an accountant would want to get tangled up in detailed pension rules, especially if you've got old pensions in the mix and particularly anything that's Defined Benefit (as opposed to Defined Contribution/Money Purchase).

And not all accountants are equal. The cheap local bloke behind the newsagent's shop is likely to be less well informed than a larger firm.

[Mr Pointy]

Eric Mc said:

Accountants have to be careful about the type of advice they can give - especially in respect of pensions and other investments. Most of us will give general advice on what can or cant be done regarding pensions in general and the tax implications but we normally do not give advice on specific products.

True, but the OP simply seems to be asking if he's paid too much into his pension over the last three years. That's a very basic question to ask of an accountant & in fact I'd expect them to have flagged to the OP that he might have paid too much in. I'd say they've failed in their basic duty to their client if the situation is as the OP suggests.

[Eric Mc]

I'm not disagreeing - just pointing out where accountants are limited in what they can say about financial products.