Accountant prepped accounts less likely of tax audit than self assessed?

mr_happy

Just wondering is this the case for sole trader accounts?

Accountancy

I am assuming that you are asking if you prepare your own accounts are you more likely to get audited that if the accountant prepared them?
The answer is i don't think so.

mr_happy

Accountancy wrote: »

I am assuming that you are asking if you prepare your own accounts are you more likely to get audited that if the accountant prepared them?
The answer is i don't think so.

Yes thats what I meant to say.

I just thought if $ was paid to an accountant there was a higher chance the accounts were accurate and so less likely to an audit.

mr_happy

On further investigation Im told there is an equal chance of an audit.

The difference is that the Practise meets the tax man in an audit situation not you personally if you have an accountant.

Accountancy

Hate to have to enlighten you but you will have to meet the Revenue.
It does not matter if you have an accountant or not.
They will interview you first in the case of a revenue audit.

NCG

To my knowledge, who prepared the return is not a factor in determining cases for audit. Revenue will not disclose the detailed factors used by REAP, their audit system. However, quality and consistency of information certainly is a factor. On the assumption than an accountant can prepare this information more accurately than a non-accountant, it therefore effectively does become a factor in all but the simplest of cases.

Regards

endasmail

Accountancy wrote: »

Hate to have to enlighten you but you will have to meet the Revenue.
It does not matter if you have an accountant or not.
They will interview you first in the case of a revenue audit.

no they wont
appointted agent (accountant) can and will handle audit for ya for a fee of course

barneystinson

endasmail wrote: »

no they wont
appointted agent (accountant) can and will handle audit for ya for a fee of course

Incorrect - the taxpayer must speak to the Revenue Auditor; of course the agent may be present, and in many cases the audit may be conducted at the agent's premises... but the initial interview at the commencement of a Revenue Audit is an interview of the taxpayer (or director(s) in the case of a company).

(I say they "must" speak to the Revenue Auditor, but of course they may refuse to cooperate, in which case they may be compelled to provide information/explanations by court order, and any liability arising out of the audit will attract a higher rate of penalty than if they had cooperated...)

Accountancy

endasmail you are incorrect.

endasmail

funny thing
am only over an audit, and the only speaking i did to the man was to take a phone call off him confiming he would be out the following day
which i in turn informed my accountant off
time to read up on the accountancy books again lads

barneystinson

endasmail wrote: »

funny thing
am only over an audit, and the only speaking i did to the man was to take a phone call off him confiming he would be out the following day
which i in turn informed my accountant off
time to read up on the accountancy books again lads

Hold on, what kind of audit are you talking about? Was it in fact an actual audit, or was it an aspect query, or assurance check? Did you receive a letter stating that you had been selected for "audit"??
What I said above is 100% correct in the case of a full audit, which is what I assumed the OP was asking about, as an audit triggered by problems in the accounts/ Inc tax return will generally trigger a multi-taxhead audit.
It's possible that your auditor cut a corner in your case, but again without knowing specifically what type of visit you are talking about it's impossible to say.
Also, accountancy books won't shed any light on Revenue audits, though god knows I've read enough of them... What you need to look at is page 14 of the Code of Practice for Revenue Auditors, which refers repeatedly to conversations with the taxpayer themself.

endasmail

barneystinson wrote: »

Hold on, what kind of audit are you talking about? Was it in fact an actual audit, or was it an aspect query, or assurance check? Did you receive a letter stating that you had been selected for "audit"??
What I said above is 100% correct in the case of a full audit, which is what I assumed the OP was asking about, as an audit triggered by problems in the accounts/ Inc tax return will generally trigger a multi-taxhead audit.
It's possible that your auditor cut a corner in your case, but again without knowing specifically what type of visit you are talking about it's impossible to say.
Also, accountancy books won't shed any light on Revenue audits, though god knows I've read enough of them... What you need to look at is page 14 of the Code of Practice for Revenue Auditors, which refers repeatedly to conversations with the taxpayer themself.

full audit

never met the auditor

no corners cut (fine tooth comb he had with him)

relax with the scaremongering

dbran

Hi Endasmall

If the revenue auditor that you mention has taken a short cut in the way he has carried out the audit he is very foolish.

As the guys have said he has not followed the revenue code of practice in that you have not been given the proper opportunity to make a full voluntary disclosure.

So if anything comes up from the audit you probobly have grounds to mitigate any interest or penalties that would not have arisen had the proper procedure been followed.


dbran

barneystinson

endasmail wrote: »

relax with the scaremongering

Eh, who's scaremongering? The posters in this thread are professionals (from both sides of the table) telling it as it should be in all cases, and as it is in the vast majority of cases. Having had one Revenue Audit (and by the sounds of it an unusual one at that) hardly qualifies you to pooh-pooh what we know to be proper procedures from regular experience of audits. So you should stop offering untrue reassurances!

And dbran is bang on in what he says about any liabilities arising from the audit, you may very well have grounds to argue that you weren't afforded the proper opportunity to make a qualifying disclosure.

hinault

What triggers a revenue audit is the issue here.

I would think that ensuring that your returns are made on time would be a factor.
If your returns are late, you will be subject to an audit.

Also, Revenue can access your bank accounts without your knowledge.
If there is income going through your company bank account which is in excess of the numbers declared in your returns, then this will trigger an audit.

I've been through 5 revenue audits in the past 18 months : the audits went well because we had all of our paperwork to hand (copies of sales invoices/suppliers invoices, VAT reports, payroll reports, financial statements).

endasmail

As the guys have said he has not followed the revenue code of practice in that you have not been given the proper opportunity to make a full voluntary disclosure.


Dbran ,voluntary disclosure made by my accountant at start of audit

Having had one Revenue Audit (and by the sounds of it an unusual one at that) hardly qualifies you to pooh-pooh ??????????????????????

So you should stop offering untrue reassurances : just offering my experience horse as little as it is

wishful thinker

endasmail wrote: »

As the guys have said he has not followed the revenue code of practice in that you have not been given the proper opportunity to make a full voluntary disclosure.


Dbran ,voluntary disclosure made by my accountant at start of audit

Having had one Revenue Audit (and by the sounds of it an unusual one at that) hardly qualifies you to pooh-pooh ??????????????????????

So you should stop offering untrue reassurances : just offering my experience horse as little as it is

I would go along with dbran et al..........

one swallow doesn't make a summer......as one RA doesn't make you a tax expert (I am wrong there - you didn't even attend the RA)....

as regards the initial Q - why do you use an accountant/tax advisor?

is it for piece of mind to ensure that you are compliant and able to take advantage of tax planning ideas?
is it that your accountant can review your business with you and has experienced viewpoint.......
just doing your taxes should not be just what your accountant does...if it is....then start looking for better customer service.