Tax Compliance

Tax Compliance Offers Viable Client Solutions

Tax Compliance Offers

A CPA is required to annually confirm that his/her firm complies with UK tax law and UK Accounting standards. The statutory tests are the most important determinants of whether a firm is compliant or not. This requirement is legally tied to Article 50(2) of the European Communities Act itself, which is why a CPA has to commit to continual monitoring of UK tax law and UK accounting standards. Failure to comply could lead to fines and even loss of license. It may also be a matter of case opening for the United Kingdom’s Commission for Advertising Practice (CPA) to investigate.

Certified Public Accountants

The accounting profession in the UK is regulated by the Society of Certified Public Accountants (SCCA). One of the most important aspects of obtaining an SCCA certification is the completion of an annual reconciliation of accounting records. The certification is also an indicator of an accountancy firm’s compliance with UK tax law. That is why firms wanting to join the SCCA must undertake an annual accountancy test that compares records from each partner’s current employer with records at the time of joining the firm.

Accounting Records Kept by UK Tax Law Firm

online accounting

There are two types of accounting records kept by UK tax law firms. These records include Accounts Receivable and Accounts Payable. A company has to keep proper account records for both types of accounts, as one type does not tell the whole story of the company’s financial health. The accounts payable accounts are used primarily to calculate the tax liability of a company. The Accounts Receivable accounts are used solely to record clients’ payments.

Because most CPAs today have their own online accounting firm connection, it is easier than ever before to communicate with clients. Information can be shared through e-mail, instant messages, and Web 2.0 applications. File attachments can be shared using secure socket layer (SSL) technologies. All of this helps a client to keep track of and access important tax information.

CPAs are not Accountants

They are lawyers who have completed an accredited four-year degree and the majority of them are former clients of accounting firms. The accounting firm’s client is responsible for ensuring that all information provided by the CPA is true, complete, and up to date. The client cannot be held liable for errors or omissions made by the CPA. An accredited accountant has the responsibility to ensure that the information provided by CPAs meets strict accounting standards.

Attestation by the CPAs that they meet CPAP compliance standards and have passed examinations is essential for clients. Without a CPAP certification, a business cannot obtain either Professional Accountant (PAs) or Chartered Certified Public Accountant (CCPs) tax status. The UK tax authorities ( HMRC ) use the CPAs’ certificate as proof of compliance. The certificate tells the clients that the CPA complies with tax obligations.

Annual Confirmation of Compliance with UK Tax Law 

The annual confirmation of compliance with UK tax law enables the CPA to continue providing services to its clients in this area of taxation. The certificate also proves that the CPA has undertaken an examination covering tax matters relevant to the UK tax regime.

Obtaining the tax information in a format that can be easily collected and converted to a format that is used in electronic databases makes compliance with the tax regime much easier. The information in the electronic database can be accessed by the client at any time and from any location. The information is also more easily available to the enforcement agencies and auditing bodies that might become interested in the case.


Obtaining the annual confirmation of compliance with UK tax law is a matter of ensuring that all client information meets the specified requirements. Ensuring that information provided is correct and complete enables the client to determine if he complies with tax obligations. This is one way that a tax professional can help a client avoid unnecessary tax problems. While a tax accountant will be able to help guide a client in terms of the tax regime, the CPA ensures that the client has followed all applicable tax rules in terms of paying tax and is compliant with UK tax laws.


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