Tax Advice to Avoid the Trap: A Comprehensive Guide

Seeking guidance on your tax matters can be beneficial. However, not all advice is reliable. Some individuals might attempt to sell you products or services that seem too good to be true. At Doshi Outsourcing, we are committed to help you make informed decisions so you can avoid falling into misleading tax advice.

By staying knowledgeable, you can prevent involvement in tax avoidance schemes and avoid claiming expenses that may result in additional costs and time.

1. Understanding Tax Avoidance

    

   Tax avoidance often involves transactions that are not genuine but are designed to give the false impression of reducing tax liability. If you have participated in such a scheme, you will be required to pay the taxes that are legally due, along with interest. This is in addition to any fees you have already paid to the person who sold you the scheme.
    

   Recognising the Red Flags

   
   With our assistance, identifying tax avoidance is simple. You don’t need to be an expert to cover yourself. According to the HMRC “Don’t Get Caught Out” initiative, you should watch for the following signs:
   
   • Receiving a larger amount in your bank account than what is noted on your payslip.
   • Receiving payments that are not taxed, such as loans or capital advances.
   • Arrangements that promise you can retain 80% or 90% of your income without tax.
    

   Reviewing Your Pay and Umbrella Companies

   
   Whether you are under PAYE or Self Assessment, understanding your pay is essential. If you are considering working through an umbrella company, we can assist you in comprehending the pay structure to ensure you are not taken advantage of. The amount in your bank account should correspond with the net pay shown on your payslip. Some umbrella companies may not follow the rules, and understanding how they operate can help you avoid these risks. Many businesses find it beneficial to outsource tax return preparation to a professional team, which can help verify complex payslips and contracts, ensuring full accuracy.

   Moving Forward, if you believe you are involved in a tax avoidance scheme, it is important not to ignore the issue. The longer you wait, the greater the tax liability will become. We can assist you in exiting and reporting the scheme, helping you settle your affairs without judgment. If paying the full amount at once is not feasible, an instalment plan may be an option.

    

2. Claiming Work Expenses Properly

    

   It can be tempting to respond to online ads or tax refund companies that offer to claim expenses for a fee. However, if you are not eligible for the claim, you will still be responsible for any inaccurate claims made on your behalf.
    

   1. What Expenses Can You Claim?

      
      If you meet the necessary conditions, you may be able to claim tax relief for:
      • Working from home
      • Uniforms, work clothing, and equipment
      • Vehicles used for work purposes
      • Professional fees and subscriptions
      • Travel, subsistence, and overnight expenses

      Claiming directly through GOV.UK is a quick and free option, ensuring you receive the full amount you are entitled to. To prevent invalid claims, remember that you cannot claim for expenses that your employer has already reimbursed, and all expenses must be entirely related to your work.
       

   2. Avoiding Poor Advice

      
      Before engaging a tax agent for rebates, it is important to check reviews, read the fine print, and be aware of warning signs. Giving personal information to an untrustworthy agent may result in you having to repay the full amount of an invalid claim, including the commission the agent received.

       

How Doshi Outsourcing Protects Your Practice

Managing large volumes of tax and accounting work can lead to unintentional errors. This is why tax preparation outsourcing is a smart choice for modern UK practices.
Our tax preparation outsourcing services serve as a safeguard. By choosing an outsourced model, your firm benefits from:

•    Comprehensive Checks: We verify that all expense claims have proper evidence before processing them, meeting HMRC standards.
•    Expertise: Our team stays updated on the latest HMRC expense guidelines, ensuring your clients never submit an invalid claim.
•    Flexible Services: Whether it’s a straightforward Self Assessment or a complex review of an umbrella company, our outsourcing team takes care of the detailed work.
 

Outsourcing tax return preparation to Doshi Outsourcing ensures that your clients receive professional, honest, and precise services, thereby protecting your reputation from the risks associated with misleading tax advice.