Taxation And Accountancy Specialists: The Advantages of Availing Their Services

The art of accountancy or accounting, according to official definition, refers to the measurement, statement, or provision of financial data that is mainly used by lenders, managers, investors, tax authorities and other decision makers in making decisions regarding the allocation of resources between and within companies, organizations, and public agencies. Accounting is also defined by some as the art of “classifying, recording, and summarizing in a significant method and in terms of money, the transactions and events which are financial in nature, character, as well as interpreting the results thereof."

Taxation is a monetary levy imposed on individuals and businesses, primarily to finance the operations of government, as well as raise funds for special programs or projects. Taxation may also be utilized for other major purposes aside from merely raising funds. It could be used to discourage certain activities such as smoking or alcohol consumption and may be a vehicle for transferring wealth from one group to another, like taxing the very rich to spend for welfare programs for the poor.

In countries like the United Kingdom, taxation may involve payments to different levels of government such as the central government, which is known as Her Majesty's Revenue and Customs and the local government. Income taxes, National Insurance premiums, value added tax, corporation taxes and fuel duties are among the main sources of income for the central government. The value added tax, or VAT, which is currently levied at the standard rate of 17.5% on supplies of goods and services is also a major source of central government revenue. This is a tax levied on consumer expenditure. Another major source of government revenue is the corporation tax, which is levied on the profits and chargeable gains of medium and large companies. For corporation taxes, the main rate is 30%, and is generally levied on taxable incomes above £1.5m. Local governments as well as the central government also earn revenues from the income tax, as each working individual has a certain income tax levied on them, depending on their monthly income.

According to taxation experts, the authority to impose taxes comes from two sources. The first authority comes from legislation passed by parliament, which is called the 'statute law'. These statutes are also generally published and give details of any changes or adjustments to current tax laws. These changes are mainly proposed by the Chancellor of the Exchequer, usually in the budget, and then passed into law by Parliament. Second, another major authority is called 'case law' and this is crafted from the decisions taken in court cases. Whenever taxation becomes quite complicated and disagreements sometimes stem from the HM Revenue & Customs and taxpayers, these eventually result in court cases. The final outcome reached in these situations then becomes the “case law", which is seen as a major influence in future statute law interpretations.

There are a lot of private consultancy firms which specialize in providing taxation and accountancy-related services to sole proprietor businesses, firms or corporations. Generally, a taxation and accountancy consultancy service may have customers ranging from individuals who own a bakery or small store, to limited companies and major corporations, and they provide services that are tailored to suit each company or individual requirements. The array of taxation and consultancy-related work may range from providing individual self assessment returns, corporation tax self assessment, property income taxation, Capital Gains Tax planning, Inheritance Tax, Retirement and succession planning, Value Added Tax (VAT) planning and consultancy, Stamp Duty and other services. Other accountancy-related service may also include providing accounts in a statutory format, book-keeping, payroll administration, providing budget and cash-flow forecasts, preparing monthly or quarterly management accounts, as well as providing consultancy for starting a business and providing lectures on issues such as current money laundering or anti-fraud legislation.