The Accountants Club, an association which represents 700 plus UK based accountants, has uncovered that the ineptitude of UK based accountants is costing UK businesses a phenomenal £1.8billion.
Their report is not going to make for comfortable reading for this profession, its clients as well as regulators who highlight how accountants are making mistakes on the behalf of most of their clients.
Some of these errors are “major” mistakes, such as, illegal dividends allocation, inadequate inheritance tax planning, a lack of reviewing tax credit eligibility, no consideration of incorporation, capital allowances which are not properly claimed and not claiming of R&D tax credits.
Given that we are in a time when small businesses are struggling to receive funding from banks, inadequate advice from their accountants in all the above areas could even lead to businesses closing.
It is vital that the accountancy profession as a whole introduce measures to remedy the current situation.