In the self assessment return, my accountant filled in the accountant as the nominee - and their bank account - to receive my tax refund, and advised that I would be paid after the refund is received by them from HMRC. Any idea why this is done like this? Why not simply allow the payment to be received in my account? Is there any advantage in making the accountant to receive the refund in the first instance?
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It improves their cash flow?"I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank... -
Why don't you ask your accountant?"You’re just a bad memory who doesn’t know when to go away" JRComment
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After the accountant filled in the return form they must have asked you to sign it. If you had read it properly, you would have seen the tick box that authorised this. Why did you not question it at the time?Originally posted by Abraham View Post
Always read the stuff you sign.Comment
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The obvious reason why they put in their bank details rather than yours is because they know their bank details, and it's quicker and easier to complete the form that way then chase people for the information.
Anyway you have reminded me to do something so thanks."You’re just a bad memory who doesn’t know when to go away" JRComment
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If they are a regulated firm then it would be clients money and go into a designated clients account, thus having no effect on practice cash flow.Originally posted by cojak View Post
If they are unregulated then depending on what standards are being worked to, it could be boosting their cash flow. Not good.
Filling this box in on tax return gives the accountant a little more insight into repayments coming through, but it's a throwback to the pre self assessment and pre fixed fee era, and not really necessary now.Comment
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I think this tended to be popular with a lot of accountancy firms who work with CIS subbies. Clients virtually always in rebate position, accountant gets rebate in, takes payment of their own fee, then pays out balance to client. Pretty reliable way of getting paid, and the subby likes getting their tax return done, as it seems as though not only does the accountant not charge a fee, but actually gives them cash.
As Jessica says, ethical obligations around client money mean it should be held in a completely separate account to the accounting firm's cash.
Don't really see why a firm with Ltd Co contractor clients would do things this way though.Comment
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I've had this before with my accountant who I know and trust, and to be fair it didn't concern me at all. Rebate was only a few hundred quid, they took their fee out (agreed in advanced) and paid the balance to me.
If you trust your accountant then there's no reason to be suspicious of this, I think it just allows them to ensure the rebate is received and is correct so they could chase up on your behalf. But as others have said if this wasn't what you wanted then surely you could/should have challenged it at the point of signing the return?Comment
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