Accountancy Age reports on an interview with HMRCs head honcho Dave Hatrnett during which he says that by 2008:
"We will have made tax avoidance not worthwhile"
In the wake of recent high profile wins, HMRC plans pursuing 'Debenham' style VAT cases, will look to see how far it can make Dextra stick while pursuing the notion that tax avoidance is illegal. That explains a number of things I've been hearing recently about alleged high-handed treatment by HMRC flunkies.
It's ambitious but not beyond the realms of possibility. So let's take our Dave at his word. A revenue stream has just been guillotined. If you have a practice based on tax planning you could have to think about alternatives.
The modern practice is no longer about the annual accounts and tax bill. Those are rapidly becoming commodity services. In just the same way as the computer programs used to deliver the results. The world's moved on. It seems to me that for professionals to succeed, they need to do two things:
- Research what clients need and want
- Execute to deliver a differentiated service
There's only one way the first happens and you can guess what I'm going to say - conversations. The second follows but you still need to keep clients in the conversational loop. That's it!