Tax-saving measures are often met with scepticism; people commonly wonder if they’re: a) possible, and b) legit. I recently spotted a post on LinkedIn, essentially stating that a new accountant promising to find tax savings isn’t to be trusted. The author asserted that if all accountants are getting the basics right, by following the same rules, any extra savings must be questionable.

But there’s a big ‘if’ in the sentence above. If all accountants are getting the basics right, this might be true. The problem is, what we consider the basics of good accounting are changing all the time; and they’ve certainly evolved in the last few years.

Many people we speak to consider their accountant to be doing a decent job: their accounts are accurate, they’re submitted on time, and they’re technically ticking the boxes. In this sense, the most basic of basics are covered. However, we also hear statements like, ‘…but I can never get hold of them,’ or ‘…but we only really speak once a year.’ For most of us, this hands-off approach has had its day. We’re no longer content to see our accountant every 12 months, when we show up with a bag of expense receipts. Today, we all have higher expectations around communication. We want more: including better, faster responses and proactive suggestions.

In this way, the basics of good accounting have shifted – and many accountants are no longer “getting the basics right”. This matters because a huge amount of the value Hive adds, and a number of the tax savings we can access for our clients, depend on high-level communication. This isn’t just knowing what’s going on in our clients’ worlds, but also helping them to understand what we’re doing and what this means for them. Rather than ‘I did…’, we’d much rather discuss, ‘We could do…’

This straightforwardly client-focused ethos underpins everything we do. Of course we get the old-fashioned basics right (these things are still important), but we also do so much more. And we do this with no wild schemes or sharp practices involved. We’re simply able to access tax savings by really taking time to engage, listen, and think on a client’s behalf. Two years after we first began talking about this approach, it hasn’t massively changed – and I’m amazed to say that the remainder of our industry still isn’t replicating it.

So, how can this approach translate into tangible tax savings? When we begin working with a new client, we’re almost always able to pin down an oversight or missed opportunity. These might be major issues – for instance, one new client had inadvertently been breaking a basic and established tax rule, while another had paid £30,000 in unnecessary tax – or they might be smaller gains that add up to a large final sum. It isn’t uncommon to find around £50,000 in tax savings for new clients joining us.

A huge amount of this comes down to planning, which is why open communication between yourself and your accountant matters so much. For example, making plans around your income tax, corporate tax, Capital Gains, and property helps to optimise your existing situation, without needing to do anything drastic. If you haven’t already, incorporating can also have a significant impact on the amount of profit you’re able to hold onto. But all of these things rely on proactive advice and regular interaction.

If this still sounds too good to be true, it may be worth asking yourself:

• When did my accountant last reach out to me?
• How quickly did they respond when I contacted them?
• Does my tax bill feel too high?

Many of the dentists we speak to have accepted a sub-par relationship because they don’t know or expect anything better. However, it’s perfectly fine to push for more. After all, how can any accountant claim to have the basics covered when the latest information they have to hand is last year’s accounts?

At Hive, we have a dedicated support team in place to respond to enquiries. We hold regular client meetings throughout the year, and we share content (such as this) that’s designed to help you in your practice. The size and expertise of our team means we’re also able to place you in the hands of the right person, at the right time, across everything from accountancy and Xero bookkeeping to wealth preservation.

So, perhaps it’s time for us all to question the “basics” of good accounting. If you’ve always settled for less, raising the bar through strong communication and a reciprocal relationship will make a massive difference – not just now, but in the longer term, too. If you’d like an initial conversation about how much tax you’re paying, get in touch with our team.