Am I wrong or right re accountant role?

[elephantcandle]

Please help me know if I am wrong on this one.

My DH has always used an accountant for his sole trader business but the accountant just did pretty basic tax returns for him (and not a CPA). He has used this guy for years as he is a specialist in the business DH is in. DH's business has recently increased and he will be moving to a Ltd company etc next tax year so things will change but this year, he got a bit of a shock with how big his tax bill is.

Now the tax bill isn't the issue, the accountant just basically takes the bank statements and crunches the numbers and puts the return in. They never make any suggestions about how to work his business finances the best, to "trim" tax (legally and within the correct bounds etc.), to make sure he isn't overpaying and about the best way to make sure he is maximising the return for himself.

I actually do my own returns and don't use an accountant but have friends and family who do and I was under the impression that part of the role is to give advice on this sort of stuff. DH says it isn't and it isnt the accountants job to tell him how to run his business. He says it's up to the business owner to figure all that out.

So, I would appreciate knowing if IABU thinking that is part of what accountants do? Or is DH right.

I was just about to add that.
It can be a great scheme but unfortunately it’s attracted a lot of the “PPI cowboy” type companies and there’s a whole can of worms there that HMRC are just starting to prise open

Accountants can provide two different services. They do compliance - file your returns, and advisory - give you advice. Looks like they are doing compliance only here. That’s fine.

Be mindful of tax advice from accountants. The rules are based on legislation so don’t be surprised if you need the advice or a tax lawyer, not an accountant.

This is just something to consider if it’s a sizable business. Most accountants will tell you if you should speak to a tax lawyer but, in my experience, they only say if you ask.

DP is a sole trader. His accountant I think provides him with a bookkeeping service rather than accountancy (although she offers both) She doesn't tell him 'how to run his business' but she does ask things like 'do you use your home phone for business calls?' or other random bits that he wouldn't think to put against tax if he were doing it himself. Basically makes sure he's not forgotten to tell her he's spent something! She more than pays for herself in what she saves him.