Submitting tax returns for other people

SureYWouldntYa

I'm currently working a trainee accountant in a practice firm

A couple of friends have recently registered for income tax have asked me to do their taxes for them

They wouldn't be looking to pay much if anything for it, hence i'm apprehensive about referring them in work and am considering just doing it myself on the side

Should i just be advising them about x, y and z, and let them still file their own returns? Or should i apply for my own TAIN and submit them myself same as i would do in work, albeit under the umbrella of a practice.

I'm just wondering what am i potentially exposing myself to, i'd let the boss man know and he'd be fine with it im fairly sure, but with Revenue should there be problems down the line thats what im wondering, im not seeing any guidelines about how you must have a practice license or professional indemnity insurance etc., thats not to say theyre not out there and I'm just not seeing them

Any help or advice would be greatly appreciated

ari101

The issue isn't Revenue so much as your accountancy body.

Generally only book keeping services are what is allowable without a practicing cert.

A professional accountancy body can take significant issue if they believe you are practicing without a cert, up to expelling you for doing so.

Helping people do their bookkeeping to produce a set of basic accounts should be ok.

When it comes to actually submitting returns on their behalf, while revenue might allow you register for a TAIN as a bookkeeper, you are training to be an accountant, and CAI/CPA/ACCA would likely take a dim view of that move.

thugtomas

Helping people do their bookkeeping to produce a set of basic accounts should be ok.

Jim2007

You want your career to finish before it begins??? All of the professional bodies have strict rules about who may offer their services to the public and it does not matter if you are being paid to do so or just give free advice - you are not a professional and you are not authorised to practice.

And I'd be extremely surprised if your boss was happy about you exposing his business to a potential law suit when you make an FU. Your friends will be happy to take your free advice until the day you get it wrong and then they will want compensation. And their solicitor will advice them to go after your employer since you obviously won't have the deep pockets to cover the situation, claiming that they assumed you were under his supervision when you gave that advice.

relevanc

OP not really sure what is in this for you to be honest.

The only ones benefitting will be your ‘cheap’ friends.

cons:

In breach of professional body rules (risk getting kicked out)

No insurance (which starts at €500+)

No AML supervision

Earn little to zero income

Take up spare time outside of work

Potential future conflict with boss and/or friends

Likely to make errors etc as still a trainee

Pros:

Failing to see any

Having done tax returns for friends in a past life, I now refuse to go there. I won’t even give financial or tax advice. People who pay zero/cheap expect a lot and it erodes the friendship over time. My advice to you is to not mix business with your personal life. And don’t degrade your own professional qualifications (yet still be be earned) to be giving it away for free/cheap .

Alan_007_

AFAIK, CAI don't mind members helping out friends if they don't have a practicing cert, as long as they don't charge for the work. Not sure about other bodies and also not sure how it works when you're a trainee.

Personally, I wouldn't bother doing anything for friends outside of giving them the most basic advice (the type that you can find on revenue's website).

It's all fun and games until something goes wrong and then you get all the blame. It doesn't sound like there's much to be gained by you for this even if everything goes well.

As others have said as well, don't devalue the time and effort that it takes to obtain your future qualification by doing work for free for people who don't feel like paying.

SureYWouldntYa

All noted guys, thank you

I've really been a bit naive

I've been giving various bits of advice to loads of people the last 2 years as we all do, and that I think we'd all be generally happy to do when people don't take the piss, for people who didn't know about claiming for college fees or medical expenses etc, but nothing that was ever substantial or actually submitting a return for someone

I'll cease any talk of potentially doing returns for people

victor8600

https://www.boards.ie/discussion/comment/119636989#Comment_119636989

Exactly. An amateur can give an excellent advice, but cannot take any responsibility. Since you are now a professional, it is expected that you give a professional advice, and charge a fee to cover your work and risks. Or direct your friends to someone who can help.

Addition: Personally, I am not against helping other people in your area of expertise. But one should be very careful where money or other people's health is involved. As a computer programmer, I am happy to help other with programming questions. I also know how to make websites, among other things. But if a friend asks me to build them a small website for them to advertise or sell something, I will refuse, because even a smallest website requires updates and fixes and it's better for the friend if they have a paid contractor who is responsible for that.

Jim2007

https://www.boards.ie/discussion/comment/119636989#Comment_119636989

To correct you on one thing - we all don't go around giving any type of advice to the general public - in fact most of us are very careful about what we say in public. In fact when it comes to finance, people like to employ and deal with people who keep their mouth shut.