Abatement

While both abatement and mitigation imply “reduction” in normal English, they have a unique meaning when it comes to HMRC tax penalties.

“Abatement comes first.”

When dealing with a maximum penalty (EM4506), abatement is used to reduce the maximum amount for Disclosure, Cooperation, and Seriousness. HMRC uses abatement to determine the appropriate penalty level within the statutory maximum limit. TMA70/S100 (1) is guide for abatement. Abatement is undertaken either in anticipation of a contract settlement (in calculating the anticipated offer) or of a formal penalty decision. There is a procedure at EM6051+ that you can go through.

“Mitigation comes later.”

Mitigation is the overall authority of the HMRC Board to lower any penalty imposed under TMA70/S102. A taxpayer may request mitigation of a penalty after the penalty has been established and the taxpayer has exhausted (or abandoned) his appeal options.

How do I know an accountant is qualified?

Professional accounting bodies license accountants in the UK and elsewhere. These organizations provide both academic and practical training in accounting. Hire someone who has completed all the required examinations and has an accounting licence, whether for personal or business affairs.

Professional indemnity insurance (PII) is a contractual need for qualified accountants, and it protects both the accountant and the customers. If the accountant doesn’t follow your business interests or professional ethics, you may report them to their regulatory body. These are the top accounting institutions and their accompanying credentials in the UK.

ACCA – Chartered Certified Accountant (ACCA or FCCA)
Chartered Accountant (ICAEW) – (ACA or FCA)
Chartered Management Accountant (CMA) (ACMA or FCMA)
Chartered Accountants Ireland (CAI) (ACA or FCA)
Institute of Financial Accountants (AFA, FFA)

What services accountancy firm provide in the UK?

Although some accountancy firms will offer you a ‘one-size-fits-all’ solution, most services are more flexible than this. Accountancy packages can vary in the services they provide. Although there are certain basic functions which most accountants will provide (and which are generally included in a monthly fee), there may also be additional services available for an extra fee. These extras usually include Self Assessment Tax Returns, Payroll and workplace pension compliance, Limited Company Accounts, Tax advice/planning, VAT Returns and MTD.

We are open for business and happy to accept your call. Our team of qualified accountants and tax consultants have broad skills and experience across all areas of accounting, taxation, tax planning, savings, and business investment which they utilise to the best of their abilities to help your company and achieve the best possible outcome for you. If you want to meet with us, we have a team of qualified personal tax accountants who can meet over the phone, via video call, or in one of our offices.

Perhaps it’s time to look for a new accountant if you haven’t enjoyed such kind of assistance from your existing one? Our accountants will work with you or your business to ensure that all elements of your finances are handled proactively so that you can refocus on what matters most – operating your business!