Outsourcing tax returns to India

James_Trimby

I am aware of a few firms in the region who admit to outsourcing and they find it works for them. It allows them to provide a cheap efficient service with all the basics covered. Most stuff can easily move electroncially now so little issue with records and timing. BUT I don't despite the weekly emails encouraging me to do so. I agree with Pennywise & Morgani. It becomes an automated service which, though cheap, does not create an understanding of the customers business which means hard to provide detailed good advice on business or tax. This can happen without outsourcing.

Unfortunately this is how some firms work. If cheap and the customer understands this, then great but this is not always the case.

These are generalisations. I recently saw a potential business. Had a very cheap accountant (about 1/3 what I would charge) BUT he was clearly asking the right questions and doing a good job so I advised customer to stay where he was!

D1zzy

James_Trimby wrote: »

I am aware of a few firms in the region who admit to outsourcing and they find it works for them. It allows them to provide a cheap efficient service with all the basics covered.

If they advised their clients, said this will reduce your costs too & gave them an option - no problem, but as far as I can see they don't and continue to charge at the rate that they always have.

James_Trimby

D1zzy agree with some of your comments and inferred or said in rest of my post BUT regarding reducing fees etc and information, most accountants use other staff and/or sub contractors so who works on a clients affairs is normally in the hands of the partner in charge. The contract with the customer would be with the firm not individual employees.
Legally can see no requirement to inform or to reduce fees BUT the firm is still responsible for the works whereever and whoever has worked on them. If a retailer can get their goods cheaper from China (say!) is there a requirement to reduce prices? Professionally there would need to be a water tight contract protecting confidentiality etc and if a member of an official body this would be a requirement placed on them by that body.

I personally think by removing direct control over part of my work does not allow me to give best advice or allow for the production of the most accurate figures. BUT I have never tried it, so only my opinion. Alot of the basic accounting work is (though a mystery to many!) in fact very simple to those in the know and it is just like any other product so do not see a problem as to whether outsourced to a local bookkeeper or a foreign firm. The problem is potentailly with the UK supervison not that the work is outsourced.

Finally you mention about data security and Tax return info etc All contacts I have had from abroad are looking for accounts work. The tax work would remain in the UK (I'm sure there might be some exemptions but havent seen them) so, though copy bank statements etc may be flying around Tax returns etc shouldn't

D1zzy

James_Trimby wrote: »

Finally you mention about data security and Tax return info etc All contacts I have had from abroad are looking for accounts work. The tax work would remain in the UK (I'm sure there might be some exemptions but havent seen them) so, though copy bank statements etc may be flying around Tax returns etc shouldn't

My question/points are specifically about personal TAX compliance - with the returns being completed in India.

It's interesting though that all the replies have been from the company perspective - maybe clients really don't care.