Whatever your profession, its unlikely you know everything about every part of your sector.
A GP, knows stuff a Brain Surgeon doesn’t and a Primary School Teacher knows things a Sixth Form lecturer doesn’t, and so on.
The same applies to accountancy, I like to think that I do what I do very well. At the same time I would never profess to knowing a great deal about Pension Fund and Charity accounting. Nor am I best the best person to ask about International Auditing Standards.
I am good at small business accounts and offering advice on how to manage the finances of a business more effectively. I can also help individuals and business owners to pay less tax by making them aware of areas of tax legislation that they can take advantage of.
So to the accountant who offered this advice to their client, regarding this spreadsheet;
The spreadsheet calculation you have attached is for use by a self employed individual.
You and XXXX are directors and employees of XXXXXXX and as such not entitled to claim the same expenses as the spreadsheet suggests. We would put in a nominal charge to cover costs for working from home but it cannot be excessive.
However, when claiming for use of home as office, the self employed run the risk of a charge to capital gains tax when selling their private home, as they have effectively deemed part of it as business use and not PPR.
…please carry on giving your clients poor advice in areas where you obviously don’t know very much as it means more work for me!
So, just because your accountant is good at one thing, don’t assume he or she knows everything and make sure you pick one who is right for you and your business.