The tax profession is full of the most charming, eloquent, intelligent & modest people you could wish to meet! [INSERT PICTURE OF THE MEMBER VOLUNTEER(S) GIVING THIS PRESENTATION]
My Career [if desired, presenter to insert background or speak to the following points:] My educational career (school / university / degree / or other) My first job My first tax job My qualifications (tax, accountancy, other) My current role(s) My current and former clients (where and if relevant) My “thing I wish I knew then that I know now” nugget for you to share
What is it about tax? The tax industry is an incredibly stable profession, regardless of boom or bust, depression, recession or growth. People often joke about death and taxes being the only thing you can count on in life! After all, regardless of the economic climate – the government still collects taxes. The UK has the most complex tax system in the world. Guide just for students! ww.taxguideforstudents.org.uk
Tax and Society Tax is collected from every person or organisation which receives or buys something of value. For example: salary, business revenue, fuel, inheritance, home, etc. Tax is then used to pay for a wide variety of public services. The Government has a website you can visit for more information to better understand tax: www.taxmatters.hmrc.gov.uk www.taxmatters.hmrc.gov.uk
Where taxes come from There are many types of tax that contribute to the UK Government budget. They include: Income Tax A personal tax on your personal income, above a certain amount. That income usually includes wages, pensions and interest on savings. Corporation Tax Paid by companies on their profits. Excise Duties There are various excise duties – they include Car Tax and tax on goods such as alcohol and tobacco. Value Added Tax (VAT) You pay VAT when you buy goods and services in the European Union (EU), including the UK. It's normally included in the price of the goods or service you buy. VAT is not payable on some things. Council Tax Helps pay for local services like policing and rubbish collection. It’s a tax on the value or size of the home you live in whether owned or rented. People also pay National Insurance contributions. This is the money you pay to build up your entitlement to state benefits such as Jobseekers’ Allowance, Incapacity Benefit and the State Pension.
Taxes and the Moral Issues So the money is collected in through taxes and then the government spends it? That’s the theory, but it isn’t that straightforward! Some people make mistakes and don't pay the right amount of tax. Tax professionals and HMRC spend a lot of time helping people to get their tax right. Not everyone plays by the rules. The moral dimension – considerable media discussion. Have you been aware of the publicity around Starbucks and Amazon this year?
Why a need for tax jobs? Politicians decide on the taxes and pass them into law (Finance Bill is decided every year) Someone has to take the law and decide how much tax people should pay (HMRC) Someone has to collect the taxes due (HMRC) Some people need help figuring out how much tax to pay so they go to specialists who are tax technicians and tax advisers Organisations need to have people working for them who know about taxes to figure out and pay the taxes that are due
Benefits of a Career in Tax Fast changing industry – tax law is updated every year with the Finance Bill, combined with European and international law changes means that working in taxes offers a highly stable, secure and high paying career option Everyone is subject to taxes – individuals and businesses all require advice and supportive from tax professionals to comply with tax laws Tax is jurisdictional – means that UK tax is only relevant to UK tax payers which means there will be jobs in the UK Increasingly cultural diverse population of tax professionals who are entering the field and climbing their own ladder of success.
Where do tax people work? The growing number of taxes and government regulations means that there is a growing demand for people to enter and develop their careers in the tax field Business (local, national and international) Running your own tax business HM Revenue & Customs and local government Advisory companies (tax consultancies, accountancy firms, legal firms) Television, journalism and the wider media
Some Employers Business and Industry Professional Services Government
Will I like working in tax? Are you? Detail oriented? Is everything in your life organised? Are you methodical? Do you enjoy order and process? Are you a good record keeper? Or are you? Creative and strategic? Do you like to find new ways to do things? Do you enjoy games like chess or Risk? Do you enjoy story problems in school? Do you enjoy creating and executing strategy and achieving success? Or are you? Team builder? Do you help others to achieve things together? Do you enjoy coordinating and leading? Do you interact well with all types of people?
What qualities do good tax professionals have? Numerate but not math geeks Entrepreneurial- lateral thinking / problem solving Empathetic – you are dealing with other people’s taxes and finances so need to understand them and their issues Literate – able to write reasonably well Presentable Reliable Ability to convey complex information in a simple manner suitable for the client Able to use IT and office systems, particularly Excel and Word Motivated to do well
What would I actually do? A tax trainee typically starts out with training to show you how to do basic duties such as entering client information into a tax preparation software program. Then, under supervision, progress on to: Preparation of tax accounting calculations Analysis of data Carry out tax research and summarise findings Meet clients as part of the tax team Learning about corporation tax and helping businesses comply Learn about PAYE and draft PAYE advice Respond to HMRC correspondence and assisting with enquiries Preparation of tax notes for accounts and reporting Respond to queries from finance functions and auditors Study for professional qualifications (ATT, CTA or others)
The Rewards - What can a job in tax offer me? Intellectual stimulation – never being bored! Early responsibility Job satisfaction A key role in the financial world Excellent remuneration and prospects Travel Involvement with people The flexibility to work in a variety of different environments
How Much Money Can I Make in Tax? (2012 figures)
Myths stopping you from a great tax career Myth 1: I will have to work with numbers all day. Reality: Problem solving, interacting with people, communication and understanding business is the most important. Working with numbers can be a small part of the job. Myth 2: I will have to work long hours during tax season. Reality: Yes, but they are predictable and you can schedule your holidays and other commitments around them. Myth 3: Tax changes all the time. Reality: True but that is what makes it interesting. Most of the tax laws remain the same so when you have a good foundation in tax – changes keep it interesting Myth 4: I will have to work with auditors and other people who don’t understand tax. Reality: In tax there is a lot of room for error and mistakes are costly. Your work will be reviewed by numerous people which is a regular part of the job. This is why communication skills are also important. Myth 5: You have to spend a lot of time and money to become a qualified tax professional. Reality: There is no question that a prestigious profession takes time, money and work. However if you want to greatly expand your job opportunities and earn money – it’s worth it. Myth 6: It takes too long to qualify as a tax professional. Reality: Actually, in as little as two years, working part-time or full-time in a tax role, and passing five exams, you can then become a Tax Technician and member of the Association of Taxation Technicians (ATT). And if you want to continue on, work for a minimum total of three years, pass four more exams, you can then also become a Chartered Tax Adviser (CTA) and member of the Chartered Institute of Taxation (CIOT).
Why work towards a professional qualification? Badge of quality Professional esteem and status Gain the knowledge, skills and ability faster than just working and learning on the job Better job prospects – improve your employability Ethics - Code of ethics is assumed if you belong to a professional body – fundamental principles: –Integrity –Objectivity –Professional competence and due care –Confidentiality –Professional behaviour
What is the role of a professional body? Protection of the public Interaction with other professional bodies Discipline Badge of quality Input into policy and operational implementation Acting as the voice of the profession Leading the debate Helping to ensure the right amount of tax is paid Support for members Standards Practical guidance and advice Access to resources Professional Body Providing networking opportunities
The only UK professional tax bodies The leading professional body concerned solely with taxation. Members have the practicing title of ‘Chartered Tax Adviser’ The leading professional body for qualified taxation technicians who provide UK tax compliance services and related activities