Professional advisers must collaborate more closely to achieve optimum client outcomes
Clapton Consultants; the chartered accountancy practice, says that advisers must now work more closely with accountants in order to deliver the best financial solution for their clients.
The firm has stated that by collaborating more closely, IFAs and accountants are better placed to help clients take full advantage of available tax breaks and calls for greater industry collaboration to address this issue at its core.
Legislative changes to taxation laws prompted by this year’s Budget mean that advisers are now under increased pressure to take full advantage of the new tax breaks for savers. These include spousal income allowance, the savings allowance and the dividend nil rate band.
With assistance from a chartered accountant, advisers could now use these allowances to achieve tax free savings of up to GBP20,000 per annum for a client with a joint income of up to GBP150,000, according to Eric Clapton, Founder of Clapton Consultants.
‘This year’s Budget has provided advisers with ample opportunity to achieve tax efficient earnings on behalf of their clients,” he says. “With more accountants wishing to become actively involved with financial planning by using the opportunities afforded by their DPB licence there is no longer an excuse for the industry’s failure to collaborate more effectively.
‘The key to a successful adviser/accountant relationship is understanding each other’s limitations and respecting each other’s boundaries. The accountant’s role is to liaise with HMRC, educate the client on taxation issues and provide the adviser with an assessment of the possible savings that could be made with an effective plan in place. It is then the role of the adviser to create and execute a suitable financial plan based on that assessment. Providing that neither side attempts to tread on the other’s toes, this approach can be hugely beneficial for both parties and most importantly; the end investor.’