CH5- Client service

Question 1

Tort of negligence

Answer 1

Duty of care owed
Breach of duty of care
Damage suffered as a consequence of the breach which occurred

Question 2

Reviewing scope of engagement

Answer 2

Regularly review engagement to ensure operating within the scope agreed with the client and the terms remain appropriate

Question 3

Timetable

Answer 3

Seek a realistic timetable with client for delivery of services.
Clients should be kept informed and lengthy gaps in communicating with clients should be avoided

Question 4

Supervision and training

Answer 4

If member delegates work, the member remains primarily responsible for work
Should exercise sufficient supervision to confirm work performed is satisfactory

Question 5

Use of subcontractors

Answer 5

Due to need to preserve client confidentiality, a member must obtain client consent before contracting work

Question 6

Consultation and second opinions

Answer 6

Encouraged to consult with fellow professionals when advising clients to ensure relevant skill and judgement is applied- giving significant opinion/advice
If member relies on 2nd opinion, evidence of this should be retained on client file
Client confidentiality rules must be taken into account

Significant opinion= tax at stake is significant, there is a risk that a contrary view could be taken, AND the matters advised on are of sufficient importance to the client

Question 7

Form and content of advice

Answer 7

Form of advice given depends on a variety of factors e.g. importance of transaction, nature of enquiry, time available for advice
Advice should normally be given in writing. If given verbally, maintain a written record
Case law, legislation and current HMRC practices should be referred to
No obligation to update advice for future changes to law, unless agreed to do so

Question 8

Advice letter

Answer 8

Should contain:
Purpose of advice and clients objectives
Background assumptions and facts
Available alternatives
Associated risks
Relevant caveats and exclusions

Question 9

Proper professional records

Answer 9

Important because:
Communicating with HMRC
Maintaining accurate client history
Dispute or complaint resolution
Defend any future claims of negligence

Records include written documents, file and telephone notes, research papers
Can be kept electronically but must be backed up
Need a retention policy- statutory requirements and time limits for legal action against a member
Records should be accessible

Question 10

Diary system

Answer 10

Maintain a system to ensure all relevant time limits and deadlines are monitored and not missed
Make it clear who is responsible for ensuring deadlines are met
For tax compliance work, member not responsible for ensuring client pays the tax due
Ensure position is clearly documented if there is uncertainty or usual position does not apply

Question 11

Practitioner’s records should be organised so that they are

Answer 11

Accessible

Question 12

Consulting with fellow professionals

Answer 12

Request an independent view from a colleague, or by INSTRUCTING another member of tax counsel