Diagnostax is a systematic fact-finding process – tax diagnostic review – that uses a client’s current personal and financial situation to identify all of a client’s:
- tax advisory needs,
- tax saving opportunities, and
- available tax reliefs.
It also provides a framework to ensure each tax advisory need identified, is completed with the client, in a prioritised and timely plan.
But, to really understand what Diagnostax is and how it works, it’s best to look at it in comparison to what happens now.
How you do it now?
Most accountants provide one, or two, or three, or maybe all of the below variations of tax advice services to their clients:
- Calculation and submission of a tax return.
- Assessment of circumstances against available allowances and reliefs.
- A discussion regarding a specific scenario e.g. property portfolio.
- A general assessment of broad key areas: corporate, personal and assessment if it is relevant e.g. R&D, CGT, IHT, etc.
What’s the problem
Depending on the value of a client, the expertise of a firm and even more so the expertise of client facing individuals, clients are receiving a slightly different tax advisory service. Why?
Unlike completing a tax return, there isn’t an official systematic process for identifying and delivering tax advice.
Tax is inherently complex. Over 2017 alone, tax legislation increased at a pace of over two pages every single day. It’s a lot to keep up with. You would need an army of tax experts to spot every potential relief for every client.
Tax advisory expertise is like gold dust. Across the UK, there are only 17,000 studying and Chartered Tax Advisers nationwide.
Not all clients are getting the tax advice they need, tax reliefs are being underutilized and clients are overpaying taxes.
- Inheritance tax revenues have reached a record of over £5bn.
- Marriage Allowance was claimed by less than 1 in 3 eligible taxpayers in 2016/17.
- Multiple Dwellings Relief was claimed on an estimated 33% of eligible transactions in 2016/17.
- An estimated 90% of eligible taxpayers are not aware of R&D relief.
So, we made it our mission, to simplify the tax advisory process and build enabling technology, so that accountants can consistently deliver valuable tax advice to all those individuals and businesses that need it.
For those accountants who are looking to attract new clients, grow their firms and differentiate themselves from the ever-growing throng of cloud accountants, Diagnostax presents a new opportunity.
Go watch our demo to find out more.