People skills matter

JOHN NEWTH CONTENDS THAT ASPIRING TAX ADVISERS NEED PEOPLE SKILLS AS WELL AS TECHNICAL ABILITY

The traditional (and unfortunate) view of an accountant or tax adviser is of a number cruncher sitting in an office and producing reams of figures that may be unintelligible to the layperson.

Very early in my professional career I was faced with two situations that demonstrated just how wrong this view is. My principal was an eccentric who, as an army officer, had survived the Arnhem glider offensive in World War II.

His main interest in the office appeared to be adding up the postage book with an adding machine and ensuring that the old papers ledger had been dealt with correctly.

Clients’ old papers were stored in numbered parcels in the office basement, and recorded in an old fashioned bound ledger. My boss became externally angry when these books were not kept correctly.

A year or two later I was deputed to deal with the tax affairs of a prominent local solicitor, whose affairs were reasonably complicated and included partnership profits, dividends, rental income and a number of property trading and investment companies.

No one else in the office was prepared to deal with this client, partly because of the complexity of the job, but also because the solicitor, who was an imposing figure, tended to produce unwarranted fear in the eyes of members of our firm.

How was I to deal with individuals like this? As a young articled clerk I cannot say, in retrospect, that I handled the situation very well.

Training for life?

Certainly when I took my professional exams, my tax and accountancy training contained no hints on how to deal with people. The exam papers were wholly technical, with only a few questions aimed at practical technical problems.

Things have moved on since then, and students are faced with more practical true to life questions, including writing reports and giving advice to clients. However, no advice or training appears to be given on how to deal with difficult people in one’s professional life.

A stressful lifestyle?

My training was undertaken in gentler times, but over the years, life in general and professional life in particular has become much more aggressive and confrontational. Tax advisers, whether they are students or more experienced, are likely to face numerous situations where people skills are needed.

For instance, one may be placed in a department, either in the profession or commerce, where another employee takes an instant dislike to you. The reason may be pure jealousy, but how does one deal with this situation?

Employers will do almost anything rather than dismiss an awkward employee because of the potential cost and probability that the employee will sue. Or they will dismiss both parties if a complaint is made.

Accountants and tax practitioners will face confrontational situations in their normal professional life. In the accountancy profession this is particularly true of auditors and insolvency practitioners.

As far as tax professionals are concerned, personal contact may involve more senior staff, clients and HMRC for those in practice. For those in commerce, taxation managers will have to deal with managers and directors representing other disciplines in their company, as well the company auditors and HMRC.

There is no doubt that the attitude of HMRC staff has become increasingly hostile over the years. When I first started in tax, relationships were rather on the basis of an academic debate between the tax practitioner and the inspector. All that has changed, and personal contact tends to more confrontational because routine matters are dealt with on a computerised basis.

Assert yourself?

One way forward could well be formal training in assertiveness and verbal and non-verbal communication. There is a subtle difference between aggression and assertiveness, and senior tax practitioners in particular need to learn how to deal with HMRC personnel in difficult situations. HMRC staff are  usually well-trained in all aspects of their contact with the general public and the professions.

A classic example is representing clients before the General Commissioners. The role of the tax practitioner in this area is likely to decrease under the new appeal arrangements, but there is no doubt that over the years there has been an imbalance between highly-trained inspectors of taxes and tax advisers who have been loath to go to appeal.

Indeed, it would have been far more healthy for both parties if more advisers had been prepared to do so, even if this was on a pro bono basis.

Tax investigations specialists will be aware of the aggressive approach of HMRC in such cases. Indeed many of them are former Revenue inspectors. Individuals intending to specialise in this tax area have to be assertive, both with clients and HMRC.

Why not introduce training for tax students on people skills, and include the subject in seminars and conferences for more senior tax staff and practitioners? Training in assertiveness and communication could well be part of the programme.

Meetings preparation

A practical way in which to encourage people skills is preparation for meetings. When one has a meeting with an inspector, one can be certain that the inspector has prepared assiduously for the meeting.

Tax advisers need to prepare with the same care. At the very least, the adviser needs to note the items which are likely to be discussed, and to make sure that relevant correspondence and documents are readily available.

A common tactic of inspectors is to attempt to dominate the meeting with the practitioner and client. It is up to the adviser to ensure that this does not happen. But it will not happen by chance; careful preparation is needed.

Equal considerations apply to meetings with clients, and also with professional colleagues, perhaps from a different discipline. Tax partners may need to highlight the importance of their department at a partners’ meeting. Careful preparation for such a meeting is vital.

Conclusion

Exam results and technical knowledge alone, admirable as they are, will not push the tax professional to the top of the tree. He will need a more than adequate supply of people skills to achieve that. Existing and new clients will appreciate contact with a tax adviser who has people skills as well as technical knowledge.