Five ways Compass improves on HMRC’s Stamp Duty Calculator
For a long time, HMRC’s online Stamp Duty Calculator has been the sole port of call for solicitors looking to work out the Stamp Duty Land Tax due on the purchase of a new property.
However, despite being provided by HMRC through their website, recent surges in claims against law firms for missed reliefs and the proliferation of ‘Claim Farms’ offering homeowners the chance to claim refunds on their Stamp Duty would appear to suggest that its quality is somewhat lacking.
Now, for the first time, there is a credible and much superior alternative.
HMRC themselves have admitted, despite their tool being described as a calculator, that it’s “actually an estimator” (source Times 2018)
The ICAEW recently reported that the vast majority of SDLT reclaims (over 60%) were valid and this was backed up by HMRC in their recent consultation document on MDR and mixed use which stated that “up to 40% of claims are dubious” – a simple mathematical exercise reveals, therefore, that at least 60% are valid!
So why expose yourself to the risk of one of these claims?
Designed specifically to address the shortfalls in HMRC’s online calculator, Compass gets the job done better because it’s:
1. Designed by experts
Built from the ground up to be the best solution to the issue of SDLT calculation, Compass has benefited throughout its design process from input from expert tax advisers, conveyancing lawyers and a dedicated programming team. Looking at the problem from a holistic perspective, they have been able to design a tool which provides more accurate, comprehensive assessment of SDLT liability than HMRC’s or any other existing Stamp Duty Calculator.
2. Constantly updated
Subject to a regime of continuous updates, Compass will never be left behind by the many and constant adjustments made to the SDLT legislation. With SDLT one of the most regularly updated and amended taxes on UK statute books, it’s only by having a system regularly monitored and updated by a team of experts that one can ensure the calculator is always accurate to the circumstances of the day.
3. Built to Law Society standards
The Law Society’s Conveyancing Quality Scheme guidelines require, as of 2019, that member firms keep a detailed record of how SDLT liability was calculated on each property transaction, including a detailed audit trail. This was a key consideration when Compass was being conceptualised and designed, and has been incorporated into the finished product, meaning it is fully compatible with these requirements.
4. Linked to expert advice
As well as the most sophisticated and comprehensive algorithms to calculate Stamp Duty liability based on all relevant factors, Compass is also backed by expert advice. Marginal or excessively complex cases will automatically be referred to an expert adviser, who will examine the case and provide tailored, individual advice as to the specific liability in that case.
5. Accountable
With full Professional Indemnity Cover, Compass can provide a fully accountable service to all users. Both clients and users have the reassurance of this backup, instead of a faceless online government portal leaving responsibility solely in the hands of the user.
It’s easy to see why Compass is the better solution. With 49 current reliefs which within the legislation, an easy to use system subject to regular updates and monitoring is the only real answer in the modern practise environment. The only real question is why you’d even consider not using it.
Kindly shared by Compass
Main article photo courtesy of Pixabay
