Raising standards in the tax advice market
Executive summary
AAT supports developments to raise standards in the tax advisory market, however the proposed requirement that anyone providing tax advice must hold Professional Indemnity Insurance (PII) is inadequate to meet the government’s stated objective of improving trust in the market. It does little to raise standards and very little to address the serious problems created by unregulated agents.
AAT has long argued that the most effective, simple and fair means of addressing the problem of unregulated advisors is to oblige anyone giving paid for tax advice to be a member of a professional body. This already happens for solicitors, doctors, architects and nurses so there is a clear precedent. Such a move is already supported by the overwhelming majority of AAT members, Members of Parliament and the general public.
Given unregulated advisors are rarely appropriately qualified, not required to undertake any continuing professional development (CPD) and have no independent complaints process, there is a compelling argument to suggest that their level of PII cover should be higher than that required by professional body members.
Related consultation responses
Raising standards in tax advice: protecting customers claiming tax repayments
We support some of the proposals, but requiring professional body membership for anyone providing paid-for tax and accountancy services would be more effective.
Recognition of professional qualifications and regulation of professions
We outline here the customer protection impacts our regulations provide, and the professional standards and CPD requirements we place on our members and why.
Public Accounts Committee’s inquiry: HMRC Standard Report 2022-23
The latest annual HMRC Standard Report 2022-23 showed customer satisfaction declining and telephone services falling well below target.
Tougher consequences for promoters of tax avoidance
AAT welcomes more information on how often HMRC plans to use its criminal investigation powers and what resources are available to fund it.
