Taxing times: raising standards in the tax advice market

Key points

• According to HMRC poor tax advice and professional negligence are growing issues within the UK.
• £6.7bn of the theoretical tax gap can be attributed to a ‘failure to take reasonable care’.
• The closest definition in the UK for ‘tax advice’ is the definition of ‘tax adviser’ in the anti-money laundering legislation.
• An HMRC consultation provides 20 examples of activities that could constitute tax advice.
• If the adviser has a duty of care towards the client and breaches it causing loss a negligence action can follow.
• The government has committed to establishing criteria tax advisers must meet.

Navigating the complicated world of tax regulation can be daunting and often a hopeless task for those untrained in tax affairs. As a result both businesses and individuals will often seek the advice and expertise of tax professionals – a profession that remains a fundamental pillar in the functioning of a...