Consultation on ‘Raising standards in the tax advice market: professional indemnity insurance and defining tax advice’

Dear Payadvice.U.K.

Our consultation on ‘Raising standards in the tax advice market‘ was published on 23‌‌‌rd March 2021. This is your chance to have your say.

We need to understand the impact these proposals would have on taxpayers, businesses, the insurance industry and the wider tax advice market, so your views are really important to us.

If you’d like to have your say or take part in a virtual roundtable discussion, email us at taxadviceconsultation@hmrc.gov.uk. The consultation will run until 15‌‌‌th June 2021.

This work derives from the Summary of responses and next steps published following our call for evidence, which suggested that the tax advice market needs intervention to enhance consumer protection and improve standards.

As a first step, the government committed to consulting on introducing a requirement for all tax advisers to hold professional indemnity insurance. This consultation also welcomes views on the definition of tax advice, to help determine who will be covered by this requirement.

We look forward to hearing from you.

Agent Reform Policy Team

Opinion

Payroll precision also and software developers need to be aware of this consultation and potential impacts on the profession.

So What is tax advice? Is offering payroll services considered tax advice? What about making Job Retention Scheme calculations and grants?

Are payroll professionals aware of the agent code? Are the professional indemnity insurance provisions in place?

PAYadvice responded to the original consultation, and have highlighted to HMRC that the current scope and wording may incorporate payroll into what is considered ‘Tax Advice’.

Be aware and respond with your views on the impacts.

PAYadvice.U.K. 21/4/2021

One thought on “Consultation on ‘Raising standards in the tax advice market: professional indemnity insurance and defining tax advice’

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