Tips on how to choose the right tax adviser

We have provided some information and useful tips (below) on how to select a tax adviser.   

Once you have read this guidance, we recommend reviewing the follow up information on what to expect once you have hired your tax adviser, including advice on how to protect yourself if something goes wrong.  

Introduction 

There are a huge number of firms and advisers in the tax industry offering services to individuals and businesses. These range from large international audit and tax practices to small local accountancy firms and specialist tax service providers. 

Whatever tax work you require, care should be taken to find a good quality provider who has the technical skills, experience and high professional standards needed. Here are a few tips to help you. 
 

Be aware: The provision of tax services is not a formally regulated activity – however, tax advisers who are members of relevant professional bodies must adhere to codes of professional and ethical standards. 

You should be aware that currently in the UK, anyone is able to refer to themselves as a tax adviser, regardless of whether they are professionally qualified. This is in contrast to many other professions, where advisers, such auditors and solicitors, must be suitably qualified and registered with the appropriate professional body which sets and monitors standards for their members’ services. 
 

Tax advisers who are members of tax or accountancy related professional bodies, such as the Association of Taxation Technicians (ATT) will have gained a qualification through passing exacting exams. They are tested on their knowledge of technical issues, educated in professional standards, and are required to complete a period of work experience. Following initial qualification, they are required to keep their skills and knowledge up to date through continuing professional development.  The ATT (and other similar bodies) require members to submit an annual statement confirming that they have kept their knowledge up to date and met other required professional standards. 
 

ATT members running tax or accountancy businesses are also required to hold Professional Indemnity Insurance which provides valuable protection for their clients in case of any errors. 
 

Tax advisers without professional body membership may (or may not) hold other qualifications, be qualified by experience and have high ethical standards.  However, no one will be monitoring that they are meeting high standards, unlike professional body members who have ethical and competency requirements placed upon them. 
 

There are cases of unscrupulous actors in the tax market who choose to provide "tax advice" without any such qualifications or ethics. Following this guide should help you avoid these types of players.  
 

What kind of services do you require? 

There are a wide range of tax services, so it’s helpful to have a good idea of what you might require from the outset to identify which types of advisers to approach. Those you approach for an initial consultation or chat should also support you in identifying your service needs.   
 

Many advisers or firms will offer a (short) free initial consultation to discuss your position. This is an important step to assess whether there is a match between services required and provided. It is also a way to get a sense of whether you will have a good working relationship with an adviser, or not. This is an important consideration for any engagement.  
 

Next, you will need to determine if you need recurring compliance work, for example every quarter or annually, or if it’s one-off advisory work needed for a particular reason or circumstance. Again, good advisers should be able to clarify this for you.  
 

Specialist services need specialist experience 

Whilst the adviser may be professionally qualified as an accountant or tax adviser you should consider whether they have the specialist expertise required to advise on any niche areas of tax.  

Small to medium-sized general tax and accountancy firms might not have staff who can undertake more specialist services, for example; trust work, Research and Development (R&D) tax credit claims, or Inheritance Tax (IHT) planning. So, do check that the firm has the expertise to provide the services required.  
 

Ensure that your adviser has an adequate understanding of the relevant circumstances. For more specialist services it is unlikely an adviser would obtain sufficient information just from an exchange of written information. 
 

What to look for in a tax adviser 

Here are some important considerations in finding a tax adviser to meet your needs: 

Qualifications, Service Standards, and Regulatory Requirements 

What services do they provide? What qualifications and experience do they have? 

Are they a member of a professional body which adheres to the Professional Conduct in Relation to Taxation (PCRT)?  

PCRT sets out the principles and standards of behaviour that all ATT members and students (together with those of a number of other professional bodies) must follow in their tax work and is ‘endorsed’ by HMRC. 

Are they meeting other regulatory requirements? Tax advisers must be registered for anti-money laundering (AML) supervision: If you are not asked to provide details like your ID and address at the outset, or information about your income, assets and your activities is not sought - this might suggest the firm does not meet all of its regulatory requirements. 

Reputation and professionalism 

Do they have a good reputation? Are you aware of anyone else who has used their services and can recommend the firm? Can they provide testimonials or references from their clients? Do they hold professional indemnity insurance? This could protect you financially as a customer if something goes wrong. 

Does the firm’s marketing look “too good to be true” and do they over promise on their results? Some firms claim to be ‘HMRC approved’ or to use an ‘HMRC approved methodology’. HMRC does not ‘approve’ tax advisers or ‘methodologies’ so such marketing claims will be spurious. 

Members of the public with any questions about the standards required of ATT members should email [email protected]