Working with your tax adviser

Once you have selected a suitable adviser, please read our guidance below on what to expect next and how to maintain an effective working relationship: 

What to expect after appointing your tax adviser

You should receive a letter setting out what your adviser will (and will not) do for you and the terms of the engagement. You should:  

• Check the letter and ask the adviser to explain anything you do not understand. 

• Make sure you understand the fee arrangements and the term for which you have appointed the agent. 

• Be aware of the conditions for terminating the contract before it formally ends.  

Regular communication & updates are important 

Your adviser should remain in regular contact with you and keep you updated on progress. You should be kept up to date on all (key) communications your adviser has with HMRC on your behalf, if you have given them authority to contact them. 

Where your tax adviser is preparing tax documents for you, they should be willing to discuss and explain them to you. They should also draw your attention to any areas of risk in terms of HMRC taking a different interpretation of a tax position or treatment. Your tax adviser should be also willing to assist with dealing with any HMRC queries that arise (although this may involve additional fees depending on the overall fee arrangements). 

We recommend reviewing your adviser's charges regularly and checking that they are still providing the services you need. 

Remember going forward, to update your adviser as soon as possible of any changes in your activities or circumstances that could affect your tax affairs. 

Where tax refunds or claims are involved 

Have you agreed that if any tax refunds are involved that they will be paid to you directly? If not: 

• Will any fees due be settled from that refund before the balance is paid to you? 

• What are the firm’s arrangements for handling client money? 

• How long will they hold on to the balance? 

Contingent fees 

On occasion tax advisers will suggest that the amount of their fee is based on a percentage of any tax reclaim secured (often referred to as ‘contingent fees’).  You should be cautious when agreeing to such arrangements, especially where the tax refunds being suggested sound “too good to be true”.   

If contingent fees are to be agreed, then you should also be clear on what will happen if the claim is turned down or you are later asked to refund any amounts received to HMRC.  Often in such circumstances unscrupulous firms may have closed down and clients are then left having paid a fee and being required to pay back the tax erroneously reclaimed from HMRC. 

Addressing issues, making complaints 

If the unfortunate circumstance arises where you are not happy with the services provided, we recommend addressing this with the firm directly on a timely basis. If this does not resolve matters, the next step should be to make a written complaint to them, setting out your concerns or the items to be addressed in a clear and concise manner.