The Association of Accounting Technicians (AAT) said it welcomed the government’s decision not to introduce a requirement for tax advisers to hold professional liability insurance (PII).
It comes after the government released a consultation on whether to make professional liability insurance (PII) mandatory for tax advisers, and a definition of tax advice in March earlier this year.
He said the rationale for introducing a requirement for tax advisers to hold personal information was that it “would help create better incentives in the market for underperforming advisers to improve standards,” adding that it did. “Would also protect consumers by giving them better access to remedies against providers of bad tax advice.”
However, following responses to the consultation launched at the time, he said mandatory personal information on its own “would not be an effective mechanism to raise standards in the market, nor would it have a significant impact on the market. consumer protection and the ability of consumers to seek redress â.
Adam Harper, director of professional standards and policies at AAT, said the association welcomed the news and had “campaigned at length” against the move.
He said: âUnregulated tax advisers are the source of the majority of agent-related complaints to HMRC and contribute to tax evasion and money laundering activities. Moreover, their mistakes and mistakes leave many taxpayers facing large and unnecessary fines and penalties, while also costing the Exchequer hundreds of millions of pounds per year due to excessive demands or wrongly claiming. various tax breaks.
“If the government is serious about tackling these issues, then it should make membership in a professional body compulsory for anyone providing tax and accounting services for a fee.” The AAT has campaigned on this issue for many years and is supported by the public and our members on it, as well as by over three quarters of MPs.
He added: âThe AAT will respond to the government’s consultation on improving the broader regulatory framework supporting tax advisory standards next year and welcomes the opportunity to do so. However, we are disappointed that time has been wasted given the inadequate proposals during the 2021 consultation when a ready-made solution exists.
âIn the meantime, especially before the self-assessment deadline in January, we encourage everyone to ensure that they receive paid tax advice from a member of a relevant professional body, in order to ensure they receive the most recent information and accurate advice for them.