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Monitoring of tax agents and advisers
I am responding to Andrew Hubbard’s editorial ‘More control on marketing of tax services’ (Taxation, 24 November). This was the first time I have seen someone in the profession, or suitably qualified, make a comment, and I thank you.
I joined HM Inspector of Taxes in January 1964, left in 1967 to join Lloyds Bank’s trust department and in 1971 transferred to manage what became a two-office firm specialising in taxation. The firm dealt with matters ranging from the most straightforward cases to the most complex. Fortunately, one of the partners was an ex-member of the tax department at Coopers & Lybrand and brought expertise to explain why specific tax legislation was in place and its effect.
By mutual agreement, in 1986, I set up in practice on my own. I remain in practice today and have naturally witnessed many changes, some good and some less so. Over the last few years, I have read, with dismay, proposed legislation that would outlaw practitioners who do not hold an approved qualification.
When self assessment was introduced in the 1990s, many local seminars were held with officers of HMRC. It was evident then they anticipated many self-proclaimed ‘tax consultants/advisers/experts’ would be established to take advantage of the new procedures. Indeed, this was undoubtedly the case locally in Ashford, Kent, but few have survived.
Having failed to renew my subscription with the Chartered Institute of Taxation, I have continued, adamantly striving to uphold what I hope is an example of best practice.
- HMRC monitors my anti-money laundering, and applications and renewals are always granted without question.
- I have professional indemnity (PI) cover, and our clients are aware of this. Since 1986, I have had one PI claim following a VAT inspection. This came after my clients implemented advice they had received elsewhere (from armchair experts my client met in a local pub!).
- Since self assessment was introduced, I have had a few aspect enquiries. These have been fewer than 30 full enquiry cases, and around 95% of these resulted in no adjustments made in respect of tax lost to HMRC
I have re-read several times the article ‘Still boxed in’ (Taxation, 17 November 2022). I was very saddened to read about taxpayers/customers who had been the subject of reviews leading to unfortunate outcomes for them and their agents.
Could a system not be implemented whereby unqualified agents, or given recent cases, all tax advisers, are subject to an assessed industry standard or benchmark? HMRC is considering introducing a penalty regime for VAT, so a similar scheme could be introduced for tax advisers. If agents were found to be lacking in certain areas, they would be encouraged to review their knowledge or client base. It could be like penalty points on a driving licence.
Thanks again for an excellent magazine, and the wealth of information it contains. Roger A Hughes.
Reality can be extraordinary
Catching up with my reading recently, I came across Andrew Hubbard’s editorial ‘Reality can be extraordinary’ (Taxation, 20 October) which referenced Alistair Cooke’s Letter from America on the subject of President Nixon’s resignation.
When I was a boy I used to listen to this weekly programme with my family and followed the habit into married life, the reason being Cooke’s attractive way of reporting on the American way of life: laconic and involved at the same time.
I found the episode about which Andrew wrote on the BBC website. It was broadcast on 9 August 1974 (though I don’t remember it).
Well done and thank you for reminding me of a pleasure long gone. John Briggs.
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