A high-level meeting of the UK’s top tax professionals and the government met last Friday to thrash out the definition of an accountant, in a bid to make sure advisers are not hit with their clients’ tax bills.

The meeting was set up to begin discussions between government and tax advisers over incoming legislation to stamp out tax avoidance through the use of managed service companies.

Accountants are meant to be exempt from the possibility of facing their clients’ tax bills under the new law, yet there are concerns about the definition of an accountant and accountancy services, and which advisers are allowed the exemption.

The government has always been keen to avoid creating a strict definition for accountant, instead usually treating CCAB-qualifieds as accountants in legislation.

The CIoT’s Anne Redston, who attended the meeting, suggested there were many professional tax advisers who did not hold a CCAB qualification, including ex-tax inspectors. ‘We’re all hopeful of finding a definition ­ not impossible, but difficult. I don’t think you need to be CCAB qualified as the legislation is not absolute on that.’

The issue of narrowing who can use the term accountant is regularly lobbied on by the accounting institutes, which argue unqualified members of the public cannot call themselves accountants.

ICAEW chief executive Michael Izza said on his blog last week that the unqualified debate was ‘a matter of public interest’.

Detailed consideration of the MSC legislation is expected in parliament over the next month.

Further reading

Legal recognition for 'accountants' is unlikely

In search of a definitive definition