Budget 09: tax advisers fear new fines

Budget 09: tax advisers fear new fines

Consultation paper reveals possible financial penalties for advisers who fail to take ‘reasonable care’ or are ‘deliberately non-compliant’ when dealing with tax affairs

The taxman has been accused of looking to regulate the tax profession
‘through the back door’, after releasing a consultation paper flagging up the
possibility of fining and monitoring advisers.

Tax advisers have greeted
Working
with Tax Agents
, a 43-page consultation, with great concern,
particularly around plans to charge financial penalties for advisers who fail to
take ‘reasonable care’ or are ‘deliberately non-compliant’ when dealing with tax
affairs.

‘It’s regulation by the back door, the thin end of the wedge,’ said Roger
Barnard, Tenon director of taxation. Anne Redston, visiting professor at King’s
College London, said the consultation was one of the ‘most important debates
ever’ for the tax profession. ‘My key message is for the profession to engage in
the debate. It will affect the way we work.’

Grant Thornton senior tax manager Sheena Hay said HMRC was trying to
‘regulate this, that and the other’.

One adviser described HMRC staff as ‘swapping their bicycle clips for
jackboots’.

Where there is sufficient evidence that the deliberate actions of an adviser
put tax at risk HMRC could introduce financial penalties; report the person to
their representative body or introduce monitoring. They could also refuse to
deal with the adviser in the future.

The penalties could be structured in a manner of ways, including fixed, or
linked to the tax at risk or the fee income or turnover.

‘If you’re competent then the bane of your existence, incompetent advisers,
could be forced out, but if you make the odd mistake, how far would HMRC push
these powers?’ Barnard added.

Richard Mannion, national tax director for Smith & Williamson, said he
was ‘relaxed’ about
the consultation, provided it is implemented and applied sensibly.

‘HMRC fully recognises that the overwhelming majority of agents perform to a
high standard. This is not about introducing regulation through the back door,’
HMRC said.

More Budget News:

Budget
09: business dismisses ‘trivial’ Budget

Comment:

‘Not
a Budget for business’

Budget
09: It’s a confidence game…but the chancellor didn’t show

Consultation Document:
Working
with Tax Agents

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource