Accountants angered by tax advice plan

Published on Saturday 19 September 2009 13:46

SCOTLAND'S accountants and the taxman are at loggerheads over a change in powers that means the Revenue will not distinguish between regulated and unregulated tax advisers.

The Institute of Chartered Accountants of Scotland (ICAS) has encountered widespread concern among its members over Her Majesty's Revenue and Customs' (HMRC) proposals to treat all tax advisers – or agents – the same, regardless of whether they are members of professional bodies or unaffiliated.

The proposals are contained in HMRC consultation paper "Modernising Powers, Deterrents and Safeguards: Working with Tax Agents". It is estimated that 15 per cent of the 80,000 tax agents operating in the UK are not members of a relevant professional body.

Derek Allen, director of taxation with ICAS, said the industry fears the proposals will be introduced in this year's pre-Budget report. He said: "A large number of ICAS members were quite offended (by the proposal]."

Barbara McQuillan, tax partner at Henderson Loggie accountancy firm, said: "Our principal task as regulated members of a profession is to ensure tax returns are done correctly. Our tax regime is one of the most complex, and our role as an adviser to clients is to ensure they are claiming everything they're entitled to and making all the necessary declarations."