By Heather Bright, Partner
Individuals and businesses may not have paid much attention to the announcement from HMRC that tax advisers will be required to join a new register soon.
Yet there is a deeper reason behind HMRC introducing this measure than simply to keep tabs on who is acting as a tax adviser.
With registration rolling out through the coming year, it is worth understanding how this new system will benefit you.
What is the tax adviser registration?
Starting from 18 May, it will be necessary for tax advisers to register with HMRC.
There are specific times throughout the year when this will need to be done, depending on the service that is required.
Ultimately, all businesses and firms that engage with HMRC on behalf of someone else will need to be registered to continue offering this service.
The new system serves as a mirror to the recent requirements for only an Authorised Corporate Service Provider (ACSP) to make filings with Companies House on behalf of other businesses.
This will mean that, by the time the rollout is complete, only officially registered firms will be able to engage with HMRC and Companies House on another’s behalf.
If you handle tax for your own business or for a business in your company group, then you do not need to register.
Likewise, software providers whose software connects with HMRC also do not need to register, as they are not involved in the tax advisory aspect.
How does the tax register impact individuals and businesses?
While it may not immediately be apparent how businesses and individuals benefit from a tax adviser register, it should serve an important role in improving the quality of tax advice going forward.
There has been a rise in the number of tax tips given freely on social media and a lot of these are not based on accurate information.
As such, more individuals and businesses are finding themselves caught out by HMRC when they have trusted the tax advice of someone they should not have.
While the register will not explicitly stop this practice, it should make it easier for businesses and individuals to not get caught out.
When receiving tax advice, it will be possible to check whether the person issuing it is registered with HMRC.
If they are not, it is safer to disregard the advice and seek the support of a registered professional instead.
It is not yet clear whether the register will be public, although making it so would help individuals and businesses stay safe from bad tax advice.
We will be registering with HMRC as soon as necessary, so you can rest assured that our tax advice is still legitimate and reliable.
This will enable us to keep providing the high-quality tax advice that you have come to expect.
If you want tax tips you can trust, speak to our team today.