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Accountancy and Taxation: Professional Organisations

Question for Treasury

UIN HL15303, tabled on 27 April 2021

To ask Her Majesty's Government what assessment they have made of the impact of their recent proposals to require unregulated tax advisers and accountants to hold professional indemnity insurance on the insurance premiums for those who already hold such insurance by virtue of their membership of a relevant professional body.

Answered on

29 April 2021

The Government published a call for evidence on raising standards in the tax advice market in March 2020. This explored a range of options to raise standards, including requiring all tax advisers to belong to a professional body. Responses to the call for evidence, including the response from the Association of Accounting Technicians (AAT), were carefully considered. A summary of responses and the Government’s proposed next steps were published in November 2020.

Many respondents to the call for evidence suggested requiring tax advisers to hold professional indemnity insurance (PII) could provide a baseline level of taxpayer protection. The Government is now consulting on the merits of requiring tax advisers to hold PII, including assessing the impacts of this requirement. The consultation closes on 15 June 2021.

Any decisions resulting from the consultation will be announced at a future fiscal event.

Answered by