Tax Advice Market and Rogue Traders

CTG has also been busy participating in an HMRC round table discussing what further steps HMRC can take in the tax advice market to reduce the prevalence of rogue traders/bad apples who sell ‘tax reduction schemes’ which leave HM Treasury and often the taxpayers themselves, including charities, out of pocket. We made a number of strong points to HMRC, including the point that taxpayers are sometimes financially naïve and are persuaded into these schemes by convincing sales staff who claim to have HMRC approval. In these cases, it should be an option for HMRC to transfer some of the liability for tax recovery and penalties to the miscreant advisor. The whole issue is a very sticky problem and has been on HMRC’s to do list for around 9 years, and has been the subject of many reports and consultations, the latest of which can be found here and is open until 29th May.