“As currently framed, the draft legislation, is cast too widely and risks imposing significant new burdens and uncertainty on advisers.
"That is particularly true for sole practitioners and small firms. Most importantly, it also does not deliver better outcomes for taxpayers.
“The proposed definitions of “tax adviser” and “interaction with HMRC” are so broad that many legal professionals who neither advertise themselves as tax specialists nor act as tax advisers in any meaningful sense, could be at risk of falling short of the minimum standards.
"This makes the proposals unfair and unwieldly.
“For example, even conveyancers filling out Stamp Duty Land Tax returns could be affected.
"This risks complicating and lengthening the conveyancing process. The legislation should be targeted only at agents who present the greatest compliance risk.”
Our recommendations include:
Limiting the regime only to those who routinely act as agents in relation to a client’s tax affairs, or who hold themselves out as tax advisers.
Providing greater clarity on the differences between firm-level and individual registration requirements.
Giving further consideration to the territorial scope of the measures.
Revising the conditions for registration to better reflect the reasonable expectations of a tax adviser.
Avoiding duplication by excluding professionals already subject to other regulatory regimes.
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