Licenced Advisors – Does it matter?

/ Accounting, Tax

Author: Henry Ejdelbaum

Tags: Accountancy, Licensed Advisors, regulation

It has always been a quirk of the UK accountancy regulatory system that there is currently no legal requirement for those that offer tax advice services in the UK to be regulated (i.e. professionally qualified) – It’s something that many businesses aren’t even aware of when approaching accountants to support them.

The government is currently consulting proposals to require unregulated accountants to hold indemnity insurance, as there has been a growing demand for more regulations in the profession.

But does it matter? It’s a difficult one to answer in general terms because as with all professions individuals are individuals and it wouldn’t be right to say that all accountants who aren’t members of professional bodies aren’t able to look after their clients.

Here are some reasons though that we think it’s worth only engaging with a qualified accountant for your business:

  1. Qualified accountants have to adhere to the standards set out by their professional body – that’s rules that someone else sets and enforces.
  2. If an accountant is qualified, they must have done a certain amount of studying and training.
  3. Qualified professionals need to hold professional indemnity insurance. We hope we never need it, but it’s an important protection for clients in the event that mistakes are made.

Since our establishment nearly 30 years ago, it’s been an important part of our business that all AIMS Accountants are fully qualified members of a professional body, including holding indemnity insurance. If you want to find out more about what this means for you, please contact your local AIMS Accountant who will be able to help you.