AAT launches new guide to help consumers make the right choice of accountant

AAT has launched a new guide for consumers with advice on appointing an accountant or tax advisor.

The guide, What you should know before you appoint an accountant, includes tips on what to look for when appointing an accountant, alongside real-life examples of the damage that can be caused by using unregulated accountants or tax advisors.

Several key business figures have provided supportive quotes throughout the guide outlining the importance of regulated advice, including the Interim Small Business Commissioner Philip King, Christopher Jones of the International Underwriting Association, and Gary Ashford of the Chartered Institute of Taxation, who said: "If I go and see a doctor, I need to know that the doctor is, in fact, a doctor. Most people in the general public have absolutely no knowledge that the accountant down the street is completely unqualified and has no professional indemnity insurance.”

The guide forms part of AAT’s Accountable campaign, which calls for mandatory membership of a professional body for anyone offering paid-for tax or accountancy services. Whilst only one-third of accountants and tax advisors are unregulated, this section of the profession makes up two-thirds of complaints to HMRC, including issues such as tax evasion and money laundering. However, a recent AAT survey showed that six out of ten people are unaware that no qualifications are needed to practise as an accountant or tax advisor, and 57% of those surveyed thought membership of a professional body should be compulsory.

The government recently consulted on proposals to require unregulated accountants to hold professional indemnity insurance, which AAT described as "inadequate".

Adam Harper, Director of Professional Standards and Policy at AAT, said: "Although employing an unregulated accountant or tax advisor may appear to be a money-saver, many people are unaware of the potential risks they could be exposing themselves to. As our new guide shows, their mistakes and errors could leave taxpayers with large and unnecessary fines and penalties, or even subject to fraudulent activity. Using a regulated accountant, however, will help to ensure that consumers can trust their accountant’s knowledge is up to date and access to a means of redress should they have concerns.

"As we await the outcome of the government’s consultation on professional indemnity insurance for unregulated accountants, we would encourage individuals and small business owners to use our guide to ask the right questions when looking to employ the services of an accountant. This will give them peace of mind and help protect their interests."

The guide is available now online on AAT Comment.

For more information about this issue, see AAT’s latest blogs:

• Government must regulate the unregulated – now
• What can we learn from countries that regulate accountants?
• How regulation works for other professions
• After coronavirus, can government afford the cost of unregulated accountants? 

AAT has also recently warned small and medium-sized businesses on the danger of using unregulated accountants and tax advisors and urged the government to go further to tackle this issue.

AAT’s licensed member directory can also help people to find a skilled professional accountant that is fit for purpose.