AAT survey shows most people in Wales unaware no formal qualifications needed to offer tax advice

• Accounting body calls for mandatory membership of a recognised professional body for anyone providing paid-for tax or accountancy services
• 71% of those in Wales who have used a tax adviser or accountant were unaware anyone can offer paid-for tax advice without being qualified, yet 57% thought they should have formal qualifications
• Over half of people in Wales said accountants and tax advisers have played an essential role in advising on the latest financial issues around Covid-19 and Brexit

With the 2021/22 tax year in full swing, new research published today (6 April 2021) by AAT (Association of Accounting Technicians) has highlighted that many people in Wales are unaware that formal qualifications are not required for anyone offering paid-for tax advice, leading to a renewed call for the government to make membership of a recognised professional body mandatory for anyone offering paid-for tax or accountancy services.

The survey of over 1,000 people across the UK who had used an accountant or tax adviser, working for either them or their business, found that almost three-quarters of people in Wales (71%) were unaware that anyone can trade as an accountant or tax adviser without any professional or formal qualifications. However, over half (57%) of those surveyed also said that accountants and tax advisers should have formal qualifications.

Other findings from the research included:

• 57% of people in Wales thought accountants and tax advisers have played an essential role advising on the latest financial issues in relation to the Covid-19 (coronavirus) pandemic and Brexit
• 55% said it should be compulsory for anyone offering paid-for tax or accountancy services to be a member of a recognised professional body
• 48% said accountants and tax advisers should undertake continuing professional development (CPD) to ensure their technical skills and industry knowledge are up to date

As a result of the research, AAT is renewing calls for the government to introduce mandatory membership of a recognised professional body for anyone offering paid-for tax or accountancy services.

Adam Harper, Director of Professional Standards & Policy, AAT, said:

“It’s good to see that most people recognise the importance of having a good accountant, particularly during these challenging times for many individuals and small businesses. However, as this survey shows, the fact that so few people are aware that unregulated accountants are able to practice leaves increases the risk of non-compliance with tax obligations and leaves consumers potentially open financial risks if they use an unregulated adviser.

“Unregulated accountants make up a third of the accountancy sector, yet two-thirds of complaints to HMRC are about unregulated advisers. Mandatory membership of a recognised professional body for anyone providing paid-for tax and accountancy services would address this by providing reassurance to clients that they will have protection if anything goes wrong and that their accountant’s technical knowledge is up to date. As we enter a critical stage of the UK’s economic recovery, we are calling on the government to introduce this to boost consumer confidence and the reputation of the accountancy profession.”

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, and After coronavirus, can Government afford the cost of unregulated accountants?