The Chartered Institute of Taxation (CIOT) calls on the government to include the activities of tax avoidance boutiques, umbrella companies operating disguised remuneration schemes, advice embedded in software, and tax software providers where the software prompts the consumer to act or respond in particular ways in the definition for tax advice

The release comes as a response to HMRC’s consultation on ‘Raising standards in the tax advice market: professional indemnity insurance and defining tax advice’ following a recommendation by Sir Amyas Morse as part of his review into the Loan Charge.

CIOT states that it is vital that a definition of tax advice brings within the scope of professional indemnity insurance (PII) and supports the proposal that all tax advisors should have professional indemnity insurance.