ICAEW has said the ‘poorly targeted proposals’ by HMRC risk the tax compliance landscape as the ‘small number of tax advisers who facilitate non-compliance’ HMRC intends to catch out may lead to legitimate tax advisers being stung by the measures.

‘The measures take the dishonest conduct rules for tax advisers as the starting point, but these rules were created for a different reason and changing them would result in draconian provisions applying to behaviours that fall well short of dishonest conduct.

‘Any legislation should contain appropriate safeguards, guardrails and sanctions that are proportionate and easy to apply,’ said ICAEW.

The government has been transparent on this measure increasing the costs for taxpayers seeking tax advice, but ICAEW says it also acts as a ‘barrier for growth’.

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