Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many prosecutions of people providing tax advisory services without being a legal financial advisor were made in the last five years.

There is currently no overarching definition of ‘tax advice’ or ‘tax adviser’ in legislation and it is legal for tax advice to be provided by a wide range of professionals and individuals, including accountants, legal professionals, payroll companies, bookkeepers, and software developers. Therefore, HMRC is unable to provide any data in response to this request. The Government intends to hold a consultation in 2022 to explore options to improve the wider regulatory framework that supports standards in tax advice. This consultation will also test a potential legislative definition of tax advice.

HMRC remains committed to maintaining agent standards and tackling those who enable and facilitate tax evasion. They currently have nearly 150 enablers, including those who have provided tax advice as part of their involvement in the fraud, under criminal investigation. Over 60 enablers have been prosecuted in the past 4 financial years.