At a glance
- Look for a tax agent with experience and expertise that aligns with your business needs.
- Ask for past client testimonials, reviews or recommendations.
- Ensure clarity on fees and whether they are open to flexible payment structures.
HMRC estimates there are around 85,000 firms offering tax advice in the UK, yet many aren’t registered tax agents and some provide substandard services that can put business owners at risk.
Tax agents are authorised to file taxes and communicate with HMRC on your behalf, but even with their support, you’re still legally responsible for your tax affairs. Choosing a reliable, skilled agent can ensure accuracy, compliance and better understand your tax benefits.
Do you need a tax agent?
Before you start searching, consider if you actually need a tax agent.
For straightforward tax situations, especially if you or your team have some tax knowledge, it might be possible to handle things in-house using HMRC’s online services.
But for many SMEs, tax matters are complex and time consuming, especially for those navigating multiple revenue streams, reliefs and allowances. In fact, the vast majority (86 per cent) of SME businesses in the UK use a professional tax agent.
Skilled agents don’t just file returns; they interpret tax law, understand compliance requirements and identify tax optimisation strategies. A lengthy partnership can set up your business for future financial success.
Key considerations for choosing a tax agent
Once you’ve decided to hire a tax agent, experts recommend you consider these essential factors.
1. Specialisation and experience
Angelo Chirulli, operating international tax partner at Gunnercooke, advises SMEs to seek agents with relevant expertise, whether it’s corporate tax, VAT or international tax.
“A tax agent’s expertise and industry-specific knowledge are paramount. Additionally, years of experience and professional qualifications (such as CTA, ACCA, ADIT or ACA) provide assurance of their skill and technical knowledge,” he says.
Choosing an agent with recognised qualifications is also strongly advised by HMRC – these specialists are held to specific professional and ethical standards that help assure quality and compliance.
2. Research reputation and reliability
Research potential tax agents thoroughly on their Google business profile, Facebook page or review sites like unbiased. You can also ask for client testimonials or referrals, and if you know another business owner who has worked with them before, it’s best to check their experience.
Chirulli says an agent’s reputation within the industry can offer valuable insights into their work quality, ethics and professionalism.
“A reliable agent should also demonstrate a proactive approach to staying up-to-date with changes in tax law, which is vital in today’s fast-evolving regulatory landscape,” he says.
3. Fees and payment structure clarity
Tax agent fees vary widely; discuss pricing structures early to avoid surprises. Some charge a flat fee, others hourly or by retainer. Make sure you review contract terms carefully to understand when and how payments are expected.
Chirulli notes another good indicator of an experienced professional is whether they are open and collaborative about their terms. “Flexibility in payment structures can benefit practices with varying client demands and a good agent will be open to discussing a pricing arrangement that aligns with both parties’ needs,” he says.
4. Long-term partnerships
A trusting agent relationship is built over time. Chirulli says a successful arrangement goes beyond transactional interactions.
“Regular check-ins, open communication and shared goals help create a collaborative partnership,” he says. “Additionally, ensure the agent feels comfortable asking questions, as a tax professional should be as inquisitive as they are informative.”
Pitfalls to avoid
While choosing the right tax agent can be transformative for your business, picking the wrong one can lead to costly mistakes and unnecessary headaches. Here are two common pitfalls to avoid to ensure you’re partnering with a reliable, effective advisor.
1. Don’t skip an initial meeting
Once you’ve identified a potential tax agent, scheduling an introductory meeting is essential. It gives you a chance to sound out their communication style, whether you think they can help with your business’ unique needs and if they’re willing to meet physically or virtually.
2. Overlooking security standards
Amid heightened cyber threats and increased regulatory scrutiny, it’s important your tax agent who will handle your sensitive financial data adheres to robust compliance protocols and data protection measures. Check for a clear policy on data handling and client confidentiality, in line with UK GDPR and any industry-specific regulatory requirements.
A skilled agent can help you sidestep costly errors, safeguard your business from compliance risks and uncover opportunities for financial growth – finding the right fit is essential.
Find an IFA practising member who will be able to give you the guidance and support your business needs using IFA’s directory.
