HMRC have published the research paper, 'Research to understand customers’ views on tax adviser authorisation'. It found that most customers reported using authorised tax advisers for three or more services, highlighting the complexity of the tax system. Surprisingly, only about half of the respondents could list the benefits of using multiple agents, but more could list drawbacks.
Ipsos conducted the quantitative research with customers who use a tax adviser and explored views on the existing authorisation process and potential changes to it. It examined:
- How customers and tax advisers interact.
- Customers’ views of the existing authorisation process.
- Customers’ views on a range of ideas for how authorisation could work in the future.
The analysis looked at three tax regimes (Corporation Tax, Self Assessment and VAT), which are the main services using authorised tax advisers. It found that of the respondents:
- About 96% use agents for preparing and submitting tax returns.
- In preparing accounts or conducting tax calculations, 94% for Corporation Tax (CT), 93% for VAT and 79% for Self Assessment (SA) used agents.
- Checking tax for VAT returns, 84% for CT, 86% for VAT and 70% SA used agents.
Services provided were fairly consistent across tax regimes; however, Self Assessment taxpayers were less likely to say they use authorised advisers:
- To prepare accounts (79% versus 94% CT and 93% VAT).
- To check tax returns (70% versus 84% CT and 86% VAT).
- Self Assessment customers were also less likely to get tax planning advice or general tax advice (52% versus 69% CT and 69% VAT) or use advisers to assist with HMRC compliance checks.
In comparison, VAT customers (60%) were more likely than Self Assessment (23%) or Corporation Tax customers (36%) to say they use their tax adviser to assist with bookkeeping or day-to-day record-keeping. Nearly three-quarters of VAT customers (73%) were also using their tax adviser to help comply with Making Tax Digital requirements.
Most customers reported using authorised tax advisers for three or more services, highlighting the complexity of customers’ tax affairs. The majority (95%) of VAT customers used tax advisers for three or more activities, as did 92% of Corporation Tax customers and 79% of Self Assessment customers.
Perceived benefits of using multiple tax advisers
Customers were asked what the benefits of using multiple advisers within their tax regime were.
- Surprisingly, only about half the respondents in each category could name or select at least one benefit.
- The top benefit selected or named was ‘having access to specialist skills and a better quality service’ (42% CT, 33% VAT, 30% SA).
- The second listed benefit was ‘having an extra layer of review’ (34% CT, 29% VAT, 21% SA) and ‘having additional support or capacity’ (34% CT, 27% VAT, 19% SA).
Around a third of VAT customers (35%), 32% of Corporation Tax customers, and around three in 10 Self Assessment customers (31%) said there were no benefits to multiple-adviser use. Higher turnover businesses and those with more employees were more likely to recognise the benefits of using multiple advisers, although the differences were only six to 10 percentage points.
Perceived drawbacks of using multiple tax advisers
More customers across all the tax regimes were able to name or select drawbacks of using multiple advisers, compared to the benefits. The majority of Corporation Tax customers (82%), VAT customers (80%) and Self Assessment customers (72%) named or selected at least one disadvantage. A minority of customers in each tax regime selected ‘don’t know’ (13%-20%).
The most common drawback for customers in all three tax regimes was increased costs and it being a waste of money (72% CT, 62% VAT, 53% SA).
Interestingly, HMRC highlights that one of the least-cited drawbacks across all three tax regimes was the current HMRC system limitations (25% of CT and VAT customers versus 12% of SA customers).
There were some key differences between tax regimes. As with benefits, Self Assessment customers were the most likely to say they did not know what the drawbacks of using multiple advisers would be (20% compared to 14% of VAT and 13% of CT customers saying or selecting ‘don’t know’).
Useful guides on this topic
Calculating Corporation Tax & Checklist
How do you calculate Corporation Tax? What is the small profits rate? How do you calculate Marginal Tax relief? How do you adjust for Associated Companies? What is meant by Control? What are Augmented profits?
Self Assessment Return 2025/26: What's new?
2026 Self Assessment toolkit: top tips for completing tax returns for the year ending 5 April 2026.
Starting in business: VAT
One of the first decisions to make when starting in business is whether or not you should register for VAT. Am I running a business for VAT purposes and if so, when do I register?
Reasonable care: How do you pick a tax agent
Tax penalties are charged according to a tariff but this is modified to take into account the taxpayer’s behaviour. When it is agreed that the taxpayer has taken 'reasonable care', no penalty will be charged. This is a brief summary to consider if you are picking a tax agent.
External link
HMRC: Research and analysis. 'Research to understand customers’ views on tax adviser authorisation'