Tax Advice the way it should be
What do you look for from a tax adviser?
I have advised high net worth clients for over 15 years now and worked for over a decade at Coutts & Co private bank building longstanding relationships with my clients.
During this time I have also seen the consequences of working with the wrong Tax Adviser, where the advice is not entirely suited to the individual’s circumstances, or has not been fully understood by the client.
So what is important in building a trusted relationship with your tax adviser? Well most of the emphasis seems to be placed on having the right qualifications or being a member of the right professional bodies. I doubt I am alone here, but these attributes seem to be the absolute minimum I would expect before engaging someone for tax advice, along with honesty, integrity, and technical competence.
Rather than settle for the minimum acceptable level for an adviser, a client will get better value if they work with their tax adviser as partners to create and implement appropriate tax planning ideas.
Here is my summary of what to look for from a tax adviser:
Personal touch – you’ll be sharing your entire personal financial position with your adviser, so the relationship will always work better if create a strong personal connection.
Proactivity – you want someone who will proactively contact you with appropriate tax updates and ideas, but they can only do this if they fully understand you, and your needs.
Ability to educate – the UK tax system can be complex, so you need someone who can explain complex concepts in a simple understandable manner. My clients will testify that I am a big fan of using drawings in meetings!
Outcome focussed – when taking advice you want your adviser to focus on real solutions and recommendations. Too often I have seen long reports which cover all the technical analysis, but don’t reach any conclusion, so leave the client without the guidance they need.
Respects your priorities, but offers challenge – your adviser needs to understand where tax comes in your list of priorities, but be able to challenge your thinking. I have had discussions with clients where the objective was simplicity, or teaching their children the value of money, and this was a higher priority than reducing the tax liability.
Great communication – both in terms of regularity, and relevance. A good adviser will take the time to understand you and your family’s affairs and future plans before providing advice tailored to you.
Practicality – the ideal tax scenario is something usually only found in case studies, or exam papers. In reality, having an adviser who works collaboratively with your legal or financial advisers is likely to produce the best overall outcome, after accounting for any practical difficulties.
There are enough jokes about tax advisers and accountants to suggest that these attributes are not always found in someone who happens to be technically savvy.
If you or anyone you know is looking for a new tax adviser, and would like to better understand the service that Elizabeth Tax Services can offer, please contact us.