8 Questions to Ask When Hiring a Tax Advisor

questions to ask when hiring a tax advisor

Are you looking for tax expertise and wondering what questions to ask when hiring a tax advisor?

Hiring a tax advisor can be challenging as you may not know what you are looking for. But, a tax advisor is crucial to every business. If you don’t get the right person, you could end up paying huge fines to regulatory bodies. But to help you out we are here to provide you with 8 questions to ask when hiring a tax advisor. Let’s begin!


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Verify Their Credentials

First, it is important to verify that the candidate you are interviewing is licensed by the relevant regulatory authorities. Tax advisors do not generally require a license to operate in the UK. However, a certification by a renowned body such as the Chartered Institute of Taxation (CIOT), can help you judge their expertise. The following are two questions to ask the candidates:


1. Are you Licensed by a Regulatory Authority?

Multiple authorities provide a certificate to candidates who are eligible to be tax advisors. There are multiple institutes with their specialisation. Asking this question will allow you to understand whether the candidate you are interviewing has the right knowledge and skills


2. Are you Certified by the CIOT?

CIOT is one of the most recognised institutions in the UK that certifies tax advisors. In addition, they provide the appropriate training to their students. If your candidate is a member of the CIOT, you will be provided with countless benefits such as technical support.

Check Whether they have Relevant Experience

A mere certificate of a degree is not enough to understand whether your candidate has the right expertise. You need to ensure that they have also worked in similar positions in the past. Although, if you are hiring a trainee or an internee, you can skip this part.


3. How Many Years of Experience Do you have in Tax Preparations and Planning?

This is a must among the list of questions to ask when hiring a tax advisor. It is important to choose tax advisors who have worked in the UK before. You are hiring a person to take care of your taxes which need appropriate management. Therefore, it is always necessary to hire someone with at least 3 years of experience.


4. Can you Provide References from Past Clients?

In addition to a 3-year experience in taxation and planning, you need to confirm whether they have the relevant experience. Ask them to provide references of past clients to see which industry they have worked in. It is smarter to hire someone who understands your industry and market.


Ensure that they are offering the Services you Require

Next, you have to ensure that the person you are hiring is providing the services you are looking for. There is no point in hiring a person who does not provide the services that you need.


5. What Specific Tax Services are you Providing?

Before interviewing candidates, you must have some need of services that you require for your business. These should be specific and clear. Note down the services you need such as tax preparation, tax planning, or tax representation. Then, ask your candidate whether they are providing these services.


6. Do you Specialise in Any Particular Types of Tax?

The tax system in the UK is extensive and sometimes, a tax advisor may not have all the relevant knowledge. There are different types of tax such as personal income tax, business tax and international tax. You should hire a person who specialises in tax that is relevant to your business.


Remain Under Your Budget

Tax advisors can be very expensive and if you are not careful, they might do more damage than good to your business. It is important that while hiring a tax advisor you are not putting a financial strain on your business.


7. Can you Provide an Estimate of your Fees?

After, confirming that the candidate has the right expertise and provides the services, you should ask them for an estimate. This will allow you to compare the amount to your allotted budget, making things clearer.


8. How Do you Structure your Fees?

If you are not satisfied with the answer the the previous question, ask them how they structure their fees. If their estimate is crossing your budget, you might be able to adjust it by having the relevant information about their fee structure.


The Bottom Line

It is important to know the questions to ask when hiring a tax advisor. As mentioned above, you will need to know about their qualifications and whether they are recognised by renowned institutes. Next, ensure that they have relevant experience in tax advisory and provide the services that you require. In addition, you have to remain within your budget, so ask them about their service charges and fee structure.


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