The demand for tax accountants in UK has been on the rise for the past two years, and there are several reasons for this trend. The UK tax system is complex and constantly evolving, and businesses and individuals need expert advice to navigate the maze of regulations and laws. This article will examine why the demand for tax accountants in the UK is rising.
- Brexit
The UK’s exit from the European Union (EU) has resulted in significant changes to the tax system, especially for businesses that trade with the EU. Brexit has introduced new customs duties and tariffs, and businesses must now comply with new VAT and excise duty rules. Tax accountants are in high demand as businesses seek advice on navigating these new rules and regulations.
- Covid-19
The Covid-19 pandemic has also played a role in increasing the demand for tax accountants in the UK. The pandemic has resulted in significant changes to the tax system, including new tax reliefs and grants to support businesses and individuals affected by the pandemic. Tax accountants are in high demand as businesses and individuals seek advice on taking advantage of these new tax measures and ensuring compliance with the changing tax regulations.
- Digitalization of Tax
The digitalization of tax has also contributed to the demand for tax accountants in the UK. HM Revenue and Customs (HMRC) has been rolling out Making Tax Digital (MTD), which requires businesses to submit their tax returns online using digital accounting software. Tax accountants are in high demand as businesses seek advice on implementing these new digital systems and ensuring compliance with the new regulations.
- Complex Tax System
The UK tax system is notoriously complex, with a vast array of rules and regulations that are constantly changing. Many businesses and individuals struggle to keep up with the changes and may inadvertently fall foul of the rules, resulting in hefty fines and penalties. Tax accountants are in high demand as businesses and individuals seek expert advice to ensure compliance with the complex tax system and avoid costly mistakes.
- Increasing Complexity of International Tax
Globalizing the economy has led to an increasing complexity of international tax regulations, and businesses operating across borders need specialist advice to ensure compliance with the rules. Tax accountants with expertise in international tax are in high demand as businesses seek advice on how to structure their operations to minimize tax liabilities and avoid falling foul of the regulations.
- Stricter Enforcement
HMRC has recently increased its enforcement activities, tackling tax avoidance and evasion. It has led to increased investigations and audits, and businesses and individuals need specialist advice to ensure compliance with the rules and regulations. Tax accountants with expertise in tax investigations and disputes are in high demand as businesses and individuals seek representation in these matters.
- Advancement of Technology
Technological advancement has led to the growth of the gig economy and the rise of self-employment. It has increased the number of individuals needing specialist advice on tax matters, such as claiming expenses and filing their tax returns correctly. Tax accountants are in high demand as self-employed individuals seek expert advice to ensure compliance with tax rules and regulations.
Final Thoughts
In conclusion, the demand for tax accountants in the UK has been on the rise for the past two years. As the tax system evolves, businesses and individuals will need specialist advice to ensure compliance with the rules and regulations. Moreover, tax accountants will continue to be in high demand.
