Bluefin professions has released its annual review of the top five professional indemnity claims for accountants.
In terms of claim trends for tax, Bluefin reports a steady flow of claims relating to employee benefit trusts (EBTs) and employer finance retirement benefits scheme (EFRBS) together with errors or omissions relating to business property relief (BPR).
With the potential for the blurring of lines over who is the client and whether there was a duty to advise on BPR being cited as factors in claims, Bluefin also give advice on simple ways to mitigate claims.
These include sending an engagement letter (setting out who is the client, the scope of the engagement and any exclusions from the scope), keeping accurate file notes and ensuring data management and training of staff is as good as it can be.
Bluefin predicts that there could be a future rise in claims concerning IR35/off-payroll working as it is a complex area, with little guidance from HMRC. The Tax Faculty is working hard to plug this gap by supporting members with TAXguides, webinars and articles in TAXline.