Handling Complaints

Members are strongly recommended to have procedures in place to handle complaints from clients. It is important that where a complaint is received it is treated seriously and handled in a timely manner, in line with the firm’s procedures.

The Taxation Disciplinary Board (TDB) are responsible for the independent disciplinary process on behalf of the CIOT and ATT. The TDB investigates and takes action (where appropriate) against members who have not maintained the high standards of behaviour and professional standards required by the Professional Bodies.

The TDB would expect members to be given the opportunity to respond to a complaint before any escalation in matters. Receiving a complaint from a client therefore provides a member with the opportunity to rectify issues amicably and swiftly where possible. The key areas of consideration are outlined below, with further detailed guidance covered in Chapter 9 of the Professional Rules and Practice Guidelines (PRPG) here.

  • A firm’s complaints policy should ensure each new client is informed in writing within the engagement letter of the name and status of the individual in the firm to contact in the event of a complaint
  • Clients should also be informed of the ability to complain to the TDB (unless alternative forms of alternative dispute resolution are outlined)
  • Any complaints received should be acknowledged in writing
  • The individual handling the complaint within the firm should do so thoroughly and without delay
  • They should be a person of sufficient experience, seniority and competence, and preferably not directly involved in the act/omission giving rise to the complaint
  • The client should be informed that an investigation is taking place
  • Appropriate action should be taken if the complaint is found to be justified in whole or in part
  • Consideration should also be given to contacting the firm’s professional indemnity insurers (see further notes below) prior to issuing a response, as well as seeking legal advice where appropriate
  • Written records should be maintained of each complaint and the steps taken to deal with these. If a complaint is raised with the TDB, they may request to view the records relating to the complaint

Members are also reminded of the Provision of Services Regulations (see guidance here). The Regulations set out the information which service providers (including CIOT and ATT members in practice) must provide to their clients and prospective clients. This includes:

  • The contact details and territorial coverage of the firm’s professional indemnity insurers. This information could be included on the practice website, or clients could be advised that this is available at the firm’s office. The firm’s insurers may have a preferred form of wording to use regarding this and it would be advisable to check the position with them prior to the publication of any details
  • Informing clients of the firm’s dispute resolution procedure if one is offered. This must also be mentioned in any document which gives a detailed description of the services (e.g. an engagement letter) and include information on how to access the procedure
  • Issuing responses to complaints from recipients of the service as quickly as possible, and making best efforts to find a satisfactory solution (other than where a complaint is vexatious)

Members of the public who are unhappy with a firm’s service will often request a copy of the original engagement letter or the firm’s complaints policy. Members are encouraged to comply with these requests as refusal to provide these documents is also likely to be taken into account in relation to disciplinary proceedings if a member of the public refers to this as part of their TDB complaint.

Members should also be aware of the Pre-Action Protocol for Professional Negligence and the information a client may require as part of any claim made. Further information is available here but the protocol sets out a code of good practice and contains the steps which parties should generally follow before commencing a professional negligence claim (or Court Proceedings).  It sets out the notices which should be sent to the firm by the claimant and members of the public may use this protocol even where firms do not provide details of their Professional Indemnity insurer.

Where a member is contacted by the TDB, section 2.13 of PRPG will apply, which requires members to respond to correspondence promptly and to comply with any orders made by the TDB.

Further information on the TDB disciplinary process can be found on the Board’s website here.

Please note that CIOT and ATT do not get involved in fee disputes between members and their clients. If members have any queries after reading the above guidance, chapter 9 of PRPG and the TDB website, please contact [email protected].