The importance of tax advice

Stephen Maggs explains this often misunderstood issue and why RRL’s award win matters for Cornwall.

Tax affects us all – individuals at all stages of life and in all circumstances, as well as businesses throughout every phase of their lifecycle. Tax is a significant consideration in most financial decisions and transactions, whether as an expense deducted from sale proceeds, income, profits, or from an estate upon death (often a substantial one unless managed). Frequently, this tax expense – in the form of liabilities – can be mitigated, or at the very least planned for, through proactive tax advice.

As we all know, the tax landscape is currently extremely volatile and has been since late 2023, when polling figures began to reveal a widening gap between the then-governing Conservative Party and the Labour opposition. This period of instability culminated in the hotly anticipated Autumn Budget 2024 – arguably the most important fiscal announcement since March 2008. This volatility, combined with growing concern over the UK’s economic position, has led to a marked increase in demand for proactive tax advice. While tax advice has always been essential, it is even more so in times like these.

“Advisory” and “tax advice” are broad terms and mean different things to different people. In this article, I’m referring to genuinely proactive advice, not simply pointing out which expenses are tax-deductible (which, while technically advice, is routine).

Routine tax compliance – preparing and filing tax returns – is, by itself, an exercise in reporting, not advising. For us, however, this routine is just the starting point.

We believe the real value lies beyond. We prioritise advice in everything we do. The compliance process should initiate conversations about tax risks and opportunities, opening the door to meaningful, forward-looking advice. Unfortunately, this crucial step is often missed, usually due to a lack of capability or attention from the accountant involved.

That’s where we’re different. For us, advice comes first. The tax return is simply a formality – a record of income and expenses – but the real focus is on guiding our clients with insight that can make a tangible difference.

There are clear challenges around the availability and provision of tax advice, particularly for individuals and businesses in Cornwall.

The Cornish accountancy sector is challenging, with very limited tax advisory capability located within the county itself. Cornwall has a sizeable and thriving economy, supported by strong, ambitious businesses that, unfortunately, are often not receiving the proactive advice they need, whether or not they realise it.

We are the only firm in Cornwall with a concentration of tax advisers and the tax advisory capability to adequately serve the needs of the many individuals and businesses across the region.

For example, well before the Autumn Budget, we proactively advised clients on our expectations for likely policy changes and explained mitigation strategies that could be implemented in advance. We carried out numerous planning exercises for clients, particularly concerned about possible changes to inheritance tax, which ultimately were announced. Two of these planning projects alone saved the families and businesses involved £14 million in inheritance tax. This was only possible because of our team’s ability to form informed opinions on likely changes, the conviction to communicate our speculative views clearly to clients, and the expertise to implement effective,
pre-emptive planning through our unique and
wide-ranging service offering.

This capability was formally recognised on 8th May 2025 when we won the prestigious and nationally recognised Tolley’s Taxation Award in the Best Single Office Tax Practice category, something no Cornish firm had achieved before.

This recognition highlights the exceptional expertise of our tax advisory team and the distinctive services we offer as an independent firm in Cornwall. It is especially rewarding given the national scope of the awards and the rigorous judging involved.

Ultimately, people and businesses often don’t know what they don’t know. Tax is a highly complex and increasingly technical field. Non-specialist advisers – including many accountants – simply aren’t equipped to provide the kind of deep, proactive advice that makes a difference. If professionals struggle to navigate the tax landscape, how can we expect the layperson to do so?

That’s why tax advice must be proactive – people need to be made aware of tax-saving opportunities and potential risks without having to ask.

I’d encourage everyone to ask themselves: “Am I getting the tax advice I, or my family, or my business, really need?”

RRL
Truro: 01872 276116
Penzance: 01736 339322
post@rrlcornwall.co.uk
www.rrlcornwall.co.uk