Clients increasingly turn to advisers because of HMRC helpline delays

HMRC helpline delays are driving more clients to seek help from financial advisers with their tax planning, new research* from wealth manager Investec Wealth & Investment (UK) shows.

Nearly half (47%) of clients who use financial advisers to help with tax issues say problems getting through on the HMRC helpline is the key reason, the research with retail investors holding stock market investments including pensions found.

The study by Investec Wealth & Investment (UK), part of Rathbones Group, found the biggest reason clients sign up with financial advisers for help with retirement planning. Around a fifth (21%) said they first started with an adviser for retirement planning while 18% said they sought support after receiving an inheritance and the same number said they went to an adviser after their investments grew substantially.

More than two-thirds (68%) say their adviser has helped with pension planning while 53% say their adviser helps with ISAs. However, 40% report that their wealth manager helps with tax issues which is slightly more than the 37% who say they get help with mortgages. Around 19% receive help with business succession planning and 18% say they have had help with inheritance tax planning.

The research found that clients are benefiting massively from working with advisers - around two out of three (63%) say their financial adviser has helped save them money on their tax bills and mortgages while 70% say their adviser has increased the value of their wealth.

Savings on mortgages and tax bills have been substantial – nearly a third (31%) estimate savings have been more than £10,000 – and more than two-fifths (41%) say their wealth has increased by 10% or more as a result of their financial adviser’s work.

Clients are most likely to be recommended an adviser by a family member or friend – 53% say they found their adviser that way – while 27% say they contacted an adviser through work or a colleague. Around one in 14 (7%) found an adviser through Google.

Simon Taylor, head of strategic partnerships at Investec Wealth & Investment (UK), said: “Help with tax issues is clearly becoming a major part of financial advisers’ business, and issues getting through on the HMRC helpline play a role in that.

“However, the main reason clients turn to advisers is for help with retirement planning and general wealth advice. The research shows advisers are providing real value for money with clients reporting high levels of saving and increases to their wealth as a result of help from advisers.”

Investec Wealth & Investment offers an award-winning, bespoke discretionary managed investment service which is highly flexible and built around adviser’s clients’ individual preferences and specific investment goals. It can also be applied to almost any investment structure, including joint or sole accounts, ISAs and trust assets.

Once the adviser has agreed the most suitable mandate with their client, their portfolio will be actively managed on a discretionary basis. This enables advisers to leave the day-to-day decision-making to Investec and allows Investec to respond quickly to market changes or capitalise on opportunities that are in the best interest of the adviser’s client.

Investec offers a number of specialist services within its Bespoke Discretionary Fund Management. This includes the AIM Portfolio IHT Plan, which can reduce advisers’ clients’ inheritance tax liability on assets passed onto the next generation and also aims to deliver outstanding long-term performance as well as a Structured Product Service, which gives advisers’ clients the security of a set return over a defined period with a choice of two structured portfolios which have the potential for positive returns in rising, flat or falling markets.

The value of your investments can go down as well as up and you may not get back the full amount invested. Your capital is at risk.

Please remember past performance is not necessarily a guide to the future and should not be relied upon

-Ends-

Notes to Editors

* Investec Wealth & Investment commissioned independent research agency Viewsbank to interview 1,065 UK adults aged 18-plus including 568 who have stock market investments between January 26^th and January 29^th, 2024. 

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About Investec Wealth & Investment (UK)

As one of the UK’s leading wealth management firms, we are trusted with managing £40.7 billion (as at 31 March 2023) of our clients’ money. Our wealth teams work hard at providing Out of the Ordinary levels of service to our clients and with an investment heritage dating back to 1827, we’re built for the long term.

Investec Wealth & Investment (UK) is a trading name of Investec Wealth & Investment Limited which is a subsidiary of Rathbones Group Plc. Investec Wealth & Investment Limited is authorised and regulated by the Financial Conduct Authority and is registered in England. Registered No. 2122340. Registered Office: 30 Gresham Street. London. EC2V 7QN. Member firm of the London Stock Exchange.