In response to HMRC’s consultation on measures to ‘address consumer protection issues for taxpayers who claim tax repayments via repayment agents’, the CIOT notes a number of key points:
Measures which ensure taxpayers pay the correct amount of tax and benefit from reliefs available to them are to be welcomed as well as those to raise general standards of tax advice.
Raising standards should not only focus on concerns around repayment agents but should be viewed in the wider context of the tax advice market. Those who provide tax services should be required to adhere to the rules and discipline of a professional body.
Many individuals would not otherwise be able to claim refunds or reliefs they are entitled to, and repayment agents effectively fill this gap in the market. The CIOT notes the importance of customer protection safeguards, particularly around the high-volume repayment business model.
The CIOT also highlights problems around awareness of reliefs among the general public, pointing out, for example, that although 4.2m taxpayers were expected to benefit from the transferable marriage tax allowance, only around 2m claimed the relief in 2019/20.
Perhaps one central point to various threads running through this consultation is the following observation: ‘Until people in general are claiming what they are entitled to (or the tax system deals better with these reliefs up front through PAYE for example by making some claims automatic) then agents potentially perform a useful role in enabling people to get at least some of their entitlement’.
The CIOT response (at para 2.5) sets out a number of helpful recommendations for HMRC to improve taxpayer visibility and awareness, particularly in the main areas of practice for high-volume repayment agents.
In response to HMRC’s consultation on measures to ‘address consumer protection issues for taxpayers who claim tax repayments via repayment agents’, the CIOT notes a number of key points:
Measures which ensure taxpayers pay the correct amount of tax and benefit from reliefs available to them are to be welcomed as well as those to raise general standards of tax advice.
Raising standards should not only focus on concerns around repayment agents but should be viewed in the wider context of the tax advice market. Those who provide tax services should be required to adhere to the rules and discipline of a professional body.
Many individuals would not otherwise be able to claim refunds or reliefs they are entitled to, and repayment agents effectively fill this gap in the market. The CIOT notes the importance of customer protection safeguards, particularly around the high-volume repayment business model.
The CIOT also highlights problems around awareness of reliefs among the general public, pointing out, for example, that although 4.2m taxpayers were expected to benefit from the transferable marriage tax allowance, only around 2m claimed the relief in 2019/20.
Perhaps one central point to various threads running through this consultation is the following observation: ‘Until people in general are claiming what they are entitled to (or the tax system deals better with these reliefs up front through PAYE for example by making some claims automatic) then agents potentially perform a useful role in enabling people to get at least some of their entitlement’.
The CIOT response (at para 2.5) sets out a number of helpful recommendations for HMRC to improve taxpayer visibility and awareness, particularly in the main areas of practice for high-volume repayment agents.
