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HMRC consult on ‘enrolment’ of tax agents

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Any system of enrolment of professional tax agents must be overseen by an independent body, the CIOT’s new President warned as HMRC launched a consultation on the department’s future relationship with the tax agent community.

‘While we are very much with HMRC on wanting to get the highest standards among tax professionals, HMRC cannot be permitted to be prosecutor, judge, jury and executioner when someone’s livelihood is potentially at stake,’ Anthony Thomas said.

John Andrews, Chairman of the CIOT’s Low Incomes Tax Reform Group, said the proposed strategy is ‘not an alternative to dealing with poor service levels at HMRC call centres and delays in responding to correspondence’.

He added: ‘What most taxpayers need is access to knowledgeable HMRC officials who can deal with their tax queries and requests promptly and accurately.’

Segmentation

HMRC are seeking views on the ‘segmentation’ of tax agents to differentiate between those who are in business and those in the voluntary sector or acting on behalf of friends and family. The proposed strategy also includes:

  • making it easier for agents to access services and increasing their ability to ‘self serve’ on behalf of clients;
  • tailoring HMRC’s support services to paid, professional agents to reflect compliance risks; and
  • providing additional support for agents ‘whose own standards are below those expected in the professional community’.

HMRC estimate that agents act on behalf of a million corporate bodies; 2.3m unincorporated SMEs; 3.9m individuals for income tax self assessment; 3.2m tax credit ‘customers’; and 5.8m individuals outside self assessment.

They are inviting views from ‘tax agents, their representative bodies, those from the voluntary sector and individuals who provide support and advice on complying with tax obligations, as well as individuals or businesses who use the services of a tax agent’. Comments are invited by 16 September.

A further consultation is planned for later in the year on proposed legislation aimed at ‘tackling more effectively those few agents who are found to be acting dishonestly’.

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