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MTD and ‘granular’ authorisations for tax agents

HMRC have published the findings of research they commissioned into a proposal to allow individual taxpayers to control or restrict the tasks an agent can conduct on their behalf. HMRC’s ‘granular authorisations’ research involved surveying around 40 self-employed individuals and landlords with turnover above the £30 000 threshold (i.e. a selection of those who will be mandated to join MTD for income tax self-assessment (MTD for ITSA) from the April 2027 implementation date). Key findings included:

  • individuals who deal with their own self-assessment returns particularly appreciated the idea of being able to authorise an agent for some tasks but maintain control over their affairs;
  • others (particularly those who already engage an agent) considered the proposals could potentially introduce complexity; and
  • multiple agent authorisations were welcomed by those who already work with more than one agent and could lead to cost savings for those businesses.

HMRC also note that participants were...

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