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...