Review of HMRC's Powers, Deterrents and Safeguards
Working with Tax Agents
This area of the Review's work looks at how HMRC interacts with tax agents to ensure their clients' returns and claims are correct when submitted.
Tax agents are vital to the delivery of the UK tax system, and play a key role in the preparation of tax returns. The overwhelming majority protect their clients' interests by advising them correctly and representing them in their dealings with HMRC.
But a small minority of agents act in a manner that can or will result in the wrong amount of tax being calculated. We are not thinking here of those who have made a mistake despite taking reasonable care to get it right. The issues are more around those whose performance may have fallen below the expected standards of their profession and the few whose actions may have constituted a deliberate attempt to understate tax (e.g. by falsifying information or promoting fraudulent avoidance schemes).
The first round of consultation was announced at Budget 2009, with the aim to raise issues and ask questions rather than propose definite solutions.
The consultation document looks specifically at:
- how HMRC works with professional bodies and how HMRC can help support professional standards
- how to identify and address tax risks generated by agents and
- how those risks can be addressed, ideally through working with professional bodies, or through a statutory framework where that is not appropriate or the agent is not a member of a professional body.
Later in the year we will develop the proposals with a view to another round of consultation with draft legislation.
Budget 2009 - Announces consultation on working with tax agents
Working with Tax Agents: A Consultation Document April 2009 - Comments by 7 August
