In this section:
- PAYE for agents and advisers
- Self Assessment for agents and advisers
- VAT for agents and advisers
- Corporation Tax for agents and advisers
- Tax credits for agents and advisers
- Acting as a tax agent for a CIS contractor or subcontractor
- Capital Gains Tax basics for agents and advisers
- Inheritance Tax for solicitors and tax advisers: the basics
- Trusts for agents and advisers: first steps
- Get started with our online services for agents and advisers
Tax credits for agents and advisers
Tax credits can make a real difference to people's lives by helping them pay for their day-to-day living expenses. So if you're acting as an agent or adviser on a professional basis for someone else, it's important to make sure you get their tax credits claim right.
If you are an accountant, agent or adviser working for clients on an ongoing basis in return for payment and they ask you to handle a tax credits claim on their behalf, you have to gain formal authorisation to do so through the agent authorisation process.
This guide will help you find the key tools and information you'll need to:
- set up authorisations to act on a client's behalf
- work out if a client is eligible for Child Tax Credit or Working Tax Credit
- work out the likely amount of any tax credits award
- report any changes in their circumstances
On this page:
- Manage tax credits and agent authorisation
- Work out clients' eligibility for tax credits
- Report changes in clients' circumstances
- Useful tax credits guidance
Manage tax credits and agent authorisation
Most people who claim tax credits handle the paperwork themselves or get help from family members or voluntary organisations. However, there may be occasions where a client asks you to handle a tax credits issue on their behalf. For example you may have a client for whom you handle personal Self Assessment returns - and they may also ask you to handle a tax credits claim or problem.
If you are handling someone's tax credits claims on an unpaid basis, such as a friend or family member or you are working for a voluntary organisation, you should not set yourself up as an agent only for this purpose. It's much more efficient to become an intermediary for a short term arrangement or an appointee for a long term arrangement.
Read more about handling tax credits on other people's behalf
How you need to proceed depends on:
- what type of transaction they are asking you to carry out for them
- whether they are living with a partner and making a joint claim
- what formal agent authorisations you already hold
Working with individuals' claims and queries
If your client is making a claim as an individual - for example a Child Tax Credit claim for a client who is bringing a child up on their own - and you do not expect to have to discuss the claim with us either on the phone or in writing, you do not need authorisation. You can help them with claims and renewals, although we will be unable to discuss their tax credits affairs with you.
If your client wants you to deal with us on their behalf, they need to formally authorise you to do so. They can do this by completing a form 64-8 and returning it to us. If they are paying personal tax under Self Assessment, you can alternatively set up the authorisation through our online authorisation service if you already use HM Revenue & Customs Online services.
While we will continue to send all correspondence directly to your client, this authorisation allows us to discuss their tax credits affairs with you on the phone or respond to letters you write to us.
Working with joint claims and queries
If your client is making a joint claim and you don't expect to have to speak or correspond with us on their behalf, you can help them with claims and renewals without any authorisation.
However, if your client wants you to deal with us on their behalf, for example, notifying us of a change of circumstances, you will need to get formal authorisation to allow us to discuss their affairs with you.
If you already hold an authorisation for one claimant for Self Assessment, you can add a tax credits authorisation using our online service and get the other partner to fill in a form 64-8. If you don't hold an authorisation for either client, you will need both to fill in the same form 64-8.
Once you are authorised, all the paperwork relating to tax credits will still go directly to your clients. But we will be able to respond to any letters you write or phone calls you make to us about their tax credits affairs.
Using online agent authorisation
If your client is paying personal tax under Self Assessment, you can set up your agent authorisation for tax credits through our online agent authorisation service. You'll find the online authorisation service by selecting 'agent services' once you've logged on to HM Revenue and Customs Online services. To complete the authorisation process you'll need your client's:
- unique taxpayer reference (UTR)
- post code
Follow the on-screen instructions. Once your client's record has been successfully validated, we'll send them a letter for each service they want to authorise you to deal with. The letter will contain a unique authorisation code.
You'll need to enter the code to complete the authorisation process. It's important to tell your client that they'll be getting the letter and that they'll need to tell you the code. They'll need to do this quickly as the codes expire 30 days after we send them.
If your client has a Government Gateway account, they can also use the Government Gateway to complete your agent authorisation.
Once your client has authorised you to act on their behalf, we'll carry on sending letters about tax credits to your client. But we'll deal with you direct on specific matters - both in writing and over the phone if you write to us or phone us.
Using form 64-8
If you are using the paper-based authorisation service, you will need or get your client to supply their:
- National Insurance number
- Unique taxpayer reference (UTR) if they have one
For authorisations for joint tax credits claimants, both partners can fill in the same form. Both will need to sign and date the form.
The completed form should be sent to:
HM Revenue & Customs
CAA Team,
Longbenton
Newcastle upon Tyne
NE98 1ZZ
The authorisation process should be complete within ten days of our receiving the form.
More about agent authorisation
Work out clients' eligibility for tax credits
Once you're authorised, you can apply for tax credits on behalf of your clients. There are two types of tax credits:
- Child Tax Credit
- Working Tax Credit
Whether you client is eligible for tax credits will depend on their circumstances.
Check the entitlement tables for tax credits
Report changes in clients' circumstances
If your client's circumstances change it might affect the amount of tax credits they can claim. It's important to tell us about any changes as soon as possible. Otherwise, they may get less money than they should, or they might have to pay some of it back.
If you're authorised to act for your client, you can tell us about any change in their circumstances. Or your client can tell us themselves.
We need to know about any of the following:
- family changes - such as a change in partnership or a new child
- absence from the UK
- changes in children's education
- changes in childcare costs
- family health changes
- changes in income or working hours
- changes to address or bank account
How to report changes
You can tell us about any changes by contacting the Tax Credits Helpline on Tel 0845 300 3900 (textphone 0845 300 3909). Lines are open from 8.00 am to 8.00 pm, seven days a week. You can also use the special agent priority line for tax credits on Tel 0845 300 3943.
Find out how and when to report tax credits changes
Useful tax credits guidance
You can find detailed guidance on tax credits on the dedicated section on this site.
It covers:
- getting started with tax credits
- payments and entitlements
- keeping tax credits up to date
- what to do if things go wrong
- information for people who help or advise others
- forms and leaflets
