Dave Hartnett - Chair (Business Customer Unit)
Derek Allen - ICAS
Paul Aplin - ICAEW
Frank Haskew - ICAEW
Andrew Hubbard - CIOT
Peter Gravestock - ATT
Brian Palmer - AAT
Chas Roy-Chowdury - ACCA
Simon Sweetman - FSB
Brian Keegan - ICAI
Bob Davies - IIT
Stephen Banyard - Business Customer Unit
Roger Halson - Business Customer Unit
Nigel Packham - Business Customer Unit
Roger Bath - Commissioners Advisory Accountant
Mark Young - Tax Agents & Advisers Team
Suzanne West - Tax Agents & Advisers Team
Linda Whewell - ECOPS
Chris Buckels – Secretariat - Tax Agents & Advisers Team
Dave Harnett welcomed everyone to the meeting and in particular the two new steering group members Brian Keegan, (ICAI), and Bob Davies, (IIT). Dave re-iterated that these meetings operated under ‘Chatham House’ rules and encouraged open and honest communication.
An updated version of the Shared Vision table was distributed and Roger Halson invited views. Agent’s reps advised the table helps give shape to each theme and that the ‘Services to Agents’ theme contained some very helpful developments particularly for new businesses. However there was query over the degree of cultural change required to meet the aims of the Vision.
Dave Hartnett confirmed the aims of the Vision were very demanding for both HMRC and agents but stressed we must articulate the HMRC Change Programme in a way which demonstrates that we are positively aiming to improve the tax system in the U.K.
There was general acceptance that the Shared Vision was heading us in the right direction and that HMRC and agents are now openly discussing issues and seeing this as the way forward in achieving progress. The delivery of improvements in electronic submissions said to be an example of a good early win from this.
Discussion followed on the proposed assessment of agents pre return assurance activity. Agent reps expressed need for a system that was robust for all types of practitioner with no discrimination against smaller firms and individuals and that it is not just a tick box mechanism to declare checks had been undertaken. There was a reservation that acting for clients with complex tax affairs, (those in most need of agents services), may detrimentally impact on the assessment result.
Mark Young, (HMRC Pre- return assurance work stream leader), advised he was very much aware of the need to find a balance between a fair and practical risk assessment based on a standard series of checks. Giving recognition for what is done, and the professional processes that practitioners undertake would be a yardstick for assessing agents.
AP3 - Agent reps to supply comments for inclusion in the ‘Benefits to agents’ field of the Shared Vision table to Chris Buckels.
Update on Compliance Reform Group
Nigel Packham provided an update on the Compliance Reform Group, (CRG).
This group was formed in response to the concerns over the trial of the 6
new compliance interventions, introduced in 2006, that had detrimentally affected
the relationship between HMRC and the accountancy profession.
The CRG are looking into the practical issues affecting the modernisation of our compliance business and at the first workshop, held in December, 8 separate work streams for activities that will improve compliance procedures were identified.
A later workshop held in February reached a collective view on the priority areas for early action and drafted an ‘agreed communication’ on this. Nigel issued copies of the agreed communication to members of the group.
General discussion followed on the use of the term, ‘intervention’, in respect of compliance activity and exactly what type of activity HMRC covered by this term. There were views from the agent reps that a less emotive term would be more meaningful and favourable to external stakeholders.
AP4 – Nigel Packham and Linda Whewell to consider an alternative language/term to ‘interventions’, to be used for compliance activities.
Stephen Banyard advised we should have a joint goal to understand each others processes. Better consultation will assist this and the steering group ought to prioritise and champion several shared issues.
These priority shared issues were agreed as:-
Adequate records
Agent reps presented a query on what HMRC consider to be adequate business records. There is some concern that HMRC appear to be critical of records on inspection, declaring them to be poor or inadequate.
Dave Hartnett advised HMRC should have an expectation of records that fit the business though it is probably quite difficult to put down on paper exactly what is appropriate for each individual and business. However as HMRC moves forward with the modernisation of compliance, the type, range and frequency of interventions will change and along with it the constitution of adequate records. It was recognised that change would be required on both sides to address this issue.
Agenda items for next meeting
Agent reps requested that the next steering group meeting agenda includes items on the update of activity to address the issue of poor performing agents and, the role this group plays in international consultations.
AP5 – Agents team to organise next meeting agenda to include an update on poor performing agents and the role of the TA&ASG in international consultations.
Date of next meeting
It was proposed that the next meeting of the group should be planned for early July.
AP6 – Chris Buckels to arrange early July meeting of the TA&ASG.
Summary of Action points
AP1 – Dave Hartnett asked the HMRC Agent Team to investigate the issue of Agents who had called the Contact Centre being asked to write in with their enquiry. Chris Buckels to seek clarification on the telephone enquiry service available and report back to Dave as soon as possible.
AP2 – Agent reps to further consider options/possibilities for a variety of firms to take place in CRM trials and notify Suzanne West.
AP3 - Agent reps to supply comments for inclusion in the ‘Benefits to agents’ field of the Shared Vision table to Chris Buckels.
AP4 – Nigel Packham and Linda Whewell to consider an alternative language/term to ‘interventions’, to be used for compliance activities.
AP5 – Agents team to organise next meeting agenda to include an update on poor performing agents and the role of the TA&ASG in international consultations.
AP6 – Chris Buckels to arrange early July meeting of the TA&ASG.
