Tax agents and advisers - a new relationship with HM Revenue & Customs

HM Revenue & Customs (HMRC) would like to thank all agents and representative bodies who responded to the consultation 'Establishing the future relationship between the tax agent community and HM Revenue & Customs'.

The consultation sought views on HMRC’s proposals for:

  • the secure enrolment of tax agents to differentiate between those in business and those in the voluntary sector, or who act on behalf of friends and family
  • the ability for agents to self serve basic transactions on behalf of their clients without HMRC involvement
  • the creation of an 'agent view' to bring together information about agents and their clients and to enable HMRC to provide support and target communications where they are needed
  • maintaining and improving standards for the minority of agents whose performance falls short of what might reasonably be expected

What agents told HMRC

In general, responses to the consultation showed that agents supported HMRC's proposals for enrolment and welcomed the ability to self serve.

Responses included questions about how enrolment would work in a multi-office/multi-location firm, and some wondered about the robustness of HMRC systems and the security needed to enable agents to self serve.

Concern was expressed that the agent view was a step towards regulation 'by the back door' and many considered that professional body membership and commitment to Continuing Professional Development were an indication of firms wanting to get things right.

A large number of responses were about formal qualifications. Some strong views were expressed, with many agents saying that HMRC should look to accommodate those who are 'qualified by experience' as well as those with formal qualifications. There was overwhelming support for independent oversight and safeguards for any sanctions that HMRC might seek to impose if agents were considered to be acting unprofessionally.

Next steps

HMRC will work collaboratively with the agent community to make sure any proposals are properly tested to meet the needs of both agents and HMRC.

HMRC has taken account of concerns about the agent view and improving standards, and expect this work to proceed on a slower track to make sure they get things right.

There are plans to create a concept model of the agent view by mid-2012, to illustrate how HMRC might bring together and use information about agents and their clients. The department will also consult further on standards and oversight of the profession.

Read the summary of responses to the agent strategy consultation

Improving service standards

The important work which began as a result of the meeting between HMRC’s Chairman/senior leaders and representatives from the professional bodies and voluntary sector to discuss improving service standards, will continue alongside the agent strategy work.

It has been agreed that agents and HMRC could learn from seeing things through the others’ eyes and a joint statement was issued setting out actions to be taken to improve the customer experience in the short and longer term.

Read the joint statement on service delivery (PDF 90K)

Tax agents: dishonest conduct

As announced in Budget 2011 and following consultation over the summer, legislation will be introduced in Finance Bill 2012 to address dishonest tax agents. A summary of responses to the July 2011 discussion document has been published.

Read more about HMRC's plans for tackling dishonest agents