HMRC open a new consultation on raising standards in tax advice
24 June 2022
Her Majesty’s Revenue and Customs (HMRC) has opened a further consultation looking at the use of repayment agents for tax repayments. These agents reclaim tax refunds on behalf of taxpayers but often with fees attached for the service.
HMRC has identified issues in this area, such as:
• the use of assignments, which legally transfer the benefit of the taxpayer’s repayments to the agent
• taxpayers not being made aware of or fully understand the terms and conditions to which they are agreeing
• taxpayers being unaware that they are dealing with a third party and not HMRC.
HMRC are therefore looking for views on the following proposed remedies:
• restrict the use of assignments
• introduce measures designed to ensure taxpayers see material information about a repayment agent’s service before entering into a contractual agreement
• require repayment agents to formally register with HMRC.
The CIPP plan to respond to this consultation, which closes on 14 September 2022. We encourage any input to this consultation, if you have any comments or thoughts to add please email [email protected].
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