07 November 2024
As part of the budget, we received an update on the consultation “Raising standards in the tax advice market”, which closed in May 2024.
The summary of responses indicated a wide consensus that something should be done about bad actors in the tax advice space, but the views on how to tackle this were not as joined up.
The CIPP were interested in the direction of this consultation as payroll professionals were mentioned as a demographic that may fall in scope of providing tax advice. Although this is likely limited to the provision of payroll services rather than that of a payroll professional working in-house.
The next steps indicate that the government want to require tax agents to register with HM Revenue and Customs (HMRC) should they interact with them on a clients’ behalf. This would come in from April 2026, however, draft legislation will be required, and this will be delivered ahead of 2025’s budget.
This draft legislation will be key to understanding which payroll services providers will be within scope and who will not. The CIPP will be engaging with the policy leads of this consultation to ensure that payroll businesses, large and small, are considered appropriately in the new measures.
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