04 September 2023
HM Revenue and Customs (HMRC) has updated guidance ‘HMRC standard for agents’. With the guidance, you can find out what HMRC expect from you if you represent or give advice to taxpayers.
Section '2.3.3 Interaction with clients' has been updated with information about how HMRC treat assignments of income tax repayments by a taxpayer to their agent.
The section outlines:
- from 15 March 2023, assignments of income tax repayments by a taxpayer to their agent will have no legal effect and HMRC will not be bound by them
- the concession, where HMRC accepted assignments received after 15 March 2023 as if they were nominations, has now ended. HMRC will not accept any assignment of an income tax repayment received on or after 20 July 2023. Where there is no valid nomination present, HMRC will repay the taxpayer directly
- in the case of a nomination, a taxpayer remains the person legally entitled to the repayment. HMRC will issue the repayment to the taxpayer’s nominee at HMRC’s discretion. This is different from any contract that the taxpayer may have entered into with the agent
- the taxpayer may also withdraw their nomination at any time before HMRC issue the repayment. The taxpayer can make a nomination by completing the appropriate authorisation on the return, or the appropriate form.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.