HMRC keen to improve tax agent standards

News Article - 13 June 2011
Category: Business

HMRC has revealed it plans to rid the tax system of poor practice among the thousands of firms that provide services to taxpayers.

In an effort to significantly improve tax agent standards the taxman is set to 'blacklist' any agents found to be acting 'dishonestly' or repeatedly failing to meet minimum standards of services expected by taxpayers.

HMRC also admitted its own staff and systems require work as in "some areas performance has not been good enough and this has added to costs for customer and also for HMRC".

As a result HMRC's tax agents will receive greater control on behalf of their clients with the ability to set up PAYE codes and manage payments quicker and more efficiently, potentially saving the taxman a significant chunk of its £200 million budget for supporting tax agents.

Paul Aplin from the Institute of Chartered Accountants in England & Wales' Tax Faculty, said: "Over recent years we have seen a significant decline in HMRC's service standards - delays in responding to post, errors in PAYE codes and incorrect tax demands for example.

"Allowing agents to access HMRC's systems to correct PAYE codes and update data themselves, could save us and our clients' frustration, time and money.

"Any proposal genuinely aimed at raising standards has to be a good thing, but a lot of thought will have to be given to exactly how it is to be achieved. The tax system is now so complex that the only way many people can comply with their obligations is by appointing an agent - an accountant or tax adviser."

While the taxman urges tax agents to improve their practice, small and medium-sized enterprises (SMEs) are also urged to improve the efficiency of their financials and accounting processes for tax reporting purposes.

Article keywords: tax agent, HMRC, PAYE, Paul Aplin, Institute of Chartered Accountants in England & Wales, ICAEW, SME

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