OTS evaluation paper on simplification issues affecting tax agents and other intermediaries
OTS publishes an update on agent and intermediary aspects of two of its recent reports.
Documents
Details
The OTS has published an evaluation update paper on simplification issues relating to agents and other intermediaries.
This paper is one of four separate notes accompanying the OTS’s everyday tax evaluation paper, providing an update on its 2019 reviews about simplifying everyday tax for smaller businesses and taxation and life events.
The note considers HMRC’s agent strategy, in particular recognising the significance of the government’s Tax Administration Strategy and HMRC’s Tax Administration Framework Review.
The note looks at barriers faced by paid agents and at the role of those appointed to act on behalf of a taxpayer under a power of attorney, or who assist more informally.
Key Agent issues
The OTS recognises the impact that the COVID-19 pandemic has had on all government work streams, and the necessary diversion of HMRC effort that has been needed.
The pandemic has also opened up new benefits through increased digitisation and different ways of working. More should now be done to build on these new practices, and HMRC must also seize the opportunity to build in proper agent access to all new systems as they develop.
In particular:
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the OTS welcomes the appointment in Autumn 2019 by HMRC of a senior official to oversee the Agent Strategy, and the new Intermediaries Directorate created in Autumn 2021. The OTS would like to see HMRC publish a roadmap to show how they intend to develop and further implement their agent strategy – and to ensure that agent access to data is built into all new systems
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HMRC made it clear in their 10 year Tax Strategy that they have a vision for agents to be able to see and do what their clients can, and to engage with agents to implement this vision. The OTS welcomes this commitment but considers HMRC have not yet met reasonable expectations in relation to improving agent access to their client’s information
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a successful roll out of new ways of working and new digital administration systems can only be achieved if agents are fully involved in the development of these systems from the very beginning. Agent engagement is particularly important ahead of the introduction of Making Tax Digital for Income Tax (scheduled to start in April 2024); the Timely Payment In-year Calculation Pilot from April 2022; and the Single Customer Account, currently in development
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there are specific issues for taxpayers who appoint multiple agents. This will come into focus with the introduction of Making Tax Digital for Income Tax Self Assessment, as different agents may be appointed to undertake digital record keeping and quarterly filing for different aspects of a taxpayer’s affairs
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the number of people using powers of attorney has significantly increased in recent years; the OTS reiterates its encouragement to HMRC to publish guidance on how powers of attorney can be lodged with HMRC
Notes for editors
The OTS is the independent adviser to government on tax simplification, challenging tax complexity to help all users of the tax system; it does not implement changes - these are a matter for government and for Parliament.
The OTS works to improve the experience of all who interact with the tax system. It aims to reduce the administrative burden - which is what people encounter in practice - as well as simplifying the rules. Simplification of the technical and administrative aspects of tax are each important, both to taxpayers and HMRC.
The OTS has previously published an evaluation update on its 2017 VAT review in October 2019, an evaluation and stocktake note on its 2017 Corporation Tax review and 2018 Accounting depreciation or capital allowances review in July 2020 and an evaluation paper on its 2018 review on HMRC Guidance in March 2021.
An index of all OTS publications is also available.
Press Enquiries only please contact Julie Gillespie, OTS Press Officer Phone 03000 585028.