COMPLIANCE
How is HMRC protecting customers claiming tax repayments?
H MRC opened a further market, specifically focusing on protecting customers claiming tax repayments, which ran from June to September 2022. The CIPP policy and research team responded to the second consultation in the series of ‘raising standards’, providing the views of the Institute and the wider profession. HMRC published the full outcome of this consultation in January 2023, and I want to share this with you. The consultation can be found here: http://ow.ly/4s4u50MzSLV and the response can be found here: http://ow.ly/ AbO550MT2CF. consultation around raising standards in the tax advice
Samantha O’Sullivan MCIPPdip, policy lead, at the CIPP , discusses the outcomes of a recent HM Revenue and Customs (HMRC) consultation, which sought to protect customers claiming tax repayments
Jargon buster
Assignment An assignment is used by repayment agents to legally transfer the taxpayer’s repayments to the agent. Once an assignment is in place, taxpayers cannot unilaterally rescind an assignment. Some repayment agents will refuse to revoke an assignment, while others charge a fee for doing so. Nomination A nomination is used by repayment agents, but does not involve legal transfer of the taxpayer’s repayments to the agent. Taxpayers can remove a nomination to receive the repayment directly, but would need to pay the agent the agreed fee.
Background Let’s refresh on why this consultation ran in the first instance. The crux of it is that the government wants to ‘make tax fairer, simpler and to help our economy thrive’. HMRC had received significant numbers of complaints regarding the unclear terms and conditions repayment agents require taxpayers to sign, which results in customers not fully understanding, or being made aware of, what they’re signing
| Professional in Payroll, Pensions and Reward | March 2023 | Issue 88 14
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