In this week’s miscellaneous updates, we bring you an update from HMRC’s Employer Payroll Group (EPG) on earlier year updates and a reminder of the different ways to notify HMRC that you have been authorised to represent a client. A new form is also now available to appoint an agent to represent the personal representatives of a deceased taxpayer.
Update from HMRC’s EPG on earlier year updates
HMRC’s EPG has sent the below message on earlier year updates.
“At the January bespoke meeting of EPG, feedback was received that Employer liabilities and payments viewer is still using the label ‘Earlier Year Update’ (EYU) for adjustments to previous tax years when this ceased to be a valid submission type for tax years from 2020/21.
- Year ended 5 April 2018 and earlier years: Adjustments can be made by submission of the EYU only.
- Year ended 5 April 2019: EYU or FPS will be accepted.
- Year ended 5 April 2020: EYU or FPS will be accepted.
- Year ended 5 April 2021 and later years: Adjustment can be made by submission of FPS only.
EPG members offered some suggestions for a revised label - one of which was ‘End of tax year adjustment’. We have now made that change to the online service.
When looking in the online account, you will now see the new terminology where End of tax year adjustments have been made for 2020/21 or later years. If you are reviewing 2019/2020 or earlier years, you will continue to see ‘Earlier Year Update’.”
Reminder - how to notify HMRC that you have been authorised to represent a client
When acting as an agent, there are a number of different ways to notify HMRC that you have been authorised to represent your client, including:
- The Digital Handshake via the Agent Service Account
- Other online methods
- Asking your client to authorise you through their Business Tax Account
- Submitting Paper Forms such as the 64-8.
At present there are a number of different processes for accepting 64-8s, as the authorisations span across multiple tax regimes, hence HMRC is currently reviewing these.
However, HMRC caseworkers are guided to ensure that they are satisfied that the client is aware and has agreed to authorise an agent to act on their behalf. They can satisfy themselves in a number of ways e.g. by reviewing the specific taxpayer’s records related to the authorisation, reviewing contemporaneous documentary evidence provided alongside the 64-8 itself and requesting that the client be CC’d when the 64-8 it is provided via email.
Authorisation of agent for personal representatives
When HMRC becomes aware that a taxpayer has died, HMRC immediately cancels any appointed agent’s authority to act for that taxpayer. Form P1000, which is now available on GOV.UK, should be used, and not form 64-8, to request authority to act on behalf of the personal representatives of the deceased’s estate.
This form should be used in preference to the 64-8 because it requires additional information, such as details of the personal representatives, which HMRC may not have. This helps to avoid HMRC having to seek these details later such as in scenarios where a tax refund may be payable to the personal representatives.
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