This week we’re seeking your view on two consultations: Raising standards in tax advice: Protecting customers claiming tax repayments and the House of Lords Inquiry into the Northern Ireland Protocol Bill. Comments on both should be emailed to us no later than 9am on Monday 12 September 2022.
House of Lords Inquiry into the Northern Ireland Protocol Bill
In Autumn 2022, the House of Lords Sub-Committee on the Protocol on Ireland/Northern Ireland is conducting an inquiry into the Northern Ireland Protocol Bill. The Committee will scrutinise the Bill’s provisions, examine the economic, political and legal impact of the legislation, and assess the EU’s response, in the context of and to inform consideration of the Bill by the House of Lords.
The Committee’s inquiry builds on the analysis set out in its follow-up report on the Protocol published in July 2022.
Raising standards in tax advice: Protecting customers claiming tax repayments
This consultation considers ways to better protect taxpayers from repayment agents who make routine tax claims on people’s behalf but can take up to half, or even more, of the tax refund.
Taxpayers use repayment agents to make claims for repayments of tax, and many are happy with the service they receive. On the other hand, many taxpayers have complained that the scale of the charges are unclear or even hidden, while questions have been raised about how some agents secure agreements from customers.
The consultation proposes various ways to better protect the public from unscrupulous practices and ensure they receive the money they are entitled to, while also asking various questions to better understand the problem.
This includes seeking views on:
- restricting the use of assignments, where contracts legally transfer the right to a repayment from a taxpayer to an agent;
- introducing measures designed to ensure taxpayers see material information about a repayment agent’s service before entering into a contractual agreement; and
- requiring repayment agents to register with HMRC.
HMRC is aware of a number of specific concerns with the industry including excessive amounts of commission charged for routine tax repayments. However, taxpayers can make a claim directly through HMRC’s free online service on GOV.UK and keep 100 percent of the repayment themselves.