The way in which taxpayers who use a repayment agent receive overpaid tax is being changed in order to better protect them and raise standards for agents.
HM Revenue & Customs is introducing a legislation that will change the way repayment agents are paid for their services.
HMRC is to put a stop to the use of legally binding ‘assignments’ as part of claiming an Income Tax repayment, which could only be cancelled if both the agent and taxpayer agreed to do so.
This way the taxpayer can easily take over managing their own claim should they no longer want to work with their agent.
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Email JaimeThe changes mean that if a taxpayer chooses to use a repayment agent to reclaim overpaid tax and wants it sent to the agent, they will need to make a nomination – which they can cancel at any time.
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, commented, “Taxpayers deserve better – we want to make sure they are better protected before choosing to enter into an agreement with a repayment agent.
“HMRC’s updated standards for agents will level the playing field and provide the benchmark we expect all repayment agents to meet.”
To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.
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