Government departments are looking critically at measures to reduce spending and save on costs. HMRC is no exception to this and expects to face significant financial challenges over the coming years.

In anticipation of these challenges HMRC has reviewed the forms it sends to tax agents and advisers. They have decided that some of them will no longer be issued and the issue of some others will be suspended in the meantime and reviewed further. Whilst HMRC do apologies if these changes are unwelcome they are keen to stress that they have tried to look for savings in areas where there will be a minimal impact on customers.

It is ironic to note however that after the recent publicity regarding PAYE errors for 2008/2009 and 2009/2010, HMRC plan to discontinue the issue of agents' copies of PAYE Coding Notices (P2) and P800 Tax Calculations from September 2010. The forms will however contain a new message suggesting that the taxpayer shows the form to their tax agent or adviser. It is not clear whether this will apply to the many P2 and P800's currently issuing for the last 2 completed tax years.

Practitioners should therefore put the necessary steps in place to ensure taxpayers bring all future HMRC correspondence received to their attention and particularly any recently received P2's or P800's.

Details of forms to be withdrawn/suspended can be found at http://www.hmrc.gov.uk/news/forms-tax-agents.htm