As a tax agent, adviser or accountant, practitioners must be formally authorised by an individual or a business to deal with HMRC on their behalf. HMRC will not be able to discuss a client's personal or financial information if this formal authorisation is not in place. In most cases getting formal authorisation is straightforward. The easiest way to set up and manage client authorisations is to use HMRC Online Services. This saves the practitioner from having to complete paper forms and makes it easier to manage authorisations for all clients online.

However paper forms can still be completed to set up client authorisations, the relevant forms being form 64-8 for agent authorisation or form FBI 2 for authorisation to use the PAYE for employers/Construction Industry Scheme (CIS) online service. But there are some exceptions.

The newly published guide provides an overview of agent authorisation along with links to more detailed guidance on both the online and paper methods.

HMRC defines an ‘agent’ as someone who is appointed to discuss, correspond or transact with them about matters they are responsible for. Once HMRC is aware that a client has authorised a practitioner to act on their behalf they can:

• discuss their financial/personal information, in writing or over the phone
• exchange information
• send certain letters, forms or returns related to the client's tax affairs

The authorisation will continue until HMRC are told that it has been withdrawn or when a client dies. It is important to note that the deceased's Personal Representative must then apply for a new authority. To see the detailed guidance visit http://www.hmrc.gov.uk

HMRC have also published some top tips for taxpayers and agents to ensure that applications for authorisation are dealt with as effectively as possible. This can be accessed at http://www.hmrc.gov.uk

In addition readers should also be aware that in order to help support the Central Agent Authorisation Team (CAAT) and make more efficient use of staff, direct telephone calls that are currently made to CAAT have been redirected to the HMRC Contact Centers with effect from 7 September 2010. HMRC say they have analysed the telephone calls that are received directly into CAAT and have identified that the very large majority of calls are more appropriate to the Contact Centers.

The reduction in the number of phone calls that CAAT handle will enable staff to concentrate on processing applications for agent authorisation, Self Assessment registration and agent registration.

HMRC also advise that previously Self Assessment agent authorisations have been accepted for tax credits. To protect customer data, it is now necessary to complete a separate form 64-8 to authorise an agent for tax credits, if this wasn't specified on the original form 64-8.