As part of the ongoing Agent Strategy project, HMRC have announced that they are now ready to commence a pilot to test the model ‘agent view’. The results will be evaluated and reviewed with the professional bodies before any further activity takes place.

By way of reminder the ‘agent view’ is aimed at bringing information together on agent performance and that of their clients with a view to improving standards.

HMRC have advised that they will proceed with this work at a slower pace than originally intended and a commitment for full transparency and consultation has been made to the professional agent bodies through the Joint Tax Agent Strategy Steering Group (JTASSG). Chartered Accountants Ireland is a member of JTASSG.

An initial model of the ‘agent view’ has been developed that HMRC plans to test. HMRC will do so by visiting between 80 and 90 agents whose client filing or payment performance isn't what HMRC would normally expect to see.

The pilot activity (which was aimed to start at the end of August) will focus on Corporation Tax and Self-Assessment, and will involve collaborative meetings to discuss and understand what the ‘agent view’ is telling HMRC. HMRC are stressing that this is not a compliance intervention. It is intended that this research will help HMRC understand why the data captured on some agents’ client portfolios seems a little unusual.

HMRC would like to reassure agents that any statistical data that appears to be unusual does not automatically mean that they think the agent is performing badly. It is acknowledged that many agents help clients with a poor tax history back into compliance, and this valuable work could affect headline data presented by the ‘agent view’.

Those selected for the pilot will receive a letter giving them the opportunity to discuss (with an Agent Support Officer) reasons why some customers who appoint an agent still fail to file returns or pay their taxes on time. Within 28 days of sending the letter, an Agent Support Officer will call to arrange a visit which should take no longer than one and a half hours. Those approached are not obliged to agree to a visit-though HMRC hopes that they will.

Although the pilot will focus on client return and payment issues, the ultimate intention is to bring together filing, payment and compliance data on HMRC's systems to build a picture of the agent's engagement with HMRC. Results of the pilot will be reviewed with the JTASSG and this evaluation will inform how the initiative is taken forward.

More information is available on the HMRC website http://www.hmrc.gov.uk