HMRC updated their guidance on the Tax Agent Strategy now providing details about the development of new online services for agents. Chartered Accountants Ireland, as part of its membership of the Joint Tax Agent Strategy Steering Group, continues to engage with HMRC in relation to the Tax Agent Strategy and in particular in relation to the design and provision of these new online services to ensure they deliver benefits to Chartered Accountants working in tax practice.

HMRC formally announced that the Tax Agent Strategy programme will introduce some new agent services by March 2015. These are intended to:

• help agents take more control of their clients’ tax affairs
• let agents carry out the same tasks online as their clients
• reduce the need to contact HMRC
• make information about clients’ tax affairs more accurate and up-to-date
• reduce costs to both agents and HMRC

An overview of the new services and updates on their development is now available. As part of the project, HMRC is also developing a secure online system to replace the current agent registration processes which will:

• collect and validate information about agents
• reduce the potential for online fraud
• allow HMRC to differentiate between paid professional agents, those from the voluntary and community sectors and unpaid agents acting on behalf of friends or family

The new single procedure - where agents apply for a Unique Agent Reference (UAR) - will replace existing processes and is intended to make registering as an agent easier and quicker. However, it is not without consequences for agents, particularly as it seems that many existing registrations will have to be revisited. The Institute is working with HMRC officers to try to establish simpler authorisation procedures for Chartered Accountants.

Having a UAR also prepares the way for agents to access and use more self-serve options in the future. All agents with a UAR will have access to the new agent services and continue to deal with HMRC online. As part of this project, HMRC is asking agents to make sure their client lists are up-to-date as this will be important for the transition to the new services.

Once an agent has their UAR, they will be able to use the new online agent authorisation service, making it quicker and easier to be authorised to act on behalf of clients for the main taxes. If certain other criteria are met (currently being determined) the agent will also be able to self-authorise and notify HMRC of new clients. HMRC won't need to issue an authorisation code to the client and the agent will not have to provide evidence of their client's consent (though this should be retained for future inspection).