The leading UK accountancy and tax bodies have welcomed the publication on 17 May of an updated HMRC standard for agents
The standard sets out HMRC’s expectations of all tax agents and advisers in their dealings with HMRC, whether or not they are members of professional bodies with their own codes of behaviour.
Seven bodies (the Association of Accounting Technicians, the Association of Chartered Certified Accountants, the Association of Taxation Technicians, Chartered Institute of Taxation, the Institute of Chartered Accountants of Scotland, the Institute of Chartered Accountants in England and Wales and the Society of Trust and Estate Practitioners) collectively form the Professional Conduct in Relation to Taxation (PCRT) group.
PCRT is a co-authored code setting out the principles and standards of behaviour that all members, affiliates and students of the PCRT bodies must follow in their tax work.
The seven PCRT bodies have worked collaboratively with HMRC on amendments to the standard since the update was issued in February 2023.
The standard does not override duties set out by relevant professional bodies and PCRT sets the highest standards for members of the author bodies. The PCRT bodies support the wording in the updated standard, which endorses PCRT.
In particular, the updated standard now recognises the importance of PCRT and states that if agents are meeting their professional body’s code of ethics, the HMRC standard should not place further requirements on them. This is a welcome clarification and removes any potential duplication and unnecessary compliance burdens of applying multiple and potentially misaligned codes of conduct.
The 2023 update of the Standard sought to address a number of issues HMRC have been dealing with in relation to agents, but in doing so some inconsistencies arose with the standards set out in PCRT and the supporting ethical codes of the PCRT bodies. Following the work undertaken there is now consistent messaging and the PCRT bodies welcome the collaborative approach taken by HMRC to resolve points raised by our members.
In a joint statement the bodies said: 'We welcome the renewed recognition of Professional Conduct in Relation to Taxation (PCRT) as the gold standard through its inclusion in the revised standard.
'There is currently considerable focus on potential future regulation of the tax services market with an ongoing government consultation. The PCRT Group are keen that any future direction raises standards consistently across the whole market to the high levels required by PCRT. The revised standard is reassuring in its endorsement of PCRT as setting and meeting the desired high standards of tax agents, as well as ensuring that those meeting it are not having to consider multiple, overlapping codes of ethics.'
Editor's Notes
The PCRT bodies set out in PCRT the high ethical standards which form the core of the tripartite relationship between tax adviser, client and HMRC. It supports the key role members play in helping clients comply with their tax obligations and their broader responsibilities to society. The guidance in the PCRT is based on five fundamental principles:
–Ends–
For media enquiries, contact:
ACCA News Room
E: newsroom@accaglobal.com
X: @ACCANews
accaglobal.com
About ACCA
We are ACCA (the Association of Chartered Certified Accountants), a globally recognised professional accountancy body providing qualifications and advancing standards in accountancy worldwide.
Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 252,500 members and 526,000 future members in 180 countries.
Our forward-looking qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to create, protect, and report the sustainable value delivered by organisations and economies.
Guided by our purpose and values, our vision is to develop the accountancy profession the world needs. Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we’re strengthening and building a profession that drives a sustainable future for all.
Find out more at: www.accaglobal.com