Efforts are being made to improve the tax repayment agent market
In a bid to raise standards in the tax repayment agent market, the Advertising Standards Authority (ASA) has issued an enforcement notice and a press release in collaboration with HMRC.
The notice provides guidance to promoters of tax repayment agent services and applies across all media which targets UK consumers. Those advertisers that fail to comply with the notice will be subject to sanctions.
The enforcement notice requires everyone who is involved in marketing or advertising such services to take immediate steps to check that all of their advertising, including paid-for advertising, websites and social media, adheres to the stated guidance in the document and make any changes as needed.
There are various case studies included within the notice which highlight to taxpayers what to look for when using one of the advertised services for potential tax repayment claims.
The notice commands that following a grace period, from 15 January 2024, ASA will start targeted monitoring and enforcement.
Similar guidance is provided for ACCA members within section B13 ACCA code of ethics and conduct which must be followed by them when they are marketing their professional services, for example:
Advertisements and promotional material prepared or produced by a professional accountant shall not (either in content or presentation):
a) bring ACCA into disrepute or bring discredit to the professional accountant, firm or the accountancy profession
b) discredit the services offered by others whether by claiming superiority for the professional accountant’s own services or otherwise
c) be misleading, either directly or by implication
d) fall short of any local regulatory or legislative requirements, such as the requirements of the United Kingdom Advertising Standards Authority’s Code of Advertising and Sales Promotion, notably as to legality, decency, clarity, honesty, and truthfulness.
Read the full enforcement notice.
Research and development (R&D) repayment
As announced in the Autumn Statement 2023, from 1 April 2024 R&D claimants will no longer be able to nominate a third-party payee for R&D tax credit payments, subject to limited exceptions.
Additionally, HMRC does not accept any new assignments of R&D tax credits from 22 November 2023. This means that in most circumstances payments of R&D tax reliefs will be paid directly to the company that claims for the R&D, ensuring they have full oversight of the claim and receive payment more quickly. This is due to be legislated in the Autumn Finance Bill 2023.
Income tax and PAYE repayments
Under new arrangements, if a taxpayer chooses to use a repayment agent to reclaim overpaid tax and wants it sent to the agent, they will need to make a nomination, which they can cancel at any time. The new process will make it easier for taxpayers to stay in control of their repayments.
HMRC guidance on difference between ‘nomination’ and ‘assignment’ can be found within the HMRC manual SAM110130 and explains on how a valid assignment can be made.
As highlighted, from 26 February 2024 all paid agents will need to register with HMRC for an agent services account and include their details in the nomination section of relevant claim form to receive the repayment. The details must include their:
Agents that are already registered on the ASA do not need to re-register. Non-paid, pro-bono organisations and individuals not charging fees will also not be required to register.
Additionally, those who submit repayment claims as part of wider self assessment services for their clients and who already have an agent code do not need to register on ASA.