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Temp authorisations for compliance checks

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7th Sep 2012
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To cater for situations where an accountant has been called in to assist a client with one of HMRC's new style compliance checks, the department has published a guide which explains how to set up a temporary authorisation.

At the start of a compliance check, HMRC will send a letter to the taxpayer to tell them that they have started a check.

If the business has already formally authorised an adviser to deal with HMRC, HMRC will also write to the adviser to let them know that they have started a compliance check. The amount of information that HMRC gives to the adviser in the letter will depend on which taxes the adviser is authorised to deal with.

If an authorised adviser deals with all the matters that are being checked, HMRC will send them a copy of the letter that has been sent to the customer.

At the moment, however, if an adviser handles the client's Self Assessment tax affairs and HMRC starts a compliance check into their Self Assessment tax return and VAT returns, HMRC won't deal directly with the adviser during the compliance check, as they haven't been authorised to act for VAT. 

The new ‘Comp01 Temporary Authorisation’ form and process has been devised to deal with the situation. Or the taxpayer can decide to authorise their accountant to deal with VAT matters and Self Assessment matters permanently, in which case they would need to replace the existing authorisation with a new one by using HMRC's online service or completing a form (64-8 Authorising your agent). 

If a customer decides to do this, it will help if they tell the HMRC officer dealing with their compliance check, HMRC advised.

An HMRC spokesman explained that in-depth compliance work can be specialised work and some agents don’t feel they have the necessary knowledge and experience to provide their clients with the help they need.

"It has always been possible for HMRC to deal with a different agent, where the customer has made it clear they wish to do so. Up to now, a letter from the customer has normally been sufficient," he said.

"Following discussion with the Compliance Reform Forum, HMRC agreed that a ‘temporary authority’ form be introduced, so there is a more formal authorisation process - clarifying the period and what activity it will cover. The form only covers the specified compliance checks, and comes to an end when these have been completed."

"We will act on the authority as soon as the case owner receives the form."

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By leon0001
13th Sep 2012 12:38

"case owner"

Please explain. Who is the case owner?

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