Had an email from HMRC Operational Excellence Business Delivery Cross Cutting Team (the name might sound bogus, but they are legit and email is definitely from HMRC Agent Compliance Team in Croydon) with the below letter attached.
Did anyone else received the same?
What are your opinion on the content and how it was written?
Date Thursday 9 June 2022
Repayment claims suspension warning.
HMRC is currently clearing high numbers of employment related expenses and marriage allowance claims and have identified high numbers of ineligible claims.
This letter is to warn you that we are looking at levels of ineligible claims submitted by agents and the subsequent progress chasing calls to the Agent Dedicated Line.
As a publicly funded organisation HMRC cannot justify using significant resource to process ineligible claims. Basic checks would quickly identify claims having no merit and reduce customer disappointment when refund expectations are not met.
It is open to HMRC to suspend the processing of claims submitted by an agent where we consider any level of ineligible claims.
Please ensure that any claims you submit to HMRC are not sent in without the required checks. To support you in this process we have identified below the pre-submission checks HMRC expects agents to carry out. These checks reflect the updated HMRC agent standards on professional competence and due care. In particular Section 2.2 of the standards which states
2.2 Professional competence and due care
We expect agents to:
- work to prevent errors in their clients’ tax calculations or claims, taking particular care not to include figures in returns or claims which are not sustainable
An example of a breach of this standard is where an agent submits a claim without performing adequate checks.
We will contact you if claims submitted by you do not satisfy the agent standards and there is evidence of any level of ineligible claims. We will expect you to be able to demonstrate the action you have taken to reduce ineligible claims and in response to this letter. Failure to do so could result in you being suspended from sending claims in until the required standard is met.
Marriage Allowance Pre-submission Checks
If your claim is in relation to MA please ensure it meets the following conditions:
1. All claims submitted to HMRC for Marriage Allowance have been verified with your clients in terms of their eligibility to claim.
2. Any claims forms must include both the date of their marriage or civil partnership and each person’s income for all years of the claim.3
3. All submitted claims forms have been checked and you are confident that the applicants are: married or in a civil partnership; neither person earns enough to pay higher rate tax, and the lower earner has not earned more than the tax-free personal allowance for each of the years they are claiming for.
Employer Related Expenses – Pre-submission Checks
If your claim is in relation to employer related expenses, please ensure it meets the follow conditions:
1. All P87 claims submitted to HMRC have been verified with your clients in terms of their eligibility to claim and they do not have a live SA record for the year of the claim.
2. Complete every box that is appropriate to the claim on form P87 and include all expenses for the tax year you want to claim for.
3. All submitted claim forms have been checked and you are confident you are not submitting claims for years that have already been repaid, where no tax has been paid or already included in the code.
4. If the claim is in respect of mileage, please ensure the customer has kept a log of their business and private mileage.
5. Provide mileage logs if claiming mileage expenses for using your own vehicle for business journeys and the employer has not reimbursed any of the cost.
6. If the expense isn’t standard-rate or mileage, please provide receipts to confirm the amount claimed.
We are happy to offer support to improve your claim forms and application processes to achieve compliance with the conditions set out by HMRC. Please contact ******** (Agent Relationship Manager) *******@hmrc.gov.uk if you require our assistance.