IFA: Entities in dark over HMRC customer charter revamp

IFA: Entities in dark over HMRC customer charter revamp

HMRC has updated its customer charter. Here’s what it means for you and your clients

Given the looming self-assessment tax deadline, which is the focus for many accountants at the moment, it seems an apt time to consider the revamp of the HMRC charter and what it means for businesses and individuals. HMRC has long had a Charter, setting out the standards and behaviours taxpayers and agents can expect from HMRC and what HMRC expects from you, but this is the first major update in several years. Following a period of nearly seven months of consultation between February and August this year, HMRC released an updated version of its Charter in November 2020, incorporating a number of fundamental changes in what support HMRC can and will offer, and also setting out changes which support HMRC’s vision for the modern tax system.

So, what is changing?

First and foremost, the revamped Charter sets out how taxpayers’ personal situations will be taken into account by HMRC, and in turn what extra support they can expect from HMRC. This is particularly important for taxpayers who may be struggling due to mental health challenges, learning difficulties, those who are vulnerable, those with a language barrier, those with age-related difficulties, and/or those who are struggling financially. Example support includes advisers to help set up digital accounts or support with paper returns, new methods for contacting HMRC, and the ability to appoint someone to talk to HMRC on your behalf as and when you need support. This is a first for the government behemoth, and should offer reassurance to those who have found HMRC particularly immovable in the past.

As part of the consultation, The Institute of Financial Accountants submitted a significant response on the draft Charter, encouraging redevelopment to better suit the needs of accountants and their clients. We are therefore delighted to see that many of these suggestions have been incorporated into the new Charter, including clarification around HMRC’s service commitments, inclusion of accountants as authorised representatives, guidance for additional support for those that need it and, details of how HMRC will monitor and report on performance against the Charter. Individuals are being encouraged to provide feedback to HMRC on its service standards and report instances where the service standards haven’t been met, which can be done through email.

Fundamentally, much more has been changed to update the Charter, including the language and format. It has become much more collaborative, open, and inclusive than the previous version, and places emphasis on “improving the customer experience” and “mutual respect”, moving away from the previous focus on “expectations” and “obligations”. The Charter also now includes seven standards of behaviour that HMRC will exhibit, as follows:

  • Getting things right – giving you accurate, consistent, and clear information
  • Making things easy – services that are designed around what you need to do, and are accessible, easy, and quick to use, minimising the cost to you
  • Being responsive – answering questions and resolving things first time or as quickly as possible
  • Treating you fairly – HMRC will work with you to get tax right and assume you’re telling the truth, unless they have good reason to think you’re not
  • Being aware of your personal situation – HMRC will listen and be mindful of your personal situation. Extra support will be provided if it is needed
  • Recognising that someone can represent you – HMRC will work with accountants, friends or relatives that have been authorised to represent you. They’ll only deal with them if you have authorised them to represent you. More information on granting authorisation is available here.
  • Keeping your data secure data held by HMRC will be treated privately, confidentially, and used fairly and lawfully.

The challenge

Although the changes are welcome and should serve to improve the relationship between HMRC and taxpayers, as well as the efficiency of the tax system, there is still a major flaw in the new Charter. It is reliant on awareness to make use of the Charter, and ultimately, many individuals and businesses will remain in the dark about the changes. That’s why it is essential that accountants get clued up on what the changes mean, and how they can be used to support and help educate clients on what is and isn’t appropriate behaviour for HMRC. It will also help that accountants or ‘authorised representatives’ are being properly recognised, and will therefore be better able to hold HMRC accountable on behalf of clients. We’re looking forward to seeing how the Charter evolves in the coming months, and in the meantime, you can read the new Charter in full on the government website.

More information about the professional accountancy body can be found at www.ifa.org.uk.

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