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<p>The Government is committed to maintaining trust in the tax system and protecting
customers. However, the Government is aware that some taxpayers face issues and feel
misled when using companies that specialise in claiming tax refunds from HMRC. This
service is provided at a cost (often on a no-win, no fee commission basis) unlike
claiming directly from HMRC which is free of charge.</p><p> </p><p>Following a consultation
last year, ‘Raising standards in tax advice: Protecting customers claiming tax repayments’,
the Government is taking action to address concerns raised. This includes introducing
new transparency requirements in the HMRC Standard for Agents, published in January
2023, to ensure customers are clear on the agent’s fees and charging structure.</p><p>
</p><p>The Government has also introduced legislation in the Finance Bill 2023 to
end the use of assignments in income tax repayment claims and announced on 27th April
the introduction of a requirement for repayment agents to register with HMRC.</p><p>
</p><p>There are many ways in which a customer can authorise a third party to act
on their behalf. Following the consultation, HMRC is also undertaking further work
to develop options for a more modern and secure approach to agent authorisation.</p><p>
</p><p>HMRC monitors agents and challenges them when there are potential concerns
about their practices. HMRC will take action if a tax agent does not adhere to the
HMRC Standard for Agents including suspending claim processing until any issues are
resolved.</p>
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