HMRC: Tax Agent Authorisation Updates Clarify Processes, Remove FB12

• HMRC has updated its guidance for tax agent authorisation, removing the 'Online Tax Registration Service' and form FB12, while adding the country-by-country online system.
• Form 64-8 is now the sole paper form for agent authorisation, and VAT terminology has been updated to reflect 'VAT (previously Making Tax Digital VAT)' and 'VAT (Legacy)'.
• Agents must obtain client authorisation via methods like digital handshake, Online Agent Authorisation, or paper forms, and are strictly prohibited from using client login details.
• The digital handshake for the Income Record Viewer only permits data viewing; a form 64-8 or Online Agent Authorisation is still required for agents to speak to HMRC on a client's behalf.
• New guidance assists agents in authorising digitally excluded clients by providing an authorisation link and directing them to HMRC's Extra Support Team for phone assistance.

HMRC explicitly prohibits agents from using a client's personal sign-in details or directly accessing their online tax account, underscoring the importance of formal authorisation processes.

HM Revenue & Customs (HMRC) has recently implemented several updates to its guidance concerning tax agent authorisation, streamlining processes and clarifying various pathways for agents to act on behalf of their clients. These `HMRC tax agent authorisation updates` reflect an ongoing effort to adapt to evolving digital services and address specific taxpayer needs. Notably, the 'Online Tax Registration Service' has been removed as a method for obtaining client authorisation, indicating a shift in preferred digital channels.

Further enhancements include the integration of the country-by-country online system into the list of available client authorisation methods. Information pertaining to the Making Tax Digital for Income Tax entry has also been revised, alongside new guidance for agents seeking authorisation when utilising the Multinational Top-up Tax (MTT) or Domestic Top-up Tax (DTT) services. These changes aim to provide clearer instructions for agents operating within these specialized tax regimes.

In a significant simplification for paper-based authorisations, information regarding form FB12 has been entirely removed, confirming that form 64-8 is now the singular required document for agent authorisation. Additionally, terminology related to VAT services has been updated; 'Making Tax Digital for VAT' and 'VAT' entries are now designated as 'VAT (previously Making Tax Digital VAT)' and 'VAT (Legacy)' respectively. The accompanying table detailing authorisation methods for VAT has also been revised to reflect the current procedures for agents seeking to transact on behalf of clients for VAT purposes.

Tax agents, once registered, are legally required to secure proper client authorisation before conducting any transactions on their behalf. HMRC explicitly prohibits agents from using a client's personal sign-in details or directly accessing their online tax account, underscoring the importance of formal authorisation processes. Various methods are available for obtaining this crucial client authorisation, including the digital handshake, the Online Agent Authorisation service, traditional paper forms, and direct authorisation initiated by the client through their own business tax account.

When a client opts to authorise an agent via their business tax account, they will need the agent's unique Government Gateway Identifier. Agents can easily locate this identifier by logging into their HMRC online services for agents account, selecting 'Authorise client,' and finding the identifier displayed under the 'Agent Identifier' title on the subsequent screen. It is vital for agents to understand the scope of each authorisation method; for instance, using the digital handshake for the Income Record Viewer online service only permits viewing income data within that specific service. It does not grant permission to communicate with HMRC on the client's behalf, for which a form 64-8 or Online Agent Authorisation remains necessary.

An important exception exists for the Stamp Taxes service: agents are not required to obtain client authorisation to submit a return using the online service. This specific exemption highlights the varying requirements across different tax services, necessitating agents to consult the updated guidance to ensure compliance with the appropriate authorisation protocols for each service they intend to use.

Recognising the challenges faced by individuals who are not digitally proficient, HMRC has enhanced its guidance to ensure that digitally excluded clients can still grant authorisation to their tax agents effectively. New information has been introduced detailing how agents can provide an authorisation link to these clients, along with a dedicated telephone number for direct contact with HMRC. This ensures that digital exclusion does not become a barrier to accessing necessary tax representation.

When a digitally excluded client contacts HMRC using the provided number, they will be directed to the Extra Support Team. This specialized team is equipped to guide them through the authorisation process over the phone, ensuring they receive the necessary assistance to complete the procedure. This updated approach underscores a commitment to inclusivity, making the process accessible for all taxpayers, regardless of their digital literacy.

Furthermore, the guidance now includes details on how agents can obtain limited authorisation from a client, offering flexibility for specific circumstances where full authorisation may not be required or appropriate. This comprehensive update ensures that agents are well-informed on how to navigate authorisation for all client demographics, reinforcing the practical and legal obligations of tax representation.

Source: Original reporting via GOV.UK