HMRC to give helping hand to representatives of the disadvantaged
26/11/2013, by Low Incomes Tax Reform Group, Tax Articles - Income Tax
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LITRG welcomes HMRC’s launch of their new ‘deemed consent’ service for income tax enquiries, effective from 12 November 2013.
Introduction
Along with other voluntary and community sector organisations, LITRG has long voiced concern that the current system for processing security and authorisation is antiquated and cumbersome. It is unfair that those who help the disadvantaged should be faced with onerous form filling, confusing security passwords and long delays. Most recently, earlier this year LITRG submitted a response to an HMRC Consultation concerned with finding new approaches to support customers in need of extra help. The response stressed the need for greater flexibility for vulnerable taxpayers to enable representation by friends and family, on whom they may be entirely dependent to manage their tax affairs, by producing a more effective streamlined model.
Taxpayer confidentiality need not preclude the establishment of a simple and effective system
LITRG’s view is that while HMRC is rightly concerned to respect taxpayer confidentiality, those who volunteer to help other taxpayers who are friends or relatives of theirs should be aided by a simple and effective system for doing so. It must also be recognised that many taxpayers are simply unable to afford a professional service to manage their tax affairs. It is encouraging that these new provisions will allow those informal representatives to speak to an adviser and request written details of the taxpayer’s record, duplicate tax returns, copies of letters and forms and book a home visit [the usual details will be required at the start of the call (taxpayer name, address, national insurance number) and then in addition the representative must declare their own name and the relationship to the taxpayer they are helping]. This will not only reduce the administrative burden on HMRC and taxpayers but will be especially comforting to those who may not speak English as their first language, are suffering a disability, have a mental health issue, are recently bereaved, or simply struggle to understand their tax duties.
Further support needed for the disadvantaged
The concern remains, however, that copy and duplicate paper outputs requested will still be delivered to the taxpayer themselves rather than their representative; a representative can only receive taxpayer copies if the proper authority is granted and a form 64/8 has been completed. Also important to note is that this service will only be available, initially, for income tax related queries.
New initiative welcomed for dealing with some enquiries
Ultimately, this will help to bridge the gap for those who may have sought help previously from HMRC Enquiry Centres, where that service may now be closed. HMRC will monitor how successful the new service is for income tax, and later decide whether to extend it to queries on Tax Credits, Child Benefit and National Insurance.
LITRG hope initiative will be extended
While LITRG very much welcomes this initial step, the group hopes it will not stop there, and that HMRC will learn from other departments, such as the DWP, where deemed consent already works well.
About The Author
The Low Incomes Tax Reform Group (LITRG) is an initiative of the Chartered Institute of Taxation to give a voice to those who cannot afford to pay for tax advice.
LITRG comprises tax specialists from professional practice and the voluntary sector, from publishing and from HM Revenue & Customs, together with people from a welfare benefits and social policy background. Visit
www.litrg.org.uk for further information.
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Help I took out some loans for family members and myself, at the time I was in receipt of council tax and rent rebate. I now pay full rent and council tax. But after a search of my bank account my local council fraud department say that loans and finance deals ie the repayments for such are being classed as unearned income and I will have to pay back all rent and council tax rebates. I am shocked how can dept repayments be viewed as unearned income? I am so stressed by this I cant eat or sleep. I live in Scotland. Hope you can help