As previously announced on 11th January 2023, the government will require repayment agents to register with HMRC. Repayment agents will need to register (within a three-month window) from 2nd May 2023.
Repayment agents heavily advertise in social media and other places services which promote tax reclaims whether that is marriage allowance, working from home or other workplace expense allowances.
So what’s wrong with that? Many of these repayment agents used, what could be considered, unscrupulous methods to divert all tax refunds to them directly and kept significant amounts as fees for activity that is easy and free if undertaken directly with HM Revenue and Customs (HMRC).
Who needs an agent services account
From 2nd August 2023, tax agents must have an agent services account to:
- submit Income Tax or PAYE repayment claims on behalf of others
- charge a fee for doing this
This applies to all businesses, no matter how many claims they submit.
If the tax agent does not have an agent services account and continues to submit repayment claims on or after 2nd August 2023, HMRC can take action in line with:
It is indicated that it takes a minimum of 28 days to register an agent services account.
Businesses that specialise in making repayment claims for others are sometimes called ‘repayment agents’.
If your business makes repayment claims for others and you charge for this service, you must register for and create an agent services account.
Who does not need an agent services account
There is no need to create an agent service account if:
- you already have an agent services account
- you’re submitting a repayment claim for yourself
- you do not charge any fee for submitting repayment claims
- you submit repayment claims through Self Assessment and you have an agent code
How to register
New tax agents must register as an agent by post before they can create an agent services account.
When HMRC has accepted the registration, they can:
After registering, HMRC issue an agent reference number.
Standards for agents
Tax Agents must not use the fact that they have an agent services account to suggest or imply that:
- HMRC endorses that agent
- They are part of HMRC
- They act on behalf of HMRC
There has been concerns for sometime for what Which calls the ‘rebate reprobates’ who keep substantial proportion in fees of tax payers rebates. Some indicate that their services are encouraged by HMRC or the government in some form of endorsement.
Some repayment agents have used legal measures which have now been withdrawn to hijack all current and future tax rebates to be paid to them directly. These arrangements required mutual consent to be stopped with some agents refusing.
Claiming tax refunds is fairly straight forward. Sometimes the process seems daunting and onerous, however, there is no need to pay high fees to repayment agents.
Claim a tax rebate
The following links are to the official government and HMRC facilities to reclaim taxes, they are free to use:
PAYadvice Ltd – repayment agent
PAYadvice Ltd know that some individuals struggle to navigate their way through the facilities made available by HMRC to make tax reclaims. We have assisted a number of individuals over the years in obtaining their working from home tax allowances and also marriage allowances for those who qualify.
Unlike some agents which have a history of charging high fees – PAYadvice Ltd provides an affordable means to help you gain your tax refund direct to you with only a small administration charge to cover our time and costs.
PAYadvice Ltd is registered and has an agent services account. We abide by the HMRC standard for agents.
PAYadvice.UK 28/4/2023 updated 2/5/2023