HMRC are keen to hear views… about the ‘Raising standards in the tax advice market: strengthening the regulatory framework and improving registration‘ consultation announced at Spring Budget 2024.
The government is consulting on two new measures to raise standards in the tax advice market:
- strengthening the regulatory framework by exploring a proposal to require tax practitioners to join a professional body
- requiring tax practitioners to register with HMRC if they wish to interact with HMRC on a client’s behalf
Alongside this, the government is also explore making it quicker and easier for tax advisers to register with HMRC.
The government is keen to hear views from people and organisations with an interest in this area, and so would value your input. You can contribute your views by contacting HMRC at raisingstandardsconsultation@hmrc.gov.uk.
Please send your views by 29 th May 2024, as this is when the consultation closes.
Additionally, over the coming months HMRC will hold several discussions and webinars to get feedback on the issues raised in the consultation. If you would like to be involved, please contact us at the same email address mentioned above.
We look forward to hearing from you.
Yours faithfully
HM Revenue and Customs
Opinion
Within the scope of the consultation are those who provide payroll service. Currently there is no regulatory body of payroll service business and professionals. However, payroll services may be considered to fall into tax advice and be tested as Accountancy Service Provider.
The other impact for payroll professionals and services are the obligations under Anti-Money Laundering.
There is an indication within the consultation for these two aspects potentially becoming compulsory for a payroll service provider to interact with HMRC on behalf f their payroll clients:
- Membership of a regulatory professional body
- Compliance with anti-money laundering (AML) obligations which may involve:
- Client due diligence to ensure business is not being undertaken with criminal or terrorist organisations and ownership within National regimes of significant risk
- Risk assessment of payroll and associated activities to verify that activity is lawful
The payroll professional needs to read and respond to this consultation and explore what regulatory body could be introduced if mandation comes into play.
It is indicated that the results of the consultation may be implement on or after April 2028, but with registration requirements in relation to HMRC interaction being required much sooner.
PAYadvice.UK 9/3/2024