- Appeals Process: Tax agents can appeal HMRC decisions on behalf of their clients. Appeals must be made in writing within 30 days of the decision. The appeals process involves an initial review by HMRC and, if unresolved, can proceed to an independent tribunal.
- Grounds for Appeal: Common grounds for appeals include disputes over tax assessments, penalties, and decisions regarding tax credits. Agents must provide clear reasons and any relevant evidence to support the appeal.
- Penalties for Non-Compliance: Penalties can be imposed for a range of non-compliance issues, including late filing, late payment, inaccuracies in returns, and failure to keep proper records. The amount of the penalty depends on the nature and severity of the non-compliance.
- Types of Penalties:
- Late Filing Penalty: Charged when tax returns are not submitted by the due date.
- Late Payment Penalty: Applies when tax is not paid by the deadline.
- Inaccuracy Penalty: Imposed for errors in tax returns that result in an understatement of tax.
- Record-Keeping Penalty: For failing to maintain accurate and complete records as required by law.
- Reasonable Excuse: Tax agents can argue that their clients have a reasonable excuse for non-compliance, such as serious illness or unforeseen events. If accepted, penalties may be reduced or waived.
- Mitigation and Suspension: Penalties can be mitigated or suspended under certain circumstances, such as voluntary disclosure of errors or cooperation with HMRC investigations.
- Right to Representation: Tax agents have the right to represent their clients in appeals and penalty proceedings, ensuring that their clients’ interests are effectively advocated.
For detailed guidance, tax agents are advised to refer to the full text available on the UK government website.
Source HMRC
