Appointing Someone to Deal with HMRC on Your Behalf: A Complete Guide
Navigating the complexities of the UK tax system can be challenging, and many people choose to appoint someone, whether a professional or a trusted individual, to help manage their tax affairs with HM Revenue & Customs (HMRC).
This guide explains the different ways you can authorise someone to act on your behalf. It covers options for appointing a professional agent, a trusted helper, or even setting up the power of attorney, ensuring that your tax matters are handled with the expertise and care you require.
Authorising an Agent to Handle Your Tax Affairs
When dealing with complicated tax returns or ongoing tax matters, many individuals and businesses opt to appoint a professional agent. This can include accountants, tax advisers, or legal professionals who are experienced in dealing with HMRC.
Why Appoint a Professional Agent?
There are several reasons to appoint a professional agent. We have outlined a few major ones worth discussing below.
Expertise & Experience
Professional agents, such as chartered certified accountants and certified tax advisers, have the expertise to navigate the often-complex tax regulations. They keep up to date with changing tax laws and HMRC guidelines, ensuring that your tax returns are accurate and compliant.
Efficiency in Communication
A professional agent is authorised to handle communication directly with HMRC. This means that once you have authorised your agent, HMRC will send most correspondence (such as information regarding Self Assessment Tax Return) directly to them. This can reduce confusion and ensure that deadlines are met.
Comprehensive Services
Agents can deal with a variety of tax matters on your behalf from submitting your Self Assessment Tax Return to addressing issues related to Corporation Tax, VAT, or even more specialised areas such as Inheritance Tax and property transactions.
How to Authorise Your Agent
To authorise an agent, you must provide explicit permission to HMRC. The process typically involves:
- Completing the Authorisation Form – Whether you are using an online method or a paper form, you need to complete the necessary documentation, such as a form 64-8 for Self Assessment and other tax services.
- Meeting HMRC’s Standard for Agents – Professional agents must meet specific standards set by HMRC including compliance with the anti-money laundering supervision details. This ensures that only qualified and reputable professionals are handling your tax affairs.
- Notification & Confirmation – Once the process is complete, HMRC will update their records so that your chosen agent can act on your behalf. It is important to note that while your agent may handle most communications, HMRC will continue to send certain items such as tax bills or refunds directly to you.
Authorising a Trusted Helper for Online Tax Management
Not every tax matter requires a professional agent. Sometimes, you may simply need someone you trust—a friend or relative—to help you manage your online tax account. This arrangement is known as appointing a “trusted helper.”
What Can a Trusted Helper Do?
A trusted helper can assist with various online tasks, including:
- Checking Income Tax – They can verify that you are paying the correct amount of Income Tax.
- Managing Your Personal Tax Account – They can check or update details within your personal tax account.
- Monitoring Taxable Benefits – Although their access is limited, they can view or update information related to taxable benefits such as company cars or medical insurance.
- Reviewing State Pension & National Insurance Records – They can help you keep track of your State Pension details and National Insurance record.
Limitations of a Trusted Helper
It is important to understand that while a trusted helper can assist with many administrative tasks, they cannot submit your Self Assessment Tax Returns (This level of access remains solely your responsibility) and they cannot manage tax credits claims (Trusted helpers do not have the authority to manage your tax credits claims).
Setting Up a Trusted Helper
To set up a trusted helper, your friend or relative must register to manage your tax online using the HMRC system.
The system will limit their access to specific sections of your tax account, ensuring you maintain overall control of your tax affairs. But even with a trusted helper, you remain legally responsible for your own tax matters.
Authorising an Intermediary
For those who face additional challenges such as language barriers, disability, or prolonged illness appointing an intermediary can be a practical solution. An intermediary is a person or organisation that can help you interact with HMRC by answering questions and assisting with form completion.
Role & Benefits of an Intermediary
Assistance with Communication – An intermediary can speak with HMRC on your behalf and help you understand complex communications.
Form Filling & Guidance – They assist in filling out forms correctly, ensuring that all required information is accurately provided.
No Direct Access to Online Tax Accounts – Unlike a trusted helper, an intermediary will not have access to your tax online system. Their role is strictly supportive.
How to Authorise an Intermediary
To authorise an intermediary:
- Write to HMRC
You must send a written letter to HMRC explaining that you wish to authorise an intermediary to deal with your tax matters.
- Include Essential Information
The letter should contain your name, address, tax reference number (such as your Unique Taxpayer Reference or UTR), and the full details (name and address) of the intermediary.
- Sign the Letter
Ensure that you sign the letter. If you are unable to sign, you may need to contact HMRC or arrange for someone else to sign on your behalf.
The intermediary’s role is designed to offer extra support while keeping you in control of your sensitive tax information.
Granting Power of Attorney Over Your Tax Affairs
For a more formal and long-term arrangement, you can grant someone power of attorney over your tax affairs. This legal mechanism gives the appointed person—or attorney—the authority to make decisions and act on your behalf in relation to tax matters.
Types of Power of Attorney
- Lasting Power of Attorney (LPA) – An LPA is suitable if you want to allow someone to make decisions about your tax affairs in the event that you become unable to do so yourself. Once registered, the attorney can:
- Make tax decisions on your behalf.
- Assist you in making informed tax decisions.
- Property & Financial Affairs Deputyship – If you have not arranged an LPA and later become incapable of managing your affairs, another person can apply to be your deputy. Once appointed, they can manage your tax matters among other financial responsibilities.
Informing HMRC of the Power of Attorney
Once you have set up a power of attorney, it is essential to inform HMRC so they can update their records:
- By Phone – If the LPA was registered on or after 1 January 2016 in England or Wales, the appointed attorney can call HMRC. They must sign in to their LPA online account to obtain an access code—this 13-character code (starting with a V, e.g., V-AB12-CD34-EF56) verifies the LPA’s validity.
- By Post – Alternatively, the attorney can send either an original or a certified copy of the LPA to HMRC. For different tax affairs, there are specific addresses:
- For tax credits management, send to
Tax Credit Office, IAA Team 2, Area E, St Mark’s House, St Mary’s Street, Preston, PR1 4AT.
- For other tax matters,
For UK-based management, send to
Pay As You Earn and Self Assessment, HMRC, BX9 1AS, United Kingdom.
For agents outside the UK, send to
HMRC, Benton Park View, Newcastle Upon Tyne, NE98 1ZZ.
Once HMRC has confirmed the power of attorney, the appointed attorney will be able to manage your tax affairs, though you remain legally responsible for your overall tax position.
Key Considerations When Appointing Someone
Before you appoint someone to act on your behalf, consider the following key points:
Clarity of Role & Authority – Be clear about what authority you are granting. Is it for a one-off situation, a specific task, or ongoing management of your tax affairs? The scope of their role should be well-defined to avoid confusion.
Trust & Reliability – Whether appointing a professional agent or a friend, the person must be trustworthy. For agents, this means ensuring they meet HMRC’s standard for agents. For friends or relatives, it means choosing someone who is reliable and understands the sensitivity of your financial information.
Legal & Compliance Implications – Remember, even if someone is authorised to act on your behalf, you remain legally responsible for your tax affairs. This is particularly important when granting power of attorney.
Communication with HMRC – Maintain clear lines of communication. While authorised representatives can handle many interactions with HMRC, ensure you are kept informed of all significant decisions or correspondence.
Conclusion
Appointing someone to deal with HMRC on your behalf can be a smart move, whether you require professional expertise, need extra support, or face personal challenges in managing your tax affairs. By understanding the various options available, authorising a professional agent, appointing a trusted helper or intermediary, or granting power of attorney, you can choose the solution that best fits your needs.
Each method has its benefits and limitations. Professional agents are ideal for complex tax matters and long-term management, while trusted helpers and intermediaries offer more limited support for routine tasks or when facing language or accessibility barriers. For more formal or enduring arrangements, the power of attorney ensures that someone you trust can step in decisively if you are ever unable to manage your own affairs.
Whether you opt for a professional agent, a trusted helper, or establish the power of attorney, being proactive about your tax management can provide peace of mind and allow you to maintain full control over your financial affairs. This comprehensive approach not only simplifies the process but also builds a more resilient framework for managing your taxes now and into the future.
Frequently Asked Questions
To register as an authorised agent with HMRC, you need to set up an Agent Services Account (ASA) through HMRC’s online portal. During registration, you will be required to provide details such as your Self Assessment Unique Taxpayer Reference (UTR), VAT registration number (if applicable), and information about your anti-money laundering supervision. Once your ASA is established, you can link existing client authorisations or initiate new ones to manage their tax affairs.
Form 64-8 is a paper-based authorisation allowing agents to handle specific tax matters on behalf of clients. In contrast, the online agent authorisation system enables digital authorisation through the Agent Services Account, facilitating quicker access to a broader range of HMRC services, including those under Making Tax Digital (MTD). The online method is generally faster and more efficient, while Form 64-8 serves as an alternative when digital authorisation is not feasible.
Yes, an accountant or tax adviser can be granted power of attorney (PoA) over a client’s tax affairs. This involves the client completing a legal document, such as a Lasting Power of Attorney (LPA) for property and financial affairs, and registering it with the Office of the Public Guardian. Once registered, HMRC must be notified to allow the agent to act on the client’s behalf. It is important to note that even with an LPA, the client remains legally responsible for their tax obligations.
Sanjay Gautam
Sanjay Gautam, a seasoned Chartered Accountant, brings over seven years of experience in accounting, finance, and taxation. He has held notable roles at Credit Suisse, HSBC, and Fintech. His expertise in tax planning, compliance, and financial management are truly exceptional. Holds a Master's in Business Studies.