Authorizing someone to deal with the UK tax authority, HM Revenue & Customs (HMR), on your behalf is free. You simply need to fill out a form online and make a payment in advance. This allows you to avoid having to wait for HMRC to contact you and arrange a meeting.
If you do decide to go ahead with paying upfront, you can choose from three different options:
1. Pay £10 per month
2. Pay £20 per month
3. Pay £50 per month
You can cancel your agreement at any time without charge.
The representative appointed to deal with HMR on your behalf is required to meet certain criteria. They must be over 18, live within 30 miles of where you are registered to vote, and have no criminal convictions.
Your chosen representative must be with when calling HMRC. He/she cannot be anyone else.
Give someone else the power to handle your tax matters.
An agent can be anyone who assists you with paying your taxes. This could include accountants, lawyers, financial planners, bankers, insurance brokers, mortgage brokers, estate agents, etc. You must authorise your agent to act on your behalf and provide them with information such as your bank accounts, investments, property holdings, and credit cards.
Your agent needs to be authorised by HMRC and registered with us. If you don’t know whether your current agent is authorised or registered, contact us. We’ll help you check.
If you’re thinking about changing your agent, think carefully before doing it. You might want to consider getting advice from a professional adviser.
Allow someone to handle your online taxes.
If you want to make sure your accountant doesn’t miss out on money due to incorrect calculations, it might be worth looking into authorising someone else to handle them for you. You could even set up a system where your accountant gets notified whenever there are changes to your situation, making it easier for him or her to catch mistakes.
A recent study found that around one third of people who use an accountancy firm use a different person to do their accounts each year. This is because many firms don’t offer a full range of services, meaning that some clients have to go outside the firm to find the services they require.
The good news is that HMRC now allows taxpayers to give permission to another individual to access their personal data. This includes things like bank statements, payslips, invoices, receipts and records of interest payments.
Your authorised representative will be able to see what you owe the government, how much you’ve already paid and whether you’re entitled to certain allowances. If you’re paying too little tax, they’ll be able to alert you to the problem.
They won’t be able to change anything about your affairs though – such as increasing deductions or changing your address. But they will be able to log onto HM Revenue & Customs’ Tax Online portal and make changes to your returns.
You can choose to revoke the authority at any time. However, once you’ve given someone permission, you cannot take it away.
Give someone else the power to handle your tax business.
Power of Attorney (POA) is a legal document that gives another person the authority to manage your financial matters if you are unable to do so yourself. This includes paying bills, making purchases, transferring money, signing contracts and managing your investments.
The POA document does not give anyone full control over your assets; it just lets them act on your behalf. You retain ownership of everything you own. If you want to revoke the POA, you simply tell whoever holds the document to stop acting on your behalf.
There are different types of POAs. One type is called a general power of attorney. This is usually used to appoint someone to deal with your personal affairs such as paying bills or handling your investments. Another form of POA is known as a limited power of attorney. This lets someone handle your affairs for a specific period of time. For example, a Limited Power of Attorney might be granted to pay your mortgage while you are away on holiday.
If you wish to grant someone power of attorney over some or all of your taxes, there is no requirement to apply for a formal power of attorney. Instead, you can simply sign a declaration stating that you want to delegate certain powers. There is no limit to how many people you can appoint to act on your behalf. However, once you have signed the declaration, the arrangement becomes binding and you cannot change your mind later.
Once you have given someone power of attorney, they will still need to complete the relevant forms and file them with HMRC. They will also need to keep copies of these documents.
You can choose whether you want to inform HMRC about the appointment. If you do decide to notify them, you can either send the notification directly to HMRC, or you can use one of the online systems that allow you to upload your documents.
Describe the power of attorney to HMRC.
HM Revenue & Customs (HMRC) wants you to tell it about the power of attorney document you signed. If you haven’t updated the information since signing the form, don’t panic. You don’t have to send another copy.
If you want to update the information, follow the instructions on the form. Make sure you include the name of the person you are giving the power of attorney to, the address where he/she lives, and his/her date of birth. Also make sure you give the correct contact number for HMRC.
You don’t need to do anything else unless you want to change the terms of the power of attorney.
Frequently Asked Questions
Should I use a company to get my tax refund?
Tax refunds are one of the most common ways people save money. They allow you to reclaim some of what you paid in taxes over the course of several months. Butthere are plenty of scam artists around who try to take advantage of taxpayers. Here are things to consider before choosing a tax refund company.
What are tax refund companies? A tax refund company helps people file for tax refunds online. You pay them a fee upfront, and they handle everything else — including submitting your tax return to HMRC.
They often promise big discounts off the standard amount of interest charged by HMRC. This isn’t always true, however. Some don’t even offer any interest discount at all. And many charge extra fees to cover their costs. So how much does it cost to use a tax refund company? There are no hard numbers on this, but we found that the average price per transaction ranges from £40 to £60.
There are lots of different types of tax refund companies. Are they regulated? Many aren’t. They could be operating illegally, or they might just be scammers. We recommend checking that they are licensed by Trading Standards.
If you choose one, make sure you check their registration number too. You can find theirs here.
How reliable are they? Most reputable companies will provide proof of ID and address verification. However, you still need to verify it yourself. Make sure you ask for evidence like bank statements, utility bills, or government documents.
The company must keep records of every interaction. As well as providing proof of ID and address, they should keep copies of correspondence sent to HMRC.
What are tax refund companies?
A company that offers services related to filing taxes is called a tax refund company. These companies offer their clients help with filing taxes and getting refunds. Clients pay these companies a fee to file their taxes and get back any money they may have overpaid.