HMRC One to Many Agent Letter – Discrepancies in clients’ 2021/22 self assessment tax returns
HMRC have advised us that they have recently commenced a One to Many letter campaign directed at tax agents and relating to potential Self-Assessment discrepancies in 2021-22 returns affecting multiple clients relating to P11D and P14 claims, and the High-Income Child Benefit Charge (HICBC). The letter sending process commenced during the week beginning 2 October 2023 and will continue throughout the rest of the month. A copy of the letter is provided below.
The letters are being sent by HMRC’s Agent Compliance Team (ACT). The objective of the exercise is to work with the agents so they can agree with their clients a voluntary amendment programme to rectify the errors made in their returns as may be required. The letter explains that HMRC will contact the agent in the next three weeks when further details will be provided (or the agent can contact HMRC before then to arrange a time and date for a call). This is so HMRC and the agent can discuss the taxable benefits, PAYE details, or potential HICBC liabilities of specific clients with a view to enabling the agents to support their clients in correcting any errors as necessary or understanding any discrepancies without the need for a formal enquiry. The letter makes it clear this is not a formal enquiry or compliance check.
The letter explains that the deadline to amend 2021/22 returns is 31 January 2024 and says that HMRC would like to agree a date for submitting voluntary amendments when they speak to the agent ‘to aid workload management’, noting that agents are approaching the peak 2022/23 tax return filing season. The letters state that a penalty will not be charged if a voluntary amendment is made by 31 January 2024, but that if one is not made HMRC will review the position and consider issuing a discovery assessment and charging a penalty. HMRC request that once amendments have been made the agent sends them a spreadsheet via email setting the amendments out and/or explaining why an amendment has not been made. It should be noted that sending a single spreadsheet containing the details of multiple clients can raise client confidentiality issues so agents may wish to discuss and agree an alternative means of communication with HMRC.
This activity follows on from a similar letter that HMRC sent to some agents last year. However HMRC have taken on some of the feedback from the previous project and are no longer including a redacted ‘client list’ with the initial letter due to concerns raised by the professional bodies about the use of this approach, adopting the approach of direct contact with the agent after the letter has been sent instead (as noted above).