Rethink to withdrawal of agent copies

HMRC have backtracked on their decision to withdraw agents' mailed copies of a selection of PAYE and self assessment (SA) paperwork.

The department announced in September that, as part of cost-cutting measures, the P2 PAYE coding notice and the P800 tax calculation form would be among the letters that would no longer copied to taxpayers’ advisers.

The move was greeted with anger by prominent tax commentators. Following meetings with representatives from the profession, the Revenue has said agent copies of forms P800, SA250 and SA251 are to be retained ‘for the time being’.

However, the P2 copy is to be withdrawn as planned, and taxpayers will see a message suggesting they show their forms to their advisers.

‘We know this will be unwelcome news for some,’ said HMRC. ‘We are, however, seeking to reinvest some of the savings we will make from withdrawing agent copies of P2s (which we estimate cost in the region of £1.75 million a year) towards an IT solution that will allow agents to view P2s for their SA clients online. We hope this facility will be available in October 2011.’

Also to be discontinued is the SA 1000 Self Assessment Tax Returns Guide, the so-called big book. The Revenue says it can no longer justify the cost of around £450,000 every year for printing and postage given that the guide is available online.

The agent copies that have been saved from being withdrawn are not certain of a future. ‘It is possible we may need to look again at some of the forms and letters we are retaining,’ said HMRC, pledging to ensure full consultation takes place before further changes are made.

The department added, ‘We hope agents will understand that we have some hard choices to make about where and how to make savings and reduce our costs. We are sorry for any inconvenience… [and] we hope we have reached an outcome which, although it may not be ideal for agents, is understandable in the circumstances.’

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