In the statement, HMRC defines an intermediary “as any individual or business who sits between taxpayers and HMRC”. Although HMRC acknowledges the important role that intermediaries play in the tax system, it says that “a minority of intermediaries can behave in ways that are harmful to the tax system”. 

Examples of harmful behaviour include misleading the public in advertising campaigns and using HMRC’s rules and systems in ways that weren’t intended.

Action taken by HMRC

HMRC says that it has published rules and guidance explaining how intermediaries should act, including the standard for agents, and that it will take action where an intermediary has caused harm. In the past, HMRC has blocked access to its services, reported the intermediary to the relevant professional or enforcement body and published the names of tax avoidance schemes promoters. Where the intermediary is involved in fraud, HMRC may take criminal action against them.

In addition, HMRC says that it conducts risk analysis “to spot new issues early”, enabling it to warn the public and fix any weaknesses in HMRC’s systems that intermediaries might take advantage of. It also keeps its powers under review so that it can adapt its approach to reflect changes in harmful behaviour. 

Advice for taxpayers

HMRC reminds taxpayers that they are responsible for their own tax affairs, even if they used an intermediary. Taxpayers should look out for:

• claims that sounds too good to be true;
• use of the term “HMRC-approved” or branding that is similar to HMRC’s branding. HMRC does not approve or endorse intermediaries and intermediaries are not allowed to copy government branding;
• terms and conditions that are unclear about fees and responsibilities; and
• requests to sign blank forms or to share HMRC login details.

The statement includes links to HMRC guidance, including advice for taxpayers who work through umbrella companies.