HMRC have been writing direct to clients in investigation cases. There are no grounds for this if there have been no delays and the client has not asked requested it.
Clients do not want to hear direct from HMRC. I always write back to HMRC dealing with the points I need to deal with and ask them politely not to write to the client direct.
Eventually a referral to HMRC’s published policy about professional representation and a threat to make a formal complaint normally results in the Inspector agreeing not to write direct to the client and an apology.
This has apparently been HMRC policy since 2008. Since then in many cases I have been asked to act, HMRC start by sending copies of letters to me to the client until I ask them firmly not to. Sometimes I have to ask them twice. In one case after I had asked twice the Inspector wrote back and said “I note your comments about not sending Mr x copies of correspondence. However I would like to ensure he understands the position and will be copying him in on anything I believe he needs to be aware of. I am sending him a copy of this letter.”
Needless to say I had to be much firmer with this Inspector. It is obviously up to the client who he would like to explain things to him and with a 64-8, he has obviously chosen his professional adviser to be that person.
That case is not a 12 yr old investigation for nothing but that is a story for another time.
I have checked HMRC’s leaflets on the internet and provided they are still current, I found the following statements
For Self Assessment Local Office Enquiries, HMRC publications say –
“We will deal with any professional adviser you have appointed,
unless you ask us not to. If there is little progress in settling
matters, we will tell you and may then deal with you direct (or
with any other professional adviser that you appoint).”
“In Company Self Assessment Enquiries HMRC say –
The company can choose to be professionally represented, for example, by an accountant or tax adviser. The company may exercise that right at any time and likewise may change or stop using a professional adviser at any time.
And again……..
We will deal with any professional adviser the company appoints unless you ask us not to. If there is little progress in settling matters, we will tell you and may then deal with you direct (or with any other professional adviser the company may then appoint).”
In specialist investigations eg Code of Practice 9 cases HMRC say –
“We would encourage you to appoint a professional adviser to represent you during our investigation although this is a matter for you to decide.
You should give your professional adviser all the facts because you are personally responsible for your tax affairs and the accuracy of any information supplied to us. You are also responsible for ensuring that your adviser complies with timetables agreed between us.
We expect high standards from professional advisers. We will normally deal with your adviser but if there are delays or difficulties we may deal directly with you.”
Image published under creative commons license from Flickr user Lincolnian Brian