On 26 January 2023 HMRC published the results of research with tax agents to explore their experiences of HMRC’s digital services

HMRC commissioned research to give them more insight into different business models used by agents, the nature of their interaction with HMRC’s digital services and where they go to for support. The research also looked at the services that agents would like to be made available by HMRC.

Agents’ relationship with HMRC

Agents generally had a pragmatic relationship with HMRC but were not completely happy with HMRC’s Making Tax Digital project. Although they considered that it would improve efficiency they were also concerned that it undermined their role as agents and were concerned about the ability of their clients to report more frequently on their tax affairs.

The agents made use of the dedicated line for agents and were generally positive about their experience of communication with HMRC. They suggested however that there was inconsistency in the quality of advisors. The agents were not very aware of the Agent Forum and the blog, instead using HMRC toolkits, webinars and updates sent by email.

Use of technology

The research showed different levels of digitalisation among agents. Some were fully invested in digital working methods (digital insisters); others although not so fully invested were completely confident with digitalisation (digital embracers); some used software more tentatively (digital accepters); and others had only incorporated minimal digitalisation into their processes (digital resisters).

Agents were generally satisfied with their choice of software; and they saw efficiency benefits that offset the costs of digitalisation. Those agents that fully embraced digitalisation encouraged their clients to use software and obtained benefit from this. The digital insisters showed understanding for clients that were uncomfortable with use of software and did not insist on its use if the client was not proficient with digital processes.

Use of HMRC’s digital services

Research showed that 75% of the agents used both the Agent Services Account (ASA) and Online Services Account for Agents (OSAA) accounts. They used the ASA account to access and manage their clients’ VAT, report their clients’ capital gains tax on UK property, and register trusts and estates for their clients. The agents used the OSAA account for self-assessment, corporation tax, PAYE and some other notifications.

Many of the agents only occasionally logged into their clients’ online accounts and 41% said they had never logged in, so HMRC needs to consider issues around access by agents to client data.

Problems when using HMRC’s digital services

Problems reported by agents included the issue of having two separate accounts with different login details, which negatively impacted their ability to manage their clients’ issues. They were also dissatisfied with the limited visibility of VAT returns. In addition to this they were negatively impacted by not being able to see the same information as their clients when using HMRC’s digital services.

Suggested improvements

The majority of agents suggested that a secure email link to communicate with HMRC would have a significant positive impact on the efficiency of their communications with HMRC on behalf of clients. They also suggested that greater digital access to client data and having a single portal through which to sign on would improve efficiency. The larger agents, and those aiming to grow their business, considered that these improvements would have the most impact.