How to authorise an accountant to deal with HMRC on your behalf
A Step-by-Step Guide
How to Authorise an Accountant for HMRC Tax Services
If you’ve hired an accountant to manage your taxes, congratulations—you’re making a smart move. A qualified accountant not only helps you stay compliant with HMRC but can also save you time, money, and unnecessary stress. But before they can represent you officially, you need to grant them authorisation through HMRC.
Choose a Qualified Accountant
Start by selecting an accountant who meets HMRC's standards for agents. Look for:
- Qualifications: Ensure they are certified by a recognised professional body, such as ACCA, ICAEW, or CIMA.
- Experience: Check if they have experience in handling taxes for businesses like yours.
- Reviews and Recommendations: Look for testimonials or ask for referrals from trusted peers.
A good accountant isn’t just a tax preparer—they’re your partner in financial success.
Decide Which Tax Services You Need
Identify the specific areas where you need assistance. Common services include:
- Self Assessment: For individuals, including sole traders and landlords and freelancers.
- Corporation Tax: For limited companies.
- VAT: For businesses meeting the VAT threshold.
- PAYE: For employers managing payroll.
Clearly defining these services helps streamline the authorisation process and ensures no tasks are overlooked.
Select an Authorisation Method
There are several ways to authorise your accountant. Choose the one that works best for your situation:
Online Authorisation (Recommended):
- Your accountant will request access via their HMRC Agent account.
- HMRC will send an authorisation code to your registered business address.
- Share the code with your accountant promptly to complete the process.
Government Gateway (If You Have Online Access):
- Log into your HMRC Business Tax Account.
- Select the taxes you want your accountant to manage.
- Provide your accountant’s agent code when prompted.
Paper Form 64-8 (Traditional Method):
- Complete a 64-8 form with your accountant.
- Send the form to HMRC. This method can be slower than digital options.
Digital Handshake (For MTD):
- Your accountant will send an email link for authorisation.
- Click the link and log in with your Government Gateway ID.
- Complete the process within 21 days to avoid expiration.
Wait for HMRC to Process the Authorisation
HMRC typically processes authorisation requests within a week. However, during peak times, delays may occur. Keep this in mind if you’re approaching critical deadlines.
Confirm Authorisation with Your Accountant
Once HMRC has processed the request, verify with your accountant that they have received confirmation. This ensures they can access your tax accounts without any issues.
Maintain Regular Communication
Authorising an accountant doesn’t mean you can take a backseat. Stay involved by:
- Reviewing Documents: Always double-check submissions to HMRC for accuracy.
- Updating Your Accountant: Inform them promptly about significant changes, such as new income streams or business expenses.
Why Collaboration Matters
Even with an authorised accountant, you remain legally responsible for your tax affairs. However, this collaboration offers significant benefits:
- Expert Guidance: Accountants are well-versed in tax laws, helping you maximise deductions and avoid penalties.
- Time Savings: With an expert handling your taxes, you can focus on growing your business.
- Stress Reduction: Knowing your finances are in capable hands offers peace of mind.
Potential Challenges and How to Address Them
Authorising an accountant is a straightforward process, but challenges can arise:
- Delays in Processing: During busy periods, HMRC authorisation can take longer. Submit requests early to avoid disruptions.
- Incomplete Information: Failing to provide necessary documents can slow down your accountant’s work. Stay organised and responsive.
By anticipating these issues, you can ensure a smoother experience.
Empower Your Financial Journey
Authorising an accountant is more than an administrative task, it’s a step toward professionalising your financial management. By choosing a qualified expert, defining your needs, and maintaining open communication, you’ll not only stay compliant with HMRC but also free yourself to focus on what you do best.
Remember, your accountant is your ally in navigating the complexities of tax and finance. Together, you can build a foundation for success and long-term growth.
