The ‘deterioration of the relationship’ has been exacerbated by the increasing complexity of the tax code and high levels of suspicion between HMRC and accountants, according to Robert Maas, tax expert and consultant at CBW Tax, who delivered the annual Hardman Lecture at the ICAEW Great Hall.

In a stinging attack on HMRC, Maas criticised HMRC’s approach to tax agents, criticising plans to rate agents under a preferred supplier scheme and increasing attempts by HMRC to sideline agents and go direct to clients.

 ‘There is a deterioration of the relationship between tax advisers and HMRC,’ Maas said. ‘Agents are seen at best as a nuisance, at worst as an accomplice with their clients to conceal tax from HMRC. Both views contain some reality, but HMRC is appearing indifferent to what makes sense.

‘I don’t think that HMRC has thought through what HMRC’s work with agents should look like.

‘HMRC should not try to demand the involvement of my clients. It seems to be silly of HMRC not to ask me for information that I may be able to provide much faster than my client. But I am not prepared to work for HMRC, I work for my client. The only thing that they have in common is that my client needs to pay their tax.

‘What HMRC really wants is for me to do as I’m told and I am not prepared to do that.’

The fierce attack forced Lin Homer, chief executive of HMRC, attending the event along with HMRC’s business tax director Jim Harra, to defend the plans for HMRC tax agent reform.  

Homer said: ‘The reason we came to this event is because this is an important relationship – I don’t even mind that you say that we are not sure about all the details of the changes. But it is going to be different; we have to work together to reshape what is happening.

‘We want to hear any specific proposals and we are open-minded in working together going forward and seeing how we can involve the agent community. But all of you need to know that it is going to change.’

At the higher echelons of HMRC there does appear to be a reasonably respectful relationship between the institutes and major firms, but problems occur between high street practitioners and local HMRC inspectors and tax offices, for example.

Harra added: ‘Of course, I disagree with some of the things Robert said, but I surprise myself and do agree with some of the things he said. I admit that the relationship change needs to go through the stratification [different layers] – I think that there is more that can be done by working with the profession.’   

But Maas did accept that there was still time to influence the proposed changes and hinted at the importance of collaboration and the tax authorities, although he disputed HMRC’s interpretation of non-compliance and criticised HMRC’s stance, saying: ‘HMRC does not need to be satisfied about anything, that is the role of the [tax] tribunal… HMRC may not like this but they need to work within the law.

‘I increasingly wonder whether those that say that HMRC wants to collect as much tax as possible may be right. HMRC seems to think that it is facing the tax agents across the barricades, but they are not. They are professionals and we need to look at each other with respect,’ he added.

The move towards digital tax accounts and use of auto completion of tax returns will also change the relationship between client, agent and HMRC, Maas warned.

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