Conveyancers should review and update client engagement letters before HM Revenue and Customs’ requirement to register as a tax adviser begins, the Law Society has advised in guidance to help firms prepare.
Tax advisers who interact with HMRC on behalf of clients will be required to register with the agency from 18 May - capturing conveyancers who submit stamp duty land tax returns on behalf of clients.
Society president Mark Evans said the new requirement imposed an ‘unnecessary administrative burden’ on members ‘but despite us evidencing this to government they are still going ahead with it’.
‘We are aware some residential conveyancing members are uncertain about what might be involved and whether they should consider outsourcing their Stamp Duty Land Tax obligations. We have produced a Q&A to help these members to prepare ahead of the expected registration start date of 18 May’.
The guidance answers 20 questions, such as what HMRC means by ‘interact’, whether the registration applies to firms or individuals and what to do if complex stamp duty issues arise.
The Society says HMRC is unlikely to exempt firms who outsource the filing of SDLT returns and warns that conveyancers are likely to retain ultimate responsibility for submitting SDLT returns even if they outsource this element of the conveyancing process.
The guidance gives firms a checklist of issues that firms considering outsourcing should investigate.
HMRC is expected to produce further guidance before 18 May. The Society provides a 10-point action plan to help firms prepare before the start date. This includes establishing whether the firm is already registered with HMRC and setting up a process for retainer arrangements to be regularly reviewed.
The full Q&A guidance can be found here.
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