HMRC warns against sharing sign in details
HMRC has updated its online services terms and conditions. Buried within the guidance is a warning not to share personal login information with an accountant or agent. What are the risks?
HMRC’s online services are used to send information electronically, including personal tax returns and VAT returns. There are several different types of registration; namely those for individuals, organisations, e.g. companies, and finally agents (including accountants and tax advisors).
The process for registering as an agent is different from registering as an individual. The agent must register and activate the services they want to use before they can start authorising clients. The time from when an accountant first engages with a new client to the point they are able to speak to HMRC about their tax affairs can become protracted as a result; especially for accountants that are just starting in practice. Unfortunately, this practice can then become entrenched out of habit.
We are aware that in a number of instances, accountants are requesting their clients' login information in an attempt to speed up the process. This gives them access to, e.g. the personal tax account or VAT account, enabling them to make submissions as if they were the client directly. HMRC has included a reminder in its updated guidance that individuals should not share their login details with anyone. The information available to an individual is different to an agent looking at a client’s information via their own login and can include sensitive data. An accountant asking for personal login details should be a red flag, as they should not need it if they follow the proper registration procedure for authorised agents.
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