A Growing Concern in the UK Tax Agent Market

HMRC has long permitted taxpayers to appoint agents — accountants, tax advisers, or filing services — to manage their self-assessment returns on their behalf. For most people, this arrangement works well and ensures returns are filed accurately and on time. However, a pattern of non-compliant behaviour by a minority of agents is causing serious harm to the very clients they claim to serve.

Xcelentra advisers have been tracking a specific and troubling practice: rogue agents submitting self-assessment tax returns that incorrectly claim temporary workplace relief in order to generate inflated tax refunds from HMRC. The refunds may appear attractive to clients in the short term, but the consequences of such claims can be severe and long-lasting.

What Is Temporary Workplace Relief?

Temporary workplace relief — sometimes referred to in the context of travel and subsistence expenses — allows employees to claim tax relief on certain costs incurred when working at a location that is genuinely temporary in nature, rather than their permanent place of work. There are specific HMRC rules governing when a workplace qualifies as temporary, and the relief is not available in a broad range of common employment situations.

When applied correctly, this relief is entirely legitimate. The problem arises when agents apply it to situations where it simply does not qualify — misrepresenting the nature of a client's work arrangements in order to manufacture a refund that the client is not entitled to.

How the Scheme Typically Works

In most cases reported, clients are approached by agents — often operating online or through social media — who promise significant tax refunds with minimal effort required from the client. The agent then files a self-assessment return on the client's behalf, claiming relief the client does not qualify for.

What many clients do not realise is that:

  • The taxpayer — not the agent — is legally responsible for the accuracy of their self-assessment return.
  • A refund received as a result of a fraudulent or non-compliant claim will typically need to be repaid in full.
  • HMRC may charge interest and penalties on top of the amount repaid, depending on the circumstances.
  • In serious cases, HMRC can open a formal investigation into the taxpayer's wider tax affairs.

Why Clients Are Exposed Even When They Were Unaware

A common response from affected individuals is that they simply signed what the agent asked them to sign, or in some cases, gave the agent authority to file without reviewing the return at all. Unfortunately, HMRC's position is clear: the person named on the return bears responsibility for what is submitted. Ignorance of the specific claims made does not automatically shield a taxpayer from liability.

This makes the choice of tax agent a matter of genuine importance, not merely convenience.

Warning Signs to Watch For

There are several indicators that an agent or filing service may not be operating compliantly:

  • Promises of large refunds before any meaningful review of your circumstances has taken place.
  • Fees structured as a percentage of the refund obtained, with little transparency about what is being claimed.
  • Pressure to sign documents quickly without adequate time to review them.
  • Vague or evasive answers when you ask what specific relief is being claimed and why you qualify for it.
  • No clear evidence that the agent is registered with a recognised professional body or is an authorised HMRC agent.

What You Should Do If You Are Concerned

If you have used an agent to file a self-assessment return and are uncertain whether the claims made were accurate and legitimate, it is important to act promptly rather than wait for HMRC to make contact. Steps worth considering include:

  • Requesting a full copy of the return that was filed on your behalf.
  • Having that return reviewed by a qualified and regulated tax professional.
  • If errors are identified, considering a voluntary disclosure to HMRC, which can in many cases result in a more favourable outcome than waiting for HMRC to open an enquiry.

Taking early, proactive steps demonstrates good faith and can make a material difference to how HMRC treats a case.

Choosing a Compliant Tax Agent

When appointing anyone to manage your tax affairs, it is reasonable to ask whether they are a member of a recognised professional body such as the Institute of Chartered Accountants in England and Wales (ICAEW), the Association of Chartered Certified Accountants (ACCA), or the Chartered Institute of Taxation (CIOT). Membership of these bodies carries professional and ethical obligations, and provides a route for complaints if things go wrong.

You should also ensure you understand and are comfortable with everything on your return before it is submitted. A trustworthy agent will always take the time to explain what has been claimed and why.

At Xcelentra, our tax professionals review every return we prepare and remain fully accountable for the advice and filings we provide — giving clients confidence that their affairs are handled accurately, ethically, and in their genuine long-term interest.