Raising standards in the tax advice market: Are you prepared for the latest HMRC changes?

Raising standards in the tax advice market: Are you prepared for the latest HMRC changes?

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HMRC announces mandatory advanced electronic signatures for tax professionals

In a significant update from the UK government, starting in April 2025, all tax professionals will need to use advanced electronic signatures (AES) when submitting an income tax repayment claim on behalf of a client.

This change, part of broader reforms initiated in October 2024, aims to improve the quality of tax advice, and ensure that taxpayers get dependable and ethical guidance. Here’s a straightforward breakdown of what these changes mean and how you can prepare.

What are the key changes? 

If you are a tax practitioner, from 6 April 2025, you will need to use an advanced electronic signature process to obtain the appropriate authorisation from your clients in order to submit their income tax repayment claim.

This new step is designed to make every tax submission secure and verified, reducing risks like fraud or errors.

What is an advanced electronic signature?

An advanced electronic signature goes beyond typical digital signatures by offering enhanced security features:

  • Unique identification: Each signature is uniquely linked to the signer, which aids in unmistakably identifying the individual.
  • Exclusive control: The signer has sole control over their signature, ensuring that no one else can use it.
  • Change detection: Any alteration after the signature is made is detectable, preserving the document’s integrity.

This type of signature not only confirms that the signer is who they say they are, but also ensures that the document remains unchanged or tampered with after signing.

Why is this important?

Implementing AES is part of the government’s broader efforts to make sure that tax advice is trustworthy and that filings are accurate. This move is geared towards making the system safer and more reliable for everyone, helping to prevent issues like identity theft and fraud.

How to prepare

As the April 2025 deadline approaches, here are the essential steps you should take to stay on the right side of the law:

  1. Set up AES software: Invest in trustworthy and secure AES software. It’s crucial to pick a tool that’s robust and meets the required security standards for compliance.
  2. Keep your paperwork in order: Save any documents that prove you have purchased and are using AES software. This could be a receipt, an email confirmation, or a letter from the provider. HMRC will ask to see proof of this, and claims will not be processed until the appropriate documentation is submitted.
  3. Document client approvals: Be ready to show that your clients have authorised their tax repayment claims using AES. HMRC might check this during their routine reviews.

Choosing your AES provider

There are many AES solutions on the market and choosing the right one for your business can feel daunting. Here are some things to look out for:

  • Cost and flexibility: Look for a provider that offers a solution within your budget and fits your business needs. Flexible payment options and the ability to easily switch between plans are both attractive options when it comes to a scaling business.
  • Customer support: Good customer support can be crucial, especially if you run into problems or have questions. Be sure to check out reviews of the software on third party sites such as Trustpilot. 
  • Local providers: Using a UK-based provider offers advantages like compliance with specific UK regulations and local customer service.
  • Security features: Make sure the provider offers robust security measures to protect your documents and client information. Look out for accreditations such as ISO 27001, or Cyber Essentials for that extra piece of mind. 

Why Signable?

Signable is a leading UK-based provider of electronic signatures, known for:

With over 400,000 documents sent via Signable each month, and over 7.5 million signers annually, Signable is trusted by more than 8,000 businesses across the globe. But don’t just take our word for it, our Trustpilot reviews speak for themselves.

Serving a wide range of customers in the UK tax industry, we understand the importance of meeting these new government regulations. Signable is actively working to ensure our platform is AES compliant in preparation for these changes, so you can rest assured, your income tax repayment claims will be taken care of. 

Check out how Signable stacks up against the competition:

Get ahead of the curve

It’s crucial to prepare now to stay compliant with the new regulations. Try Signable for free for 14 days and see how easy and secure managing tax documents can be. Start your free trial today and take a proactive step towards a smoother tax filing process.

Shauna
Content Marketing Specialist

Shauna is a Content Marketing Specialist. She creates a range of written pieces, from long form SEO articles, to social media posts. Graduating with a first class degree in English Literature, Shauna has over 5 years of experience writing quality content for B2B organisations. When she’s not writing, you’ll find her curled up with a book, or exploring the countryside with her cocker spaniel, Ziggy.