Recommendations & Conclusions
5 items
3
Recommendation
Thirty-Seventh Report - HMRC Performanc…
Not Addressed
HMRC does not have a convincing plan for restoring compliance activity back to pre-pandemic levels. In response to the pandemic, HMRC suspended some of its compliance work in 2020–21 where taxpayers could not cope with inquiries, and because it needed to redeploy staff. The number of compliance investigations which HMRC …
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HMRC does not have a convincing plan for restoring compliance activity back to pre-pandemic levels. In response to the pandemic, HMRC suspended some of its compliance work in 2020–21 where taxpayers could not cope with inquiries, and because it needed to redeploy staff. The number of compliance investigations which HMRC opened and closed in the year fell, which has led to a backlog of deferred cases. The Committee expects HMRC to fully investigate this backlog of cases and not leave them unchecked. HMRC told us that the action it took in 2020–21 would lead to a deferral rather than a loss of tax as tax legislation allows it to go back to earlier years where it finds non-compliance. HMRC expects compliance activity to get back to normal levels and timelines in 2022–23, but did not explain how this would be possible if it was clearing the backlog of cases at the same time. HMRC tracks compliance yield to measure the effectiveness of its compliance and enforcement activities. It considers yield will get back on “even keel” in 2022–23. It will need to identify and separate out the yield from deferred cases and new investigations if it is to fully understand and explain its performance. Recommendation: HMRC should, alongside its Treasury Minute response, set out: • how and by when it will have eliminated the backlog of compliance cases; and • how it will report its performance on deferred cases and new cases, so fair comparisons can be made with its pre-pandemic performance levels.
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Government response AI summary
This is a response to a different conclusion about the SEND review.
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HM Treasury
1
Conclusion
Thirty-Seventh Report - HMRC Performanc…
Not Addressed
On the basis of a report by the Comptroller and Auditor General, we took evidence from HM Revenue & Customs (HMRC) on its performance in 2020–21.1
Government response AI summary
This is a response to a different conclusion regarding HM Treasury monitoring the ongoing cost of COVID-19 to the taxpayer.
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HM Treasury
25
Conclusion
Thirty-Seventh Report - HMRC Performanc…
Not Addressed
This Committee has regularly examined HMRC’s customer service performance. In 2010, this Committee concluded HMRC’s performance in responding to calls had been poor.43 In 2016, the Committee found that customer service levels had collapsed as a result of HMRC assuming two new services, automated telephony and paperless self- assessment, would …
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This Committee has regularly examined HMRC’s customer service performance. In 2010, this Committee concluded HMRC’s performance in responding to calls had been poor.43 In 2016, the Committee found that customer service levels had collapsed as a result of HMRC assuming two new services, automated telephony and paperless self- assessment, would reduce the number of calls it received. HMRC released 5,600 staff, but phone demand did not fall and consequently its service levels collapsed.44 HMRC’s performance subsequently improved and in 2017–18 it achieved six of its eight customer service targets.45 Since then, HMRC’s performance has declined. In particular, its performance in answering calls and responding to post in 2020–21 was well below the levels in each of the three previous years. By the last quarter of 2020–21, the average time callers spent queuing to speak to an adviser was over 15 minutes (compared to less than 5 in 2017–18) and just 43% of post was responded to in 15 days (81% in 2017–18).46
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Government response AI summary
The government agrees with the Committee’s recommendation to explain the service levels it is aiming to provide and commit to publishing outturn against these measures; this information will be presented in the Department’s Outcome Delivery Plan, to be published early in 2022-23.
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HM Treasury
27
Conclusion
Thirty-Seventh Report - HMRC Performanc…
Not Addressed
HMRC told us that its performance was improving in 2021–22. It said it had got helpline performance up to what it regarded as a “decent service”, and had thus diverted resources to handling post, as this was the area with most backlogs.48 HMRC’s latest published quarterly performance update, shows that …
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HMRC told us that its performance was improving in 2021–22. It said it had got helpline performance up to what it regarded as a “decent service”, and had thus diverted resources to handling post, as this was the area with most backlogs.48 HMRC’s latest published quarterly performance update, shows that in the first half of 2021–22, its performance in responding to post was worse than in 2020–21, with less than 40% of post responded to within 15 days.49
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Government response AI summary
The government agrees with the Committee’s recommendation to explain the service levels it is aiming to provide and commit to publishing outturn against these measures; this information will be presented in the Department’s Outcome Delivery Plan, to be published early in 2022-23.
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HM Treasury
31
Conclusion
Thirty-Seventh Report - HMRC Performanc…
Not Addressed
We asked HMRC what Making Tax Digital was for. HMRC told us Making Tax Digital was about making tax easier, keeping tax in line with the digital age and making business more productive.56 HMRC also told us that, by providing real time or up-to- date data on taxpayers, Making Tax …
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We asked HMRC what Making Tax Digital was for. HMRC told us Making Tax Digital was about making tax easier, keeping tax in line with the digital age and making business more productive.56 HMRC also told us that, by providing real time or up-to- date data on taxpayers, Making Tax Digital would help it if it ever needed to introduce a support scheme like the Self-Employment Income Support Scheme again, although such a benefit was not one of the original reasons for introducing Making Tax Digital.57
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Government response AI summary
The government is committed to free software for the MTD Income Tax Self-Assessment (ITSA) service for those with the most straightforward affairs, removing one of the financial barriers to participating in MTD, and will improve the support offering to those who may be unrepresented or …
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HM Treasury