Select committee inquiry

HMRC performance in 2016–17 and HMRC Estate inquiry

Closed

Public Accounts Committee · Opened 19 October 2017 · Closed 19 October 2017

Inquiry on parliament.uk ↗

What the inquiry looked at

“HMRC defines its purpose as "we collect the money that pays for the UK's public services and help families and individuals with targeted financial support. We do this by being impartial and increasingly effective and efficient in our administration. We help the honest majority to get their tax right and make it hard for the dishonest minority to cheat the system." The Public Accounts Committee will be holding an evidence session on Monday 6 November on HMRC performance in 2016–17 and HMRC Estate and will be examining how effective HMRC is at delivering its purpose. HMRC is undergoing a period of transformation—it has plans to transform the tax system by 2020, in particular by digitising the tax system—a major undertaking with the aim of creating one of the most digitally advanced tax systems in the world. In addition to its digital plans, HMRC is also undertaking a long-term estates replacement programme, a matter regularly raised by the Committee and one which raises a number of challenges for HMRC. The Committee will examine how HMRC are progressing with the programme. The session will also focus on the challenges facing HMRC as the UK prepares to leave the European Union. Potential issues with customs arrangements have been identified and the Committee will look to examine the topic further in the session. The migration to Universal Credit will also be considered with the Committee looking to see how HMRC is handling the arising issues presented by the move to the new system.”

The committee's words, from the inquiry page on parliament.uk ↗.

What it found

In the committee's words, from the summary of 12th Report - HMRC’s Performance in 2016–17 ↗

HM Revenue and Customs (HMRC) is undertaking 15 major transformation programmes. With Brexit, it faces additional pressures and is having to consider how to change priorities. It needs to be clear about what it will do differently, or not do, and what the impact will be on customer service.

Together with HM Treasury , HMRC has to make tough decisions on how it allocates limited resources to its operations to increase tax revenues, protect performance levels, prioritise its transformation and estate programmes, and invest in measures to tackle tax evasion, fraud and error. We are particularly concerned about the impacts on the ordinary taxpayer from the growing challenges facing HMRC, and whether HMRC is doing enough to support vulnerable Tax Credits recipients, especially as they transfer to Universal Credit.

There is a lack of incentive for HMRC to reduce Tax Credits fraud and error in the transition period to Universal Credit.

We remain concerned about the estate rationalisation and the lack of flexibility available as a result of decisions made.

What the government said

No government response is linked to this report.

How the inquiry ran

Each dot is a dated item listed on this page, from the inquiry's opening on 19 October 2017 to 12 January 2018.

  1. Oral evidence 6 Nov 2017
  2. Report 12 Jan 2018

What it recommended

The committee's recommendations are not listed here yet. Read them in 12th Report - HMRC’s Performance in 2016–17 ↗ on parliament.uk.

Evidence

Oral evidence sessions 1