View more on these topics

MPs slam HMRC over scrutiny of tax relief

2094965_HMRC-HM-Revenue-Customs-700x450

MPs have criticised HM Revenue & Customs over its lack of scrutiny on whether tax reliefs are being used effectively and warned of a potential return to a “disastrous decline in customer service”.

In a report on HMRC’s performance, published today, the Public Accounts Committee says there are a “number of matters of concern” about the way the organisations collects tax revenues and delivers customer service.

It says: “It is essential that HMRC avoids repeating the mistakes it made two years ago when it reduced the number of staff in its personal tax service prematurely, resulting in a disastrous decline in customer service.”

The report adds: “We remain concerned that HMRC does not scrutinise effectively whether tax reliefs are being used as intended or provide Parliament with sufficient information on the costs of tax reliefs and their effectiveness.”

MPs raised concerns that tax reliefs are not visible enough to encourage proper public debate about where the UK chooses not to collect tax.

The report says HMRC’s current information on tax relief is scattered across different publications.

It says: “HMRC needs to do more. It should monitor whether the use and cost of tax reliefs is in line with Parliament’s intentions when the reliefs were enacted.

“HMRC still does not provide sufficient information to explain the impact that tax reliefs are having on behaviour.”

MPs also pointed to analysis by the National Audit Office which found that entrepreneurs’ relief was costing three times more than forecast.

Recommended

Trott
1

Claire Trott: The worrying statistics on overpaid pensions tax

Each quarter, HM Revenue & Customs publishes statistics on what has been happening since the pension freedoms came into force. While currently lacking context as they were optional last year, some new figures published this quarter are very interesting. They relate to the amount of tax that has been overpaid by members who have flexibly […]

HM-Treasury-500x320.jpg
1

Treasury denies threat to pension tax relief

The Treasury says it has “no plans” to scrap pension tax relief for higher earners despite hints about reform buried in the Autumn Statement. The Financial Times reports in a consultation issued alongside the Autumn Statement it was stated that tax and national insurance contributions relief on pensions was one of the “most expensive” Government […]

Japan: the Land of the Rising Dividends

By George Boyd-Bowman, Fund Manager at Neptune Many Western investors have long bemoaned the lack of a true dividend culture in Japan, claiming the corporate culture is not tilted in favour of shareholders. Yet today, in the Land of the Rising Sun, we see a fresh impetus to focus on shareholder returns, which is leading […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Well this again shows how completely out of touch MPs really are. If HMRC service levels got any worse they just wouldn’t exist at all. They are under staffed and although they do have some good people, there are far too many who are either clueless or just poorly trained.
    Anyway this rather avoids the issue. You wouldn’t need tax reliefs if you had a straightforward and sensible taxation code. Out tax code is about 17,000 pages long. The whole Bible (New & Old Testaments) is less than 2,000 pages. If God can manage with that why can’t our Treasury manage with less?

    The more complicated and onerous the tax, the more people are going to find ways to circumvent paying as much as possible.

Leave a comment