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Like so many practitioners, I grew up reading Taxation every week to develop my knowledge of tax and improve my understanding of issues that users of the tax system found difficult. Mike Truman’s suggestion that I became guest editor for this edition was therefore irresistible.
I am delighted that HMRC’s minister, David Gauke MP, has contributed an article on PAYE and that HMRC colleagues have produced articles on a range of issues from how we will improve support for small business to technical issues about disguised remuneration and practical approaches to getting the best out of HMRC’s clearance arrangements.
The past 12 months have not been easy and we are disappointed that our service on the phone and by post, compounded by various issues with the PAYE system, has caused such difficulties for tax advisers, their clients and our customers generally. But there have also been significant achievements.
The groundbreaking agreement with Switzerland and the continuing development of the Liechtenstein disclosure facility will secure for the Exchequer billions of pounds of unpaid tax.
Our ‘Connect’ risk engine is making it much easier to identify those who are dishonest in their dealings with us.
It has improved the targeting of taxpayers who do not comply with their obligations so that we are challenging fewer taxpayers whose affairs are in good order.
Our post turnaround times are improving this year, as is our service on the telephone. There is much more we need to do here, but we are heading in the right direction.
Discussions and differences
Perhaps most significantly, this edition of Taxation coincides with a potentially momentous development in relations between tax advisers and HMRC.
The hard-hitting report of the Treasury Select Committee published on 30 July 2011 revealed deep dissatisfaction on the part of advisers with the service provided by HMRC.
Further discussion exposed differences of perception between advisers and HMRC about the improvements we believe are taking place in our service. I was particularly concerned about tax advisers’ view that we expect a higher professional standard from them than we apply to ourselves.
To begin the process of addressing those concerns, HMRC chairman Mike Clasper invited the senior leadership of representative bodies (TaxAid and TaxHelp for Older People were also represented) to meet him and senior leaders of HMRC to lay the foundations for a new relationship with an emphasis on greater mutual understanding of the challenges and limitations faced by the tax administration and tax advisers alike.
That meeting led to a joint statement by the representative bodies and HMRC about future engagement.
A key feature is a determination to understand why tax advisers do not feel that our improving performance figures are translated into improved experiences for them and their clients.
Three initiatives were agreed as the first stage of building a new relationship.
- Post processing and handling will be looked at in detail to establish where problems still exist and how they can be resolved (HMRC’s performance measures will be reviewed where necessary to ensure they are credible and effective). This work will be complemented by reviews of the following processes where it is believed improvements can be made: non-self assessment repayment claims; automated PAYE coding notices; and practical issues related to deceased estates.
- A number of agents and voluntary sector representatives will spend time inside HMRC with front-line service delivery teams looking at processes in detail from a customer perspective and will make recommendations as appropriate.
- HMRC representatives will carry out structured visits to a number of practitioners and the voluntary sector to gain an in-depth understanding of our service from the customer perspective.
The intention is to take forward these initiatives from 3 October and review progress by 30 November 2011.
I hope we will be able to publish a full report of developments in a forthcoming edition of Taxation to allow readers to express
their views.
Determination and delivery
The summer of 2010 was a low-water mark for HMRC in terms of customer service and the public perception of what we do and how we do it. We are determined to improve. My colleagues in HMRC all come to work to do a good job and we have been improving the tools available to them.
I am confident that their professionalism and performance in future, informed by feedback from tax advisers, will deliver a continuously improving experience for all users of the tax system.
I hope readers will see this editorial and the quality of the articles published today as being in the best traditions of Taxation. I want to thank Mike Truman for trusting me to maintain the high standards he has fostered. I have to disappoint him in just one respect: I will not anytime soon be inviting him to be permanent secretary for tax for a week.
All pigs fed, watered and ready to fly Mr Hartnett.