Approach to tax compliance under review

HMRC is consulting on a new business risk review model to tailor its categories more closely to the compliance issues faced by large businesses. The revised review would:

• support HMRC in maintaining a shift in large business compliance behaviours; and
• provide greater clarity and confidence for large businesses – for example by introducing new low risk low-moderate risk high-moderate risk high risk and significant risk categories.

The business risk review is a core feature of how HMRC manages the tax compliance of the largest businesses. Customer relationship managers conduct a periodic review of each business assessing its risk profile and placing it in a binary ‘low risk’ or ‘non-low risk’ category.

This is a key determinant of the level of scrutiny and resource the business receives from HMRC. The process has undergone few changes since its introduction...