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These are difficult times for HMRC. Only last week it announced the closure of its self-assessment helpline for three months, a move described by new CIOT president Gary Ashford as a ‘cry for help in a desperate situation’. And this week we have had the highly critical report from the National Audit Office (NAO) about the making tax digital (MTD) project, something I discuss in more detail in my article on page 8.
Only a few years ago, HMRC was being congratulated, rightly, for the speed of its response to the pandemic. It successfully managed a very quick roll-out of new systems to enable millions of individuals and business to obtain critically important support. How have we got from there to where we are now?
The pandemic and Brexit between them must take some blame. HMRC had to move significant numbers of people into these two areas. This left gaps in service and it has taken longer than anybody anticipated to fill them. But that can’t be the complete answer. The system is creaking and in some areas seems dangerously close to the point of failure.
Where does responsibility lie? Clearly HMRC’s senior management cannot escape all blame – they set the operational priorities and are responsible for keeping the department functioning. But there seems no doubt that HMRC is seriously underfunded to do everything that the government requires of it. I hesitate here because, as the NAO report reveals, budgetary control of MTD seems to have been inadequate, but that should not affect the principle. HMRC needs to be properly funded and those who are affected by poor performance need to lobby the government as well as complain to HMRC.
If you do one thing...
Read this tribunal case – tinyurl.com/tjuxtpxf – I think that you will find it entertaining and enjoy the irony of the taxpayer’s name.
