HM Revenue and Customs (HMRC) faces a “big challenge” to reduce operating costs by up to £1.6bn over the course of the next four years, according to a report by the National Audit Office (NAO)
The department is confronted with the seemingly impossible challenge of substantially reducing running costs, whilst at the same time increasing tax revenues and improving customer service.
Se previous tax track article regarding the Treasury Select Committee’s criticism recent of the department.
Reduce staff numbers
The NAO says that the cost cutting plans include trimming staff numbers by 10,000 and reducing the number of tax offices.
There is no doubt that HMRC needs to get its act together, particularly on the customer service side. But one wonders how such swinging jobs cuts will see improvement in its telephone call centre service (which is frankly already appalling) and see a reduction in the turnaround time for written correspondence.
It is unlikely that the “sharp end” of HMRC will suffer greatly. Indeed we have already seen a targeted intensification of the departments work in areas such as tax compliance and collection/recovery.
I guess we will have to watch this space, but my own view is that the same mantra will be repeated in two years time. HMRC are quite simply not staffed adequately enough on the customer service side of their business.
Comment
HMRC’s difficulties are unlikely to affect HMRC’s compliance and tax investigation efforts. Indeed quite the opposite. We already know that the savings made through cuts in customer service have been re targeted at tax evasion and recovery.
If you have concerns regarding your income tax affairs and are dreading that awful tax investigation letter landing on your doormat, then please act now.
Tax amnesties are very much at the forefront of HMRC thinking at the moment, so why not take advantage of the favourable terms being offered.
Appoint a tax investigation specialist. It could save thousands and perhaps the possibility of a criminal investigation.
Contact Admiral Tax
Tel 0845 519 2206
Email info@admiraltax.co.uk
