Review of the data systems for HM Revenue and Customs
Published on:Review of a sample of the data systems underpinning the input and impact indicators in HM Revenue & Customs’ Business Plan, Common Areas of Spend and wider management information.
Review of a sample of the data systems underpinning the input and impact indicators in HM Revenue & Customs’ Business Plan, Common Areas of Spend and wider management information.
Following review by a former tax judge, the NAO concludes that all five settlements were reasonable but there is concern over the settlement processes.
This Departmental Overview is one of 15 we are producing covering our work on each major government department. It summarises our work on HM Revenue and Customs during 2011-12.
HMRC’s progress in stabilising the PAYE service, its performance in managing tax debt; and its progress in tackling tax credit overpayment.
HMRC has improved its approach to tackling error and fraud in tax credits but still lost £2.3 billion in 2010-11.
Not all local authorities’ Council Tax support scheme will achieve the objectives outlined by the Department of Communities and Local Government.
A major HMRC programme to improve the way it tackles evasion delivered £4.32 billion of additional tax yield, reduced staff numbers and improved compliance work. However the Department is not yet exploiting the full potential of its new systems.
In 2011-12 HMRC maintained its performance while reducing staff and spending but it is too early to tell what the long-term impact of cost reduction will be.
HMRC’s renewed strategy for dealing with alcohol duty fraud is a significant improvement on the previous strategy. However, the Department needs a reliable estimate of the tax gaps for beer and wine; and to tackle successfully the illicit diversion of duty-unpaid alcohol back into the UK market.
The programme to increase online filing of tax returns has made significant progress, but HMRC needs a better understanding of the benefits and costs to customers and how its online filing costs compare to those for paper returns.
There are serious risks to HMRC’s business if the programme to replace the Aspire contract fails to meet its objectives by June 2017, when the contract ends.
HM Revenue and Customs will have to make sure its staff have the right skills if the Department is to succeed in cutting its running costs by 25 per cent by 2014-2015 and bringing in each year an extra £7 billion of tax revenue.
This Departmental Overview is one of 17 we have produced covering our work on each major government department. It summarises our work on HM Revenue & Customs during 2010-2011.
HMRC faces a significant challenge in securing a £1.6 billion reduction in running costs over the next four years, at the same time as increasing tax revenues, improving customer service and achieving reductions in welfare payments.
The NAO has published its report on the 2010-11 accounts of HM Revenue and Customs.
Reported fraud in Employment Programmes is low despite past flaws such as in the New Deal. New improvement controls are better, yet risks remain.
HMRC’s civil investigations directorates, which examine serious cases of suspected tax evasion, have generated increasing returns from their work, while reducing resources. However, there is scope for them to achieve more.
HMRC might be able to increase tax revenues by providing more support to professional tax agents, third parties paid by taxpayers to act on their behalf in their dealings with the Department.
Despite some welcome improvements, HMRC’s performance in answering calls from the public is poor value for money.
The NAO has published its report on the 2009-10 accounts of HM Revenue and Customs.