Sir John Bourn, the head of the National Audit Office, today reported on the results of his examination of the Government’s estimates of the number of people who may be affected by the proposed introduction of a lifetime allowance for the amount of tax-privileged saving in a pension scheme. The proposed allowance of £1.4 million … Read more
This report examines the effectiveness of HM Treasury’s and HMRC’s use of their resources in the management of tax expenditures.
HMRC aimed to move more customers online thereby reducing staff costs but significant numbers of staff were let go before technical improvements were completed leading to a collapse in service quality in 2015. Services have since improved.
“Much tax is collected quickly but at any one time there are billions of pounds outstanding, some of it long overdue. Faster recovery and preventing the build up of debt could bring in money which could be used to improve public services. My report identifies further opportunities for the Inland Revenue to improve how they collect debts.”
This memorandum supports the Public Accounts Committee’s examination of the government’s preparedness for ‘no deal’
“I find it encouraging that HM Revenue and Customs is well positioned to manage the current risks to VAT from electronic commerce. With internet sales set to mushroom in the next few years, the Department faces a challenge to ensure it stays ahead of the game. Some businesses are inventive at side-stepping VAT, and the Department must be equally innovative in guaranteeing the Exchequer gets the revenue it is due.”
“It remains a concern that the long-standing and significantly higher VED evasion rates amongst motorcyclists may threaten the public’s confidence in the DVLA’s even-handedness of treatment and enforcement of this tax.
“There is potentially a credibility issue if repeat non-payers of VED sense that nothing further will happen to them, and the DVLA is hopeful that the use of debt collection agencies will address this perception. I am pleased that the DVLA has also agreed to consider the NAO’s suggestion of a trial of further reminders targeted at longer term non-payers.
‘I was concerned last year that the significantly higher rates of VED evasion by motorcyclists might undermine confidence in the DVLA’s enforcement regime. My concern is even stronger this year, given the sharp jump in the evasion by motorcyclists, and by motorists more generally.’
‘It must be brought home to persistent non-payers of VED, whether motorcyclists or car drivers, that they will sooner or later be subject to enforcement action.’
