The report details progress by HMRC in stabilising and operating the PAYE service and its progress towards the implementation of its new Real Time Information service. The report also covers HMRC’s performance in tackling VAT fraud, and in reducing error and fraud in personal tax credits.
Tobacco smuggling is a significant threat to tax revenues. HMRC’s renewed strategy sets out the right measures but the Department’s performance is disappointing.
HMRC has improved its approach to tackling error and fraud in tax credits but still lost £2.3 billion in 2010-11.
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.
Despite some welcome improvements, HMRC’s performance in answering calls from the public is poor value for money.
HMRC is making some headway in reducing opportunities for tax avoidance, but over 100 new schemes have been disclosed in each of the last four years.
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.
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.
HMRC’s progress in stabilising the PAYE service, its performance in managing tax debt; and its progress in tackling tax credit overpayment.
Following review by a former tax judge, the NAO concludes that all five settlements were reasonable but there is concern over the settlement processes.
