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.
The NAO has published its report on the 2009-10 accounts of HM Revenue and Customs.
This report looks at how much the Treasury’s Value for Money savings programme has improved value for money across government. The programme aims to achieve government-wide annual savings of £35 billion from 2008-09 to 2010-11.
This short guide is one of 17 we have produced covering our work on each major government department. It summarises our work on HM Revenue & Customs during the last Parliament.
HMRC has taken significant steps to improve the efficiency of National Insurance administration, but needs to demonstrate more clearly that it is providing value for money from the £350 million it spends each year and take advantage of opportunities to secure further savings.
“HMRC seems to be going in the right direction seeking strategic savings by reducing face to face interaction where the job can be done by telephone or online. However, this may not be much comfort if yours was one of the 43 per cent of calls which did not get an answer in 2008-09. HMRC needs to get telephone service standards up significantly if the transition to technology-enabled working is to have taxpayer support and deliver value for money.”
“This major contract has been significantly affected, for the contractor Mapeley in particular, by the current economic climate. Mapeley benefited when the property market was expanding but the economic downturn has made the contract more onerous. HMRC must take a significantly more astute commercial approach if it is to deliver value for money for the taxpayer.”
“Older people want to pay the right amount of tax but too many pay more than they need to because they do not claim allowances to which they are entitled and because of errors. By providing a more coherent service, HMRC could make substantial savings as the number of enquiries from older people about their tax affairs would reduce. A win-win situation for all.”
“These difficult economic times underline the fundamental importance of an efficient tax system. During the economic downturn, not only is there less tax to collect but the process of collecting that tax is more challenging. It is essential that HM Revenue and Customs actively manages tax debt and takes positive steps to clear processing work on hand so that taxpayers have certainty about their liabilities.”
“Peaks in the workload of HM Revenue and Customs push up the cost of running the Department and reduce service quality. By changing the deadlines for tax returns and removing the need for some to be filled in, HMRC has already saved £7 million. By expanding take up of online services further, and helping people avoid unnecessary calls to contact centres, HMRC can reduce costs and provide a better, year-round service.”
