HMRC’s complaints process following Lords report

Key points

• HMRC’s complaints process is the mechanism for holding the department to account for its administrative decisions and action.
• If during an enquiry HMRC misapplies the law there may be associated handling issues that do come within the complaints remit.
• The government’s response to the House of Lords’ report was disappointingly defensive.
• Mishandling complaints frustrates HMRC’s business aims.

The criticisms of HMRC by the House of Lords’ Economic Affairs Committee in its report on HMRC powers were a welcome and powerfully expressed endorsement of concerns held by many tax practitioners (tinyurl.com/hlpaper242). These quotes from paragraphs 42 and 43 the summary of recommendations for me go to the heart of those concerns:

‘The evidence suggests that in compliance and enquiry cases the behaviour of some HMRC staff falls well below the standard set in the charter. HMRC needs to have better systems in place to identify and address...