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Large business
Back in November 2006, HMRC committed to deliver all the proposals in the Review of links with large business (see Update, Taxation, 23 November 2007, page 184). In light of this, HMRC have announced a number of measures.
Efficient risk-based approach
Large business
Back in November 2006, HMRC committed to deliver all the proposals in the Review of links with large business (see Update, Taxation, 23 November 2007, page 184). In light of this, HMRC have announced a number of measures.
Efficient risk-based approach
HMRC have announced a compliance risk assessment framework for business and employer taxes that defines HMRC's understanding of compliance risk and its approach to risk management. HMRC say that this signals their commitment to focusing resources on the greatest risks associated with large business tax compliance, whether these result from tax complexity, from corporate governance or from attitudes to compliance. HMRC say that they will address these risks more quickly and effectively, agreeing action plans with businesses to resolve risks directly and support taxpayers to become low risk. They will significantly reduce compliance interventions with low risk taxpayers who should not expect the full risk assessment process for two or three years, or even longer in some cases. Consequently, HMRC say that these businesses will have reduced costs of tax compliance and greater certainty about how HMRC will handle their tax affairs.
Clarity through consultation
Second, HMRC have announced a consultation framework that commits them to incorporating the business perspective in all significant aspects of HMRC's work that has a direct effect on business. The framework sets out a clear process for both formal and informal consultation to ensure proper engagement with business. It will ensure that HMRC consult early and often, giving time for broad participation from business, and allowing for feedback on how the consultation contributed to the development of the final product.
HMRC say that they 'are committed to improving the way we do things by putting the customer at the heart of everything we do. Effective consultation with our customers plays a critical part in delivering that ambition'.
Certainty
HMRC have also published a programme of updates and improvements to HMRC guidance focusing on the components that large business have advised are the most important to them. This publication will be updated in continuing consultation with business as part of a rolling programme of improvements and is designed to provide greater clarity on HMRC's likely interpretation of the more complex legislation, and clarity on the associated processes.
The inaugural meeting of the local compliance business forum will take place on 27 September, which will give representatives from business an opportunity to discuss operational policy issues. Tax managers for large businesses serviced by HMRC local compliance directorate who are interesting in joining the forum, should contact Sarah Valentine via the HMRC website, www.hmrc.gov.uk/large-business/review-2007.htm.
