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PAC report on HMRC performance: Not good enough

11 March 2024 / Bea Brockhurst
Issue: 4928 / Categories: Comment & Analysis , Fraud , HMRC , IR35 , Tax debts , Admin
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Not good enough

Key points

  • HMRC’s customer service levels are at an all-time low and the Treasury and HMRC should ensure they are sufficiently resourced.
  • HMRC is making progress in tackling tax debt. However it often pursues individuals for trivial amounts and HMRC’s efforts should be proportionate to the size of the debt.
  • HMRC needs to take serious action against companies registering with the wrong addresses as this causes distress to innocent citizens.
  • HMRC’s approach to serious abuse is not deterring criminal activity sufficiently. Conversely its approach to IR35 is deterring legitimate economic activity.
  • HMRC is following its own guidelines with regard to the application of IR35 rules and these are misaligned with the law.

The House of Commons Committee of Public Accounts report on HMRC performance in 2022-23 published on 28 February (tinyurl.com/28sufj25) tells a tale of taxpayer woes bizarre accidents and unclear guidance. This is a tale that has oft...

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