Earlier this year, the National Audit Office (NAO) published a report examining how HMRC responded to recommendations made in 2010 by the NAO and the Committee of Public Accounts in area of tax collection.

That report cited good progress towards achieving the primary objectives of maximizing revenue and making sustainable cost savings. The NAO also found that HMRC responded positively to the recommendations from the Public Accounts Committee in areas where the Committee has pressed for change. However, the report made clear that much more was needed to improve its performance in dealing with its customers.

An update has now been published which the NAO refer to as an impacts case study. This is cited as showing that HMRC have responded positively to the recommendations and made changes in significant areas of tax administration.

According to the case study, more than 130 recommendations were made of which more than 80 per cent have been implemented. Following the NAO report on marketed tax avoidance, HMRC has now obtained new powers to change the economics of tax avoidance by increasing the risks and reducing the advantages of using or promoting avoidance schemes.

It also set up a new counter-avoidance directorate to coordinate its activities better. HMRC estimates that its new measures to tackle anti-avoidance will increase tax revenue by £400 million in 2014–15 and more than £1,600 million in 2015–16.

The update cites how HMRC has improved the transparency and accountability around how it settles large tax disputes in response to the recommendations made. It has appointed a new tax assurance commissioner who publishes an annual report describing its progress in resolving major disputes. The new governance arrangements are stated as providing more independent challenge with greater separation between those working a dispute and those responsible for approving how it is be resolved.

Readers are no doubt aware that HMRC continues to perform poorly in the area of service standards. Members can feedback on HMRC service at any time by contacting Leontia Doran.