HMRC have published the findings of a pilot study on interventions which stop short of an investigation.

In the report, entitled “New Interventions – An Alternative Approach To Compliance Activity”, HMRC comment that:

• Taxpayers welcomed the opportunity to resolve more minor errors and queries as early and quickly as possible. There are real benefits for both the taxpayer and HMRC in having quicker alternatives to a traditional time-consuming enquiry;
• Tax advisers share our ambition to find more flexible intervention options and they are willing to work with us to develop these;
• Taxpayer safeguards must be properly considered; and
• Interventions must be tailored to the risk and the taxpayer to maximise their potential for success.

The key observation however is that timely and fuller engagement with external stakeholders improves the design, development and delivery of new compliance interventions. HMRC are now embarking on a project to devise a code of practice for such interventions, and have invited ICAI to participate in consultations. Our Northern Ireland Tax Committee will be involved. Views from members generally will be welcome, and should be sent to ICAI Director of Taxation Brian Keegan (brian.keegan@icai.ie).