PAC: HMRC transformation plan has ‘potentially catastrophic consequences’ – aka “omnishambles”

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Source: accountancy 12 January 2018

“The Public Accounts Committee has expressed concern over HMRC’s handling of its transformation programme, its pace of response to the Paradise Papers release, and its ability to maintain customer service following the introduction of Making Tax Digital.”

“The PAC also flagged that HMRC has recently signed six long-term leases for regional centres, against committee recommendations. The PAC had noted in its report in early 2017 that two 25-year leases already signed by HMRC could force the government into holding property for a longer period than necessary, and that a combination of medium and long-term leases was the best approach.”

“The PAC review also focused on the release of the Paradise Papers and HMRC’s response. The committee said that it was “frustrated” with the pace of the HMRC response to the leak and that it was “far from confident” that the tax authority had sufficient resources to investigate the allegations.”

“The committee also said it was concerned about “the disparity of service between how HMRC deals with high-net-worth customers compared with the ordinary customer”. As of the end of September 2017, the average waiting time for a customer calling HMRC was 4 minutes 37 seconds. Yet the HMRC calculations did not include the time spent listening to automated messages, which could increase the total waiting time to 9 minutes. The committee said it was “unacceptable” for HMRC not to include automated messages in its average response speed time, particularly as high-net-worth individuals had their own dedicated customer compliance managers.”

Source article here



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