Categorized | news

HMRC intends to increase its yield from compliance work

HMRC intends to increase its yield from compliance work

Contractor accountants may be interested to learn that HMRC has now revealed its business plan for the next few years.

Lin Homer, the new chief executive said the Revenue expects increased compliance work will bring in an extra £20 billion between now and 2015.

The business plan includes targets for improving the quality of customer service, as well as updates on the tax agreements with Switzerland and Liechtenstein. Furthermore, the department intends to appoint an assurance commissioner who will oversee large tax settlements.

The Revenue has come in for a lot of criticism over its dealings with large organisations after the Goldman Sachs sweetheart deal. It hopes the new appointment will demonstrate transparency in the way it handles future tax disputes.

By 2014-15, HMRC intends to reduce its costs by 25%, launch key IT projects like the RTI pay-as-you-earn scheme and use £917 million it received from the government spending review to increase revenue by £7 billion a year.

Back in March, the National Audit Office praised the Revenue’s efforts to bring down tax evasion, but said there was still room for improvement. HMRC has seen its headcount steadily reduced since 2006, but despite this, it nearly met its compliance target of £4.56 billion.

The Revenue has forecasted that its yield will increase by £8.87 billion between 2011-15, but the NAO thinks this figure is overly optimistic considering some projects are behind schedule and others have been cut back.

© 2012 All rights reserved. Reproduction in whole or in part without permission is prohibited.

Image: A Sampling of the Yield from Our Small Plot by ultramega

Be Sociable, Share!

Leave a Reply

You must be logged in to post a comment.

  • Switch Accountants for FREE

    Switch Accountants for FREEAt K&B Accountancy Group we have introduced a simple and straightforward approach to changing accountants. We’re offering contractors, consultants and freelancers the opportunity to switch to K&B Accountancy Group for FREE without the need to pay for any ‘catch up’ or retrospective accountancy fees for the previous year’s accounts and corporation tax return* *T&Cs apply

our top 5 twitter posts


contractor accountants


twitter Join the conversation
Free Telephone Advice