With just over three weeks to go until the Budget, the Government’s plan to recruit 5,000 new compliance officers into HMRC has been welcomed by leading audit, tax and business consultancy Blick Rothenberg.
However, the company warns that these recruitment efforts are only a small step towards fixing deep-rooted problems in the UK tax system.
Robert Salter, director of Blake Rotenberg, pointed out that HMRC has been under-resourced for years, and although adding new staff is a positive development, it will not be enough to address the larger structural problems plaguing the tax system. Salter said: “HMRC systems are often poor and do not provide a good service for HMRC or the taxpayer.” He cited HMRC’s tool for determining employment status for tax purposes as an example of a system that often produces incorrect results when reviewed against binding UK case law.
Salter stressed the importance of comprehensive training for new employees, emphasizing that the complexity of the UK tax system requires a thorough understanding of its many complex and sometimes counter-intuitive regulations. “Without long-term, in-depth training, money spent on recruitment could be wasted, and taxpayers may face worse service due to untrained officers who misinterpret tax laws or request the wrong information,” he warned.
As the Budget date approaches, Salter hopes that Councilor Rachel Reeves will provide details on how new HMRC officers will be trained to deal effectively with the complexities of the tax system. He stressed that although the recruitment drive is a positive first step, it must be accompanied by significant improvements in HMRC’s systems and procedures to make a real difference to taxpayers.
Blake Rothenberg’s concerns come at a critical time, as taxpayers and tax advisors anxiously await potential tax changes expected in the upcoming budget. Company experts say that without a clear plan for comprehensive training and system modernization, the government’s efforts to improve HMRC’s capabilities may not achieve the intended effect.