HMRC’s higher powers must be matched with more accountability, says expert

HMRC’S INCREASED powers must be matched by greater accountability and an improved performance, according to the author of the loan charge review.

Sir Amyas Morse said that HMRC’s charter should be reviewed to set higher expectations of performance during its interactions with the public.

The report found there had been a “breakdown of trust” between HMRC and a large number of people who gave evidence to the review.

In his review of the loan charge, Sir Amyas said: “One of the common themes across many of the impact statements submitted to the review was that the negative experiences of those submitting came not just from the need to pay significant sums of money, but also from the experience of how cases were handled by HMRC.”

He added: “Our view has been guided by the principle that the government must ensure that HMRC’s increased powers are matched by greater accountability and improved performance, in recognition of the impact that they can have on members of the public.”

Sir Amyas said: “It should be acknowledged that it is, understandably, more likely for people to contact the review when they have had negative experiences.

“Those with positive or neutral experiences would have less incentive to contact the review. However, there is enough evidence to illustrate that the way in which HMRC dealt with some individuals fell short of the standards that the taxpayer might reasonably expect.”

The review heard of difficulties in knowing or understanding the amount HMRC considered due, Sir Amyas said.

The Government has recognised the concerns raised in the review about the impact on individuals and fairness of some aspects of the loan charge.

To address them, all but one of the recommendations have been accepted.