Progress in tackling tobacco smuggling
Published on:Tobacco smuggling is a significant threat to tax revenues. HMRC’s renewed strategy sets out the right measures but the Department’s performance is disappointing.
Tobacco smuggling is a significant threat to tax revenues. HMRC’s renewed strategy sets out the right measures but the Department’s performance is disappointing.
HM Treasury and HMRC do not keep track of tax reliefs intended to change behaviour, or adequately report to Parliament on whether tax reliefs work as expected.
The report covers HMRC’s progress in operating the PAYE service, its implementation of its new Real Time Information service and its performance in tax collection and in reducing error and fraud in personal tax credits.
Review of a sample of the data systems underpinning the input and impact indicators in HM Revenue & Customs’ Business Plan, Common Areas of Spend and wider management information.
This review was carried out on the 2012-15 Business Plan. Revised Business Plans were issued in June 2013.
Review of a sample of the data systems underpinning the input and impact indicators in HM Revenue & Customs’ Business Plan, Common Areas of Spend and wider management information.
HMRC is making some headway in reducing opportunities for tax avoidance, but over 100 new schemes have been disclosed in each of the last four years.
Government is owed a large amount of money but has no overall view of its debt reduction objectives nor of the financial risk that the debt poses.
Following review by a former tax judge, the NAO concludes that all five settlements were reasonable but there is concern over the settlement processes.
HMRC’s progress in stabilising the PAYE service, its performance in managing tax debt; and its progress in tackling tax credit overpayment.
Not all local authorities’ Council Tax support scheme will achieve the objectives outlined by the Department of Communities and Local Government.
This Departmental Overview is one of 15 we are producing covering our work on each major government department. It summarises our work on HM Revenue and Customs during 2011-12.
A major HMRC programme to improve the way it tackles evasion delivered £4.32 billion of additional tax yield, reduced staff numbers and improved compliance work. However the Department is not yet exploiting the full potential of its new systems.
HMRC has improved its approach to tackling error and fraud in tax credits but still lost £2.3 billion in 2010-11.
In 2011-12 HMRC maintained its performance while reducing staff and spending but it is too early to tell what the long-term impact of cost reduction will be.
HMRC’s renewed strategy for dealing with alcohol duty fraud is a significant improvement on the previous strategy. However, the Department needs a reliable estimate of the tax gaps for beer and wine; and to tackle successfully the illicit diversion of duty-unpaid alcohol back into the UK market.
There are serious risks to HMRC’s business if the programme to replace the Aspire contract fails to meet its objectives by June 2017, when the contract ends.
The programme to increase online filing of tax returns has made significant progress, but HMRC needs a better understanding of the benefits and costs to customers and how its online filing costs compare to those for paper returns.
HM Revenue and Customs will have to make sure its staff have the right skills if the Department is to succeed in cutting its running costs by 25 per cent by 2014-2015 and bringing in each year an extra £7 billion of tax revenue.
This Departmental Overview is one of 17 we have produced covering our work on each major government department. It summarises our work on HM Revenue & Customs during 2010-2011.
HMRC faces a significant challenge in securing a £1.6 billion reduction in running costs over the next four years, at the same time as increasing tax revenues, improving customer service and achieving reductions in welfare payments.