The survey results follow a January 2018 report from the Public Accounts Committee (PAC) which raised concerns with the way HMRC was operating.
PAC Chair Meg Hillier MP said at the time:
"HMRC faces difficult decisions on how best to use its limited resources - decisions that must give full consideration to the needs of all taxpayers…[there] are serious, pressing challenges for HMRC, requiring swift and co-ordinated action in Government. As a matter of urgency, the authority must set out a coherent plan and demonstrate it is fit for the future."
Mark Farrar, Chief Executive, AAT said:
“AAT has long called for a broad, overarching tax strategy to be published for the sake of all taxpayers – businesses and individuals alike – as well as to help Government. Likewise, whilst recognising the great job HMRC does in many areas, stretched resources can contribute towards poor performance in certain circumstances and that’s in nobody’s interests. This strong political support for both a broad tax strategy and increased investment in HMRC is yet to translate into action – but the benefits to all stakeholders appear clear.”
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Publication of Labour Market Enforcement Strategy 2018/19 11 May 2018
The Director of Labour Market Enforcement has published his first full Strategy for 2018/19. The Strategy sets out 37 recommendations to help stop the exploitation of vulnerable workers. There have been many changes to the labour market during the last 40 years and due to this it was realised that labour market laws and regulations were not being fully enforced. The Director undertook a public consultation in summer/autumn 2017 to help form the Strategy. The approach that was taken builds on the strategic enforcement framework that has influenced enforcement policy in countries such as the USA, Canada and Australia in recent years. The framework is based on four principles: • Prioritisation: action from enforcement bodies needs to be informed by an understanding of the probable severity of problems across sectors, both in terms of frequency and level of harm; • Deterrence: the threat and perception of the likelihood of investigation and enforcement must proactively spur employers into compliance; • Sustainability: enforcement must have a long-term effect on employer behaviour • System-wide effects: each layer of an industry must be affected by enforcement, sometimes using sector- specific levers. • HMRC NMW/NLW team should develop a more supportive approach when companies ask for advice in order to be compliant. • A statement of rights should be made mandatory for all workers from within week one of employment commencing. The Government should develop a template for the written statement of employment to ensure transparency in information provided, and to reduce the burden on business. • The right to a payslip should be extended to all workers. • For hourly paid workers, there should be mandatory inclusion of total hours worked and hourly rate of pay on payslips. • HMRC, or another appropriate state body, should be provided with the powers and remit to take responsibility for the enforcement of holiday pay for all workers, including mechanisms to recover holiday pay arrears. Below highlights some of the Strategy’s key recommendations that came out of both the consultation and other work carried out by the Labour Market Enforcement office over the past year:
The full Strategy report is available to read here
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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