CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

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Recommendation: In determining what further recovery action to take on fraud and error on the COVID-19 support schemes, HMRC should:

keep under review the return on investment of spending more resources on recovery and set out how it will ensure it maintains a level playing field for individuals and businesses that did not abuse the schemes, rather than being seen to reward those that were dishonest

4. We are concerned that HMRC may be lagging behind other established tax authorities in preventing fraudulent VAT registrations

Recommendation: HMRC should engage with its international counterparts to understand what lessons it can learn in preventing fraudulent VAT registrations and minimising the impact on honest taxpayers

5. Taxpayers and their agents are still not receiving an acceptable level of customer service

Recommendation: HMRC should write to the Committee setting out its plan to improve customer service to adequate levels as quickly as possible, and within three months

6. HMRC has further to go until it can differentiate between taxpayers who are genuinely struggling, and those who can afford to meet their liabilities but are choosing not to

Recommendation: HMRC should set out how it will strike the right balance between providing support to taxpayers who need it, whilst ensuring that those able to meet their liabilities are doing so. HMRC should also set out when its single customer account will be ready and consider how it can bring the implementation of it forward

7. Research and development tax reliefs are costly, prone to abuse and provide questionable benefit to the UK economy

Recommendation: HMRC should develop its analysis of the additional research and development expenditure its relief schemes result in, to consider what impact that expenditure has on the UK economy. HMRC should report to the Committee on its findings within 12 months.

The House of Commons Committee also commented:

‘‘HMRC should be much more ambitious with its plans to tackle fraud and error and recover losses. It needs to rethink its approach so that it can bring in more money with its limited resources, ensuring honest claimants are not left at a re lative disadvantage simply because they are more compliant’’.

You can read more on this topic here.

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HMRC ’s plan of approach to working with tax agents Published: 19 January 2023 Emailed: 25 January 2023

HM Revenue and Customs (HMRC) has set a plan of approach to working with tax agents and advisers to enable them to meet their obligations and build on their working relationship.

The plan includes information on:

what agents are

• • •

the different standards and strategies

how HMRC helps agents

• what HMRC does if agents do not meet the HMRC standard for agents • your rights as an agent.

As payroll professionals, we recognise how agents play a central role in the tax system and its contribution to the economy running smoothly. It ’ s positive to know that there are improving bridges for HMRC and agents to operate on a common objective.

The report can be read in full here.

cipp.org.uk

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