HMRC review of links with large businesses - Proposals for improving the working relationships

HMRC has published a report entitled "2006 Review of Links with Large Business". Following consultation with businesses, representative and professional bodies, the report proposes a framework within which business and HMRC can work together to improve the nature of the relationship. The main proposals are:

• Certainty: businesses will obtain earlier certainty about the tax treatment of transactions. It will be easier and quicker to get HMRC's view so businesses are able to avoid unintended consequences of genuine business transactions.
  
  
• Efficient risk based approach: Businesses will benefit from a more cost effective use of resources and efficient resolution of issues through the implementation of an audit approach which is focused on key risks. To underpin this HMRC will develop, in conjunction with businesses, a more sophisticated risk assessment framework.
  
  
• Speedy resolution of issues: Issues will be resolved more quickly and efficiently. The costs for businesses and the time they spend in resolving issues with HMRC will be reduced.
  
  
• Clarity through consultation: Businesses will benefit from earlier clarity and reduced complexity as the development of the administrative framework is based on effective consultation so that the business perspective contributes to the making of informed decisions.

An Advisory Board will be established and will include senior representatives from business and HM Treasury to oversee delivery of the proposals and report progress. A delivery plan is being developed and will be published prior to Budget 2007.

...UK Payroll News - Latest


Source:
2006 Review of Links with Large Business Report

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