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Since its formation in April 2005, HMRC has focused on transforming its relationship with business, consulting widely with the business community about how best to minimise unnecessary burdens imposed by the tax system. At the time of the 2006 Budget, the Chancellor announced challenging targets for the delivery of reduced administrative burdens by 2010/11.
On 28 November, HMRC published a paper to describe the new and improved services that make possible the delivery of HMRC's long-term vision that business will
- provide information only once
- spend less time dealing with inspections
- benefit from a range of flexible payment options
- enjoy a single point of contact with HMRC, and
- benefit from clear and targeted support, education and guidance at the time they need it most.
The paper describes some 26 measures that have already been introduced since April 2005. Many are related to VAT and self-assessment but, among those with a payroll context, are
- secure electronic workrooms - a pilot web-based facility that allows HMRC and businesses to share and exchange information about audits and inspections
- online filing by agents of annual returns and in-year forms without going through the formal 64-8 authorisation process
- new employer starter pack
- new Employer Helpline
- employment status indicator - tool aimed particularly at the construction industry
- online agent authorization for PAYE, corporation tax and self-assessment
- HMRC taken over full responsibility for the payment of tax credits
- electronic registration service for new employers
- revised form P46
- upgraded employer pack, including P11 calculator
- email facility for sending SSP queries to the employer helpline.
The principal areas in which HMRC intends to work in the four years to 2010/11 are as follows:
- reduce the burden of forms and returns, in particular in the areas of VAT registration and self-assessment
- develop a fresh approach to audits and inspections that is less burdensome for compliant businesses
- make significant improvements to the HMRC website, allowing easy access to the full range of information and guidance a business needs, to be rolled out in 2007/08 and fully delivered in 2008/09
- develop a single customer record, which will underpin single registration for all business taxes and enable the creation of a single business customer account, with consultation starting in 2007/08
- enhance services for agents and tax advisers, so that they can better support their clients and enable HMRC to target its activities more accurately on higher risk areas, with the first pilots starting in December 2006
- provide a streamlined online environment for business to submit forms and returns and make payments, with the first legislation planned for 2007/08 and delivery rolled out in 2008/09
- link the enquiry window (the 12-month period HMRC has to query a business' self assessment tax or corporation tax return) with the submission of the tax return rather than the statutory filing date, so that businesses that file their returns early can have their tax affairs settled sooner, effective from 2008.
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Delivering a new relationship with business
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