TaxAdministrationCommons to probe HMRC ‘effectiveness’ after PAYE scandal

Commons to probe HMRC ‘effectiveness’ after PAYE scandal

Treasury sub-committee to look into how HMRC can do its job better after problems with end of year reconciliations

MPs have launched a major inquiry into the “administration and effectiveness ” of HMRC following the controversy over millions of demands for the payment of underpaid tax.

Commons Treasury sub-committee chairman George Mudie said the department had been “criticised heavily over the end of year reconciliations”.

He said: “We will examine how HMRC is doing its job, whether it can do it better and what the future holds following the spending review settlement.”

A statement from the committee said the department was subject to a significant efficiency programme and now faces having to make further savings as a result of the comprehensive spending review while giving priority to tax compliance.

It said: “The sub-committee’s inquiry will build on its predecessor’s work, which identified areas of concern in relation to the impact of the efficiency programme on HMRC’s performance, staff morale within the organisation and its performance on issues such as the payment of tax credits.”

Key issues will include:

  • HMRC’s performance as an organisation and whether it is delivering its key aims;
  • What the implications are of the spending review settlement;
  • Whether the department is able to deliver the government’s aims on tax compliance;
  • Whether PAYE reform is necessary; and
  • What HMRC’s priorities should be for the future.

The MPs are inviting all interested parties to submit written evidence by noon on Wednesday, 17 November.

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