Consultation for HMRC

A major review of powers for the new revenue department, HM Revenue and Customs (HMRC), was announced today by the Paymaster General, Dawn Primarolo.

The consultation, announced during the Commons Second Reading of the Commissioners for Revenue and Customs Bill, will be launched next month with the publication of a consultation document which will cover:

the suitability of the existing powers regimes
new powers and practices that HMRC might need to allow it to deliver its PSA targets for better customer experience, more efficient services and improved compliance.
scope and benefits of consolidating the different interest charges and surcharge regimes for late payment, the different penalties and rights of appeal.

Introducing the consultation, Dawn Primarolo said:

“This consultation will give HMRC the modern regulations and practices it needs to be a high-performing, 21st century tax administration and demonstrates our commitment to delivering the best possible service to taxpayers.”

Notes for Editors

1. The Commissioners for Revenue and Customs Bill, which had its Second Reading in the Commons today, transfers the existing information and enforcement powers of HM Customs and Excise and the Inland Revenue to the new department of HM Revenue and Customs.

2. The Bill makes no significant changes to those powers and ring fences them so that they may only be used for the purpose for which they were originally intended. This means that HMRC officers will need to continue to use different powers in relation to different taxes and duties. For example, powers currently used by Customs and Excise to collect VAT will not be available to collect income tax.

3. It is the Government’s intention that following this initial consultation and the completion of the CRC Bill’s passage, officials in the new department should enter into more detailed discussions with representative bodies.

4. In addition to the consultation, to help explain the current powers regime to taxpayers and claimants, HM Customs and Excise and the Inland Revenue will produce an Advice Note covering the main areas of interaction – Income Tax, Corporation tax, VAT, Excise and Customs duties, PAYE and Tax Credits - and pointing taxpayers and claimants to information about other areas. It will be available to customers during inspections and visits, and will also be available to all on the HMRC website.

5. The Advice Note is currently available in draft on Customs and the Revenue’s web sites for comments, and they will also write to key representative customer and tax bodies to invite their comments.

6. HMRC media enquiries should be addressed to John Kimber at the Treasury press office on 020 7270 4457.

7. Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk.

8. This press release and other Treasury publications and information are available on the Treasury website at www.hm-treasury.gov.uk. If you would like Treasury press releases to be sent to you automatically by e-mail you can subscribe to this service from the press release site on the website .