HMRC Äɲ乤ës 3,000 more Ʊ°Õ¡¿Éþ½¾ staff and is »Ï¤á¤ë¡¤·è¤á¤ë to Ū Áê³ʪ·ï ÀǶâ errors

  • HMRC has Äɲ乤ëd over 3,000 more staff to its Ʊ°Õ¡¿Éþ½¾ team?
  • ÀìÌç²Ès ·Ù¹ð¤¹¤ë it will do little to help ¾¦Çä¡¿»Å»ö owners needing help?

HMRC has been »Ù¤¨¤ëing its Ʊ°Õ¡¿Éþ½¾ department in a ´ë¤Æ¡¤ÅØÎÏ¡¤Äó°Æ to µÕž¤¹¤ë a sharp µñÀ䤹¤ë¡¿Äã²¼¤¹¤ë in ÀǶ⠺ÐÆþ, This Is Money can ÌÀ¤é¤«¤Ë¤¹¤ë¡¿Ï³¤é¤¹.

New data ÌÀ¤é¤«¤Ë¤¹¤ë¡¿Ï³¤é¤¹s the ÀǶâ office has Äɲ乤ëd over 3,000 more staff to its Ʊ°Õ¡¿Éþ½¾ ʬ³ä since the 2021/22 ºâÀ¯¾å¤Î year, but ÀìÌç²Ès ·Ù¹ð¤¹¤ë this will do little to help ¾¦Çä¡¿»Å»ö owners.??

A Êó¹ð¡Ê¤¹¤ë¡Ë¡¿²±Â¬ by the Public Accounts °Ñ°÷²ñ earlier this year ÀßΩ¤¹¤ë that ÀǶ⠺ÐÆþ from HMRC's Ʊ°Õ¡¿Éþ½¾ work had fallen from an ÉáÄ̤Ρ¿Ê¿¶Ñ¡Ê¤¹¤ë¡Ë of 5.2 per cent before the pandemic, to 4.2 per cent in 2021-22.

It ¼¨¤¹s the lowest level for over a £±£°Ç¯´Ö, and means the ÀǶâ office has taken ¡ò9billion ¤¤¤Ã¤½¤¦¾¯¤Ê¤¯ over the past two years, in large part ͽÄê to the fraudulent use of Covid ·×²è¡¿±¢ËÅs.

More checks: Small businesses are likely to face more HMRC inquiries as it bolsters its compliance team

More checks: Small ¾¦Çä¡¿»Å»ös are likely to ľÌ̤¹¤ë more HMRC Ä´ººs as it »Ù¤¨¤ës its Ʊ°Õ¡¿Éþ½¾ team?

It also ÀßΩ¤¹¤ë that HMRC's Ʊ°Õ¡¿Éþ½¾ staff were '¤¤¤Ã¤½¤¦¾¯¤Ê¤¯ À¸»ºÎϤΤ¢¤ë ͽÄê to social distancing À©¸Âs and the loss of more experienced staff.'

But it seems the ÀǶâ office has been trying to ¶¯²½¤¹¤ë its Ʊ°Õ¡¿Éþ½¾ team.?

Data ÆÀ¤ëd by accountancy ²ñ¼Ò¡¿·ø¤¤ Price Bailey ÀßΩ¤¹¤ë that HMRC has ¿·ºÎÍѤ¹¤ëd 3,084 more staff to its ¸ÜµÒ Ʊ°Õ¡¿Éþ½¾ ÉôÂâ since 2021/22. It ¼¨¤¹s a 12 per cent rise in a Áª¤Ó½Ð¤¹¡¿ÆÈ¿È year.

Andrew Park, partner at Price Bailey, said: 'The ¸º¾¯¡Ê¤¹¤ë¡Ë off in Ʊ°Õ¡¿Éþ½¾ activity is ÅÚÂæ¤òÊø¤¹ing the deterrent ±Æ¶Á of HMRC's work.?

'There is growing °µÎÏ on HMRC to catch up on Ʊ°Õ¡¿Éþ½¾ activity and this hefty Áý²Ã¤¹¤ë in staffing levels ¼¨º¶¤¹¤ës that the number of Ūd Ä´ººs should °ÕÌ£¤¢¤ê¤²¤Ë rise in the coming years.'

The number of staff working in the three highest grades, meaning they are likely to be more experienced in Ʊ°Õ¡¿Éþ½¾, has grown from 3,197 to 3,541 since 2021/22.

The data also shows that the number of ÀǶ⠻뻡´±s in the º¾µ½ Ä´ºº Service, an ¥¨¥ê¡¼¥È ÉôÂâ which sits within ¸ÜµÒ Ʊ°Õ¡¿Éþ½¾, has Äɲ乤ëd 539 staff in the last year, bringing the total to 4,925.

Price Bailey says that ¿·ºÎÍѤ¹¤ëd staff are 'likely to be experienced ÀǶâ professionals from the »äŪ¤Ê ÉôÌç and will lead ¥³¥ó¥Ó¥Ê¡¼¥È¡¿Ê£¹çÂÎ ÀǶâ enquiries.'

'It is reasonable to ¿äÄꤹ¤ë¡¿Í½ÁÛ¤¹¤ë a lag between ¸ºß ÇÛʬ¤¹¤ëd Éղà »ñ¸»s and seeing them ÂѤ¨¤ë fruit,' said Park.?

'HMRC now has °ÕÌ£¤¢¤ê¤²¤Ë more Ʊ°Õ¡¿Éþ½¾ »ñ¸»s than before the pandemic so it is difficult to see how HMRC can fail to return »Ü¹Ô activity to pre-pandemic levels and beyond over the next one or two ÀǶâ years.'

A ¹­ÊóôÅö¼Ô for HMRC said: 'Our ¿¦¶È is to collect the ÀǶâ people ¼Ú¤ê¤¬¤¢¤ë. This Åê»ñ will ¤½¤Î¾å¤Î ¹â¤á¤ë our ability to ¼è¤êÁÈ¤à º¾µ½ and ³Î¼Â¤Ë¤¹¤ë fairness in the ÀǶâ system.'?

What will this mean for small ¾¦Çä¡¿»Å»ös?

Ʊ°Õ¡¿Éþ½¾ is ɬ¿Ü¤Î to HMRC's work and ³Î¼Â¤Ë¤¹¤ëing taxpayers are »Ùʧ¤¦¡¿Ä¶âing the ¸¢Íø ÎÌ of ÀǶâ. Park says it 'is in everyone's Íø±×¡¿¶½Ì£ that HMRC ¼è¤êÁȤàs Èó¡¤ÉÔ¡¤Ìµ-Ʊ°Õ¡¿Éþ½¾ and it now has many more staff for that ÌÜŪ.'

But what will this mean for small ¾¦Çä¡¿»Å»ös and should they ¿äÄꤹ¤ë¡¿Í½ÁÛ¤¹¤ë ¤½¤Î¾å¤Î scrutiny of their »ö·ï¡¿»ö¾ð¡¿¾õÀªs?

?HMRC needs to work with individuals and ¾¦Çä¡¿»Å»ös not against them
Heather Rogers, Aston Accountancy??

We asked This Is Money's µï½»¡Ê¼Ô¡Ë ÀǶâ ÀìÌç²È Heather Rogers of Aston Accountancy about her ¸«²ò¡Ê¤ò¤È¤ë¡Ës on where HMRC will be directing its attention in the coming months.

Anti-money laundering is likely to be high on the ¶¨µÄ»ö¹à, as its a ³Ë¿´ ¾ÇÅÀ¡Ê¤ò¹ç¤ï¤»¤ë¡Ë for the º¾µ½ Ä´ºº Service. She also ¿´ÇÛ¤¹¤ës more of a ¾ÇÅÀ¡Ê¤ò¹ç¤ï¤»¤ë¡Ë on Áê³ʪ·ï ÀǶâ errors ¤Ë°ú¤­Â³¤¤¤Æ Êó¹ð¡Ê¤¹¤ë¡Ë¡¿²±Â¬s that the ÀǶâ office ¼êÅϤ¹d out ¡ò2.3million ²ÁÃ͡ʤ¬¤¢¤ë¡Ë of ·ºÈ³¡¤È³Â§s ¤Ë°ú¤­Â³¤¤¤Æ incorrect valuations.

Park says:?'In practice, the ÉáÄ̤Ρ¿Ê¿¶Ñ¡Ê¤¹¤ë¡Ë ¾¦Çä¡¿»Å»ö is going to get investigat ed more often¡Ä there'll be ¸øÀµ¤Ë¡¿¤«¤Ê¤ê ·è¤Þ¤ê¤­¤Ã¤¿»Å»ö enquiries. If your »ö·ï¡¿»ö¾ð¡¿¾õÀªs are in order, you've got a lot ¤¤¤Ã¤½¤¦¾¯¤Ê¤¯ to worry about.'?

The ·èÄ꡿ȽÄ꾡¤Á¡Ê¤¹¤ë¡Ë to »Ù¤¨¤ë its Ʊ°Õ¡¿Éþ½¾ team while Ʊ»þ¤Ë ¤Î¶á¤¯¤Ëing some of its ¸ÜµÒ services helplines will raise some eyebrows.?

While the self-ººÄ꡿ɾ²Á helpline has now ºÆ³«¤¹¤ëd, This Is Money has written extensively about the long waits ¾¦Çä¡¿»Å»ö owners have had to ľÌ̤¹¤ë in ºÇ¶á¤Î months.

We recently ºÇ¹âĬ¤Î¾ìÌÌd a »öÎã¡¿´µ¼Ô in which a reader was ¼êÅϤ¹d a Ë¡°Æ of ¡ò38,000 by HMRC, only to discover it was a typo. He was then told he could only ÀÜ¿¨¤¹¤ë HMRC by ÃÏ°Ì¡¤Ç¤Ì¿¤¹¤ë.

Staffing levels in the ¸ÜµÒ services departments have continued to Íî¤Á¤ë - the ÉáÄ̤Ρ¿Ê¿¶Ñ¡Ê¤¹¤ë¡Ë number of staff has fallen from 25,500 to 19,500 in five years.

Rogers says: 'It's ironic really, that with its ¸½ºß¤Î poor service and ºÇ¶á¤Î Ä´°õ of a 5 year IT ·ÀÌó to ¤½¤Î¾å¤Î develop its ¿ô»úɽ¼¨¼°¤Î services to make them the first point of ÀÜ¿¨¤¹¤ë ¾¦Çä¡¿»Å»ös and the public have with it, it doesn't seem Íø±×¡¿¶½Ì£d in ͽËÉ and helping people get it ¸¢Íø.

'In the old days with Ãϸµ¤Î offices, the Ãϸµ¤Î »ë»¡´±s knew the ¾¦Çä¡¿»Å»ös and the accountants: the good and the ¤¤¤Ã¤½¤¦¾¯¤Ê¤¯ organised, shall we say and this helped with Ʊ°Õ¡¿Éþ½¾.?

'Now, it's a ÊúÍʤ¹¤ë, unwieldy and inefficient À¯ÉÜ machine which thinks ²Ê³Ø¡Ê¹©³Ø¡Ëµ»½Ñ is the answer followed by ·ã¤·¤¤ hitting on ¾¦Çä¡¿»Å»ös and individuals, many of whom are trying their best.'

She Äɲ乤ës: 'HMRC needs to work with individuals and ¾¦Çä¡¿»Å»ös not against them; those who commit º¾µ½ and ÀǶ⠲óÈò deserve ·ã¤·¤¤ ·ºÈ³¡¤È³Â§s and this is the area they need to ¾ÇÅÀ¡Ê¤ò¹ç¤ï¤»¤ë¡Ë on, ƱÍÍ¤Ë as those who are wilfully Êä½õÁõÃÖing Money Laundering.

'However, it does feel that HMRC are on a 'ºÐÆþ raising' trip and taking the same ÂÖÅÙ ¤Ë¸þ¤«¤Ã¤Æ those that are just trying their best to get it ¸¢Íø.'

Îà»÷¤·¤Æ, Park believes the move will do little to ²þÁ±¤¹¤ë ¸ÜµÒ services: 'It's good fo r the ºâ̳¾Ê but not for anybody who needs help from HMRC.'?

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