HMRC Reviews Links With UK's Large Firms

by Jason Gorringe, Tax-News.com, London

30 May 2006

HM Revenue And Customs has pledged to provide more effective channels of communication to ensure that the tax department better understands the needs of large business in the United Kingdom.

HMRC's pledge comes after the Chancellor of the Exchequer, Gordon Brown, in his 2006 Budget announcement asked Sir David Varney, the Chairman of HM Revenue & Customs (HMRC), to lead a review of links with large business.

In addition to attaining the goal of providing more effective channels of communication with large business, HMRC said that it aims to identify administrative or operational processes which cause practical difficulties for large businesses.

Other aims include ensuring that a business perspective informs HMRC’s policy implementation work and that the Business Tax Forum (BTF), remains an effective vehicle for business and HMRC to discuss operational issues relating to the administration of the tax system.

The current review follows on from a 2001 review of the links between the tax department and business, carried out by the former Inland Revenue, which reported at the time of the 2001 Budget which made 40 recommendations to improve relations.

The 2001 review also led to the formation of the BTF, a group made up of representatives from both business and HMRC and which meets quarterly to discuss ongoing issues and concerns.

Despite such initiatives, UK businesses and their advisers constantly complain about the level and complexity of taxes, and the lack of understanding at the Treasury of the needs of business.

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