HMRC should be held to account on meeting Charter obligations: AAT

AAT has called on HMRC to make its revised Charter enforceable, with the organisation rewarded or penalised depending on how it has performed against the Charter’s obligations.

In response to the ongoing consultation into the updated Charter, which comes into effect this summer, AAT has recommended that its effectiveness is regularly monitored and evaluated. Penalties should be considered for non-compliance with the Charter or, conversely, rewards if all aspects of the Charter are broadly met.

While fining HMRC would be very problematical given it is taxpayer-funded, AAT has suggested that staff bonus payments are based on organisational as well as personal performance and are explicitly linked to meeting Charter obligations.

A survey of AAT licensed members found that over half (55%) would like an “increase in the skills, training and number of HMRC tax inspectors and call centre staff to enable HMRC to provide a more efficient and effective service” to be prioritised. This has arguably been reflected in the updated Charter in its commitments to "get tax right" and "make things easy". Associating staff bonus payments with the success of HMRC’s service should help to ensure such efficiency and effectiveness is delivered.

Adam Harper, Director of Strategy and Professional Standards, AAT said: “Even the very best Charters are of little value if they do not result in any obvious form of enforcement when evaluated. Not having some form of enforcement measure in place seriously undermines not only the effectiveness of the Charter but also the customer perception of its value.

“No fines have ever been imposed on HMRC for failing its customers. While fining the organisation would effectively be tantamount to fining taxpayers, linking a significant portion of bonus payments to HMRC’s success would concentrate the minds of many staff and consequently help meet the needs of HMRC’s customers.”

For further information, please view AAT’s public policy work.