CIOT: LITRG welcomes NAO report on HMRC’s management of tax debt
The Low Incomes Tax Reform Group (LITRG) has generally welcomed today’s National Audit Office report on HMRC’s management of tax debt. The National Audit office has made recommendations which, if properly implemented, could improve tax debt collection processes for those on low incomes.
The report looks at how HMRC handles tax debt (i.e. excluding tax credits and child benefit overpayments). However, for many low-income families tax debt and tax credits debt may co-exist. In LITRG’s view, HMRC should consider the related tax credits issues when taking forward the report’s recommendations.
John Andrews, Chairman of LITRG, says: “It is concerning to note that the report cites lack of resources in many instances where HMRC have failed to make progress. Again this calls into question the Government’s programme of ‘efficiency savings’ through reduced staffing levels. This is a particular concern when it comes to the time that must be invested in the most vulnerable.”
LITRG are fearful that HMRC might take the view that harsher and more vigorous pursuit of debt, in accordance with the recommendations, should take priority over the more time-consuming, but equally necessary, protection of the most vulnerable.
-ENDS-
For press information contact Simon Goldie on 020 7245 4122 (direct line), 07879 497316 (mobile). Email sgoldie@ciot.org.uk
Notes to Editors
The Low Incomes Tax Reform Group is an initiative of The Chartered Institute of Taxation.
The National Audit Office has reported its findings from a Value for Money study into HMRC’s management of tax debt. This is the first report of its kind since the merger of the former Inland Revenue and HM Customs & Excise to form the combined Department.
To read the full LITRG response please click here.
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