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CIOT: Reinvestment in HMRC customer service is the key to better compliance

CIOT: Reinvestment in HMRC customer service is the key to better compliance

Tax campaigners have welcomed the news that the HMRC budget is to be protected from any further cuts this year. Ostensibly this is to enable it to focus more on countering evasion and avoidance. But equally, the urgent need to improve customer service should not be compromised by lack of investment.

Commenting, Anthony Thomas, Chairman of the Low Incomes Tax Reform Group (LITRG), said:

“Good and reliable customer service, delivered at a reasonable cost to the taxpayer, is essential for those who depend upon HMRC as their only source of advice and help with a highly complex tax system.

“Countering tax evasion and avoidance is of course vital in the interests of all taxpayers. But let us not forget the dangers inherent in letting the compliant majority fall by the wayside through being unable to communicate cheaply and effectively with HMRC when they need to. And if people are better able to engage with HMRC, they are less likely to drop below the radar.

“HMRC’s innovative grant-in-aid programme has helped many voluntary sector bodies in their work with otherwise unrepresented taxpayers and tax credit claimants on low incomes, and has brought dividends to HMRC and the Exchequer in terms of an increased tax take and better compliance. More of the same will help free up HMRC’s resource and enable them to make the investments both in protecting the tax base, and in customer service, from which all taxpayers will ultimately benefit.”

Notes for editors

1.       The Low Incomes Tax Reform Group (LITRG)

LITRG is an initiative of the Chartered Institute of Taxation to give a voice to the unrepresented. Since 1998 LITRG has been working to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of those on low incomes.

2.       The Chartered Institute of Taxation (CIOT)

The CIOT is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT is an educational charity, promoting education and study of the administration and practice of taxation. One of our key aims is to work for a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. The CIOT’s work covers all aspects of taxation, including direct and indirect taxes and duties. Through our Low Incomes Tax Reform Group (LITRG), the CIOT has a particular focus on improving the tax system, including tax credits and benefits, for the unrepresented taxpayer.

The CIOT draws on our members’ experience in private practice, commerce and industry, government and academia to improve tax administration and propose and explain how tax policy objectives can most effectively be achieved. We also link to, and draw on, similar leading professional tax bodies in other countries. The CIOT’s comments and recommendations on tax issues are made in line with our charitable objectives: we are politically neutral in our work.

The CIOT’s 17,000 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.

George Crozier
External Relations Manager

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