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, type =
Non-ministerial government department Non-ministerial government departments (NMGDs) are a type of Departments of the Government of the United Kingdom, department of the Government of the United Kingdom that deal with matters for which direct political oversight has been judged unneces ...
, seal = , logo = HM Revenue & Customs.svg , logo_width = 190px , picture = , picture_width = , picture_caption = , formed = , preceding1 =
Inland Revenue The Inland Revenue was, until April 2005, a department Department may refer to: * Departmentalization, division of a larger organization into parts with specific responsibility Government and military *Department (country subdivision), a g ...
, preceding2 =
HM Customs and Excise HM Customs and Excise (properly known as Her Majesty's Customs and Excise (or His as appropriate), often abbreviated to HMCE) was a department of the British Government The Government of the United Kingdom, domestically referred to as He ...
, dissolved = , superseding = , jurisdiction = United Kingdom , headquarters = 100 Parliament Street, London, SW1A 2BQ , region_code = GB , coordinates = , employees = 57,943 FTE , budget = £4bn (2018–2019) , minister1_name =
Lucy Frazer Lucy Frazer (born 17 May 1972) is a British politician and barrister serving as Financial Secretary to the Treasury since 2021. She previously served as Solicitor General for England and Wales and as Minister of State for Prisons. She has been t ...
PC MP , minister1_pfo =
Financial secretary to the Treasury Financial Secretary to the Treasury is a mid-level ministerial post in the HM Treasury, British Treasury. It is the fifth most significant ministerial role within the Treasury after the First Lord of the Treasury, the Chancellor of the Exchequer, ...
and minister responsible for HMRC , chief1_name = Jim Harra , chief1_position = Chief Executive , chief2_name = Angela MacDonald , chief2_position = Deputy Chief Executive , chief3_name = , chief3_position = , chief4_name = , chief4_position = , chief5_name = , chief5_position = , chief6_name = , chief6_position = , chief7_name = , chief7_position = , chief8_name = , chief8_position = , chief9_name = , chief9_position = , parent_department = , parent_agency = , child1_agency =
Valuation Office Agency The Valuation Office Agency is a government body in England and Wales. It is an executive agency An executive agency is a part of a government department that is treated as managerially and budgetarily separate, to carry out some part of the e ...
, keydocument1 = Commissioners for Revenue and Customs Act 2005 , website = , map = , map_width = , map_caption = , footnotes = , agency_type = Revenue department Her Majesty's Revenue and Customs (HM Revenue and Customs or HMRC) is a non-ministerial
department Department may refer to: * Departmentalization, division of a larger organization into parts with specific responsibility Government and military *Department (country subdivision), a geographical and administrative division within a country, for e ...
of the
UK Government ga, Rialtas na Ríochta Aontaithe sco, Govrenment o the Unitit Kinrick , image = HM Government logo.svg , image_size=220px, date_established = , state = United Kingdom , address = 10 Downing Street, London , leader_title = Prime Minister ...
responsible for the
collection Collection or Collections may refer to: * Cash collection, the function of an accounts receivable department * Collection agency, agency to collect cash * Collections management (museum) ** Collection (artwork), objects in a particular field fo ...
of
taxes A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law Law is a system A system is a group of Interaction, interacting or interrelated elements that act accord ...
, the payment of some forms of state support, the administration of other regulatory
regimes In politics Politics (from , ) is the set of activities that are associated with making decisions in groups, or other forms of power relations between individuals, such as the distribution of resources or status. The branch of social sc ...

regimes
including the
national minimum wage The National Minimum Wage Act 1998 creates a minimum wage A minimum wage is the lowest remuneration that employers can legally pay their employees—the price floor below which employees may not sell their labor. Most List of minimum wages by c ...
and the issuance of national insurance numbers. HMRC was formed by the merger of the
Inland Revenue The Inland Revenue was, until April 2005, a department Department may refer to: * Departmentalization, division of a larger organization into parts with specific responsibility Government and military *Department (country subdivision), a g ...
and
Her Majesty's Customs and Excise HM Customs and Excise (properly known as Her Majesty's Customs and Excise (or His as appropriate), often abbreviated to HMCE) was a department of the British Government The Government of the United Kingdom, domestically referred to as H ...
, which took effect on 18 April 2005. The department's logo is the
St Edward's Crown St Edward's Crown is the centrepiece of the Crown Jewels of the United Kingdom The Crown Jewels of the United Kingdom, originally the Crown Jewels of England, are a collection of royal ceremonial objects kept in the Tower of London The ...

St Edward's Crown
enclosed within a circle.


Departmental responsibilities

The department is responsible for the administration and collection of
direct tax Though the actual definitions vary between jurisdictions, in general, a direct tax is a tax imposed upon a person or property as distinct from a tax imposed upon a transaction, which is described as an indirect tax. The term may be used in econo ...
es including
Income Tax An income tax is a tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law Law is a system A system is a group of Interaction, interacting or interrelate ...
,
Corporation Tax A corporate tax, also called corporation tax or company tax, is a direct tax imposed by a jurisdiction on the income or capital of corporations or analogous legal entities. Many countries impose such taxes at the national level, and a similar tax ...
,
Capital Gains Tax A capital gains tax (CGT) is a tax on the profit realized on the sale of a non-inventory asset In financial accountancy, financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (t ...
(CGT) and
Inheritance Tax An inheritance tax is a tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law Law is a system A system is a group of Interaction, interacting or interre ...
(IHT),
indirect tax An indirect tax (such as sales tax A sales tax is a tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law Law is a system A system is a group of In ...
es including
Value Added Tax A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law L ...
(VAT),
excise duties file:Lincoln Beer Stamp 1871.JPG, upright=1.2, 1871 U.S. Revenue stamp for 1/6 barrel of beer. Brewers would receive the stamp sheets, cut them into individual stamps, cancel them, and paste them over the bung of the beer barrel so when the barrel ...
and
Stamp Duty Land Tax Stamp duty in the United Kingdom is a form of tax charged on legal instruments (written documents), and historically required a Impressed duty stamp, physical stamp to be attached to or impressed upon the document in question. The more modern vers ...
(SDLT), and environmental taxes such as
Air Passenger Duty Air Passenger Duty (APD) is an excise file:Lincoln Beer Stamp 1871.JPG, upright=1.2, 1871 U.S. Revenue stamp for 1/6 barrel of beer. Brewers would receive the stamp sheets, cut them into individual stamps, cancel them, and paste them over the bu ...
and the
Climate Change Levy The Climate Change Levy (CCL) is a tax on energy delivered to non-domestic users in the United Kingdom. Its aim is to provide an incentive to increase energy conservation, energy efficiency and to reduce greenhouse gas, carbon emissions; however, t ...
. Other aspects of the department's responsibilities include
National Insurance National Insurance (NI) is a fundamental component of the welfare state in the United Kingdom Welfare is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social s ...
Contributions (NIC), the distribution of
Child Benefit Child benefit or children's allowance is a social security payment which is distributed to the parents or guardians of child Biologically, a child (plural children) is a human being between the stages of childbirth, birth and puberty, or betwee ...
and some other forms of state support including the Child Trust Fund, payments of
Tax Credits A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit they have accrued from the total they owe the state (polity), state. It may also be a credit granted in recognition of taxes already paid or a form ...
, enforcement of the National
Minimum Wage A minimum wage is the lowest remuneration Remuneration is the pay or other financial compensationFinancial compensation refers to the act of providing a person with money Image:National-Debt-Gillray.jpeg, In a 1786 James Gillray caricature, ...
, administering anti-
money laundering Money laundering is the process of changing large amounts of money obtained from crimes, such as drug trafficking Uncoated tablets, consisting of about 90% acetylsalicylic acid, along with a minor amount of inert fillers and binders. Aspi ...
registrations for Money Service Businesses and collection and publication of the trade-in-goods statistics. Responsibility for the protection of the UK's borders passed to the
UK Border Agency The UK Border Agency (UKBA) was the border control Border control is the measures taken by a state or a bloc of states to monitor its borders and regulate the movement of people, animals, and goods across the border. History States and ru ...
within the
Home Office The Home Office (HO), also known (especially in official papers and when referred to in Parliament) as the Home Department, is a ministerial department of the Government of the United Kingdom ga, Rialtas na Ríochta Aontaithe sco, Govren ...

Home Office
on 1 April 2008 and then to UK Border Force and the
National Crime Agency The National Crime Agency (NCA) is a national law enforcement agency in the United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain,Usage is mixed. The Guardian' an ...

National Crime Agency
in 2013. HMRC had two overarching Public Service Agreement targets for the period 2008–2011: * Improve the extent to which individuals and businesses pay the tax due and receive the credits and payments to which they are entitled * Improve customers' experiences of HMRC and improve the UK business environment HMRC deals with the top 2,000 large business via CRM (customer relationship managers). The next 8,400 business are dealt with via customer coordinators who provide a single point of contact with HMRC.


Powers of officers

HMRC is a law enforcement agency which has a strong cadre of criminal investigators responsible for investigating Serious Organised Fiscal Crime. This includes all of the previous HMCE criminal work (other than drug trafficking but used to include this up until 2008) such as tobacco, alcohol, and oils smuggling. They have aligned their previous Customs and Excise powers to tackle previous Inland Revenue criminal offences. They are responsible for seizing (or preventing the loss of) billions of stolen pounds of HMG's revenue. Their skills and resources include the full range of intrusive and covert surveillance and they are a senior partner in the Organised Crime Partnership Board. HMRC criminal investigation officers have wide-ranging powers of arrest, entry, search and detention. HMRC have the power to apply for orders requiring information to be produced; apply for and execute search warrants; make arrests; search suspects and premises following arrest; and recover criminal assets through the Proceeds of Crime Act 2002. The main power, unde
section 138
of the Customs and Excise Management Act 1979 (as amended b
section 114
of the
Police and Criminal Evidence Act 1984 The Police and Criminal Evidence Act 1984 (PACE) (1984 c. 60) is an Act of Parliament Acts of parliament, sometimes referred to as primary legislation, are texts of law passed by the Legislature, legislative body of a jurisdiction (often a parliam ...
) is to arrest anyone who has committed, or whom the officer has reasonable grounds to suspect has committed, any offence under the Customs and Excise Acts as well as related fraud offences. On 30 June 2006, under the authority of the new
Labour Labour or labor may refer to: * Childbirth Childbirth, also known as labour or delivery, is the ending of pregnancy where one or more babies leaves the uterus by passing through the vagina or by Caesarean section. In 2015, there were about 13 ...
home secretary The home secretary, officially the secretary of state for the Home Department, is a Secretary of State (United Kingdom), secretary of state in the Government of the United Kingdom, with overall responsibility for all Home Office business. The ...
, John Reid, extensive new powers were given to HMRC. Under chairman Sir David Varney, a new Criminal Taxes Unit of senior tax investigators was created to target suspected fraudsters and criminal gangs. To disrupt and clamp down on criminal activity. This HMRC/CTU would pursue suspects in the same way the
US
US
Internal Revenue Service The Internal Revenue Service (IRS) is the revenue service A revenue service, revenue agency or taxation authority is a government agency responsible for the intake of government revenue, including taxes and sometimes non-tax revenue. Depe ...
caught out
Al Capone Alphonse Gabriel Capone (; January 17, 1899 – January 25, 1947), sometimes known by the nickname "Scarface", was an American gangster A gangster is a criminal In ordinary language, a crime is an unlawful act punishable by ...

Al Capone
on
tax evasion Tax evasion is an illegal attempt to defeat the imposition of taxes A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law Law is a system A system is a g ...
. These new powers included the ability to impose penalties without needing to prove the guilt of suspected criminals; extra powers to use sophisticated surveillance techniques, and for the first time, to have the same ability as customs officers to monitor suspects and arrest them. On 19 July 2006, the executive chairman of HMRC, Sir David Varney resigned. HMRC is also listed under parts of the British government which contribute to intelligence collection, analysis and assessment. Their prosecution cases may be coordinated with the
police The police are a Law enforcement organization, constituted body of Law enforcement officer, persons empowered by a State (polity), state, with the aim to law enforcement, enforce the law, to ensure the safety, health and possessions of citize ...

police
or the
Crown Prosecution Service The Crown Prosecution Service (CPS) is the principal public agency for conducting criminal prosecution A prosecutor is a legal representative of the prosecution in states with either the common law In law, common law (also known as judicial ...

Crown Prosecution Service
.


History

The merger of the Inland Revenue and HM Customs & Excise was announced by then
chancellor of the Exchequer The chancellor of the Exchequer, often abbreviated to the chancellor, is a senior minister of the Crown within the Government of the United Kingdom, and the chief executive officer of HM Treasury, Her Majesty's Treasury. As one of the four Grea ...
Gordon Brown James Gordon Brown (born 20 February 1951) is a British politician who served as Prime Minister of the United Kingdom The prime minister of the United Kingdom is the head of government The head of government is either the h ...

Gordon Brown
in the
budget A budget is a financial plan In general usage, a financial plan is a comprehensive evaluation of an individual's current pay and future financial state by using current known variables to predict future income, asset values and withdrawal p ...

budget
on 17 March 2004. The name for the new department and its first executive chairman, David Varney, were announced on 9 May 2004. Varney joined the nascent department in September 2004, and staff started moving from
Somerset House Somerset House is a large Neoclassical Neoclassical or neo-classical may refer to: * Neoclassicism or New Classicism, any of a number of movements in the fine arts, literature, theatre, music, language, and architecture beginning in the 17t ...

Somerset House
and New Kings Beam House into HMRC's new headquarters building at
100 Parliament Street
100 Parliament Street
in
Whitehall Whitehall is a road and area in the City of Westminster, Central London. The road forms the first part of the A roads in Zone 3 of the Great Britain numbering scheme, A3212 road from Trafalgar Square to Chelsea, London, Chelsea. It is the main ...

Whitehall
on 21 November 2004. The planned new department was announced formally in the
Queen's Speech A speech from the throne (or throne speech) is an event in certain monarchies in which the reigning sovereign, or a representative thereof, reads a prepared speech to members of the nation’s legislature when a legislative session, session is ...
of 2004 and a
bill Bill(s) may refer to: Common meanings * Banknote A banknote (often known as a bill (in the US and Canada), paper money, or simply a note) is a type of negotiable instrument, negotiable promissory note, made by a bank or other licensed author ...
, the Commissioners for Revenue and Customs Bill, was introduced into the
House of Commons The House of Commons is the name for the elected lower house A lower house is one of two chambers Chambers may refer to: Places Canada: *Chambers Township, Ontario United States: *Chambers County, Alabama *Chambers, Arizona, an unincorpor ...
on 24 September 2004, and received royal assent as the Commissioners for Revenue and Customs Act 2005 on 7 April 2005. The Act also creates a Revenue and Customs Prosecutions Office (RCPO) responsible for the
prosecution A prosecutor is a legal representative of the prosecution in states with either the common law In law, common law (also known as judicial precedent or judge-made law, or case law Case law is the collection of past legal decisions written by co ...
of all Revenue and Customs cases. The old Inland Revenue and Customs & Excise departments had very different historical bases, internal cultures and legal powers. The merger was described by the ''
Financial Times The ''Financial Times'' (''FT'') is a daily newspaper printed in broadsheet and published digitally that focuses on business and economic Current affairs (news format), current affairs. Based in London, England, the paper is owned by a Japanese ...
'' on 9 July 2004, as "mating the C&E terrier with the IR retriever". For an interim period officers of HMRC are empowered to use existing Inland Revenue powers in relation to matters within the remit of the old Inland Revenue (such as
income tax An income tax is a tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law Law is a system A system is a group of Interaction, interacting or interrelate ...
,
stamp duty Stamp duty is a tax that is levied on single property purchases or documents (including, historically, the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions). A physical revenu ...
and
tax credits A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit they have accrued from the total they owe the state (polity), state. It may also be a credit granted in recognition of taxes already paid or a form ...
) and existing Customs powers in relation to matters within the remit of the old Customs & Excise (such as
value added tax A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law L ...
and
excise duties file:Lincoln Beer Stamp 1871.JPG, upright=1.2, 1871 U.S. Revenue stamp for 1/6 barrel of beer. Brewers would receive the stamp sheets, cut them into individual stamps, cancel them, and paste them over the bung of the beer barrel so when the barrel ...
). However, a major review of the powers required by HMRC was announced at the time of the 2004
pre-budget report The Spring Statement of the British Government, also known as the "mini-budget", is one of the two statements HM Treasury makes each year to Parliament In modern politics and history, a parliament is a legislature, legislative body of g ...
on 9 December 2004, covering the suitability of existing powers, new powers that might be required, and consolidating the existing compliance regimes for surcharges, interest, penalties and appeal, which may lead to a single, consolidated enforcement regime for all UK taxes, and a consultation document was published after the 2005 budget on 24 March 2005. Legislation to introduce new information and inspection powers was included in the Finance Act 2008 (Schedule 36). The new consolidated penalty regime was introduced via the Finance Act 2007 (Schedule 24). As part of the
spending review A spending review or occasionally comprehensive spending review is a governmental process in the United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain,Usage is mixed. The ...
on 12 July 2004, Gordon Brown estimated that 12,500 jobs would be lost as result of the merger by March 2008, around 14% of the combined headcount of Customs (then around 23,000) and Inland Revenue (then around 68,000). In addition, 2,500 staff would be redeployed to "front-line" activities. Estimates suggested this may save around £300 million in staff costs, out of a total annual budget of £4 billion. The total number of job losses included policy functions within the former Inland Revenue and Customs which moved into the
Treasury A treasury is either *A government department related to finance and taxation, a Finance minister, finance ministry. *A place or location where treasure, such as currency or precious items are kept. These can be State ownership, state or roy ...
, so that the Treasury became responsible for "strategy and tax policy development" and HMRC took responsibility for "policy maintenance". In addition, certain investigatory functions moved to the new
Serious Organised Crime Agency The Serious Organised Crime Agency (SOCA) was a non-departmental public bodyIn the United Kingdom, non-departmental public body (NDPB) is a classification applied by the Cabinet Office, HM Treasury, Treasury, the Scottish Government and the Nor ...
, as well as prosecutions moving to the new Revenue and Customs Prosecution Office. A further programme of job cuts and office closures was announced on 16 November 2006. Whilst some of the offices closed were in bigger cities where other offices already exist, many were in local, rural areas, where there is no other HMRC presence. Initial proposals indicated that up to 200 offices would close and a further 12,500 jobs lost from 2008 to 2011. In May 2009, staff morale in HMRC was the lowest of 11 government departments surveyed. In 2013, HMRC began to introduce an update to the
PAYE A pay-as-you-earn tax (PAYE), or pay-as-you-go (PAYG) in Australia, is a withholding of taxes on income payments to employees. Amounts withheld are treated as advance payments of income tax An income tax is a tax imposed on individuals or entitie ...
system, which meant it would receive information on tax and employee earnings from employers each month, rather than at the end of a tax year. A trial of the new system began in April 2012, and all employers switched by October 2013. In 2012,
Revenue Scotland Revenue Scotland ( gd, Teachd-a-steach Alba) is a non-ministerial department Non-ministerial government departments (NMGDs) are a type of Departments of the Government of the United Kingdom, department of the Government of the United Kingdom th ...
was formed and on 1 April 2015 it took HMRC responsibility to collect devolved taxes in Scotland. In 2015 Welsh Revenue Authority was formed and on 1 April 2018 it took HMRC responsibility to collect devolved taxes in Wales. On 12 November 2015, HMRC proposed to replace local offices with 13 regional centres by 2027.


Governance structure

The board is composed of members of the executive committee and
non-executive director A non-executive director (abbreviated to non-exec, NED or NXD), independent director or external director is a member of the board of directors A board of directors is a group of people who jointly supervise the activities of an organization ...
s. Its main role is to develop and approve HMRC’s overall strategy, approve final business plans and advise the chief executive on key appointments. It also performs an assurance role and advises on best practice. The Treasury minister responsible for HMRC is the
financial secretary to the Treasury Financial Secretary to the Treasury is a mid-level ministerial post in the HM Treasury, British Treasury. It is the fifth most significant ministerial role within the Treasury after the First Lord of the Treasury, the Chancellor of the Exchequer, ...
,
Lucy Frazer Lucy Frazer (born 17 May 1972) is a British politician and barrister serving as Financial Secretary to the Treasury since 2021. She previously served as Solicitor General for England and Wales and as Minister of State for Prisons. She has been t ...
MP.


Chairman

The chairman of HMRC was an executive role until 2008. Mike Clasper served as a non-executive chairman. From August 2012, the post was abolished with a 'lead non-executive director' chairing board meetings instead. * Sir David Varney April 2005– August 2006 *
Paul Gray
Paul Gray
(acting) September 2006 – February 2007 and (confirmed) February 2007 – November 2007 * Dave Hartnett CB (acting) 2007– 31 July 2008 * Mike Clasper CBE 1 August 2008 – 1 August 2012


Chief Executive

The chief executive is also the first
permanent secretary
permanent secretary
for HMRC and the accounting officer. * Dame Lesley Strathie 2008 – 2011 * Dame
Lin Homer
Lin Homer
2012 – 2016 * Sir Jon Thompson 2016 – 2019 * Jim Harra 2019–present Executive chair and permanent secretary * Sir Edward Troup April 2016 – January 2018


Non-executive board members

Non-executive board members as of November 2019 are: * Mervyn Walker (lead non-executive director) *Michael Hearty *Simon Ricketts *Alice Maynard *Juliette Scott *Paul Morton *Patricia Gallan


Personnel

*
Permanent secretary
Permanent secretary
*
Director general A director general or director-general (plural: ''directors general'', ''directors-general'', ''director generals'' or ''director-generals'' ) or general director is a senior executive (government), executive officer, often the chief executive offi ...

Director general
* Director * Deputy director * Grade 6 * Grade 7 * Senior officer * Higher officer * Officer * Assistant officer * Administrative assistant Source: See civil service grading schemes for details.


Performance

HMRC collected £660 billion for the
Treasury A treasury is either *A government department related to finance and taxation, a Finance minister, finance ministry. *A place or location where treasure, such as currency or precious items are kept. These can be State ownership, state or roy ...
in 2018/19. It estimated that total theoretical tax liabilities in that year were £629 billion, but £31 billion was not collected due to the "
tax gap Tax noncompliance is a range of activities that are unfavorable to a government's tax system. This may include tax avoidance, which is tax reduction by legal means, and tax evasion which is the criminal non-payment of tax liabilities. The use of the ...
", made up of money lost to
tax evasion Tax evasion is an illegal attempt to defeat the imposition of taxes A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law Law is a system A system is a g ...
,
tax avoidance Tax avoidance is the legal usage of the tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law Law is a system A system is a group of Interaction, inte ...
, error and unpaid tax debts. This equates to a collection rate of 95.3% (up from 92.7% in 2005-6). At the end of March 2009, HMRC was managing 20 million 'open' cases (where the department’s systems identify discrepancies in taxpayer records or are unable to match a return to a record) which could affect around 4.5 million individuals who may have overpaid in total some £1.6 billion of tax and a further 1.5 million individuals who may have underpaid in total some £400 million of tax. In 2007–08 HMRC overpaid tax credits to the value of £1 billion; at the end of March 2009, HMRC had £4.4 billion of overpayments to be recovered.


Controversies


Child benefit records misplacement

On 20 November 2007, the
Chancellor of the Exchequer The chancellor of the Exchequer, often abbreviated to the chancellor, is a senior minister of the Crown within the Government of the United Kingdom, and the chief executive officer of HM Treasury, Her Majesty's Treasury. As one of the four Grea ...
,
Alistair Darling Alistair Maclean Darling, Baron Darling of Roulanish, (born 28 November 1953) is a British Labour Party (UK), Labour Party politician who served as Chancellor of the Exchequer in the Labour Government 2007-2010, Labour Government from 2007 to 20 ...

Alistair Darling
, announced that two that held the personal details of all families in the United Kingdom claiming
child benefit Child benefit or children's allowance is a social security payment which is distributed to the parents or guardians of child Biologically, a child (plural children) is a human being between the stages of childbirth, birth and puberty, or betw ...
had gone missing. This is thought to affect approximately 25 million individuals and 7.5 million families in the UK. The missing discs include personal details such as name, date of birth,
National Insurance National Insurance (NI) is a fundamental component of the welfare state in the United Kingdom Welfare is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social s ...
number, and bank details. The then chancellor stated that there was no indication that the details had fallen into criminal hands; however, he urged people to monitor their bank accounts.


IT problems

EDSEDS or Eds may refer to: Organisations * Electronic Data Systems, a defunct American technology company Education * Episcopal Divinity School, an Episcopal Seminary in Cambridge, Massachusetts, US * Evansville Day School, an independent college-pre ...
ran the Inland Revenue's tax and National Insurance system from 1994 to 2004. In 2003, the launch of a new tax credit system led to over-payments of £2 billion to over two million people. EDS later paid £71.25 million in compensation for the disaster. In 2004, the contract was awarded to
Capgemini Capgemini SE is a French multinational corporation A multinational company (MNC) is a corporate A corporation is an organization—usually a group of people or a company A company, abbreviated as co., is a Legal personality, leg ...

Capgemini
. This contract, also with
Fujitsu is a Japanese Multinational corporation, multinational information and communications technology equipment and services corporation, established in 1935 and headquartered in Tokyo. Fujitsu is the world's sixth-largest Information technology, I ...

Fujitsu
and BT, was one of the biggest ever IT outsourcing contracts, at a value of £2.6 billion. In February 2010, HMRC encountered problems following the implementation of their taxes modernisation program called Modernising Pay-as-you-Earn Processes for Customers (MPPC). The IT system was launched in June 2009 and its first real test came in a period known as annual coding. Annual coding issues certain codes to tax payers on a yearly basis. The annual coding process sent out incorrect tax coding notices to some taxpayers and their employers meaning that they would pay too much tax the following year.


Underpayments to ethnic minority claimants

In August 2010, seven HMRC staff were sacked for deliberately underpaying benefits to ethnic-minority claimants. Dave Hartnett, permanent secretary for tax at HMRC, said the department operates a zero-tolerance policy on racial discrimination.


Goldman Sachs deal and surveillance of Osita Mba

The
whistleblower A whistleblower (also written as whistle-blower or whistle blower) is a person, usually an employee, who exposes information or activity within a private, public, or government organization that is deemed illegal, illicit, unsafe, fraud, or abus ...

whistleblower
Osita Mba revealed to ''The Guardian'' that HMRC entered a deal with
Goldman Sachs The Goldman Sachs Group, Inc. () is an American multinational investment bank Investment is the dedication of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as tim ...

Goldman Sachs
which allowed Goldman Sachs to escape paying £10 million interest on unpaid tax. Following this HMRC used powers under the
Regulation of Investigatory Powers Act The Regulation of Investigatory Powers Act 2000 ( c.23) (RIP or RIPA) is an Act of Parliament, Act of the Parliament of the United Kingdom, regulating the powers of public bodies to carry out surveillance and investigation, and covering the int ...
(RIPA) "to examine the belongings, emails, internet search records and phone calls of their own solicitor, Osita Mba, and the phone records of his then wife" to find if he had spoken to the editor of ''The Guardian'', David Leigh. MPs in the House of Commons public accounts committee praised Osita Mba and called for scrutiny into HMRC's use of RIPA powers in a report. The report said: "We are deeply disappointed by HMRC's handling of whistleblowers. We consider that HMRC's use of powers reserved for tackling serious criminals against Mr Osita Mba was indefensible. HMRC told us that it had changed how it deals with whistleblowers and that it now provides information to its audit and risk committee who can use this to challenge how HMRC handles whistleblowers."


Call waiting times

In September 2015, a report from
Citizens Advice Citizens AdviceCitizens Advice is the operating name of The National Association of Citizens Advice Bureau which is the umbrella charity for a wider network of local advice centres. The abbreviation CitA is sometimes used to refer to this nationa ...
highlighted frustration amongst callers to HMRC over long holding times. The report claimed that "thousands" of callers were waiting on average 47 minutes to have their call answered, often at considerable expense to the caller. HMRC alleged that the "unscientific and out-of-date survey of tweets" did "not represent the real picture" but said that 3000 extra staff had been taken on to respond to calls. A June 2015 report from the National Audit Office indicated that the total number of calls answered by HMRC fell from 79% in 2013–14, to 72.5% in 2014–15, however a subsequent report in May 2016 suggested that performance improved following the recruitment drive.


See also

* HM Revenue and Customs Museum *
Government Offices Great George Street Government Offices Great George Street (GOGGS) is a large UK government office building situated in Westminster between Horse Guards Road, Great George Street, Whitehall, Parliament Street, King Charles Street and Parliament Square. The western e ...

Government Offices Great George Street
*
Revenue Scotland Revenue Scotland ( gd, Teachd-a-steach Alba) is a non-ministerial department Non-ministerial government departments (NMGDs) are a type of Departments of the Government of the United Kingdom, department of the Government of the United Kingdom th ...
* * Welsh Revenue Authority


References


External links

*
Commissioners for Revenue and Customs Act 2005Treasury Press Release
(25 November 2004)
HMRC criticised for using terror laws against tax whistleblower
The Guardian, 2014
Government must revisit the 2019 Loan Charge to avoid bankrupting thousands of innocent contractors
Politics Home, 2018
Mental health problems can be 'exacerbated' by HMRC demands, experts say
The Telegraph, 2018
MP targets 'immoral' HMRC over 'retrospective' taxation of contractors
The Telegraph, 2018
Please only be suicidal during office hours, say HMRC, to workers facing bankruptcy
Business Matters, 2018 {{DEFAULTSORT:Hm Revenue And Customs Customs services Government agencies established in 2005 National law enforcement agencies of the United Kingdom Non-ministerial departments of the Government of the United Kingdom Taxation in the United Kingdom 2005 establishments in the United Kingdom Revenue services