Mark McLaughlin looks at whether proposed changes to HMRC’s Charter will make it better or worse for taxpayers.
Some taxpayers seem to consider that HM Revenue and Customs (HMRC) does whatever it wants. Of course, that is not the case. For example, there are certain conditions and exceptions about when HMRC can request information and documents from taxpayers.
‘Your Charter’
In addition, HMRC’s ‘customers’ are protected by ‘Your Charter’. There is a statutory requirement for the Charter to ‘…include standards of behaviour and values to which [HMRC] will aspire when dealing with people in the exercise of their functions’ (CRCA 2005, s 16A(2)). The Charter features seven taxpayer ‘rights’ (www.gov.uk/government/publications/your-charter):
- 'Respect you and treat you as honest;
- Provide a helpful, efficient and effective service;
- Be professional and act with integrity;
- Protect your information and respect your privacy;
- Accept that someone else can represent you;
- Deal with complaints quickly and fairly;
- Tackle those who bend or break the rules.’
Some of these rights can be particularly helpful, depending on the circumstances. For example, the taxpayer has the right to be treated as honest (unless it is proven otherwise).
The shape of things to come?
The government consulted earlier this year on proposals by HMRC to update the Charter. The revised draft Charter (see www.gov.uk/government/consultations/hmrc-charter/consultation-hmrc-charter) set out the following standards to which HMRC aspire in respect of its services:
- Making things easy;
- Getting things right
- Being responsive;
- Treating you fairly;
- Being aware of your personal situation;
- Keeping your data secure;
- Treating you with respect, professionalism and integrity.
The new Charter has not been finalised at the time of writing. However, practitioners expressed concern at some of the changes included in the draft Charter, prior to the consultation closing.
New and improved?
Is the draft new Charter any better for taxpayers than the old one? Arguably not. The phrase ’treat you as honest’ has disappeared, albeit that under ‘treating you fairly’ it states: ‘We trust you are telling the truth, unless we have good reason to think you’re not.’
There is no longer a promise to keep taxpayer costs to a minimum. In addition, the draft new Charter does not state that taxpayers will be dealt with by HMRC officers ‘who have the right level of expertise’.
However, on the positive side:
- There is an assurance that ‘HMRC [will] help you meet your tax responsibilities’;
- HMRC undertakes to ‘…explain…when you can expect a response from us’;
- HMRC’s aim is to make it ‘…easy, quick and convenient to deal with us’.
These changes could potentially be helpful, such as where the taxpayer is subject to a self-assessment tax return enquiry; HMRC should be reminded of these commitments if it appears that the enquiry is becoming unduly protracted.
Practical tip
Apply the Charter to your dealings with HMRC. Do not be afraid to let HMRC officers know if you consider their treatment to fall short of Charter standards. If that does not work, consider making a formal complaint (see www.gov.uk/complain-about-hmrc). In addition, the Adjudicator’s Office (www.adjudicatorsoffice.gov.uk) is an independent body that investigates complaints about HMRC maladministration, although complaints regarding enquiries and investigations will only be investigated after they have ended.
