HMRC Annual Report and Accounts 21-22

Public Accounts Committee Closed Inquiry
Opened: 26 Jul 2022 Closed: 13 Apr 2023 Parliament page
Gareth Davies, the Comptroller and Auditor General (C&AG) of the National Audit Office, has ‘qualified’ his audit opinion on HMRC’s 2020-21 Annual Resource Accounts because of “material levels of error and fraud in the COVID-19 support schemes, Personal Tax Credits expenditure and Corporation Tax research and development reliefs” . The … Read more
10 Recommendations
13 Conclusions
1 Report
1 Oral session
3 Letters
1 Event
Activity timeline 7 events
12 Apr
2023
Report published
11 Jan
2023
Report published
6 Dec
2022
Correspondence
15 Nov
2022
Correspondence
20 Oct
2022
Oral evidence
20 Oct
2022
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
8 Sep
2022
Correspondence
Oral evidence sessions 1 session
20 Oct 2022
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HMRC Annual Report & Accounts 21-22
Angela MacDonald · HMRC Jane Whittaker · HM Revenue and Customs Jim Harra · HMRC Justin Holliday · HMRC
Title HC No. Published Items Response
Thirty-Third Report - HMRC performance in 2021–22 HC 686 11 Jan 2023 23 Responded
Recommendations & Conclusions
4 results
Clear
12 Conclusion Acknowledged
Thirty-Third Report - HMRC perform…
We raised the point that there was a moral duty and fairness issue to pursue...
We raised the point that there was a moral duty and fairness issue to pursue fraud with, for example, some companies getting an unfair competitive advantage through their abuse of the schemes. HMRC said that it looks into every single … Read more
Government Response
HMRC will continue to address and recover overclaimed grants as part of its business-as-usual compliance activity, taking action against those who have abused the COVID-19 financial support schemes where it is cost effective to do so.
HM Treasury
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13 Conclusion Acknowledged
Thirty-Third Report - HMRC perform…
We asked HMRC about a case where a criminal used a legitimate company’s details, apparently...
We asked HMRC about a case where a criminal used a legitimate company’s details, apparently successfully, to apply for a VAT registration number and make fraudulent VAT 13 Qq 14, 33, 43–45 14 Qq 80–83, 92–95 15 Q 84 16 … Read more
Government Response
HMRC will engage further with international partners, including German tax authorities via its FCLO in Berlin, to understand how other tax authorities tackle VAT fraud through controls on registration, with target implementation by end March 2024.
HM Treasury
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14 Conclusion Acknowledged
Thirty-Third Report - HMRC perform…
HMRC told us that VAT is a particular target for organised crime as it can...
HMRC told us that VAT is a particular target for organised crime as it can involve HMRC repaying large amounts to taxpayers. HMRC described it as an ‘arms race’, with HMRC constantly changing its processes and risk assessment to prevent … Read more
Government Response
HMRC will engage further with international partners, including German tax authorities via its FCLO in Berlin, to understand how other tax authorities tackle VAT fraud through controls on registration, with target implementation by end March 2024.
HM Treasury
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20 Conclusion Acknowledged
Thirty-Third Report - HMRC perform…
HMRC said it is trying to improve the data it uses to understand the behaviour...
HMRC said it is trying to improve the data it uses to understand the behaviour of its debtors. It is experimenting with data from credit reference agencies.29 It is also developing a comprehensive single customer account, using funding it received … Read more
Government Response
HMRC recognizes the importance of differentiating between taxpayers who are struggling to pay and those who can afford to meet their liabilities and is expanding debt management services and testing external data sources. They will apply the external data to internal modelling by the end of 2023/24 to better tailor treatment based on individual circumstances.
HM Treasury
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Government Response AI assessment · 19 of 10 classified
Accepted 10
Acknowledged 4
Not Addressed 1
Rejected 4
Total 10 recs + 13 conclusions
Correspondence 3 letters
6 Dec 2022 Correspondence from Jim Harra, Chief Executive and First Permanent Secretary, re Thirty-Seventh Report of Session 2021-22: HMRC Performance in 2020–21, dated 30 November 2022
Parliament page
15 Nov 2022 Correspondence from Rt Hon Jeremy Hunt MP, Chancellor of the Exchequer, HM Treasury, re following the Public Accounts Committee session on Thursday 20 October 2022, dated 4 November 2022
Parliament page
8 Sep 2022 Correspondence from Jim Harra, Chief Executive and First Permanent Secretary, re Public Accounts Committee: Thirty Seventh report of Session 2021-22 Recommendation 8, dated 29 July 2022
Parliament page