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
2 Recommendation Rejected
Thirty-Third Report - HMRC perform…
Resourcing HMRC’s compliance work to maintain rather than reduce the tax gap means the government...
Resourcing HMRC’s compliance work to maintain rather than reduce the tax gap means the government is missing out on billions in lost revenue. HMRC estimates that the tax gap—the difference between the amount of tax that should, in theory be … Read more
Government Response
The government disagrees with the recommendation to set out the level of investment needed to reduce the tax gap and to report an uncertainty range for the tax gap estimate, stating that funding levels are a decision for Treasury ministers and that they have a track record of investing in compliance work.
HM Treasury
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9 Conclusion Rejected
Thirty-Third Report - HMRC perform…
With the resources it was given in the 2021 Spending Review, HMRC’s aim is to...
With the resources it was given in the 2021 Spending Review, HMRC’s aim is to maintain the tax gap and prevent it from growing. For every £1 that it spends on compliance activity, it said it recovers £18 in additional … Read more
Government Response
The government disagrees, stating that HMRC's funding levels are a decision for Treasury ministers based on advice from HMRC and HM Treasury officials, and it is right that this advice is considered in private.
HM Treasury
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21 Recommendation Rejected
Thirty-Third Report - HMRC perform…
The government has a target of 2.4% of GDP to be spent on research and...
The government has a target of 2.4% of GDP to be spent on research and development.32 To encourage this investment, HMRC administers tax reliefs to companies via two schemes – one for large companies and one for small and medium-sized … Read more
Government Response
The government disagrees with the recommendation, stating that HMRC has already published reports on the additional R&D expenditure stimulated by tax relief schemes and that further analysis will be carried out in the future but not within 12 months, although an update will be provided within that period.
HM Treasury
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22 Conclusion Rejected
Thirty-Third Report - HMRC perform…
In 2021–22, HMRC granted research and development tax reliefs worth £9.5 billion.34 HMRC said the...
In 2021–22, HMRC granted research and development tax reliefs worth £9.5 billion.34 HMRC said the relief is an attractive target for abuse, whether by companies that have not carried out any research and development or by advisors encouraging companies to … Read more
Government Response
The government disagrees with the recommendation, stating that HMRC has already published reports on the additional R&D expenditure stimulated by tax relief schemes and that further analysis will be carried out in the future but not within 12 months, although an update will be provided within that period.
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