Managing tax compliance following the pandemic

[HMRC should:] make further improvements to its processes for estimating compliance yield. This should include: ? extending improvements made to quality assurance processes for downstream compliance yield to apply to upstream yield, including assurance work to test underlying evidence; ? reviewing its assumptions in light of the current economic climate, including non-payment rates; and ? updating how it selects and targets the sample of cases to test, so that a robust extrapolation of the errors can be used to calculate to what extent they affect the overall estimate of compliance yield each year.

[HMRC should:] estimate and report the likely extent of official error affecting taxpayers ? by either overcharging or undercharging them ? in carrying out its compliance work. This should include ensuring it has the data needed to make a robust and representative estimate, and to determine whether additional testing is required.

[HMRC should:] assess the potential impacts, on taxpayer behaviour and levels of non?compliance, of changes to compliance processes that it introduced or accelerated during the pandemic and has since made permanent, such as fewer face-to-face visits and digital filing of returns.