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HMRC funding

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The additional £900 million funding for HMRC ‘avoidance and evasion’ measures is likely to be welcomed by those who suggest that the Government should think again before making further cuts to HMRC’s budget.

Following the recent PAYE problems, and the prospect of substantial cuts to public sector budgets in the 20 October Spending Review, George Bull, Head of Tax at Baker Tilley, said: ‘The real culprit lurking behind the PAYE problems is government reluctance over many years to adequately fund the highly sophisticated IT system which taxpayers and HMRC alike require. With HMRC already suffering a 5% budget reduction each year, it has endured cuts of 15% over just three years.’

Bull encourages the Treasury ‘to learn its lessons from the PAYE affair and to increase HMRC funding so that we do not again see years of economies in tax administration erupting into a perfectly avoidable crisis’.

Although the £900 million is described as being additional, final details of the HMRC budget settlement – including any cuts – will be set out in the 20 October Spending Review.

Issue: 1046
Categories: News