We're listening - HMRC aims to improve relations with businesses
3 Aug 09
HM Revenue and Customs has produced a guidance booklet on how it intends to build a more transparent and trusting relationship with large businesses
HM Revenue and Customs has produced a guidance booklet on how it intends to build a more transparent and trusting relationship with large businesses.
The proposals apply to incorporated and unincorporated businesses, including partnerships, with more than 250 employees, or with turnover exceeding €50m (£43m) and a balance sheet asset value exceeding €43m (£37m).
The booklet focuses on four key themes: proportionate engagement, speedier resolution of issues, greater and earlier certainty, and greater clarity through consultation and dialogue .
The intent is that HMRC tailors its approach to a large business based on risk, with resources being targeted on the largest or most complex risk areas. That approach will begin with an informal approach to the business or its agent and in a straightforward case would hope to reach resolution of any issues on this informal basis.
The largest and most complex businesses, numbering around 1,300, now have a dedicated customer relationship manager (CRM) at HMRC.
The CRM will meet with businesses in order to understand their workings and assess any areas of risk. The CRM will prepare a business risk review and if appropriate HMRC may work on the basis of a “low-risk” relationship. A low-risk relationship would be one where there is open and transparent dialogue.
Any issues of uncertainty or complexity would be brought to the attention of HMRC, and disclosed at the time of uncertainty rather than post-submission of the return.
HMRC will seek to provide greater certainty on the tax implications arising from significant transactions through the non-statutory clearance regime and greater access to tax specialists. Improved communication via the CRM should aid this process.
Underpinning all of the above is a desire by HMRC for greater consultation and improved communication, but the key to the process is a greater understanding by HMRC of businesses and their tax risks.