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Recruiting 5,000 new HMRC compliance officers just first step in fixing UK’s tax system, says Blick Rothenberg

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October 6, 2024
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Recruiting 5,000 new HMRC compliance officers just first step in fixing UK’s tax system, says Blick Rothenberg
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With just over three weeks until the Budget, the Government’s plan to recruit 5,000 new HMRC compliance officers has been welcomed by leading audit, tax, and business advisory firm Blick Rothenberg.

However, the firm warns that this recruitment effort is only a small step toward fixing the deep-rooted issues in the UK’s tax system.

Robert Salter, Director at Blick Rothenberg, noted that HMRC has been under-resourced for years, and while the addition of new staff is a positive development, it won’t be enough to address the larger structural problems plaguing the tax system. “HMRC systems are often poor and don’t provide either HMRC or taxpayers with a good service,” Salter said. He cited HMRC’s tool for determining employment status for tax purposes as an example of a system that frequently produces incorrect results when reviewed against binding UK case law.

Salter stressed the importance of comprehensive training for the new recruits, emphasizing that the complexity of the UK tax system requires a thorough understanding of its many intricate and sometimes counter-intuitive regulations. “Without long-term, in-depth training, the money spent on recruitment could be wasted, and taxpayers may face a worse service due to under-trained officers who misinterpret tax laws or request the wrong information,” he warned.

As the Budget approaches, Salter hopes that Chancellor Rachel Reeves will provide details on how the new HMRC officers will be trained to effectively address the complexities of the tax system. He stressed that while the recruitment drive is a positive first step, it must be accompanied by significant improvements in HMRC’s systems and procedures to truly make a difference for taxpayers.

Blick Rothenberg’s concerns come at a crucial time, with taxpayers and tax advisors eagerly awaiting the potential tax changes expected in the upcoming Budget. The firm’s experts argue that without a clear plan for comprehensive training and system upgrades, the Government’s efforts to improve HMRC’s capabilities may fall short of the intended impact.

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