HM REVENUE AND
CUSTOMS News Release (NAT 33/07) issued by The Government News
Network on 18 May 2007
The HM Revenue
& Customs (HMRC) Departmental Report was laid before
Parliament yesterday and is published on the HMRC website. The
report details HMRC's performance for the year 2006/07, and
this is the first time HMRC have combined their Spring
Departmental and Annual Reports into one document.
The report details HMRC's business and operations and how
the Department is currently performing against its Public Service
Agreement (PSA) targets. These are the operational targets set by
the Government by which Departmental progress is measured.
Key achievements include:
* A rise in tax revenues for the second consecutive year, HMRC
collected net receipts of £423bn from taxes, duties and other
revenue. An increase of £25bn on the previous year. Increased
earnings saw the monies collected through Income Taxes and
National Insurance rise by £14bn, nominal spending growth led to a
rise of £4.5bn in VAT receipts and an increase in receipts from
onshore companies saw the Corporation Tax yield rise by £2.5bn.
* Marked progress in detecting and disrupting organised VAT
fraud, with 14 criminal prosecutions concluded in 2006-07,
resulting in 45 convictions and jail sentences totalling 149
years. HMRC has further strengthened operational activity in this
area and combined with the Government's new Reverse Charge
arrangements we have made the UK a much tougher market for these
fraudsters to operate in.
* Further reductions in the administrative burden for business.
By understanding and being more responsive to the needs of our
customers we continue to reduce the burden on UK companies. At
April 2007 HMRC have delivered a reduction in the administrative
burden from Forms and Returns estimated at £130mn (net) and an
estimated reduction of £43mn in the burden from Audits and
Inspections, this represents excellent progress towards the
targets set by the Government in the 2006 Budget.
* Increases in the uptake of online services. A key to reducing
the administrative burden is increasing the number of facilities
and services available online. Pension schemes, Stamp Duty Land
Tax and the New Construction Industry Scheme can all now be
managed online and HMRC's self assessment online service saw
another significant rise in use (2.9mn returns online -
representing almost one third of all returns). The system remained
robust and operative throughout the peak filing period which, at
its height, saw HMRC receiving almost two returns every second.
* HMRC continues in its role as the pre-eminent frontier agency
and is taking effective action against all forms of organised
smuggling. There have seen significant seizures of illicit goods
that threaten not only the economy but the well-being of the
nation, with large seizures of counterfeit medicines with no
active ingredients and 51% of all cigarette seizures proving to be
counterfeits. Responsibility for tackling drug smuggling, from
April 2006, continues in partnership with the newly formed Serious
Organised Crime Agency.
Internally HMRC is progressing with efficiencies continuing to be
realised from the integration of the two former Departments. This
year has seen the introduction of a merged financial accounting
system and the desktop IT systems have now been integrated. This
enables us to deliver a more efficient service and gives staff and
customers the feeling that they are now working in and dealing
with one single Department.
Introducing his first Departmental report since being confirmed
as Executive Chairman of HM Revenue & Customs, Paul Gray said:
"It is barely two years since we merged the Inland Revenue
and Customs and Excise and the received wisdom is that performance
drops when major restructuring takes place. It hasn't. I am
very proud of that achievement both, because of what it says about
the huge and successful efforts of my committed and capable
workforce and because we are delivering good value for money for
the taxpayer."
"There is a great deal still to do and I am not complacent.
A particular priority will be around developing further the
management and leadership capability we need to deliver our
transformation ambition. I am confident we shall continue to build
on our early successes as we take the Department forward"
Notes to editors
1. The HM Revenue & Customs Annual Departmental Report
2006/07 was presented to Parliament on 17 May 2007.
2. Copies of the current report are available in portable
document format (pdf.) from the HMRC website at http://www.hmrc.gov.uk/news/index.htm
3. HM Revenue & Customs was created on 18 April 2005 by the
Commissioners for Revenue & Customs Act 2005. The Act also
created a new independent prosecutions office, Revenue and Customs
Prosecutions Office, on the same date.
Issued by HM Revenue & Customs Press Office
Website http://www.hmrc.gov.uk