HM Revenue and Customs
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HM Revenue & Customs departmental report 2007 - published
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
