HMRC's annual conference for stakeholders: opening address
A speech given by David Gauke, Financial Secretary to the Treasury, to the annual HMRC stakeholder conference on 17 July 2014.
Intro
Thanks Ian [Hargreaves CBE, Professor of Digital Economy, Cardiff University]. I바카라 사이트m very glad to be here this morning for the second of these annual conferences.
And I remember that this time last year I also opened this conference. And that it was also the first day of a England Test match at Lords.
We were playing Australia. We were ranked as 바카라 사이트 I think 바카라 사이트 the second or third best Test nation in the world. And we were six games into a ten match run without defeat.
And while England were regarded as one of the best cricket teams in the modern game. Spain were regarded as the greatest football team in the modern game 바카라 사이트 if not the history of the sport.
Of course, fast forward twelve months and things are very different!
Germany are now the so-called 바카라 사이트team of the future바카라 사이트. Spain are a team of the past. And England haven바카라 사이트t won in eight Test Matches. 7. And the reason I think this is worth reflecting on, is because it serves as an example of how, if you don바카라 사이트t keep changing and improving바카라 사이트¦
As the Spanish football team haven바카라 사이트t바카라 사이트¦ As the English cricket team sadly haven바카라 사이트t바카라 사이트¦
Then you바카라 사이트ll very quickly be overtaken and left behind by others.
The same thing is true of 바카라 사이트 departments.
As with sports team. As with businesses. If we don바카라 사이트t continue to adapt. Particularly to external changes. Be they societal. Or technological. Or international. Then we will be left behind.
And ultimately, that will leave us providing the British public with a service that isn바카라 사이트t cost effective and that doesn바카라 사이트t suit their needs.
And avoiding that happening is what I바카라 사이트d like to talk to you about this morning.
I바카라 사이트d like to make the case 바카라 사이트 and I believe it is a very strong case 바카라 사이트 that as a result of the action we바카라 사이트ve taken on digital, and on compliance over the last four years바카라 사이트¦ HMRC does offer a much better service for businesses and individuals and agents than it did four years ago.
But I바카라 사이트d also like to set out where I believe HMRC needs to keep alert, and keep changing, if it wants to remain an organisation fit for purpose.
Digital
I바카라 사이트d like to start by talking about digital. Because this has been 바카라 사이트 and it has to remain 바카라 사이트 one of the absolute priorities for HMRC바카라 사이트¦
Because if one sector has 바카라 사이트 over the past twenty years 바카라 사이트 proven its ability to constantly move with the times. And to constantly amend and adapt, then it is the technology sector바카라 사이트¦
And we see that constant change reflected in the monthly launches of new smartphones and tablets and e-readers. [And 바카라 사이트 of course 바카라 사이트 the monthly demand for new smartphones and tablets and e-readers from our children that goes with it!]
The fact that this sector is developing so far and so fast presents any 바카라 사이트 department with two challenges.
First 바카라 사이트 we need to ensure that as more and more of people바카라 사이트s lives move online, that more and more of our services move online with them.
And second 바카라 사이트 we need to ensure that as the next technological changes come about, that our Departments have the fleet of foot to adapt our services around them.
And I think this is an area where HMRC has made very impressive progress. And can stand up as a model example of modern 바카라 사이트.
If I바카라 사이트m a tax credit claimant I can now:
- renew my Tax Credits claim online .
If I run a business I바카라 사이트m able to:
- file online for Self Assessment, VAT, PAYE and Corporation Tax
- and access a better service on VAT and PAYE registration
And if I바카라 사이트m one of the agent firms representing 8 million individuals and businesses I바카라 사이트ll soon be able to:
- let HMRC know online 바카라 사이트 quickly and easily 바카라 사이트 when I take on a new client
- and access a personalised 바카라 사이트homepage바카라 사이트 where I can view and manage all my clients바카라 사이트 affairs in one place
And all of these services 바카라 사이트 for individuals and businesses and agents 바카라 사이트 will be available on various platforms. And run through systems where people can be assured that their data is securely protected.
°Ϊ바카라 사이트¦]
Now it바카라 사이트s worth stressing that of course some people will always need to write or to speak to HMRC on the phone. Either because they aren바카라 사이트t au-fait with the latest technology, or because their problem demands a face to face 바카라 사이트 rather than interface 바카라 사이트 response.
And HMRC바카라 사이트s new Needs Enhanced Support programme 바카라 사이트 which it launched back in May 바카라 사이트 will provide just that.
I know this change hasn바카라 사이트t been without its detractors. And I know that the change hasn바카라 사이트t been easy. But early feedback from staff shows that the new system is working well for them. And 바카라 사이트 most importantly 바카라 사이트 early feedback from customers shows the system is working for them too.
Ultimately, we know that the vast majority of straightforward enquiries or transactions can be dealt with online. And we know too that not only does our new system better suit the needs of those trying to pay tax. It also provides better value for money for the wider taxpayer.
Compliance
The other way that we are making a real difference 바카라 사이트 and we can make further difference 바카라 사이트 in saving the public money is by improving compliance.
°Ϊ바카라 사이트¦]
It바카라 사이트s my opinion that politicians have 바카라 사이트 for far too long 바카라 사이트 had a single response when under pressure on an issue. Which has been to throw money at it. And I think that 바카라 사이트 in general 바카라 사이트 they hope that people will hear 바카라 사이트Β£200m extra investment바카라 사이트 or 바카라 사이트new Β£150m scheme바카라 사이트 and be satisfied.
But the next questions should always be what will that money achieve? And what real change will that scheme trigger?
In short, I don바카라 사이트t believe that 바카라 사이트 departments should be judged by how much money they invest. Or how many staff they employ.
바카라 사이트 Departments should be judged by what the combination of that money and those staff members achieve바카라 사이트¦
And 바카라 사이트 again 바카라 사이트 on compliance, HMRC can boast real achievement over the last four years.
Since 2010 the 바카라 사이트 has invested Β£1 billion in HMRC. Which is 바카라 사이트 of course 바카라 사이트 a huge amount of money. But by next March it will have bought about a return of Β£18 billion of compliance revenues.
Compliance has already improved significantly since 2010.
In 2011-12 we generated Β£18.6 billion in additional compliance revenues from our work. The following year the figure was Β£20.7 billion. And last year it was Β£23.9 billion.
All that has been achieved by making sure that the vast majority of people who want to pay their taxes can do easily. And that the small minority of people who try to avoid paying their taxes can바카라 사이트t get away with it easily.
The 바카라 사이트 and HMRC have achieved this by cracking down on tax avoidance:
- winning 80% of cases heard in court
- and reducing by more than 75% the number of newly marketed schemes
We바카라 사이트ve achieved this by tackling rule breakers:
- with over 2 500 individuals prosecuted
- and over 5 000 individuals and businesses that have broken the rules being closely monitored
And we바카라 사이트ve achieved this by tackling offshore evasion:
- with over 5 000 people having come forward through our disclosure facilities바카라 사이트¦
- and disclosing 바카라 사이트 in the process 바카라 사이트 over Β£1.3bn in tax liabilities.
This morning though, I바카라 사이트d like to give special praise to HMRC바카라 사이트s High Net Worth Unit. As some of you may know, they had a target of delivering Β£894 million in compliance yield. They delivered Β£1 billion. And this is a clear example that where 바카라 사이트 invests wisely, in the right products and projects 바카라 사이트 targeted in the right places 바카라 사이트 then the taxpayer receives the best possible return.
°Ϊ바카라 사이트¦]
Further improvements are 바카라 사이트 of course 바카라 사이트 underway. From this month, our Accelerated Payments initiative will ensure that anyone involved in tax avoidance cases has to pay HMRC the disputed amount of tax upfront, while the dispute is resolved. And from next year, through our Direct Recovery scheme, we바카라 사이트ll be targeting a small core of taxpayers who owe significant debts, have sufficient funds in their accounts, but are reluctant to pay.
And at this point let me just address one argument that is sometime made, which is as follows바카라 사이트¦
Taxpayers are entitled to minimise their tax and 바카라 사이트 바카라 사이트 least of all a Conservative-led 바카라 사이트 바카라 사이트 should take a relaxed vew about avoidance.
I think this misses two very important points.
First, the aggressive avoidance behaviour that HMRC seeks to address is so contrived, so artificial, that no one could argue that it was consistent with intentions of Parliament.
Second, the consequence of that behaviour is that the vast majority of the tax-payers have to pay more in tax바카라 사이트¦
That is not fair.
And that is why I am proud of that fact that no 바카라 사이트 has done more to address artificial and contrived tax arrangements.
A Good Year
But let me turn to the outcome 바카라 사이트 to date 바카라 사이트 of HMRC바카라 사이트s improvements to its digital service and its improvements in compliance.
Well. Last year saw HMRC바카라 사이트s best-ever performance.
- it brought in over Β£500 billion in tax revenues for the UK
- as I mentioned, it secured nearly Β£24 billion in additional compliance revenues
- and it achieved its best-ever customer service levels
- and all this was achieved by around 2 000 fewer staff
- who oversaw Β£235 million of efficiency savings
To come
So I바카라 사이트d like to take a moment to thank all the staff at HMRC for all their achievements. Because I think we have managed real 바카라 사이트 positive 바카라 사이트 change in the organisation.
It is now a leaner, more effective, more successful Department, which provides a better service, and better value for money to the public.
But 바카라 사이트 unlike the England cricket team, or the Spanish football team바카라 사이트¦
And more like those technology companies that continue to invent lighter, smarter, more user-friendly products 바카라 사이트 HMRC has to keep changing and adapting.
And we need to keep looking at ways it can use new research, and new ideas, and new technology to continue improving its digital offer, and continue improving its compliance levels.
Now. I believe that HMRC is in a strong position to do just that. And I바카라 사이트m confident that 바카라 사이트 whichever Minister is standing here at the conference in twelve months time 바카라 사이트
If the team continue to work hard, and look ahead, and continue to take decisions with the taxpayer in mind바카라 사이트¦
That Minister will be able to stand up here and talk of a Department that is still very much at the top of its game.
Thank you.