Editorial

HMRC Internal Reviews - Still Worthwhile?

When HMRC launched its internal review process a few years ago, I must confess that I was rather sceptical. After all, having a decision of one HMRC officer reviewed by another HMRC officer hardly seemed to be impartial, even if the reviewing HMRC officer had not been involved with the case before.

My initial scepticism proved unfounded for the first year or two. My experience and anecdotal evidence from other tax advisers suggested that taxpayers were being given a fair review by HMRC's reviewers. This impression was borne out in the review statistics, which indicated that a surpisingly high percentage of HMRC decisions were overturned or varied.

Sadly, my initial scepticism has now returned. The most recent review I have seen (following a request by an accountant in relation to one of his clients) was in my opinion dismissive, and arguably hostile. Whatever the stength or weakness of the taxpayer's case, the HMRC reviewer's response was very disappointing, and certainly unbecoming of the role.

I truly hope that HMRC's internal review process doesn't degenerate into a rubber-stamping exercise of the original decisions of HMRC officers. Taxpayers and their advisers will quickly lose faith in the system, and refrain from using it. That would be a real shame, and a great waste of what should be a very helpful process.         

Best wishes
            

Mark McLaughlin

Managing Editor