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Kelly Hayworth reports on the Low Incomes Tax Reform Group's  ( www.litrg.org.uk ) input to the development of a new 'Taxpayer's Charter'.

Introduction

In June, HMRC began consulting on developing a new Charter to replace the old ‘taxpayers’ charters’ formerly published by the Inland Revenue and Customs and Excise prior to their merger.

Our response looks at how a properly developed, maintained and enforced Charter could improve the experience of HMRC’s low-income ‘customers’.

The Need for a Taxpayer's Charter

Is there a need for an HMRC Charter at all? If HMRC were consistently operating the highest level of customer service the answer is probably “no”. But as satisfaction levels with HMRC service are, at best, variable we think a Charter is a very necessary safeguard for those who interact with HMRC, particularly in the light of the extensive and ongoing changes to HMRC’s powers.

The Inland Revenue and Customs and Excise merged in 2005 to create a single government department responsible for the majority of tax collecting functions in the UK – HM Revenue & Customs (HMRC).  The two former entities used to have ‘taxpayers’ charters’ which set out things like service standards but, even before the merger, use of these charters had diminished. 

Consultation and LITRG Response

Following representations from bodies like LITRG ( http://www.litrg.org.uk/news/latest.cfm?id=515 ), HMRC announced their intention to consult on the development of a new Charter, which we welcomed as a positive move towards consolidation of HMRC as a single, ‘customer focussed’ department.

The key points we have made in our response are:

• Enforcement – The Charter should have its basis in law so that it provides a meaningful additional safeguard, but it should not be viewed as a substitute for specific appeal rights. Nor should there be any attempt to have the full Charter in statute – that would make it difficult to use or adapt.
• Rights and responsibilities – The main focus should be on taxpayer/claimant rights (and HMRC’s responsibility to help the unrepresented secure those rights), but it could also help HMRC by summarising taxpayer/claimant responsibilities.
• Inclusion – A Charter presents an ideal opportunity to embed HMRC’s equality responsibilities across the organisation, to ensure that everyone is given the support they need.
• Customer service – Service standards have slipped since HMRC was created.  The Charter could restore focus to service quality.
• Communication – Taxpayers and claimants have no choice but to deal with HMRC and many find it a daunting experience.  By explaining what can be expected from HMRC, the Charter could help to make them more approachable. 

Beyond HMRC?

In terms of the Charter’s scope, we have suggested that rather than being limited to HMRC, it could cover all dealings with the ‘authorities’ on tax matters.  This would extend its relevance to other bodies such as HM Treasury, the Adjudicator and the Ombudsman.  Naming the Charter is a matter for debate – we tend to favour ‘HMRC Charter’ but should its application extend as we have suggested, this would need further thought. 

We have also assisted HMRC’s Charter team in arranging a number of meetings with various disadvantaged groups of society to further their understanding of what members of the public want from a Charter. 

Future Progress

Development of the Charter now rests with HMRC following closure of the consultation.  We hope that our comments will be taken fully into account and shall continue to participate as the process moves forward.