Large business tax affairs are complex and as a result often require more interaction with HMRC than for other taxpayers.
When business and HMRC work well together it ensures the right amount of tax is paid at the right time. That is better for business and for the public who rely on the services that are funded by business tax revenue.
But a growing number of businesses are reporting a steady breakdown in their relationships with HMRC.
Unprecedented amounts of new and complex legislation, resourcing challenges, tightened public finances and other factors have prompted a change in culture and capability at HMRC. The co-operative compliance relationship model which has governed large business interaction with HMRC since 2006 is starting to falter.
Many now say that collaborative working has become a one-way street, where firms submit information and receive little back.
A well-oiled machinery at HMRC is vital for our economy too. Tax certainty and the speed with which they can get that certainty have an impact on investment decisions. And when the UK has a long-held reputation for its competitive and well administered tax system, it would be a shame to lose it.
There are some practical and, importantly, not costly things HMRC could do to improve the situation. This report looks at the simple tweaks which could mean a lot in boosting confidence in the UK’s tax administration.