Despite the current consultation which is ‘only to deal with process and implementation’, David Gauke, financial secretary at the Treasury told a group of tax professionals at the annual HMRC stakeholders conference in London yesterday.

The conference focused on relationships between HMRC and tax advisers, and officials stressed that the department is working hard to improve relationships between SMEs and tax inspectors, with the aim of creating a single point of contact for each company.

However, it accepted that this would require extensive training to ensure that HMRC agents were briefed on the numerous tax options, reliefs and rules.

It is also continuing to roll out an ambitious digital tax strategy with the move to providing all tax compliance services online.

Gauke said: ‘First – we need to ensure that as more and more of people’s lives move online, that more and more of our services move online with them.

‘And second – 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.’

Although the drive is to move increasingly to an online-only approach, Gauke added: ‘Now it’s worth stressing that of course some people will always need to write or to speak to HMRC on the phone. Either because they aren’t au-fait with the latest technology, or because their problem demands a face to face – rather than interface – response.’

The following services will be up and running for businesses and professionals by the end of 2014:

2014: Your tax account, social investment tax relief, employer share schemes, combined Companies House, charities, submittable iforms, agent online services

Meantime, the following digital services will in place by March 2015:

2015: iforms with file attachments.

For individuals, by end 2014, the following services will be in place online:

• citizen identity assurance (the universal online secure ID);
• digital self-assessment;
• PAYE for employees;
• friends and family nomination; and
• submittable iforms with save and retrieve and tax summaries.

By March 2015, all national insurance for individuals will be online, with plans to provide reminders using secure messaging.

Bill Dodwell, head of tax policy at the Deloitte, said: ‘Probably the digital roadmap was the most interesting. They will publish it via their blog in the next couple of weeks. Agents should be relieved they [HMRC] have decided to stick with the Government Gateway for Agent authority. 

'There will be a new system – Citizen identity assurance – for us as individuals which will be used by other government agencies,' he added.

Ageing HMRC workforce

Recognising a demographic imbalance at the tax authority, where only 20% of employees are aged under 40, HMRC accepted that it had to work hard to recruit and train high calibre staff. It confirmed that 80% of employees are 40 years plus, and of that majority group, 50% are aged 50 or over.

This potential talent gap was also highlighted at this week’s Public Accounts Committee (PAC) hearing, where Jim Harra, head of the business unit said that ‘as a lifer in the HMRC,we have demonstrated that we can recruit a very high calibre of people – we recruited 200 very bright graduates this year. On retention, we have over the years seen ups and downs, but we don’t have a significant retention problem at the moment’.

In line with the public sector generally, there have been a number of job cuts and rationalisations at the tax department. But the focus going forward is to develop and expand HMRC’s Newcastle base.

Thanking HMRC staff, Gauke said: ‘It is now a leaner, more effective, more successful department, which provides a better service and better value for money to the public.'