In a wide ranging report, Tomorrow’s Tax Administration, on the state of the UK tax landscape, ICAS stated that ‘HMRC resources are insufficient to cover all its responsibilities adequately even in ‘normal’ times. The base level of resources needs to be higher so that events, such as Brexit or the pandemic, do not rapidly lead to significant problems with service levels’.

It was also critical of funding levels, adding that ‘funding for the digital systems required to modernise the tax system in a way that works for taxpayers has been inadequate and needs to be increased’.

While ICAS was broadly supportive of HMRC’s 10-year strategy and continued focus on the development of digital tax services, immediate concerns about service levels should be a priority. ‘There is an immediate need to address the poor service levels, patchy digital systems and problems which cause issues for taxpayers and agents on a day-to-day level. Pushing ahead with major, complex projects, like Making Tax Digital, whilst failing to ensure that basic tax administration works properly for everyone who has to engage with it, is unacceptable and will not deliver what the government or taxpayers need,’ ICAS said.

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