HMRC re-organisation – back to the future?

19 November 2015

19 November 2015 by Nigel May Tax

Nigel May, Tax Partner at MHA MacIntyre Hudson, said:

“The saying 'Those who cannot remember the past are condemned to repeat it' inevitably comes to mind when considering the reorganisation of HM Revenue & Customs that was announced today. We learn that between now and 2027, HMRC will close 137 local offices, replacing them with 13 regional offices.

Unfortunately, we have been here before and I fear that yet again the lessons of history simply haven’t been learned. Centralisation of the Inland Revenue into nine regional offices was proposed in the 1950s and 1960s. This resulted in the creation of Centre 1, in East Kilbride replacing 65 local tax offices. The exercise was so disastrous that the project was abandoned and it was thought that it and anything like it would never be brought back to the table.

The perils of this type of project are surely not lost on Lyn Homer, the head of HMRC given the difficulties encountered in managing change at the Border Agency resulting in the Home Affairs Select Committee referring to her having presided over “a catastrophic leadership failure.

It is suggested that we have every reason to fear a deterioration in what is already acknowledged to be a department that provides lamentable service to the public.” 

For further information, please contact Nigel May or your local MHA MacIntyre Hudson tax advisor.