The Review of HM Revenue & Customs (HMRC) Powers, Deterrents and Safeguards started in 2005. It is a programme of consultation and legislative change to provide a modern framework of law and practice for tax administration. It aims to secure the benefits of the merger of HM Customs and Excise and the Inland Revenue by aligning powers, deterrents and safeguards across the taxes and duties administered by HMRC, where it makes sense to do so.
The theme of the Review is to support those who try to get their tax right, but come down hard on those who seek an unfair advantage through failing to calculate, return or pay the right amount of tax.
The Review consults on parts of its work as they are developed, feeding the results into successive Finance Bills. Changes to legislation have been made in Finance Acts 2007, 2008, 2009, 2010 and 2011. The Review is consulting on proposals for inclusion in Finance Bill 2012 and for possible inclusion in Finance Bill 2013.
The criminal investigation strand of work aligned criminal investigation powers across HMRC in Finance Act 2007, and extended intrusive surveillance powers to direct taxes in the Serious Crime Act which received Royal Assent on 30 October 2007.
Criminal Investigation Powers - more information
The review developed a new penalty framework for errors in tax documents and returns and failure to notify a new taxable activity, including late VAT registration. The new penalties started to come into effect for return periods stating on or after 1 April 2008, that are due to be filed on or after 1 April 2009.
New penalties - more information
HMRC will be implementing the new late filing and late payment penalties and interest provisions in Finance Acts 2009 and 2010 over a number of years.
New late filing and late payment penalties and interest provisions - more information
The Review developed a new compliance checking framework, covering information and inspection powers, record keeping and time limits for assessments and claims, that started to come into effect from 1 April 2009.
Compliance Checks - more information
The review made a number of legislative changes in Finance Acts 2008 and 2009 to support a programme of legislative, administrative and operational changes designed to make it easier for taxpayers to pay what they owe on time, support those who find themselves in temporary difficulties, and come down hard on those who seek to avoid their obligations by paying late or not at all.
Payments, repayments and debt - more information
The policy and practice of the Review of Powers is that when it considers specific tax legislation, it includes a review of the relevant embedded safeguards.
Legislation in Finance Act 2009 enables HMRC to publish the names and details of individuals and companies who are penalised for deliberate tax defaults for tax periods commencing on or after 1 April 2010.
Publishing the details of deliberate tax defaulters - more information
Legislation in Finance Act 2011 modernised and brought these powers and safeguards in line with the compliance checking framework developed by the Review. They are expected to come into effect on 1 April 2012.
Data-gathering powers - more information
Legislation is required to bring HMRCs information powers up to the standards required by the Global Forum on Transparency and Exchange of Information for Tax Purposes. Draft legislation for inclusion in Finance Bill 2012 was published on 6 December 2011 for comment by 10 February 2012.
Legislative changes in Finance (No 3) Act 2010 have been made to create a robust compliance checking framework for excise duties that is proportionate to the risks in this area of work. The changes will start to apply from 1 April 2011.
Excise modernisation and compliance checks - more information
Legislation will be introduced in Finance Bill 2012 to address dishonest tax agents.
Working with tax agents - more information
Legislation in Finance Act 2010 increases the sanctions available to HMRC for tackling offshore non-compliance. It sets out a new penalty framework for offshore non-compliance that will apply to Income Tax and Capital Gains Tax from the 2011-12 tax year.
Tackling offshore tax evasion - more information
Following legislation in Finance Act 2011, from 6 April 2012 HMRC will be able to ask employers to provide a financial security, backed by a criminal sanction for non-compliance, where they identify a serious risk of failure to pay PAYE and/or certain NICs..
Security for PAYE/NICs - more information
The review is considering the modernisation, alignment and simplification of the range of penalties that HMRC can impose for failure to comply with regulatory obligations across the tax and duty regimes. A first stage consultation document was published in June 2011.
The simplification of regulatory penalties – more information
The Review of Powers is committed to consulting widely at each stage in the development of policy and legislation. Consultation includes: exploring policy options with the Consultative Committee; publishing documents; holding meetings and workshops with representatives of business and the accountancy and legal professions.
In June 2005 Ministers appointed a Consultative Committee to work with HMRC to consider options for future powers, deterrents and safeguards. Membership of the Committee is broad-based to reflect the perspective of the wider community including businesses of all sizes, employees and the tax-related professions.
The Committee continues to meet regularly and to publish minutes on the HMRC website.
The forum is overseeing the period of initial implementation of HMRC’s new powers and safeguards including post-implementation review and benefits realisation work. The first meeting of the forum was held on 30 March 2009 and it is expected that it will meet twice a year for the next two to three years.
Implementation Oversight Forum - more information
Details of all documents published since the Review of Powers was announced in March 2005, including consultation documents and summaries of responses.
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