Tribunals Reform Stakeholder Group Meeting

Date: 12 November 2008

Time: 2.00 pm to 4.15 pm

HMRC

David Hinstridge
Tony Verran
David Halsey
David Croad (Secretariat)
Mumtaz Patel (Comms Support)

Tribunals Service (TS)

Claire Walker

Agent representatives

Jane Moore ICAEW
Ron Downhill Law Society
Robin Williamson LITRG
Penny Hamilton CIOT
Charlotte Barbour ICAS

Apologies

Derek Allen ICAS
Robert Maas IIT/ICAEW
Peter Jennings ACCA
Jeremy Woolf CIOT
Marcia Martin HMRC
John Hughes HMRC

1. General update

1.1. HMRC said much work is currently being carried out in preparation for Tribunals reform and internal review implementation in HMRC from next April eg on guidance and on IT systems. HMRC will bring products to the attention of TRSG members for comment as soon as they are ready.

2. Policy and legislation

2.1. HMRC advised there had been no changes to substance since the last meeting. They have been working with TS to ensure a proper fit of the tax legislation and tribunal procedure. Work is ongoing with the Order and HMRC explained that they have, in particular, looked at the transitional provisions and had valuable input from Parliamentary Counsel. HMRC explained that the Order will be subject to the affirmative procedure in both Houses but that once laid before Parliament it cannot be amended.

2.2. When the Order is laid, there will also be published an Impact Assessment, an explanatory memorandum and a response document which will include comments from the summer consultation.

2.3. HMRC mentioned Rules were part of TS’ responsibility though of course HMRC had a keen interest in their development alongside other stakeholders.

3. Trial update

3.1. HMRC provided handouts showing statistics from the trial. The number of review requests for July and August had shown an increase. This could be due to gross payment status cases. 90 per cent of gross payment decisions had been upheld. Of the enquiry reviews the variations ranged from quite small to large, though precise figures were not to hand.

3.2. There was plenty of discussion surrounding the purpose of internal reviews. HMRC confirmed that reviews will be called ‘internal reviews’ instead of ‘impartial/independent reviews’. The reviews will be carried out, except for a very few specialist cases, outside the immediate line chain of decision maker.

3.3. HMRC confirmed that none of the cases in which there had been an internal review under the trial had yet reached the General Commissioners.

3.4. AP1: HMRC to provide information on the results of reviews carried out on requests made by unrepresented taxpayers.

3.5. HMRC mentioned plans to conduct an evaluation of the trial and welcomed any assistance agents could provide. The survey would be qualitative rather than quantitive. The Agent reps suggested asking agents for feedback in addition to customers and HMRC confirmed they would do this.

3.6. HMRC mentioned that the next trial events would show outcomes from the trial. The events will take place in London on 10 February, and Manchester on 12 February 2009.

4. The new process

4.1. HMRC provided handouts of the high level process map. It was agreed that HMRC would amend it after taking on board the comments of TRSG members.
AP2: HMRC to amend high level process map.

4.2. HMRC explained the process map will be published on the HMRC Internet site as part of the communications strategy. Agent reps queried if the process maps were intended for customers or agents. HMRC confirmed the process map was mainly aimed at agents. HMRC plans to have clearer guidance in place for customers in the new year.

4.3. HMRC explained there is an estimated 220,000 first stage dispute cases at present of which approximately 27,000 cases go to tribunal. A large number of these cases (approx one third) are likely in future to go through paper hearings.

5. Transition

5.1. HMRC mentioned there were a lot of current appeals in the system and those customers will be offered an internal review from 1 April 2009 if the appeals remained extant. HMRC will publicise the statutory entitlement of the right to choose an internal review. HMRC confirmed the customer can request a review at any time providing an appeal has not been forwarded to the TS. HMRC explained that currently many cases were settled by negotiation and therefore the review process focuses on the remaining minority that are not.

5.2. HMRC said they are working with TS on transitional listings of cases for appeals, to avoid taxpayers having to wait unduly long after 1 April for an appeal to be heard, eg between January and the new tax year, transitional lists will be sent to the TS to ensure early hearing by the new tribunal.

6. Communications

6.1. HMRC explained the main, though not exclusive, channel for communications will be electronic. The Internet site has been recently refreshed. This will be publicised to external contacts via email with a link to the updated site. All future substantive updates will follow this method and it is expected there will be regular updates through to next April.

6.2. HMRC provided a handout of the circular that will be issued electronically to agents and their rep bodies early next month. Agent reps suggested sending a copy to the editor of the Law Society.
AP3: HMRC to send an electronic copy of the circular to TRSG members for comments.

6.3. HMRC mentioned that they were in the process of drafting an article for Taxation.

6.4. HMRC asked agent reps what they would like in terms of communications. The agent reps suggested newspaper articles, landfill tax notes and importantly to make contact with those looking after the interests of the unrepresented.

6.5. TS mentioned that they will be updating their website to reflect the changes to the system.

6.6. HMRC plan to have a fact sheet which will be available before the full guidance. An awareness package will also be included on the HMRC website.

6.7. Agent reps queried if there were alternative arrangements for non web users. HMRC confirmed they had made arrangements to supply non web users with printed material.

6.8. Agent reps requested sight of the list of intended guidance products along with a timetable for their publication.
AP4: HMRC to provide list of intended guidance products.

7. Summary

7.1. HMRC thanked everyone for attending the meeting and their positive contributions.

7.2. It was agreed the next meeting should be arranged for early January.

The meeting ended at 4.15 pm

Summary of action points

AP1: HMRC to provide information on the results of reviews carried out on requests made by unrepresented taxpayers. To follow
AP2: HMRC to amend high level process map. Done 14 November 2008
AP3: HMRC to send an electronic copy of the circular to TRSG members for comments. Done 14 November 2008
AP4: HMRC to provide list of intended guidance products. Done 24 November 2008