2006 Review of Links with Large
Business
Phase II Overview
Phase II Overview
In Phase II we have been developing our thinking in the areas identified in Phase I Themes, and testing propositions and exploring potential outcomes with businesses, professional advisers and representative bodies.
We have also been working to identify the extent and nature of the culture change necessary within HMRC to ensure that the emerging outcomes can be successfully implemented. This internal review has focused on the successful engagement of key staff who will deliver the change framework.
Phase II culminated in the interim meeting of the consultative committee on 11 September. This interim meeting went well, and the overall response and engagement of committee members was very positive. The committee agreed that the work emerging from Phase II has the potential to make a significant and positive difference to the relationship between HMRC and large business.
The committee discussed the broad context within which the review is set:
- Competitiveness of UK business on a long term basis being essential for UK success.
- Fairness which recognises the contribution UK business makes to the public finances.
- Transparency which underpins trust and collaboration between business, their agents and government and the public.
Their discussions also covered the setting up of a framework, based on culture, consultation and dialogue and operational focus, within which HMRC and large business can work together to improve the relationship, and providing proposals around clarity and certainty, centred on:
- Providing effective consultation to ensure consequences of actions are fully understood;
- A framework for regular engagement between large business and HMRC involving senior representatives to ensure accountability, transparency and delivery of review proposals;
- A comprehensive and clearly understood approach to giving advice and providing clearances, based on transparency and open dialogue;
- Clear mechanisms to resolve disputes;
- HMRC and business to work together to develop a better, shared understanding of risk and how this might be managed;
- Providing reliable guidance to business;
- Training and development of HMRC staff focussing on improving professional knowledge and standards, communication skills and commercial awareness; and
- HMRC continuing a specific, clear and honest dialogue with professional advisers.
The committee agreed that the review was heading in the right direction. Overall, they felt that the framework, and the emerging work which underpins the framework and builds on and reinforces the principles of the 2001 Hartnett Review, has the potential to help with competitiveness, encourage a better environment and make a real difference in the relationship between HMRC and large business.
