2006 Review of Links with Large Business
Phase I Themes

Phase I Themes

From the preliminary meetings held during Phase I, including the consultative committee meeting, the main concerns of business can be summarised as falling into three categories, as below:

1. Cultural change – tangible, practical ways of tackling perceptions of behaviours and attitudes to develop a relationship of greater trust and transparency with a dialogue geared towards solving problems effectively and efficiently;

2. Operational issues and the administrative burden - addressing a number of operational improvements to deliver greater certainty and clarity; and

3. Strengthened consultation and dialogue – a more joined up approach to the development of tax policies designed to enhance the competitiveness of the UK.

The steer from the committee is that each of the emerging themes should be explored further in Phase II with a view to developing outcomes which, in the round, contribute to addressing the concerns above. The context for this next phase of consultation will be one in which it is recognised and acknowledged that there is a mutual responsibility and interest of both HMRC and business in delivering outcomes which achieve the desired change in nature and tone of engagement.

The themes which emerged from Phase I were concerns about the following issues:

Certainty and clarity

  • Provision of real time certainty and resolution of issues in an effective, efficient and professional manner;
  • Provision of guidance in a timely manner in key areas of concern to large business and ensuring guidance is updated to address changes in legislation as well as its application to new commercial situations; and
  • Drawing upon elements of best practice from other fiscal authorities.

Strengthened consultation and dialogue

  • Clear and consistent dialogue ensuring early and consistent consideration of the business perspective in the development and delivery of policy and operational processes;
  • Clarity around the membership and terms of reference of the various consultative forums and clear communication and routes for escalation of issues.

Building a relationship based on greater transparency and trust

  • Seeking practical ways of fostering an atmosphere of greater trust, transparency and openness to facilitate the earlier discussion and resolution of contentious issues; and
  • Looking to build on HMRC’s risk assessment processes as a basis for a more transparent discussion and open relationship.

Clarity of roles and responsibilities

  • Resolving remaining uncertainties around the implementation of and delivery of the LBS Operating Model; and
  • Clarifying working practices between the various HMRC directorates with a remit for dealing with large businesses to ensure a consistently high standard of customer experience.

Skills, competencies, professional standards

  • Developing more consistent standards of commercial and accounting awareness – seeking opportunities to work more closely with business, advisers and professional bodies to deliver this; and
  • Fostering continuing professional development to maintain levels of competency and awareness.

Addressing administrative burdens

  • simplifying those processes which are the source of the most significant burden on large business and addressing certain specific areas of legislation or practices.

We will be developing our thinking in each of these areas and will be testing propositions and exploring outcomes with businesses, advisers and representative bodies during July, August and September.

We will continue to consult with FTSE100 businesses and those large businesses outside the FTSE100, including foreign and privately owned businesses, with similar concerns, to ensure the findings and recommendations are appropriate to our largest customers.

How to get involved