United Kingdom Focus: The Year of Compliance
HMRC are the UK’s tax, payments and customs authority, and have a vital purpose they collect the money that pays for the UK’s public services and help families and individuals with targeted financial support. They do this by being impartial and increasingly effective and efficient in there administration. They help the honest majority get their tax right and make it hard for the dishonest minority to cheat the system.
Key objectives in 2015-16, set by HMRC, were to
- Maximise revenues
- Improve the service,
- Make sustainable cost savings. They revised these at the start of 2016-17, with HM Treasury’s agreement, to reflect rapid transformation into a smaller, more highly-skilled and digital organisation.
Key objectives now are to:
- maximise revenues due and bear down on avoidance and evasion
- transform tax and payments for customers
- design and deliver a professional, efficient and engaged organisation.
Some figures of interest are:
- Total tax revenues in the UK £536.8bn (2015-2016) 3.7% INCREASE 2014-15
- 2015-16 £19.1 billion more than last year
- £26.6bn compliance revenues secured — making a total of more than £110 billion since 2011-12
HMRC have a bold vision for the future. Over the next few years, they will invest a further £1.3 billion to transform into one of the most digitally advanced tax administrations in the world, finishing the delivery of our multi-channel digital services so that they become a digital-by-default organisation.
Their compliance revenue amounts to billions of pounds that would have otherwise been lost to the UK. They have also strengthened their grip on those who deliberately cheat the system through fraud, avoidance and evasion, and continue to pursue those who refuse to pay what they owe.
They apply the most appropriate civil and criminal sanctions against this dishonest minority. The decision to carry out a criminal investigation is based on a number of factors, for example the nature and scale of the alleged fraud or our ability to obtain the evidence to prove the case. During the last year they secured £26.6 billion from compliance work, which exceeded their target for the year. As well as on-going compliance work, their priority this year has been to increase capacity to tackle avoidance and evasion, as well as to improve the skills and capabilities of their people.
So with this heightened focus on compliance having a Expense Management system that can:
- Improve process
- Automate key components
- Lever analytics and reporting & improve intelligence
- Real-time visibility – spending against budget
- Alignment of expense management and overall corporate goals & objectives
- Provide Regular reporting on travel policy compliance
- Having an end-to-end expense management solution
- Corporate card integration
- Automated analytics reporting – Who – What – Where – When
- Mobile travel and expense management application
- Automated expense reimbursement
Will provide the best organisations with:
- 60% lower expense-processing costs
- 31% higher rate of corporate policy compliance
- 43% improvement of business expenses under management control