HMRC Performance 2020-2021: Public Accounts Committee inquiry

One of the most effective means of reducing tax avoidance, evasion and error would be for government to require anyone providing paid for tax and accountancy services to be a member of a relevant professional body. At present one third of accountants and tax advisers are unregulated, meaning they are not appropriately qualified, are not obliged to undertake any continuing professional development, do not hold appropriate insurance, are not subject to any monitoring, disciplinary or complaints process and are not members of a relevant professional body.

AAT recognises much of the good work undertaken by HMRC in relation to avoidance and evasion but much more could be done. For example, increasing the number of tax audits, taking action against online sellers who have evaded VAT and in relation to cryptocurrency investors.

HMRC must do more in relation to both legitimate and fraudulent debt recovery. AAT welcomes the creation of a taxpayer investment protection taskforce, notes it has already recovered over £500m and is expected to recover up to £1 billion by 2023, but questions what will happen to the remaining £4.3bn of fraudulently obtained taxpayer funds. Likewise, the approach to recovering debts owed via the Bounce Back Loan scheme should be re-examined.