[Withdrawn] HM Revenue and Customs single departmental plan
Updated 1 October 2019
© Crown copyright 2019
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/hm-revenue-and-customs-single-departmental-plan/hm-revenue-and-customs-single-departmental-plan--2
Our single departmental plan sets out our objectives and how we will achieve them.
Financial Secretary to the Treasury
First Permanent Secretary and Chief Executive
Second Permanent Secretary and Deputy Chief Executive
We are the UK’s tax, payments and customs authority, and we have a vital purpose: we collect the money that pays for the UK’s public services and help families and individuals with targeted financial support.
Our vision is to be a world-class organisation – and our work is underpinned by our values:
- we are professional
- we act with integrity
- we show respect
- we are innovative
Our objectives
We will:
- collect revenues due and bear down on avoidance and evasion
- transform tax and payments for our customers
- design and deliver a professional, efficient and engaged organisation
1. Collect revenues due and bear down on avoidance and evasion
Financial Secretary to the Treasury
First Permanent Secretary and Chief Executive
Second Permanent Secretary and Deputy Chief Executive
1.1 Collect revenues due
| How we will achieve this |
|---|
| Build on our success in collecting £627.9 billion in total revenues over 2018 to 2019 and the overall downward trend in the tax gap over the past decade (contributes to Sustainable Development Goal (SDG) 17) |
| Deliver compliance revenues of £34.5 billion in 2019 to 2020 through our compliance activity (contributes to SDG 17) |
| Continue to identify and prevent losses in the tax credits system so that error and fraud is no more than 5% as we support the transition to Universal Credit |
| Help customers to claim their full tax credit entitlement so that underpayments through error are no more than 0.7% |
| Minimise the debt balance, reducing the amounts that become debt and making it as easy as possible for customers to pay what they owe |
1.2 Bear down on tax avoidance and evasion
| How we will achieve this |
|---|
| Continue to invest £800 million in additional work to tackle evasion and non-compliance in the tax system, with a further £155 million of investment announced at Autumn Budget 2017 for future years up to 2019 to 2020 (contributes to SDG 17) |
| Raise an additional £5 billion a year on 2015 to 2016 by 2019 to 2020 by tackling tax avoidance and aggressive tax planning, evasion and non-compliance, and by addressing imbalances in the tax system |
| Make it harder for businesses to operate in the hidden economy by using new bulk data powers to identify risks in different sectors of the economy to improve our operational response |
| Increase our ability to prevent alcohol and tobacco smuggling including further funding to tackle illicit tobacco and illicit alcohol |
| Continue to tackle tax avoidance, close schemes and collect yield of more than £170 million in 2019 to 2020 through the Accelerated Payments regime and collect yield of £1.3 billion in tax settlements |
| Ensure global companies pay their fair share in tax by supporting the government’s leading role in the reform of international tax rules |
Our performance
Total tax revenues £627.9 billion
Source: HMRC’s Annual Report and Accounts.
April 2018 to March 2019.
Compliance yield raised
| Quarter | Yield (£ million) |
|---|---|
| 2018-19 Q4 | 11,720.3 |
| 2018-19 Q3 | 7,689.1 |
| 2018-19 Q2 | 6,395.6 |
| 2018-19 Q1 | 9,687.0 |
Our target is £34.5 billion in 2019 to 2020 (£30 billion in 2018 to 2019).
Source: HMRC quarterly performance data; release schedule: quarterly.
Tackling tax credits error and fraud
5.7%
April 2017 to March 2018 (2018 to 2019 estimates won’t be available until June 2020).
Source: HMRC official statistics; release schedule: annually.
Our target is to ensure error and fraud is no more than 5% in 2019 to 2020.
Tax credits underpayments
0.6%
April 2017 to March 2018 (2018 to 2019 estimates won’t be available until June 2020).
Our target is to ensure underpayments through error are no more than 0.7% in 2019 to 2020.
HMRC is committed to increasing transparency in its monthly and quarterly performance reporting: HMRC monthly performance reports, HMRC quarterly performance update; release schedule: monthly and quarterly.
2. Transform tax and payments for our customers
Lead minister
Jesse Norman MP, Financial Secretary to the Treasury
Lead officials
Sir Jonathan Thompson, First Permanent Secretary and Chief Executive
Jim Harra, Second Permanent Secretary and Deputy Chief Executive
2.1 Transform for our customers
| How we will achieve this |
|---|
| Invest £1.3 billion to transform HMRC into one of the most digitally advanced tax administrations in the world, finishing the delivery of our multi-channel digital services so we become a ‘digital-by-default’ organisation |
| Make it quicker and easier for businesses and landlords to get their tax right through the implementation of Making Tax Digital |
| By April 2019 most small businesses will be able to opt to keep their records digitally and send quarterly updates for income tax and VAT |
| Those above the VAT threshold will be required to do so for VAT |
2.2 Support welfare and pension reform
| How we will achieve this |
|---|
| Continue to work with HM Treasury (HMT) and the Department for Work and Pensions (DWP) on the transition to Universal Credit, making this as smooth as possible for staff and claimants, in line with the migration plan led by DWP (contributes to SDG 1) |
| Continue to monitor Annually Managed Expenditure risks and work with HM Treasury officials to develop operational and policy ideas to minimise fraud, error and debt |
2.3 We will support successful delivery of the practical requirements of the UK’s new relationship with the European Union (EU) and the rest of the world, post EU withdrawal
| How we will achieve this |
|---|
| Support the government to negotiate a successful exit and future partnership |
| Build and maintain specialist capability to deliver the requirements for EU Exit and HMRC’s future Target Operating Model |
| Deliver the Customs Declaration Service through a phased approach, with flexibility and scalability to support our new UK customs regime |
| Ensure we have the IT, operational and policy requirements in place to support the UK’s exit from the EU |
| Support UK businesses by ensuring the flow of trade is preserved through cross-government contingency planning, whilst keeping our borders secure and ensuring collection of any tax and duties due (contributes to SDG 8 and 17) |
Our performance
Customer satisfaction with digital services
2018 to 2019 Q4 total to be updated following publication of HMRC’s Annual Report and Accounts.
| Quarter | Satisfaction (%) |
|---|---|
| 2018-19 Q4 | 81.0 |
| 2018-19 Q3 | 80.6 |
| 2018-19 Q2 | 81.2 |
| 2018-19 Q1 | 78.9 |
Our target for 2019 to 2020 is that 80% of customers are either ‘satisfied’ or ‘very satisfied’ with our digital services across the year.
Source: HMRC quarterly performance update; release schedule: monthly and quarterly.
Average speed of answering a customer’s call
| Quarter | Average speed of answer (minutes:seconds) |
|---|---|
| 2018-19 Q4 | 05:47 |
| 2018-19 Q3 | 05:18 |
| 2018-19 Q2 | 05:02 |
| 2018-19 Q1 | 04:55 |
Our target for 2019 to 2020 is to answer customer calls within an average speed of answer of 5 minutes across the year.
Source: HMRC quarterly performance update; release schedule: monthly and quarterly.
Customers waiting more than 10 minutes to speak to an advisor
| Quarter | Customers waiting more than 10 minutes (%) |
|---|---|
| 2018-19 Q4 | 23.7 |
| 2018-19 Q3 | 20.8 |
| 2018-19 Q2 | 17.9 |
| 2018-19 Q1 | 17.0 |
Our target for 2019 to 2020 is to ensure no more than 15 % of calls are waiting more than 10 minutes to speak to an advisor across the year.
Source: HMRC monthly performance reports, HMRC quarterly performance update; release schedule: monthly and quarterly.
Customer iForms cleared within 7 working days of receipt
| Quarter | Turnaround in 7 days (%) |
|---|---|
| 2018-19 Q4 | 94.4 |
| 2018-19 Q3 | 95.5 |
| 2018-19 Q2 | 89.9 |
| 2018-19 Q1 | 96.3 |
Our target for 2019 to 2020 is to turnaround 95% of iForms within 7 days across the year.
Source: HMRC monthly performance reports, HMRC quarterly performance update; release schedule: monthly and quarterly.
Customer post cleared within 15 working days of receipt
| Quarter | Turnaround in 15 days (%) |
|---|---|
| 2018-19 Q4 | 64.4 |
| 2018-19 Q3 | 87.8 |
| 2018-19 Q2 | 86.6 |
| 2018-19 Q1 | 72.6 |
Our target for 2019 to 2020 is to turnaround 80% of post within 15 days across the year.
Source: HMRC monthly performance reports, HMRC quarterly performance update; release schedule: monthly and quarterly.
Customer post cleared within 40 working days of receipt
| Quarter | Turnaround in 40 days (%) |
|---|---|
| 2018-19 Q4 | 93.4 |
| 2018-19 Q3 | 99.1 |
| 2018-19 Q2 | 96.8 |
| 2018-19 Q1 | 95.8 |
Our target for 2019 to 2020 is to turnaround 95% of post within 40 days across the year.
Source: HMRC monthly performance reports, HMRC quarterly performance update; release schedule: monthly and quarterly.
Handle tax credit and Child Benefit claims and changes of circumstances for UK customers
| Quarter | Handled in an average (days) |
|---|---|
| 2018-19 Q4 | 11.9 |
| 2018-19 Q3 | 12.7 |
| 2018-19 Q2 | 11.6 |
| 2018-19 Q1 | 12.1 |
Our target for 2019 to 2020 is to handle claims and changes of circumstances for UK customers within an average of 22 days across the year.
Source: HMRC quarterly performance data; release schedule: quarterly.
Handle tax credits and Child Benefit claims and changes of circumstances for international customers
| Quarter | Handled in an average (days) |
|---|---|
| 2018-19 Q4 | 69.3 |
| 2018-19 Q3 | 57.5 |
| 2018-19 Q2 | 56.0 |
| 2018-19 Q1 | 63.1 |
Our target for 2019 to 2020 is to handle claims and changes of circumstances for international customers within an average of 92 days across the year.
Source: HMRC quarterly performance data; release schedule: quarterly.
HMRC is committed to increasing transparency in its monthly and quarterly performance reporting: HMRC monthly performance reports, HMRC quarterly performance update; release schedule: monthly and quarterly.
3.Design and deliver a professional, efficient and engaged organisation
Lead minister
Jesse Norman MP, Financial Secretary to the Treasury
Lead officials
Sir Jonathan Thompson, First Permanent Secretary and Chief Executive
Jim Harra, Second Permanent Secretary and Deputy Chief Executive
3.1 Engage our people
| How we will achieve this |
|---|
| Continue to make consistent positive progress towards achieving the Civil Service Employee Engagement Index benchmark (62% in 2018) |
| Increase the percentage of colleagues each year who feel they have the skills required to do their job effectively, working towards the Civil Service benchmark (89% in 2018) |
3.2 Transform our estate
| How we will achieve this |
|---|
| Continue to transform our estate into modern, adaptable workspaces, creating 13 new regional centres over the next 5 years, serving every part of the UK |
| Ensure these Regional Centres bring staff into more cost-effective buildings, while making it easier for HMRC teams to collaborate and modernise the way we work |
3.3 Deliver sustainable savings
| How we will achieve this |
|---|
| Deliver £717 million of annual sustainable efficiencies by 2019 to 2020 |
| Achieve £1.9 billion of cumulative savings over the Spending Review |
3.4 Support cross-government commitments
| How we will achieve this |
|---|
| Continue to support the Greening Government commitments to reduce our impact on the environment, working towards the 2019 to 2020 targets (contributes to SDG 13) |
| Contribute to the Global Goals for Sustainable Development, reducing inequality through recruitment of a diverse workforce (contributes to SDG 10) |
| Work to ensure that public appointments made by HMRC contribute to realising the ambition that by 2022, 50% of all public appointees are female and 14% of all public appointments made are from ethnic minorities |
Our performance
People survey engagement score
| Year | Engagement score |
|---|---|
| 2018 | 49% |
| 2017 | 50% |
| 2016 | 47% |
Source: Civil Service People Survey; release schedule: annually.
Representation of female staff, ethnic minority staff and disabled staff
| Year | Female | Ethnic minority | Disabled |
|---|---|---|---|
| 2018 | 54.6% | 11.9% | 13.7% |
| 2017 | 54.9% | 11.4% | 13.9% |
| 2016 | 55.6% | 10% | 14.9% |
Source: Civil Service Diversity and Inclusion Dashboard; release schedule: quarterly.
Greenhouse gas emissions
| Year | % reduction against 2009-10 baseline (190,857 tonnes CO2) |
|---|---|
| 2017-18 | 54% |
| 2016-17 | 48% |
Source: Greening Government Commitments annual reports; release schedule: annually.
Percentage of spend that is allocated to SME (small and medium enterprises)
| Year | Percentage of total spend |
|---|---|
| 2018 | 19.3% |
| 2017 | 21.7% |
| 2016 | 19.2% |
Source: Central government spend with SMEs data; release schedule: annually.
Public Value Framework
To support the delivery of our objectives, we will be assessing our performance against the Public Value Framework in the following areas:
- user and client experience and participation
- capacity to evaluate impact
- bench marking and cost control
Making sustainable savings
Secure £151 million of sustainable efficiencies in 2019 to 2020, working towards £717 million of annual sustainable efficiencies by 2019 to 2020.
Source: HMRC quarterly performance update; release schedule: quarterly.
Achieve £1.9 billion of cumulative savings over the Spending Review.
Our equality objectives
We have set objectives to help us advance equality (contributes to SDG 5). These are:
- to further develop our understanding about the impact of our services on customers and identify more clearly those who need enhanced support
- to provide digital services that are accessible and usable by the widest possible range of customers
- to ensure that our public sector duty is reflected in appropriate HMRC policies, processes, projects and training
- to create and maintain a diverse workforce that better reflects HMRC customer base
- to create a working environment that values difference and fosters an inclusive workplace culture where HMRC employees from all backgrounds, can give their best, are treated fairly, valued for their contributions, and where they can progress their careers
Our finances
Departmental Expenditure Limit (DEL) - £4.3 billion
Resource DEL (including depreciation) - £4.0 billion
Capital DEL – £0.3 billion
Annually Managed Expenditure – £42.7 billion
Control totals included in this document are in line with those presented in the Main Supply Estimates 2019 to 2020 and are currently subject to Parliamentary approval. Any changes arising from the Parliamentary approval process will be reflected in due course.
Source: Central Government Supply Estimates 2019 to 2020.
An additional £350 million has been allocated to HMRC to support preparations for exiting the EU, with a further £25 million to support cross-government work in co-ordinating the changes needed to ensure a functioning border when the UK leaves the EU, in whatever scenario. This was announced alongside the Spring Statement 2019 and will be confirmed through the Main Estimates 2019 to 2020.
Our people
As at 31 December 2018, HMRC had 56,980 full-time equivalent employees, not including its agencies.
Source: Office for National Statistics Public sector employment data; release schedule: quarterly.