Extra tax take

HMRC’s latest management information summary on their performance over the first six months of financial year 2014–15 shows they are on track with hitting their target of collecting £24.5 bn in additional revenue by year-end, but still struggling to handle post inquiries effectively, with response rates in both areas falling below target say Harris & Co accountants Northampton #accountantsnorthampton

According to the briefing, HMRC cleared 69% of post within 15 working days, compared to 77.3 % at the same point last year. The briefing says the drop in performance is the result of the diversion of staff to support tax credits call handling, with 2000 staff moved to answer phones during the critical renewal period. As a result, the data shows HMRC handled 89% of calls on July 31, compared to just 16% last year.

On compliance, HMRC say they secured £8.8bn in additional revenues in the first half of the year. This is just over a third of the total year-end target of £24.5bn, but HMRC say they are confident of hitting that figure, arguing that the profile for compliance revenues is generally much higher in the second half of the year than the first.