Hiring 5,000 new HMRC compliance officers is the first step in reforming the UK tax system, says Blick Rothenberg.

With just three weeks to go until the Budget, the government’s plan to hire 5,000 new HMRC compliance officers has been welcomed by leading audit, tax and business advisory firm Blick Rothenberg.

However, the company warns that this recruitment effort is a small step towards fixing the deep problems in the UK tax system.

Robert Salter, Director at Blick Rothenberg, noted that HMRC has been under-resourced for years, and while the addition of new staff is a positive development, it will not be enough to tackle the major structural problems plaguing the tax system. “HMRC’s systems are often poor and do not give HMRC or taxpayers a good service,” Salter said. He cited HMRC’s tool for determining employment status for tax purposes as an example of a system that often produces incorrect results when reviewed against binding UK case law.

Salter stressed the importance of thorough training for new staff, stressing that the complexity of the UK tax system requires a thorough understanding of its many complex and sometimes contradictory rules. “Without long-term, intensive training, money spent on recruitment may be wasted, and taxpayers may experience poor service due to untrained officials who misinterpret tax laws or ask for incorrect information,” he warned.

With the Budget approaching, Salter hopes Chancellor Rachel Reeves will provide details on how new HMRC officers will be trained to deal effectively with the challenges of the tax system. He emphasized that while the recruitment drive is a good first step, it must be accompanied by significant improvements in HMRC systems and processes to make a real difference to taxpayers.

Blick Rothenberg’s concerns come at an important time, with taxpayers and tax advisors eagerly awaiting potential tax changes expected in the upcoming Budget. The company’s experts argue that without a clear plan for comprehensive training and system development, the Government’s efforts to improve HMRC’s capabilities may fail to have the intended impact.