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Seòmar agus comataidhean

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 17 June 2025
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Displaying 862 contributions

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Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

Good morning. The report examines the impact of Covid-19 on HMRC compliance activities. It says:

“COVID-19 has continued to have an impact on HMRC’s compliance and debt management activities. Across the UK, there were 29% fewer civil compliance cases opened and 26% fewer cases closed in 2020-21 than in 2019-20”.

Can you give us a snapshot of why that is? Is it because internal processes in HMRC have been impacted by Covid—for example, due to people working from home, which means that there is less capacity—or is it because the outside world has become more complex because of the pandemic?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

People who struggled to pay tax during that period are now paying their present tax and have therefore almost forgotten about that period, which may impede the recovery of that tax. Do you have a concern that, in capacity terms, HMRC will be so busy in its forward-looking work that it may end up not fully delving into that period retrospectively?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

We talked about a separate analysis of Scottish compliance and how the effort and cost would perhaps be too great to do that. Do you have any insight as to whether there are plans to make available an analysis of Scottish income tax debt? Is such work being undertaken, and would the Scottish Government, HMRC or yourselves benefit from that?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

Would you expect there to be an upscaling of those activities on compliance and debt management as we come out of the pandemic?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

I will ask one quick question of Mr Boyle. In your report, you note that further analysis of taxpayer behaviour

“along with the relative success of compliance activity in Scotland and the Scotland-specific tax gap”

would help the Scottish Government to

“assess whether any Scottish income tax compliance risks are emerging”.

Do you have any concept of, and will you elaborate on, what those risks might be and their potential scale?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

The risk might be someone buying a bolthole in Berwick-upon-Tweed and registering themselves there while working in Edinburgh, for example.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

Mr Davies, in your opening remarks—or perhaps just after—you said that there was no reason to predict that the levels of income tax debt attributable to Scotland would be any different from those in the rest of the UK. How could you come to that conclusion if no substantive analysis has been conducted?

Public Audit Committee

Section 22 Report: “The 2020/21 audit of the Scottish Government Consolidated Accounts”

Meeting date: 27 January 2022

Craig Hoy

It is less than 1 per cent of a change.

Next year’s budget is being debated in Parliament at the moment, but the Government has flexibility in where it can direct the underspend. Have you looked sufficiently at the budget to know whether the money will be moved to other portfolios, or are we confident that it will stay broadly under the health and transport headings?

Public Audit Committee

Section 22 Report: “The 2020/21 audit of the Scottish Government Consolidated Accounts”

Meeting date: 27 January 2022

Craig Hoy

The overspends are relatively modest. Do you have any comment to make on the overspend in the economy, fair work and culture portfolio—which was £53 million—and the overspend in the education and skills portfolio? Have you had the opportunity to drill down into the reasons for those overspends?

Public Audit Committee

Section 22 Report: “The 2020/21 audit of the Commissioner for Ethical Standards in Public Life in Scotland”

Meeting date: 27 January 2022

Craig Hoy

There was a view that there was a clear need for training. Has that training started in a meaningful way and are you assured that it will meet current needs and concerns?