Archive for February, 2017

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Let’s talk about Impact Assessment

February 16, 2017

I have seen this Independent article circulating on social media quite a few times in the last few days: Louise Haigh MP talking about the government’s “cavalier attitude” to equalities in not conducting an equalities impact assessment before announcing the closure of some 78 Jobcentres. The DWP helpfully agrees it “will be conducting a full impact assessment as part of our planning”.

Let’s unpack this a little.

First of all, what do we mean by an “impact assessment”?  The kind that I know most about is the Regulatory Impact Assessment.  This is an examination of the costs and benefits of bringing in a new regulation.  For tax, this is now conducted as part of producing the TIIN, tax information and impact note, which contains the table of impacts produced as part of the TIA (tax impact assessment).  See the instructions on how to prepare a TIIN and the TIA which forms part of it, published on this blog here and here.

However because there was a helpful modernisation back in the noughties, when the word “regulatory” was dropped so the process became known as “Impact Assessment” (IA), there is now some confusion about the different forms of assessment that are required for different types of impact.

Mostly, assessing different specific impacts is folded into the process of producing a (regulatory) impact assessment, under the “other impacts” section.  This is also true for a TIIN: the list of “other” impacts contained in the latest TIA instructions includes two different tests each, unblushingly, called PIA: the Privacy Impact Assessment and the People Impact Assessment.

Equality Impact Assessment is different.  There is actual statute involved, whereas the IA, RIA, TIIN etc are basically justiciable via the concept of “legitimate expectation” (there’s clear, public, commitment to undergoing the process so theoretically you could bring a judicial review to try to overturn a decision which was made without undergoing that process).

There are two big caveats, though: equality legislation requires equality to be considered (given due regard) when reaching a decision but this doesn’t require the publication of a formal equality impact assessment document.  And government is allowed to consider, yes, this will screw this particular group of people over, but – balancing the conflicting priorities of government – we’ve decided the overall policy objective is more important than the impact on [X] group of people so we’re just going to do it anyway.

So, dammit, DWP can probably get away with thinking about whether unemployed people with no money and multiple issues like disabilities can make it across towns without buses or bus fares to log onto the computers they don’t have to apply for the jobs that don’t exist and deciding, well, yes, but they have *all day* to walk miles and we’ll save money.  And do it any way.

What the legislation does require, however, is that they decide to screw their customers before they make the decision to close down the services they need, and not just assess how badly they’ve screwed them over after they’ve done it.

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How to prepare a TIIN: the tax impact assessment

February 10, 2017

You may remember that I asked HMRC for the current guidance on how to prepare a TIIN (this was published here on my blog) but that the guidance referred to further guidance on how to do the tax impact assessment part of the process.  I have now received, by way of a further FoI request, the attached tia guidance

Note that the “redacted” areas are where the names of the particular officials responsible for different policy areas have been redacted.  Apparently the “more” areas refer to links to further internal guidance which was not considered to be covered by the scope of my FoI request.

More interesting, though, is the response I had to my question of why this guidance is not part of HMRC’s routine publication schedule, particularly as the TIIN is the tax version of a Regulatory Impact Assessment, and the RIA guidance and instructions are routinely published.

We have not published this guidance routinely for two reasons. Firstly it does not affect the computation of the tax that a customer pays and is therefore of interest only to a small community. Secondly, as you point out, it mirrors cross government impact assessment guidance for internal HMRC use and is not intended to materially differ from it, except to the extent that the impact assessments provided for tax provisions are presented in TIINs, and to explain to HMRC staff how to engage the right processes to generate the impacts.

Hmmmm… I am tempted to point out that another possible reason could be that other government departments’ impact assessments are subject to external scrutiny.  As impact assessment programme manager in HMRC, my job for several years included going to cross governmental meetings and saying (in effect) no, hands off, tax is different!  These days?  I’m not so convinced…

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Yes, and, but.

February 3, 2017

Is there a communications manager for Making Tax Digital yet?  Because – apologies if there is – but it seems to me the communications so far have been, well, pants.  Apparently we are no longer MTE (Making Tax Easier) or even Making Tax Digital (MTD) for example, but “MTDfB”.  This inelegant acronym stands for “Making Tax Digital for Businesses”, presumably because we don’t want to frighten the taxpayers horses by suggesting that pensioners and others on PAYE will have to play.  Yet.

More importantly, there seems to be no plan to communicate with anyone outside the rather small circle of people who are already tax mavens, with those unrepresented businesses who will be hardest hit by the changes.  You don’t believe me?  Put “making tax digital” into google and hit the tab for “news”.  There is virtually nothing in the general press, although the professional press is of course full of it – but no-one at HMRC is, seemingly, listening to them.

Look, there’s a serious misunderstanding here.  The consultation response says that “respondents overwhelmingly support the move to a digital tax system.”  No, it’s a recognised letter-writing technique.  You don’t think your bank really means you’re “dear” to them when they write to you, do you?

Well, generations of people have been trained to deliver unpleasant messages using the format “yes, and, but…”  You start off by finding a point of commonality, something you can agree on.  (Yes, it would be good if HMRC had a modern computer system.)  Then you go on to add something else you think you can agree on.  (Yes, it would be great if tax returns were prepopulated with the information HMRC already holds) and only then do you deliver the unwelcome message. (But making it compulsory to keep electronic records and update four times a year are terrible ideas!)

Yes, and, but.

It’s plain as the nose on your face if you look at the Treasury Select Committee’s report which helpfully summarises the responses under the heading “support for the principle” – yes, we welcome the digital principle, and we think the changes go with the grain of progress BUT… we’re worried about the timetable, about the lack of free software, and above all about mandation.

The whole basis of the current proposal is undermined in HMRC’s own Impact assessment.  The projected extra tax in this parliament (to 20-21) is £945m. The projected extra costs to business in the same period? £920m.  Extraordinarily, the impact assessment quantifies no costs for HMRC for the proposal, although the original consultation document justified mandation by saying that without it “the return on the £1.3bn investment in transforming tax administration would not have been realised” (para 2.6)

In short, HMRC, your comms are pants, you have misunderstood people’s feedback, and your numbers don’t add up.  Sorry and all that.