The UK Experience. HMRC s new operating model and its relationship with the new UK Border Agency. Mike Norgrove Director Excise & Customs, HMRC

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1 The UK Experience HMRC s new operating model and its relationship with the new UK Border Agency Mike Norgrove Director Excise & Customs, HMRC WCO REVENUE MANAGEMENT CONFERENCE - CHALLENGES AND OPPORTUNITIES December 2009, Brussels

2 Our presentation today Share the UK s recent experiences in tax and customs organisational reform How it fits with today s HM Revenue & Customs (HMRC) Explain how HMRC and the UK Border Agency (UKBA) are working together Share the lessons we have learnt

3 But first HMRC today 89,000 staff collecting 436bn in tax revenue and paying out 35bn in benefits Collects: 248bn in Income Tax and National Insurance 78bn in VAT 42bn in Corporation Tax 41bn in Tobacco, Alcohol and Oils Duty 22 billion in import duties and taxes Handles: 30 million on-line import, export and transit transactions Goods declarations to a value of 700 billion A budget of just over 4bn

4 And UKBA 25,000 staff in 135 countries worldwide 9,000 Border Force staff Manages: 200 million border movements of people 2.5 million visa applications 25,000 asylum applications 60,000 removals and deportations of people 700 billion of goods 16 regions - 11 in the UK and 5 overseas A budget of over 2bn

5 Creation of HMRC On 17 March 2004, Ministers announce merger of HM Customs & Excise and Inland Revenue HM Revenue & Customs is formed on 18 April ,000 staff Cost of integration estimated at 18m

6 HMRC Operating Model 2005 Product and process groups Pay As You Earn Self-Assessment Corporation tax Value Added Tax Excise Duty Stamp Taxes Benefits and Credits Charities Assets Residence Customs & International Customer Units Individuals Businesses EXECUTIVE COMMITTEE Corporate Functions Anti-Avoidance Finance Central Compliance HR & Learning Central Policy Legal Commercial Research Communications Security Estates Strategy Information Management Operations Customer Contact Processing Risk & Intelligence Debt Management Civil Investigations Criminal Investigation Compliance Detection Large Business Service Valuation Office

7 More strategic change Autumn 2007 Capability Review independent and public assessment of UK government departments review team drawn from private and public sectors assessment made of leadership, strategy and delivery capability Security in a Global Hub Review Announcement of the creation of the UK Border Agency Proposals include integration of frontline customs and immigration staff and UK visas staff overseas Purpose to protect UK against terrorism and to tackle border tax fraud, smuggling and immigration crime

8 HMRC Revised Operating Model Local Compliance Personal Tax Criminal Investigation Corporate Service Units Enforcement & Compliance Benefits & Credits Risk & Intelligence Detection LBS Business Tax CT & VAT Excise & Customs Processing, Policy & Trade Stats Business Customer Unit

9 HMRC Revised Operating Model Local Compliance Personal Tax Criminal Investigation Corporate Service Units Enforcement & Compliance Benefits & Credits Risk & Intelligence Detection LBS Business Tax CT & VAT Excise & Customs Processing, Policy & Trade Stats Business Customer Unit UKBA Detection RIS Immigration Visas

10 HMRC Revised Operating Model Local Compliance Personal Tax Criminal Investigation Corporate Service Units Enforcement & Compliance Benefits & Credits Risk & Intelligence Detection LBS Business Tax Excise & Customs Processing, Policy & Trade Stats CT & VAT Business Customer Unit UKBA Detection RIS Immigration Visas

11 HM Revenue & Customs as the UK Customs Authority HMRC is the UK Customs authority, accountable for Collection/enforcement of taxes (import VAT, excise/customs duties) Regulation, control and facilitation of international trade Customs policy, procedures, systems and legislation Administration of European Union customs controls Combating Intellectual Property Rights fraud Strategic Export Licensing controls

12 Responsibilities at the Border

13 Responsibilities at the Border UKBA Immigration/migration/visa controls Physical examination of goods Anti smuggling controls Major delivery partner for HMRC

14 Responsibilities at the Border HMRC Import and export cargo declarations and licensing Inland fiscal controls Control and regulation of legitimate trade Collecting and securing import taxes UKBA Immigration/migration/visa controls Physical examination of goods Anti smuggling controls Major delivery partner for HMRC

15 HMRC & UKBA Working Together UKBA Board with HMRC representation HMRC Director General/UKBA Chief Executive quarterly meeting Close working between Director Excise & Customs and Strategic Director Border Force Partnership Committee Partnership Agreement with specific delivery objectives Joint Policy and Intelligence Forums

16 What we have learnt

17 What we have learnt Design

18 What we have learnt Design People

19 What we have learnt Design People Costs

20 What we have learnt Design People Costs Collaboration

21 Thank you Happy to take your questions