HMRC has disclosed cuts to essential provisions, despite Government promises that cuts would not affect frontline services, warns Nottingham and Chilwell-based chartered accountancy firm UHY Hacker Young.

With cuts of 15 per cent to the HMRC budget over the next four years and a 33 per cent reduction in administration spending announced as part of the spending review, UHY Hacker Young is anticipating serious impacts on the efficiency of HMRC services.

Jeff Parr, taxation partner at UHY Hacker Young comments: "Turnaround times for the processing of important documentation, such as tax rebates, are expected to increase considerably, with the turnaround time for some forms increasing from seven days to up to eight weeks.

"In addition, HMRC has announced that it will no longer send copies of certain documents to tax advisors, meaning that tax payers will have to pass on all notices themselves, slowing and further complicating the advisory process."

The cuts come hot on the heels of HMRC's PAYE system errors, with 1.4 million people being chased for the underpayment of £2billion of tax. The cuts could also lead to a number of other delays, particularly in dealing with paperwork for the self-employed setting up new businesses.

Jeff adds: "Considering the shockwaves from the PAYE debacle you would have thought that HMRC and The Treasury would want to watch standards very closely, but it seems there are no lessons to be learnt.

"The cuts in services will have a tangible impact on the ease with which taxpayers are able to fulfil their obligations and ensure that they do not overpay their tax."