Our governance

The main decision-making, executive, managerial and advisory bodies at HM Revenue and Customs (HMRC).

HMRC was established by the Commissioners for Revenue and Customs Act (CRCA) 2005, which gives the legal powers and responsibilities of the department to Commissioners appointed by the Crown.

HMRC’s status as a non-ministerial department is intended to ensure that the administration of the tax system is fair and impartial.

Sir Jim Harra KCB is the First Permanent Secretary and Chief Executive, responsible for delivering the departmental strategy and for the organisation’s performance.

Angela MacDonald is the Second Permanent Secretary and Deputy Chief Executive, responsible for customer service and compliance and enforcement activity across all taxes.

Together with the Executive Committee they are responsible for running HMRC.

We have a Lead Non-Executive, Dame Jayne-Anne Gadhia who, together with the Board, provides challenge and advice to the Permanent Secretaries and the Executive Committee on the design of HMRC’s strategy and on its implementation, including reviewing and challenging performance against the department’s business plan.

More information on how we are structured can be found in our organisation chart, and in the Governance Statement of our Annual Report and Accounts (see page 84).

HMRC Commissioners

Our Commissioners are responsible for the collection and management of revenue, the enforcement of prohibitions and restrictions and other functions, such as the payment of tax credits. They exercise these functions in the name of the Crown.

The Commissioners are also entitled to appoint officers of Revenue and Customs who must comply with their directions. The way in which the Commissioners conduct their business is governed by the Commissioners for Revenue and Customs Act. Decisions relating to the resolution of our largest and most sensitive cases are decided by 3 Commissioners, chaired by the Tax Assurance Commissioner.

HMRC has 7 Commissioners:

HMRC Board

The HMRC Board is advisory. It provides challenge and advice on HMRC’s performance, delivery, strategy, capability and risk.

It does not advise on policy development nor the affairs of individual taxpayers.

The board is chaired by the Exchequer Secretary to the Treasury.

Board members

The board comprises of members of HMRC’s Executive Committee and Non-Executive Directors.

Chair: James Murray MP, Exchequer Secretary to the Treasury

Members:

Reporting

The department reports on how the board operates in the Corporate Governance Statement within the annual report and accounts. This includes the attendance record at board meetings.

HMRC Board meetings

The board meets monthly. You can read summaries of HMRC Board meetings:

Previous years’ HMRC Board meeting summaries are available on The National Archives website:

Non-executive board members

The non-executives on the board bring with them a wealth of experience from a range of backgrounds, including data analytics, Human Resources, IT, accountancy and the tax profession. Their skills and professional background brings an external perspective to the advice the board gives to help shape strategy and challenge performance.

The non-executive board members were appointed following recruitment exercises held in accordance with Cabinet Office guidance.

Board sub-committees

The board’s committee structure consists of:

  • the Audit and Risk Committee
  • the Nominations Committee

Work is delegated to board committees, where smaller groups of non-executives and Executive Committee members can examine issues in more detail and present their findings to the board for discussion and conclusion.

Audit and Risk Committee

The Audit and Risk Committee provides assurance to the board and the Principal Accounting Officer on the accuracy and precision of financial statements and the strength of risk management and control processes across HMRC.

Its scope covers all aspects of HMRC business, including appropriate oversight of the Valuation Office Agency (VOA).

The committee advises the board and the Principal Accounting Officer on:

  • assurance processes and actions in relation to management of risks in an HMRC context
  • strategic processes for risk, control and governance of the accounting policies, the accounts, the Tax Assurance Commissioner’s annual report and the annual report of the organisation, including the Resource Accounts, Trust Statement and the National Insurance Fund Accounts
  • recommending follow-up action in response to reviews of processes in settled tax cases.
  • the planned activity and results of both internal and external audit
  • the adequacy of management response to issues identified by audit activity
  • when necessary, proposals for tendering audit services from contractors who provide audit services to the department
  • anti-fraud policies, whistleblowing
  • processes and arrangements for special investigations

Membership

Chair: Michael Hearty, Non-Executive Director

Members:

The First Permanent Secretary and Chief Executive will be invited to each meeting and should attend periodically. The Chief Finance Officer will be expected to attend every full meeting, as will the Head of Internal Audit, the Head of Risk, and a representative from the National Audit Office. Other executives attend as the agenda dictates.

Nominations Committee

The Nominations Committee scrutinises and advises on:

  • succession planning for ExCom, the board and senior management and senior-level talent, performance and reward
  • systems for identifying and developing leadership, talent and high potential
  • incentives and rewards for senior officials and advising on the extent to which these arrangements are effective at improving performance

Membership

Chair: Jayne Anne Gadhia, Lead Non-Executive Director

Members:

Executive Committee

The Executive Committee (Excom) is the department’s main executive forum and the primary place in which Commissioners make their decisions. Individual committee members have portfolios of responsibility that span each line of HMRC business and corporate service function.

The Executive Committee oversees and assures all of HMRC’s work and is responsible for setting and delivering strategy. It also oversees the department’s performance, both in terms of immediate and future objectives.

Within a dedicated performance hub, displaying performance indicators agreed by the committee, it analyses HMRC performance against targets and considers ways to improve performance in all areas, including both customer service and value for money.

Executive Committee (Excom) meetings

You can read summaries of Excom meetings:

Previous years’ meeting summaries are available on The National Archives website:

Executive Committee sub-committees

The Executive Committee is additionally supported by 4 sub-committees:

  • Strategy Committee
  • Change, Investment and Design Committee
  • Making Tax Digital Executive Oversight Committee
  • Professional Standards Committee

Strategy Committee

The Strategy Committee provides high-level oversight of HMRC’s strategy and how it is implemented across the department.

Change, Investment and Design Committee

The Change, Investment and Design Committee ensures that all change takes HMRC towards achieving our strategic objectives and approving the key design, investment and delivery points in a programme’s lifecycle.

Making Tax Digital Executive Oversight Committee

The Making Tax Digital Executive Oversight Committee provides collective oversight of Making Tax Digital’s progress against agreed individual and collective ExCom accountabilities. It provides an escalation route beyond the Programme Board where appropriate.

Professional Standards Committee

The Professional Standards Committee oversees how HMRC administers the tax system and applies policies in accordance with its values. The committee considers how HMRC’s actions could affect trust in the tax system and public perception of fairness. It offers critical challenge to how HMRC exercises its powers, supporting good practice in the use of its powers and safeguards.

Further details can be found in the full Terms of Reference for the committee: HMRC Professional Standards Committee: Terms of Reference (ODT, 15 KB)

You can read summaries of the committee’s most recent meetings:

Meeting summaries from previous years are available from The National Archives:

You can read annual summaries of the committee’s work:

Membership

The Professional Standards Committee is comprised of the Executive Committee and 2 Non-Executive Directors and is supported by 4 independent advisers.

Non-Executive Directors Independent Advisers
Patricia Gallan Katerina Hadjimatheou
Paul Morton Emma Borg
  Kirsty Britz
  Glyn Fullelove
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