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Friday, 5 April, 2002, 08:15 GMT 09:15 UK
Paying tax is linked to 'social good'
Sir Nicholas Montagu
As a former philosophy lecturer, the 'distance' helps him
test hellotest
By Sarah Toyne
BBC News Online personal finance reporter
line
Once there was Hector, then there was Mrs Doyle, but neither mascot has been a whole hearted success with Britain's tax payers. But, undeterred, the UK's top tax man is determined to persuade the public that paying tax is the route to a better Britain.

Officially he is known as Sir Nicholas Montagu, but he prefers just plain old Nick to colleagues and friends.


And nothing pleased me more because you remember an irritating advertisement

Sir Nicholas
By the end of the interview, one leg is slung over an armchair and we are discussing hummingbirds and Spanish lessons, against the backdrop of his office which overlooks the Thames.

It is rather disconcerting - not perhaps what you would expect form the head of the Inland Revenue and de facto the most important tax man in the country.

But I am pleasantly surprised by his enthusiasm, he doesn't seem to mind that the interview has run over time and the follow up phone call.

Customer-focused

Sir Nicholas has lots of projects. In fact, he is so passionate about his job and tax that he doesn't want to retire.

In two years time, when he reaches the age of 60, he will be forced by the Civil Service rules to leave the department.

"It's the best job in Whitehall," he says. "It's about managing and leading a superb department through a time of unprecedented change."

And what a time.


The more overt we make that link [between public services and paying tax] the more people will realise that dodging taxes isn't something clever to boast about in the pub

Sir Nicholas

The Inland Revenue, it could be argued is now the second most powerful department in Whitehall, behind the government's cash dispenser - the Treasury - and its boss.

Sir Nicholas is basically Gordon Brown's tax administrator. His department must make the Chancellor's grand vision of tax credits and wealth redistribution work in practice.

In Sir Nicholas' words, this is the departments new role as an "enabler" and "regulator".

Public services

Part of this is promoting tax paying as linked to good citizenship and public services.

Inside the Revenue
Inside Somerset House

"It is about raising the image of taxpaying so that people understand that taxes are inextricably linked to the public good," he says

"There wouldn't be any hospitals without taxes, police on the beat, there wouldn't be any books in schools."

Throughout this meeting and a follow-up phone interview, Sir Nicholas keeps on referring to the Prime Minister's now infamous speech of 16 October 2001.

Tony Blair talked of making public services more focused on the individual. There was a also an indication that taxes would rise.

Sir Nicholas is quick to point out that it would be wrong to infer any policy developments from his views on citizenship and tax.

Tax dodging

Sir Nicholas' view on the social good of paying tax is linked to his feelings about tax dodgers.

He says that the department will pursue people who continue to evade tax relentlessly.

"The more overt we make that link the more people will realise that dodging taxes isn't something clever to boast about in the pub.

"It is cheating your fellow members of society who have contributed their bit towards meeting the needs of the UK," he says.

Understanding taxpayers

The Revenue has attracted its fair share of negative publicity over the last few years centring on its mission to tell the UK's 26 million taxpayers that it is not quite so grizzly as everyone thinks it is.

Inland Revenue, Somerset House entrance
Sir Nicholas is trying to promote a different facade

Sir Nicholas appointed its first ever marketing director, Ian Schoolar, and has employed the services of advertising agencies and a number of consultancies.

He says that they are essential because of the department's new role, and that it must understand its customers better.

This work is now coming to an end, but there is an indication that it could lead to more dedicated and specialised services for different groups of the community, such as students and part-time workers.

The net

One way of reaching consumers is through the net.

He is proud of his latest internet projects or how "green with envy" foreign government officials were about his whiz bang latest internet project.

In terms of providing a popular service, the e-filing personal self assessment system has not been quite so successful according to the figures, but he says that it is an "investment in the future", and the upfront costs will be worth it in the end.

His net projects are part of what he calls his "transformation agenda".

Basically, Sir Nicholas' vision is that eventually you will be able to see your taxes, tax credits, refunds and so on as one big bank account, which can be accessed online - and recognises you as a customer.

But that advert?

Some might say that these attempts to understand the customer have not always run very smoothly.

Dear old Hector, the loveable tax inspector, was replaced by Mrs Doyle, a character from Channel 4's Father Ted programme for last tax year's campaign.

It was voted the UK's most irritating advert, and will not be appearing this year to tell us to "Go on, Go on, Go on" and complete that return.

Sir Nicholas denies that the advert was scrapped, saying that it was a "one off for this year".

In fact, he gets pleasure from the fact that it was irritating.

"And nothing pleased me more because you remember an irritating advertisement," he says.

Critics are also concerned about errors made by the Revenue.

Sir Nicholas admits that there have been problems with the databases, but he says that headlines screaming: "One In Four Tax Bills Wrong" were exaggerated.

Cleaning these databases up, making it easier for people to deal with the department and expanding the range of electronic services is work he says is still to be done.

But he says that he is pleased with work so far completed.

"We have got a lot to boast about," he says.

 WATCH/LISTEN
 ON THIS STORY
News image Sir Nicholas Montagu
"We hope to adopt a technique called customer relationship management"
News image Sir Nicholas Montagu
"What I would really like to achieve is a reduction in errors"
News image Sir Nicholas Montagu
"Tax payers get it wrong sometimes, we get it wrong sometimes"
See also:

16 Jul 01 | Business
Inland Revenue admits problems
14 Jun 01 | Business
Inland Revenue image: Your views
14 Jun 01 | Business
Inland Revenue to get make-over
10 Jan 01 | UK
Hector the Taxman RIP
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