1. Ensuring Compliance in UK trade statistics
Event Name Here
12/02/2007
Ensuring Compliance in UK trade statistics
Trade Statistics Presented by Mark Ellis
Project Name: HMRC v1.8

2. What do we mean by Compliance?
Event Name Here
12/02/2007
What do we mean by Compliance?
Dictionary says “acquiescence, agreement, assent, concurrence”
This implies a degree of co-operation, with threat used only as a last resort
In practice, we mean;
Supplementary Declaration information must be:
Timely (received by the Due Date)
Complete and
Accurate
Project Name: HMRC v1.8

3. How we identify Data Providers (PSIs)
UK VAT registered businesses complete their periodic VAT return indicating their total EU Sales and Purchases
This information is fed directly into the Trade Statistics computer system when the taxable person exceeds the exemption threshold for a calendar year.
A register of Intrastat declarants is compiled from this information
An automatic letter is sent advising the business that Supplementary Declarations are due and where to obtain educational material.
The business has 21 days to respond by either submitting a statistical declaration or advising the original data is inaccurate.
Non-responders are contacted after 30 days
Continued non-response is administered under the non-compliance regime
A Supplementary Declaration is expected each month unless there is no movements of goods (the UK does not enforce the submission of a ‘NIL’ return)

4. The Non-Compliance process - The non supply of a Supplementary Declaration (except a NIL declaration) is a criminal offence.
Businesses not supplying a Supplementary Declaration by the Due Date are contacted to discuss the cause.
In cases where the circumstances could have been avoided, the Supplementary Declaration is requested and a verbal warning is given.
Future non-compliance could result in the issue of a written warning of potential prosecution action being taken.
Continued non-compliance may result in the business being visited to obtain evidence that a movement of goods has taken place.
In cases where a movement of goods can be proved the business may be offered an administrative fine in lieu of court proceedings.
Serious non-compliance may result in criminal proceedings being instigated and where proven the court can impose a maximum fine of £2500 per offence.
An offence is a single period per flow

5. Data Providers
Each month 25,000 Intrastat businesses submit their Supplementary Declarations electronically containing approximately…
5m lines of data
£28bn in value
This equates to
96.5% of all Dispatch movements by value
94.5% of all Arrival movements by value
Below Threshold Trade Allocation (BTTA) estimate accounts for the remainder
£690m of Arrivals
£340m of Dispatches
Source: HMRC based on 2013 data.

6. What means do we have at our disposal?
Our resource availability is:
Education/Compliance: 24 staff years.
Data Management: 22 staff years
Education is available
Online using the uktradeinfo.com website
Within VAT guidance
From a dedicated Telephone Helpline
All of which reduces non-compliance from the outset.
Protective marking – Unclassified

7. What means do we have at our disposal?
Only 4 cases resulted in criminal prosecution in 2013
2000 verbal/ contacts direct to businesses each month.
An increase between first and sixth publication of over £1bn of declared trade.
Credibility checking of over 1,500 lines amending £800m of trade per month.
Dedicated Trade Statistics website
Published trade statistics
Classification facility
Intrastat subscriber alert service (which is used each month to remind data providers of the impending Due Date)
Protective marking – Unclassified
Source: HMRC based on 2013 data.

8. What means do we have at our disposal?
Event Name Here
12/02/2007
What means do we have at our disposal?
Professional Statisticians: 19 staff years
Statistical Analysis
Methodology
Projects and Development.
Additionally we have:
41 Staff Years – Intrastat Visiting Officers
Over 3,500 visits to business premises to resolve complex queries.
Assurance of over £12bn of declared trade.
Prosecution visits.
In 2010/11 UK was coming out of recession so the forecast of one year may not be reliable.
Source: HMRC based on 2013 data.
Project Name: HMRC v1.8

9. Internal processes
Due Date (DD) is set at 21st of the month following the reference period
1st Publication is delivered to the Office for National Statistics (ONS) between 6 and 9 days after DD
1st Publication is delivered to Eurostat approximately 3 weeks after DD
Our checks are prioritised based on risk, e.g.
Estimating missing declaration values (based on previous history)
Commodity Code/Country/Trader sensitivity
Weight to Value ratio
Annual Business Turnover

10. What do we achieve? We collect 99.8% of declared trade
Event Name Here
12/02/2007
What do we achieve?
We collect 99.8% of declared trade
Between 1st and 2nd publication the amendment rate is
Arrivals 0.3% (£28m)
Dispatches 1.1% (£128m)
Between 2nd and 3rd publication the amendment rate is
Arrivals 0.3% (£27m)
Dispatches 0.5% (£69m)
Due to slow economic recovery in UK, HMRC has decided to keep the dispatches threshold unchanged for 2014
Source: HMRC based on 2013 data.
Project Name: HMRC v1.8

11. What do we achieve?
We estimate missing/late trade (non and partial response) at 1st publication
Arrivals £287m (1.6%)
Dispatches £264m (2%)
By 6th publication, the estimate represents
Arrivals £12m (0.07%)
Dispatches £9m (0.07%)
Source: HMRC based on 2013 data.

12. Partnerships Office for National Statistics (ONS). Eurostat.
UK Statistical Authority (UKSA).
uktradeinfo.com website.
Trade Associations and trade bodies.
JCCC (Joint Customs Consultative Committee).
National Revenue Collecting Authorities.
Business consultations.

13. Thank you – any questions?
HM Revenue & Customs
21 Victoria Avenue Southend on Sea SS99 1AA
Telephone no