The Public Accounts Committee (PAC) has warned that 'cracks are showing' in HMRC's performance ahead of Brexit, which is set to take place on 29 March 2019.
In a new report, the PAC stated that HMRC has a 'daunting task' ahead of it as it prepares for Brexit. HMRC also faces challenges in regard to the reprioritisation of its ongoing projects and the provision of day-to-day services, the Committee said.
It 'remains concerned' about the risks to UK borders and customs arrangements post-Brexit, alongside the impact on British businesses.
The PAC also highlighted the delay to HMRC's new Customs Declaration Service, which, according to the Committee, is 'unlikely to be ready' by the time of Brexit, and a need for 'further development' of HMRC's VAT systems as being significant causes for concern.
Commenting on the report, Meg Hillier, Chair of the PAC, said: 'HMRC is under pressure and in some areas the cracks are showing.
'HMRC's customer service targets do not fully reflect the customer experience, undermining its ability to plan and deliver these services effectively.
'And, as we have recorded elsewhere, serious concerns remain over the new Customs Declaration Service and operations at the border after Brexit.'