Back To The Future - Back To Paper With HMRC

HMRC is changing the way employees can claim PAYE employment expenses, by going back to paper submissions through the post to reduce fraud 

From 14 October 2024, HMRC will require employees to claim PAYE employment expenses using a P87 form and provide supporting evidence to prove their eligibility before the claim is progressed.

Employees can claim this tax relief through PAYE if the amount claimed is up to £2,500. 

In a bid to crack down on fraudulent claims, HMRC is tightening the rules, requiring claims to be made by post on paper forms with supporting evidence.

Under the new process, HMRC will require employees who want to claim PAYE employment expenses to use a P87 form and provide supporting evidence to prove their eligibility for a claim. 

HMRC is currently writing to claimants (including agents and accountancy firms), whose claims have not been processed since 10 June when the system was halted, to inform them of this new requirement and to ask them to provide evidence to support their claim.

From 12 October, claimants will no longer be able to submit a PAYE employment expense claim using the digital form or make a new claim over the phone.

This approach quite clearly runs counter to HMRC’s digital ambitions. Given the theoretical risk of fraud from online claims, it makes you wonder what other security flaws are in other parts of HMRC's digital systems!

ax does have to be taxing.

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Loan Charge Five Years On - #WorldMentalHealthDay

Today is #WorldMentalHealthDay
Exactly 5 years ago today we went to see Sir Amyas Morse about the #loancharge and I explained to him the impact on a persons mental health & the very real risk of suicide. When will HMRC be held to account? https://t.co/woZXeAzgyS

— Gordon Berry (@wealthagent) October 10, 2024

Tax does have to be taxing.

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• Appeal to the First-tier Tribunal or Upper Tribunal
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Bracken's Appointment To HMRC Smacks of Cronyism

The appointment of Mike Bracken (the founder of GDS) as a non-executive director at HMRC is nothing short of scandalous. This decision not only raises serious concerns about potential conflicts of interest but also undermines public confidence in HMRC’s supposed impartiality.

Bracken’s recent £100,000 donation to the Labour party casts a shadow over his appointment. It begs the question: is HMRC prioritising political allegiances over genuine expertise and qualifications? 

This move reeks of cronyism, and sends a clear message that money and connections trump merit in the public sector.

While Bracken’s background with the Government Digital Service is notable, it does not excuse the glaring ethical issues surrounding his appointment. The public deserves transparency and accountability in government appointments, and this decision falls woefully short.

HMRC must address these valid concerns head-on and prove that public sector appointments are not for sale to the highest bidder. Until then, the integrity and trust in HMRC remain deeply compromised.

Tax does have to be taxing.

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You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

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A Solar Protect policy will enable your accountant (your tax return agent) to:

• Deal with any correspondence from HMRC
• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

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HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Jim Harra To Retire From HMRC

The head of HMRC Sir Jim Harra is going to step down as chief executive after 40 years working at the tax authority

He has confirmed that he will retire from the Civil Service in April 2025. He extended his term by six months from the usual five-year tenure, to lead HMRC through the general election and the following months.

Harra said in a LinkedIn post: ‘I am due to complete my tenure as first permanent secretary/chief executive in the spring, when I will be retiring from HMRC and the Civil Service.

‘The recruitment exercise to find my successor is now under way. If you have the right skills and experience, please consider applying – it’s a fascinating and rewarding role with national impact, for candidates of the right calibre.’

Harra has been chief executive and first permanent secretary at HMRC since 2019. He originally took the post on an interim basis in January 2018 after replacing Sir Jon Thompson when he left the Civil Service to head up the Financial Reporting Council (FRC).

Harra has led the organisation during a turbulent time with the budget under pressure and increasing criticism about a deterioration in customer service. Cost cutting saw a move to slash telephone helplines earlier this year, but the decision was overturned in days due to an outcry from professional bodies and the then chancellor Jeremy Hunt.

‘I have been exceptionally proud to work in HMRC for over 40 years and to lead the Department since I was appointed to this role in October 2019,’ said Harra.  

‘I’ve always been incredibly proud of the work we do to improve the lives of others right across the UK, supporting taxpayers and collecting the money which pays for vital public services. 

‘I will continue to focus in the coming six months to deliver the government’s priorities and our vision of a modern, trusted tax and customs authority.’

Harra has been at the tax authority for 40 years, having begun his career in the Inland Revenue as an inspector of taxes in 1984. In January 2009, he was appointed director of corporation tax and VAT, responsible for optimising the design and delivery of these business taxes. He became director of personal tax customer operations in March 2011, and director of personal tax operations in October 2011. He was appointed director general for business tax in April 2012.

Continuing his upward trajectory, he later was appointed tax assurance commissioner and director general customer strategy and tax design.

In July, Harra was knighted in the King’s birthday honours list.

At the time, Harra said: ‘I have always been incredibly proud of the work HMRC does to support UK taxpayers and to collect the money which pays for vital public services.

‘This recognition is very much a result of the collective hard work of everyone at HMRC – and I am truly honoured to receive it, in what is my 40th year anniversary with the department.’

The job is advertised on Civil Service Jobs with a salary of £185,000 to £200,000, and a civil service pension with an employer contribution of 28.97%. The closing date for applications is 22 October. The chief executive reports directly to the Cabinet Secretary.

Tax does have to be taxing.

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A Solar Protect policy will enable your accountant (your tax return agent) to:

• Deal with any correspondence from HMRC
• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

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FreeGearKeir's £48K Freebie Tax Liability

In a political landscape where transparency and accountability are paramount, Starmer finds himself embroiled in a controversy that raises serious questions about his integrity and commitment to fairness. The revelation that Starmer has accepted £107,000 worth of gifts since 2019, and is allegedly exempt from paying £48,000 in taxes on these freebies, is nothing short of scandalous.

A Leader's Double Standards

Starmer, who has often positioned himself as a champion of ethical governance, now faces accusations of hypocrisy. The Labour leader's acceptance of gifts, including football tickets, luxury clothing, and accommodation, starkly contrasts with his public stance on financial propriety. This discrepancy between his words and actions undermines the trust of the electorate and casts a shadow over his leadership.

The Tax Exemption Controversy

Accountants have pointed out that there is no explicit rule exempting politicians from paying taxes on gifts. Yet, HM Revenue & Customs (HMRC) appears to have allowed such exemptions in practice. This preferential treatment is particularly galling when compared to the stringent tax regulations imposed on ordinary citizens and media personalities, who are required to pay taxes on similar gifts.

A Question of Fairness

The issue here is not just about the monetary value of the gifts but the principle of fairness. If Starmer, as a public servant, can receive substantial gifts without facing the same tax obligations as the average taxpayer, it sets a dangerous precedent. It suggests that those in power can operate under a different set of rules, eroding public confidence in the political system.

The Need for Accountability

Starmer's attempt to mitigate the backlash by paying back £6,000 worth of gifts falls woefully short of addressing the core issue. Taxpayers deserve a full accounting of all gifts received and a clear explanation of why these were not subjected to the same tax scrutiny as other forms of income.


Tax does have to be taxing.

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Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountant's (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your accountant (your tax return agent) to:

• Deal with any correspondence from HMRC
• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Media Enquiry Re Loan Charge

 

Looking to speak to loan charge victims who've been charged inheritance tax for a story in the Telegraph. Get in touch at charlotte.gifford@telegraph.co.uk #loancharge #loanchargescandal

— Charlotte Gifford (@charlotte_giff) September 30, 2024

Tax does have to be taxing.

Tax Investigation Insurance

Market leading tax fee protection insurance for businesses, sole traders and individuals. Protect yourself from accountancy fees in the event of an HMRC enquiry.

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountant's (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your accountant (your tax return agent) to:

• Deal with any correspondence from HMRC
• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"