HMRC Is Shite

HMRC Is Shite
Dedicated to the taxpayers of Britain, and the employees of Her Majesty's Revenue and Customs (HMRC), who have to endure the monumental shambles that is HMRC.

Monday, 23 October 2017

The Best Laid Plans of Mice, Men and HMRC - Manchester Regional Centre Pushed Back


My thanks to a loyal reader who pointed me to a recent PCS statement regarding HMRC office closures.

It seems that there are scheduling changes, with the Manchester Regional Centre pushed back and closures elsewhere brought forward.
"HMRC has today (19 October) announced further changes to its ‘Building Our Future’ programme. These are essentially updates on two main areas: the Manchester regional centre dates; and updates for eight other offices.

Manchester Regional Centre


The estate negotiations on the location and buildings for the proposed Manchester Regional Centre are taking longer than the department had initially anticipated. This will mean that the Regional Centre will now pen at least a year late, and possibly even later than that. When it eventually opens it will now do so in two phases.

The overall capacity of the Regional Centre has not been confirmed, not least because there are considerations being made regarding the impact on HMRC jobs of the United Kingdom leaving the European Union.

As a consequence of the delay, the department has decided to extend the retention of Trinity Bridge House, Salford, until the 2027/28 year. Additionally, negotiations are being pursued to extend the leases for nearby Albert Bridge House and Ralli Quays.

Closure Dates Brought Forward Elsewhere
Further announcements have been made which affect members in nine other locations:
•    Netherton office is now planned to close in November 2018, and St Helens in January 2019. The proposed migration route for all three offices is to Imperial Court, Liverpool or St John’s House, Bootle.
•    Blackpool and Bolton office closures are being brought forward to January 2019 with the majority of members directed towards Trinity Bridge House or Albert Bridge House.
•    York is now planned to close in January 2019 with members moving to Castle House Leeds, and eventually on to the Leeds Regional Centre.
•    Worcester is now planned to close in January 2019 with members moving to Birmingham, City Centre House.
•    Closures of Royal House and the second floor of Regent House, both in Solihull, have been brought forward to January 2019, with members moving to Saphire East, Solihull before then moving to the future Birmingham Regional Centre.
•    Derby (Northgate House) is earmarked for closure in January 2019 with members moving to Castle Meadow House in Nottingham.
"
The best laid plans of mice, men and HMRC....

Tax does have to be taxing.

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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"

Friday, 20 October 2017

Brexit and The Future of Customs Inquiry - Deadline Today

Scope of the inquiry

HM Revenue & Customs (HMRC) was due to complete a five-year programme for a new Customs Declaration Service (CDS) by early 2017. However, delays mean that CDS will not be fully operational until January 2019.

In July the National Audit Office (NAO) published a report into CDS that found there are still significant amounts of work required to meet this new target. If there are further delays, CDS  may not be running fully by the time the UK is due to leave the European Union in March 2019.
Although HMRC due diligence has found that the CDS system will remain suitable following the UK’s withdrawal from the EU, there is considerable uncertainty as to what customs environment the UK will operate in.

On 9 October the Government published a White Paper describing future customs legislation for post-Brexit. It set out potential scenarios for a new customs relationship with the EU—but it is not yet clear whether HMRC’s existing CDS programme would work for all of them without modification. It is also not clear whether the proposed finish date of January 2019 would give time to make those modifications.

The Public Accounts Committee will ask officials from HMRC about CDS’ progress to date, outstanding risks to completion, and resilience in a number of potential scenarios for leaving the European Union. 

Submitting written evidence

If you wish to submit written evidence to this inquiry, the deadline to do so is midday on Friday 20 October 2017.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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"

Wednesday, 18 October 2017

FTT Stops HMRC Snooping


HMRC has come a cropper in a first tier tribunal in the case of The Barty Party Co Ltd (TC06116).

AccountingWeb reports that the publican was in hot water with HMRC for failing to produce the books and records requested by a visiting HMRC officer in an information notice dated 10 November 2016.

The FTT supported the taxpayer and said that the notice had a “fundamental flaw.” It pulled the plug on HMRC and allowed the landlord’s appeal against the notice and associated penalty.

HMRC has the power to request information that is “reasonably required for the purpose of checking the taxpayer’s tax position”, (FA 2008, Sch 36). The key factor that persuaded the judge was that although the legislation gives HMRC the power to request information for the previous six years, their power of assessment is restricted to four years (VATA 1994 s 77). He felt that the onus was on HMRC to explain why information was required for the extra two years and because the officer had failed to do this, the notice was invalid and had a “fundamental flaw.”

Why did the officer ask for information covering the period 1 February 2012 to 30 November 2012 (as well as the other periods) when she had no power of assessment for these months, ie because the notice was issued in November 2016?

HMRC has the power to go back up to 20 years in the case of fraud, but in the Barty Party case there was no indication of deliberate errors being made. There was also another anomaly; an earlier visiting HMRC officer had apparently already reviewed the records up to 30 April 2012!

Overall, this was not a good day out of the office for HMRC. They also had to withdraw a £300 penalty issued on 21 December 2016, which was imposed when Mr Barton failed to provide the information requested in the flawed information notice.


Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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"

Tuesday, 17 October 2017

IR35 Reform Delays Tube


My thanks to a loyal reader who sent me the following press release from Qdos Contractor wrt HMRC's claims that IR35 reform is not impacting public sector contracting:
"IR35: TfL project delays contradict HMRC who deny reform has impacted sector.

Delays to critical TfL London Underground repair work due to the exodus of public sector contractors further contradicts HMRC’s claim that IR35 reform is not impacting contracting and the public sector, highlighted Qdos Contractor of The Qdos Group.

TfL recently revealed a ‘significant number’ of contractors stopped working on projects as a result of IR35 changes – a move which has led to skills shortages and the significant delay to critical repairs.

HMRC has previously denied IR35 reform has led to contractors exiting the public sector, with HMRC Tax Assurance Commissioner Jim Harra stating:

“This has not happened. HMRC has been monitoring this. Contractors come and go, and the market is naturally fluid, but it would be wrong to suggest that the public sector has significant recruitment gaps because of this reform.”

Prior to IR35 reform, 85% of contractors surveyed by Qdos Contractor were prepared to leave the public sector should they be found inside IR35.

Qdos Contractor CEO, Seb Maley commented:

“That a vital TfL project faces delays is obviously a concern. It also further contradicts HMRC’s claim that IR35 reform has not affected contracting and the public sector itself. When will HMRC admit the mistakes they’ve made with regards to IR35 reform?

“Blanket and inaccurate IR35 determinations will continue to force contractors from the public sector. That HMRC adamantly denies any public sector skills shortages because of reform is hugely worrying, particularly when public sector organisations are beginning to speak out too.

“The success of vital public sector projects rest heavily on contractors. It’s therefore essential that accurate IR35 decisions are made. This will become all the more important should reform be extended to the private sector.”

Monday, 16 October 2017

Why Do You Evade Tax?


In a statement to The Mirror, HMRC confirmed it was seeking to interview both compliant and non-compliant people among Britain's 11,000 "High Net Worth customers."

HMRC said the research was part of an ongoing strategy to increase collection for the public and was focused on 'understanding the attitudes and behavioural triggers' of these people rather than gathering specific tax accounting intelligence.

Those asking the questions would be social researchers, not forensic accountants. Estimated cost of the survey up to £80K.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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"

Friday, 13 October 2017

Elaine Clark Nails It!


Yesterday's article about HMRC stopping personal credit cards from being used to pay business penalties, elicited an observation that HMRC were helping people avoid debt by banning personal credit cards and that businesses were not being run properly if a personal card is used.

Well over on Elaine Clark's site, a similar point was raised, and she nailed it with this excellent response:
"I'd be interested to hear how you would explain this restriction to a self employed employer without a business bank account using his or her personal credit card to settle any debts with HMRC to get things back on track.😋 

The self employed do not need to have a business account. In fact many choose not to because of charges etc which decreases their income. 

I guess when you deal with these things day in day out everyday then you immediately see the unnecessary impact.🙂 

Not only is the decision ill conceived it costs money to implement. All too often these decisions are made by people who are so far removed from the 4 million plus micro businesses in the country."
Well said Elaine!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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"