Diddle Diddle Diddle

I see that Dave "Jack" Hartnett has given an interview to the Telegraph, in which he laments the damage done to the country by the "black economy" (whereby tradesmen etc get paid in cash, thus evading VAT).

Hartnett tells us that it is our duty to ensure that other people do not evade paying their share of tax.

He is quoted:

“Every time someone pays cash in order not to pay VAT, the nation gets diddled.”

Jack wants people to shop their friends, neighbours and local tradesmen by phoning HMRC's whistle-blower hotline.

It is wrong for the state to encourage people to spy on one another; it is the pathway to dictatorship, as people will end up living in fear of one another and will use the state to settle personal vendettas.


Tax does have to be taxing.

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To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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HMRC Uses The C Word

26 January 2011

Self Assessment deadline

To make sure our customers are not disadvantaged if they cannot get through to HMRC's call centres on 31 January, we will not impose any late filing penalties for people who file their Self Assessment returns on 1 and 2 February.

The SA deadline remains midnight on 31 January. But HMRC will treat all returns that come in by midnight on 2 February as though they were submitted by 31 January. No customer will have to pay interest on payments due on 31 January that are paid on 1 or 2 February.

Acting Director General Personal Tax, Stephen Banyard, said:

"We've always been very clear that we want the returns - not the penalties. For that reason, we don't want anyone who can't get through for help and advice on 31 January to be disadvantaged in any way."

Tax does have to be taxing.

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What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Newsflash - Fines Waived

HMRC will waive penalties for self assessment filings made on 1 or 2 February.

David Gauke, exchequer secretary to the Treasury, said in a statement:

"This strike could have caused thousands of people to incur fines, so I am pleased that HMRC has taken this common sense approach. 

The government does not want anyone trying to file their tax return on time to be unfairly penalised because they were unable to get through for help and advice on the 31st [January]"

However, HMRC have tweeted this rather confusing and contradictory tweet:

@HMRCgovuk "You have until 2 Feb to file your tax return, but do it now to avoid a penalty".

Errm..anyone care to translate that? 

Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
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Quote ID code "ABC" when contacting a QROPS specialist.

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What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Beaker Lays Down The Law

I am gemused to read that the Chief Secretary to the Treasury, Danny "Beaker" Alexander, has decreed that athletes resident outside of the UK who compete at the Glasgow 2014 Commonwealth Games will be exempt from income tax.

Under UK tax rules, any sportsperson not resident in the UK is subject to UK income tax on any payment in connection with their performance here, including a proportion of any worldwide endorsement income.

Beaker said:

"With six months tomorrow to go until London 2012, I’m pleased to announce this special exemption for Glasgow 2014 which will prolong the Olympic legacy and help spread the long-term benefits into Scotland."

Are we to assume that no one would have competed in the games if the tax exemption had not been put in place?


Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Reasonable Excuse

With the ongoing "hoopla" over fines for the late submission of tax returns, and a heated debate about what constitutes a "reasonable excuse", I am indebted to a loyal reader who dropped me a note about a tax tribunal appeal determined on 17 November last year which featured "reasonable excuse" and delays (another subject of discussion recently) by HMRC in contacting the appellant.

An appeal was made against a surcharge imposed for the late payment of tax for the tax year 2009/2010. The appellant had a considerable number of "challenges" (eg husband had a breakdown, lost his job, high level of debt etc).

Quote:

"There was only so much she could cope with and was unable to manage the amount of paperwork coming in."

HMRC submitted that hardship or distress "is not a consideration that HMRC can take into account", and would be a matter for the Time To Pay Unit.

The Appellant made a time to pay request on 23 February 2011; she was told that HMRC would contact her for further discussion.

HMRC telephoned the Appellant on 29 March 2011 (over one moth later); she was not available and a letter was issued requesting the Appellant to call back in 7 days. On 23 May 2011 the Appellant contacted HMRC and agreed a monthly payment plan which commenced on 2 June 2011.

The Tribunal finds as a fact that the Appellant made all reasonable attempts to arrange a time to pay agreement prior to the trigger date (the date of the letter) and cannot be held accountable for the delay in HMRC attempting to contact her when she had been told that HMRC would contact her to discuss the matter.  

The Tribunal finds as a fact that the separation of the Appellant and her husband, taken together with her husband’s alcoholism, constitutes a reasonable excuse.

The appeal was allowed.

Case details in full:



FIRST-TIER TRIBUNAL TAX SARAH CORNES Appellant 

- and - 

THE COMMISSIONERS FOR HER MAJESTY’S REVENUE AND CUSTOMS Respondents TRIBUNAL: J. BLEWITT (TRIBUNAL JUDGE) 

The Tribunal determined the appeal on 17 November 2011 without a hearing under the provisions of Rule 26 of the Tribunal Procedure (First-tier Tribunal)(Tax Chamber) Rules 2009 (default paper cases) having first read the Notice of Appeal dated 17 July 2011 and HMRC’s Statement of Case submitted on 14 September 2011. 

© CROWN COPYRIGHT 2011 DECISION 

1. This is an appeal against a surcharge imposed for the late payment of tax for the tax year 2009/2010, imposed pursuant to section 59C Taxes Management Act 1970. Submissions of the parties 

2. By Notice dated 17 July 2011, the Appellant appealed to the Tribunal. The grounds relied upon can be summarised as follows: 

(a) The Appellant is a salaried partner in a small solicitors firm who has taken a 50% pay cut for the last 2 years as a result of the recession; 
(b) The Appellant’s husband lost his livelihood 3 times in the past 3 years with a near nervous breakdown many times throughout that period; 
(c) The couple have debts of approximately £85,000 which are being repaid under a Debt Management Plan; 
(d) Due to the Appellant’s husband being an alcoholic, combined with the financial pressures suffered, the couple separated on 20 April 2011. Throughout this period, the Appellant made all efforts possible to manage the separation, her 2 children, working full time and controlling the debt. There was only so much she could cope with and was unable to manage the amount of paperwork coming in. 

3. HMRC’s Statement of Case does not dispute the facts relied upon by the Appellant. Instead, it submits that hardship or distress is not a consideration that HMRC can take into account; any such request would be considered by the time to pay unit. For the surcharge not to have been raised, it s submitted that the Appellant was required to either pay the liability due at 31 January 2011 or have an agreed time to pay arrangement in place by the trigger date of 28 February 2011. The Appellant made a time to pay request on 23 February 2011; she was told that HMRC would contact her for further discussion. HMRC telephoned the Appellant on 29 March 2011; she was not available and a letter was issued requesting the Appellant to call back in 7 days. On 23 May 2011 the Appellant contacted HMRC and agreed a monthly payment plan which commenced on 2 June 2011. 

Decision 

4. The issue for the Tribunal to determine is whether there was a reasonable excuse for the late payment. The claims relied upon by the Appellant are not disputed by HMRC and therefore I find them as fact. 

5. HMRC accept that the Appellant made contact prior to the trigger date in order to request a time to pay arrangement. There is no explanation as to why an agreement was not reached on 23 February 2011; instead the Appellant was told she would be contacted to discuss this issue further at a later date. Contact was attempted by HMRC on 29 March 2011, over 1 month later, however the Appellant was unavailable. The Tribunal notes that this contact by HMRC post dates the trigger date for the surcharge of 28 February 2011. In the absence of any evidence to the contrary, the Tribunal finds as a fact that the Appellant made all reasonable attempts to arrange a time to pay agreement prior to the trigger date and cannot be held accountable for the delay in HMRC attempting to contact her when she had been told that HMRC would contact her to discuss the matter. 

6. HMRC rely upon the fact that the Appellant did not make contact with HMRC following their letter dated 29 March 2011, until 23 May 2011. The Tribunal finds as a fact, having accepted the circumstances of the Appellant to be as set out in the Notice of Appeal, that the separation of the Appellant and her husband, taken together with her husband’s alcoholism, constitutes a reasonable excuse. Separation and the no doubt numerous difficulties arising as a result, not least housing and childcare, is an unforeseeable difficulty and one outside of the sole control of the Appellant. Such events are also not easily resolved overnight. The Tribunal finds that the Appellant had acted as a prudent and diligent taxpayer in attempting to agree a time to pay arrangement prior to the surcharge trigger date. The Tribunal finds as a fact that there is a reasonable excuse lasting throughout the time between the letter from HMRC dated 29 March 2011 and the Appellant’s telephone contact with HMRC on 23 May 2011 on the basis of her circumstances throughout that period. 

7. The appeal is allowed. 

8. This document contains full findings of fact and reasons for the decision. Any party dissatisfied with this decision has a right to apply for permission to appeal against it pursuant to Rule 39 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009. The application must be received by this Tribunal not later than 56 days after this decision is sent to that party. The parties are referred to “Guidance to accompany a Decision from the First-tier Tribunal (Tax Chamber)” which accompanies and forms part of this decision notice. 

Tax does have to be taxing.

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TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

HMRC Lifts Embargo On Talking To BBC About Troops In Afghanistan

I am very pleased to see the very active level of comments from some of my loyal readers about my recent highlighting of a BBC News item about troops serving in Afghanistan being fined by HMRC if they submit their tax returns late.

Indeed one of you was so keen to put his/her viewpoint across, that he/she posted 14 times in the last 24 hours!

Anyhoo, you will doubtless be pleased to learn that HMRC have lifted their self imposed embargo on talking to the BBC about the issue.

AccountingWeb reports the following:

"British armed forces personnel in active service who have failed to file their tax return in time will have their penalties cancelled as a ‘Reasonable Excuse’ if they get in touch HMRC.

As discussed on BBC Money Box, soldiers serving in Afghanistan will still face penalties if they fail to file by the 31 January deadline, but there will the chance to appeal. 

Paul Lewis said: 

“HMRC refused to talk about this all week, but on Saturday morning at 11.30, [half an hour before Moneybox was broadcast], they told us if armed forces let us know, we will immediately cancel penalties. 

They will accept serving in Afghanistan as a Reasonable Excuse.

An HMRC spokesperson also told AccountingWEB: 

“For a service person who is serving with the military in Afghanistan, we appreciate that they have higher priorities than filling out their tax return. They’re in a fairly unique position, a combat position, and obviously that has to come first for them, and we completely understand and support that.

“So if they couldn’t complete the return by 31 January the penalty notice would be automatically generated by the system. However, if the service person contacts us as soon as they can to point out that they didn’t complete it because they were on a tour of duty in Afghanistan, we would cancel that penalty notice.

HMRC confirmed that while there is a 30-day deadline to appeal, they will “apply common sense”, and this will be waived for those serving in Afghanistan.

“You’re supposed to appeal within 30 days, but again we know that being on active service in Afghanistan is a pretty unique position, so we would be very flexible about that and as soon as they got in touch we would make sure they didn’t have anything to pay.

The advice is, don’t wait for penalty - send a letter in to accompany your late return."

Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

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What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Homer Shortlisted

Talking of awards, my hearty congratulations to Lin Homer, HMRC’s recently appointed Chief Executive Officer, who herself has recently been "ranked/shortlisted" by the media.

In this particular case Homer has been listed seventh in a list of 100 ‘people to watch in 2012’ published in The Times the other day.

As The Times put it:

"..managing Britain’s tax collectors is a tough job at any time but Revenue & Customs is under pressure to justify the deals that it has made with big companies and has the lowest morale of any Whitehall department."

Homer, doubtless is an ideal appointee to the role of HMRC CEO; aside from having no experience at all wrt tax (beyond being a taxpayer), she also has a fine list of accomplishments:

"In 2005 Birmingham was declared to be a "banana republic" by the Election Commission.

For why?

Wholesale electoral fraud in the council elections.

The Election Commission ruled that Labour had been responsible for “massive, systematic and organised postal ballot fraud.”

He then made a few choice remarks about the Chief Returning Officer, also the chief executive of the council.

She had " thrown the rule book out of the window”.

To whom did he refer?

Why none other than Lin Homer.

Labour helped her out by making her head of the UK Borders Agency.

This being the very same UKBA that threw the rule book out of the window and relaxed border controls.

Lin, clearly a career minded woman, moved on from there this summer (just before the shit hit the fan) and became Permanent Secretary at the Department of Transport."

Doh!
Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Shortlisted For "Accountancy Personality of The Year"

My thanks to PQ Magazine for placing me on the shortlist for their 2012 awards, in the category of “Accountancy Personality of Year“.

Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Every Cloud Has Silver Lining

The Telegraph reports that because of the threatened walk out by HMRC staff from call centres on 31 January, HMRC will waive the automatic £100 late fines for anyone whose return was delayed because they could not get through by phone to HMRC on the strike day.

Specifically HMRC said that anyone who was prevented from filing their return by the strike would not have to pay the automatic £100 late penalty, so long as they send a letter explaining their return was delayed because they could not get through.

Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Troops In Afghanistan Fined For Late Tax Returns

HONOUROURFORCES HONOUROURFORCES

The Tax Office says that troops in Afghanistan will be fined if they are late with there tax returns Bloody Crazy, @HONOUROURFORCES Pls RT

Source BBC

"Members of the armed forces serving in Afghanistan could be fined if they fail to submit their tax returns by the January 31st deadline.


There have been calls for them to be given more time, but the tax office says if the paperwork is late, they must impose a £100 fine."

Evidently serving your country does not constitute a "reasonable excuse" for late submission!

Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"