HMRC Taking The Piss and Restricting Access To Helplines

 

Starting December 11 (until 31 January), HMRC will be implementing a new screening process for calls to its self-assessment helpline and Agent Dedicated Line. Only calls deemed "priority" will be answered directly, while others will be directed to online resources or left on hold for an unspecified period. This decision has raised eyebrows and prompted worries about accessibility and customer service.

Proponents of the new approach argue that it aims to streamline the support process, ensuring that only those with pressing concerns receive immediate attention. They claim that this will free up agents to focus on more complex issues, improving overall efficiency.

However, critics of the move cite accessibility concerns. They argue that many taxpayers, particularly those with limited digital literacy or those facing time constraints, may not be able to effectively navigate online resources. Additionally, lengthy hold times could lead to frustration, anxiety, and potential compliance issues.

The temporary closure of the self-assessment phone line this summer further heightened concerns. While HMRC attributed this closure to resource limitations, it reinforced the notion that taxpayers may face barriers in accessing the support they need.

The move to restrict HMRC's helplines raises a critical question: are we moving towards a more efficient and streamlined service, or are we creating a system that alienates and disadvantages taxpayers?

Needless to say this action is not in the best interests of the taxpayers!

Tax does have to be taxing.

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Who Pays Most Tax?

The top 100 taxpayers in the UK collectively paid a staggering £4.6 billion of income and capital gains tax in 2021/22, the equivalent of £46m each

33.3m pay income & Capital gain tax in UK out of a population of 67.33 million - so that's about 50% of the population https://t.co/EFeRq45acP

— CheapAccounting.co.uk (@cheapaccounting) December 4, 2023

Tax does have to be taxing.

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Making Tax Difficult - PAC Lambasts HMRC #MTD

 

HMRC has lost sight of needing to put customers at the heart of changes to the tax system. In a report published today, the Public Accounts Committee (PAC) warns that with the Making Tax Digital (MTD) programme, aiming to make it easier for people to get their tax right, HMRC is increasing the burdens imposed on some taxpayers. The report also finds that, in seeking further investment in MTD, HMRC has not been open enough about the substantial costs that will be imposed on many taxpayers.

The report finds that the design of MTD has not taken sufficient account of the realities facing business taxpayers and agents. While MTD will substantially benefit HMRC by improving its systems, taxpayers will be asked to spend more and do more to comply. Burdens will be increased with Self Assessment taxpayers asked to pay for third party software and file tax returns quarterly. Many stakeholders, including tax experts and software developers, report that up until 2023 HMRC had ignored their advice on MTD.

The report finds that HMRC excluded a total of over £2bn in upfront transitional costs for customers from its 2022 and ’23 business cases for MTD. Business taxpayers could have to pay more than £1.9bn to comply with new arrangements over the first five years, and HMRC has not said how many and which customers will face the highest transitional costs. The PAC is concerned about how much MTD could cost customers, and calls for full transparency on costs and benefits to the public purse and customers in future.

Unacceptably, with £640m of taxpayer’s money spent on MTD as a whole, many questions remain about how it will work for Self Assessment. HMRC has yet to figure out how to make MTD work for important elements such as how the system will support taxpayers with multiple agents, and how it will work for people who share ownership of property.

Widespread and repeated failures in HMRC’s planning, design and delivery of MTD have led to increased costs and several delays to the programme. HMRC expects introducing MTD for VAT and Self Assessment will now cost £1.3bn, a 400% increase in real terms compared to its original estimate of £222 million in 2016 for all three taxes in the programme. HMRC’s poor track record of repeated delays to MTD, and its lack of conviction in its latest timetable, gives the PAC little confidence that it will deliver the rest of MTD on time.

Chair's comments

Dame Meg Hillier MP, Chair of the Public Accounts Committee, said:

“When reporting on proposals for digitalising the tax system, our Committee should not have to be recommending that HMRC start with what taxpayers need – in an ideal world, one would hope this would simply go without saying. But seven years and £640 million into the Making Tax Digital programme, we are concerned HMRC is also succeeding in making tax difficult.

Imposing significant additional burdens on customers in the middle of a cost of living crisis could not be less welcome. HMRC must now look up from what it is doing and research what services customers would actually find most helpful. We are also concerned at the substantial costs to be imposed on many taxpayers. HMRC’s exclusion of billions of pounds of projected costs when seeking investment for the programme is utterly extraordinary, and future transparency on costs and benefits must be non-negotiable.”

Tax does have to be taxing.

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Hunt Promises Resources For HMRC - No Figure Given!

 

Hunt is budgeting for additional £5bn of tax from giving HMRC enough resource to ensure that "everyone pays the tax they owe"

— Robert Peston (@Peston) November 22, 2023

Tax does have to be taxing.

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• Attend any meeting with HMRC
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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"

Furskin Hell!

If you've time to kill whilst waiting for the Autumn Statement, I present the furskin flowchart - HMRC's handy guide to whether clothing with fur has 20% VAT or 0% VAT.

Have fun. pic.twitter.com/AHjcuc6dgY

— Dan Neidle (@DanNeidle) November 22, 2023

Tax does have to be taxing.

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• 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"

HICBC Eviscerated by Retired Tax Tribunal Judge

Recently retired, and highly respected, tax tribunal judge Richard Thomas isn't given to exaggeration.

He describes the High Income Child Benefit Charge as "the worst tax policy decision of this century". He's scathing about HMRC's handling of the HICBC:https://t.co/aGvEGrEUTd

— Dan Neidle (@DanNeidle) November 20, 2023

Richard Thomas's views on the matter in full here.

My humble views are as follows:

In the grand tapestry of government policies, the High Income Child Benefit Charge (HICBC) stands out as a particularly flawed and ineffective measure. Introduced in 2013, the HICBC was intended to claw back Child Benefit from high-earning households, ostensibly to ensure a fairer distribution of taxpayer funds. However, its implementation has been plagued by administrative complexities, a lack of transparency, and an overall failure to achieve its stated goals. Let's delve into the reasons why the HICBC has fallen short and explore the implications of its failure.

Administrative Complexity: A Bureaucratic Labyrinth

The HICBC's administrative framework is a tangled mess, leaving taxpayers and tax professionals alike bewildered and frustrated. The rules governing the charge are convoluted, with multiple thresholds, exemptions, and calculations that make it challenging to determine liability. This complexity has led to a surge in errors, both by taxpayers and by Her Majesty's Revenue and Customs (HMRC), resulting in a deluge of appeals and penalty charges.

Lack of Transparency: Shrouded in Secrecy

The HICBC operates in a shroud of secrecy, with HMRC providing limited guidance and support to taxpayers. The department's website is a treasure trove of confusing jargon and intricate details, leaving individuals struggling to decipher their obligations. This lack of transparency has fueled mistrust and resentment among taxpayers, who feel unfairly targeted and inadequately informed.

Failure to Achieve Its Goals: Missing the Mark

The HICBC's primary objective was to reduce the overall cost of Child Benefit while ensuring that high-income households contributed their fair share. However, it has failed to achieve either of these goals. The charge has had a negligible impact on reducing Child Benefit expenditure, and many high-income households have found ways to circumvent the charge altogether. As a result, the HICBC has become an ineffective and unfair burden on a select group of taxpayers.

The Ripple Effects of Failure: A Broader Impact

The HICBC's failure has far-reaching consequences beyond its immediate impact on taxpayers. It has eroded public trust in government institutions, fueling perceptions of inefficiency and unfairness. The charge has also created a significant administrative burden for HMRC, diverting resources away from other essential tasks. Moreover, the HICBC has damaged the reputation of the Child Benefit system, which is designed to support families and children.

Conclusion: A Call for Change

The HICBC stands as a testament to the pitfalls of poorly conceived and poorly implemented policies. Its administrative complexity, lack of transparency, and failure to achieve its goals have made it a resounding failure. The government must acknowledge these shortcomings and take decisive action to address them. This may involve simplifying the charge's rules, providing clearer guidance to taxpayers, and exploring alternative methods of achieving its intended objectives. Until such changes are made, the HICBC will remain a flawed and ineffective policy, casting a shadow over the Child Benefit system and public trust in government.

Tax does have to be taxing.

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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"