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.

Wednesday, 29 July 2015

HMRC's Box Ticking Unlawful

It seems that the requirement by HMRC for people to tick the terms and conditions box of the government gateway, before submitting tax returns, is unlawful.

As per an appeal against a fine levied by HMRC, as summarised by BAILII:

Neil Garrod, the appellant, is a barrister in practice.  He is required to submit VAT returns.  He failed to submit an electronic VAT return by the due date for the VAT quarter 06/12, but did submit it by paper.  This led to correspondence with HMRC but he continued to refuse to make online returns making paper returns instead.  Ultimately HMRC imposed a penalty of £100 on him 16 July 2013 for failure to make an online return in the period 03/13.

Mr Garrod requested a review of the penalty; one was carried out but upheld the issue of the penalty. This appeal is against that review decision dated 6 January 2014.

Mr Garrod is prepared to use the internet to submit his returns online; what he would not do was to submit his return online because he was unable to do so without signing up to the ‘Government Gateway’ which required him (electronically) to tick a box stating that he had read HMRC’s terms and conditions for online filing.

He objected to any terms and conditions being imposed.  He also objected to the quantity of them:  he said they would be burdensome to read.

The appeal was allowed.

For why?

HMRC "seeking to impose the tick the box pre-condition was in these circumstances unlawful.  As the failure to tick the box was the cause of Mr Garrod’s failure to file online, it seems to me that under Winder, Boddington etc, the penalty was not lawfully imposed and must be discharged".

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, 28 July 2015

HMRC Moves To Direct Debit


HMRC has announced that it will move to mandatory direct debit for agreed time to pay arrangements as from 3 August.

Seemingly, only in exceptional circumstances will taxpayers be allowed to pay by any other method.

As per economia, agreed time to pay arrangements are set up under HMRC’s discretionary powers to allow payment of a debt by instalments after the due date, where the taxpayer is genuinely unable to pay by the due date but can commit to agreed payments to sort their tax position out.

HMRC's move to direct debit by default because it is more cost effective and more secure than other payment methods, and ensures that payments are more accurately allocated.

It removes the chance that the taxpayer forgets to make payments.

It also reduces the need for subsequent taxpayer contact, saving time for both parties.

Let us trust that nothing goes wrong with this!


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"

Monday, 27 July 2015

HMRC Trawls The Net


As I have noted several times before on this site, HMRC are keen to identify people who are trading (goods and services) on the internet but not declaring their profits.

As such it should come as no surprise to learn that HMRC intend to up their game wrt collecting data on who is trading but not declaring that they are trading. HMRC are of the view that the hidden economy of internet trading could be worth £5.9BN in uncollected tax each year.

HMRC has launched a consultation on extending its powers to collect extra data from firms and individuals.
"Data can be particularly powerful when it is collected from third parties who facilitate trade, either between businesses, or between businesses and consumers.

This is because they can provide information in bulk about the activity of large numbers of traders, and because third party data can be used as an independent check against the data that taxpayers themselves report to HMRC."
The extended powers would affect businesses acting as intermediaries or providing electronic payment services.
"It is important that the data - gathering powers are proportionate. This means that the administrative burden placed on the intermediary business when preparing and providing the data must be commensurate with the benefit from using the information obtained. HMRC expect that in the scenarios described in this consultation document the administrative burden will be relatively small. HMRC would provide guidance and give support to ease the process."
In theory whatever happens in the future, wrt new payment methods will be covered by the legislation:
"HMRC propose s that the legislation is “future - proofed” so similar data can be requested from new business models as they emerge."
Theoretically HMRC will not target individuals who sell personal possessions, only businesses that fail to pay tax owed.

Those who were tax compliant "should see little or no impact".

The consultation runs until 14 October.

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, 24 July 2015

Yields Disappoint


It seems that HMRC has thus far only collected around £13.9M from secret bank accounts in the Crown Dependencies.

The Treasury expectations had been much higher, £320M by now, with a long term expectation of around £1BN.

The FT reports that just over 400 people have so far come forward to own up to previously undeclared accounts in the Isle of Man, Jersey and Guernsey. They used a ‘disclosure facility’ that offered reduced penalties to former tax evaders.

Fiona Fernie of Pinsent Masons said that taxpayers with large amounts of unpaid tax were likely to be making use of another tax amnesty, known as the Liechtenstein disclosure facility (LDF), which offered better terms and immunity from prosecution. 

The LDF had raised just under £1.1bn from 5819 disclosures by the end of March.

Ms Fernie said another possible explanation of the low yield was that the scale of tax evasion across the Crown Dependencies was not as extensive as many assumed.

There is likely to be some non-compliance, but more often than not it will be technical in nature — or based on simple mistakes rather than non-legitimate structures.”
Maybe not quite so many people aren't quite as dishonest as HMRC and the Treasury had hoped for?

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"

Thursday, 23 July 2015

NHS Tax Errors


My thanks to a loyal reader who dropped me the following note about apparent errors in tax calculations for NHS staff:
"Are you aware that HMRC is issuing tax calculations (and in some cases making substantial repayments) to NHS staff that the Department knows are incorrect?

Just spoken to a manager about a client and he admitted that HMRC has picked up the wrong end of year figures. They have picked up the "bank" figures that in many cases will be zero and over-ridden the actual pay and tax details.

HMRC totally unconcerned. They refused to write to taxpayers who may have been impacted. They could give no idea when the calculations are likely to be amended and were too uncaring, or just plain stupid, not to understand the worry and stress that could be caused to potentially thousands of NHS workers when at some point down the line they are going to be asked to repay thousands of pounds.

I asked the manager why there was nothing on HMRC's website - on the home page - flagging up that they had made a really bad mistake. The manager replied "Oh, I don't think the Department would be wanting to do that"!"
Can anyone provide any more details on this please?

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, 22 July 2015

What's App?


Putting its faith firmly in a 100% digital future, HMRC is encouraging taxpayers to use its new messaging service (similar to WhatsApp) to raise queries.

Let's see how this works out then!

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"