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.

Friday, 24 October 2014

LDF Set To Fall Short of Target


Unsurprisingly, despite the hype at the time that it was created, the Liechtenstein Disclosure Facility (LDF) is to fall well short of the £3BN yield promised by HMRC in 2012.

AccountancyAge reports that it has generated £833M, and has only 18 months left to run.

Irwin Mitchell is quoted: 
"I suspect that the eventual yield will fall woefully short of that target, and, based on figures to date, is likely to be in the region of £1.2bn. Further changes to the scheme are likely to make this figure worse rather than better."

HMRC disagree:
"Our experience from previous opportunities such as the Offshore Disclosure Facility and New Disclosure Opportunity is that the majority of disclosures come forward close the end date - 5 April 2016 in the case of the LDF."
Time will tell!


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 October 2014

HMRC To Send Out 33,000 Letters

HMRC will be sending approximately 33,000 letters out to taxpayers by 2016, demanding a tax payment of on average £155K.

The tax demand is as a result of the new powers granted to HMRC in the 2014 Finance Act, enabling it to crackdown on tax avoidance schemes.

Simon Newsham tax partner in Winckworth Sherwood is quoted in the International Business Times:

"This is the most significant of the many clampdowns by HMRC on those taxpayers that have engaged in tax avoidance schemes and practices.

HMRC is looking to recoup £5.1BN over the current tax year and by the end of 2015/16.

Individuals will be naturally concerned when they receive these demands and it is entirely possible that they will not be able to afford to pay straightaway.

Their first call should be to the scheme promoter, presuming they are still in existence, who will be able to advise on whether they continue to challenge HMRC's interpretation of the scheme.

If the promoter accepts HMRC's interpretation, investors should then seek advice from a tax professional before engaging with HMRC."

Accelerated Payment Notices are issued where a taxpayer has entered into a tax avoidance arrangement that has been notified to HMRC under the disclosure of tax avoidance scheme rules (DOTAS) or where a counteraction has taken place under the general anti-avoidance rules (GAAR).

Taxpayers who receive an Accelerated Payment Notice will have to pay the tax due to HMRC within 90 days.

By January 2015, HMRC will be issuing 2,500 Accelerated Payment notices per month and it is on track to deliver notices to 43,000 tax avoidance scheme users, covering £7.1BN of disputed tax, by the end of March 2016.

Jennie Granger, Director General of Enforcement and Compliance, HMRC, said:
"HMRC is making good progress in tackling marketed avoidance as today's figures illustrate. If anyone is concerned about being able to pay the notice they should contact us as soon as possible to discuss their options."

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 October 2014

FOI Off!

The state likes to pretend that it is transparent, and that the voters have a right to know what it is doing on our behalves.

However, HMRC is a tad more opaque than some other organs of the state. Payrollworld discovered this recently, when it submitted a Freedom of Information (FOI) to HMRC regarding RTI penalty warning letters.

The request was relatively simple:

How many RTI penalty warning letters have been issued this year?

HMRC's response was a flat refusal.

For why?

It answered that it might "prejudice the collection of tax”:
HMRC holds the information requested but it is being withheld. 

The exemption that applies here is section 31(1)(d) Freedom of Information Act 2000. This is the exemption that applies to information the disclosure of which would or would be likely to prejudice the assessment or collection of tax.

HMRC believes that disclosing the number of penalty warning letters issued could undermine the effectiveness of the penalty regime which relies to some extent on the deterrent effect of these penalties.
Suffice to say, the real question that needs to be answered (but won't be) is:

How many erroneous warning letters have been sent?

Sadly HMRC is very opaque, the reason being not so much to maintain its "efficient" collection of tax but to hide its incompetence.

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, 21 October 2014

Outsourcing


Cleaners, activists and some members of the civil service gathered outside HMRC's London HQ last week with placards and had “Don’t wash your hands off us, Lin Homer” written on their palms.

The cleaners have previously written to the HMRC asking for a meeting to discuss the Living Wage, which is now £8.80 an hour in London.

HMRC raised the wages of its cleaners in 100 Parliament Street, yet wages of cleaners elsewhere at Euston Tower, Custom House and Bush House remain the same (minimum wage of £6.50 an hour).

In a letter to Lin Homer, chief executive of HMRC, the Whitehall cleaners argue that although they are subcontracted through a cleaning company, it is ultimately the responsibility of the government department to ensure a just wage.

The cleaners state in the letter sent in July, as per the Guardian:
"We work hard to keep the offices clean, but we are paid less than it costs to live. Due to our low pay many of us have two or even three jobs to make ends meet, working long hours, leaving the house at 4.30am and not returning until past 9pm.”
In an email seen by the Guardian, Lin Homer refused to meet with the cleaners and last month replied:
"I understand your concerns about wage levels and the cost of living but these are matters for employees and employers. HMRC is not the employer so I do not believe that a meeting would have any impact on the issue at this point. You are employed by an external contractor so any concerns you have about your terms and conditions is better dealt with by them.”
She is technically correct. However, the real issue is the fact that HMRC is outsourcing some/many of its functions.

The question therefore is are these outsourced functions being performed as well/better/securely (and at no greater cost) than when they were done in house?

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"

Sunday, 19 October 2014

Homer's Note In The Telegraph


Lin Homer's note to staff telling them about their forthcoming redundancies, has been picked up by The Telegraph.

I wonder if Hardwick will be putting his head above the parapet again?

Oh, hang on a minute, I see that he has:
 "I'm sorry to have to correct you again, Harriet. 

HMRC's operating budget was £3.26 billion last year - less than a tenth of the figure you have quoted. It was reduced by 25 per cent in the 2010 Spending Review and by another five per cent in the 2013 Spending Review, although we have been given £1 billion of the savings back over four years to invest in tackling tax evasion and avoidance, fraud and error. Using those savings we secured an extra £23.9 billion in compliance revenues last year and an extra £20.7 billion the year before.
You have also compounded your innuendo of last week, by now suggesting that our CFO is leaving as a result of an "accounting glitch". This is as untrue this week as it was last week."


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, 17 October 2014

Homer's Message To Staff - You're Fired!


As I noted on Saturday, yesterday HMRC made a significant announcement about office closures etc.

The "success" of the restructuring depends on the successful automation ("digital transformation" to use a well worn phrase) of HMRC's processes, if this fails then HMRC will be in the shit.

My thanks to a loyal reader who forwarded me a copy of Lin Homer's message to HMRC staff:

Message from Lin Homer: Workforce changes 

16 October 2014

This morning, we talked to colleagues across HMRC about some important changes we need to make, and what this means for them.

Our first priority has been to ensure that the people who are affected heard from us directly. Now we know that has happened, I want to tell you about what we’re planning, and what will happen next.

As you know, as a Department we are becoming smaller and are increasingly concentrating our work on large sites in the UK’s urban centres.

We are also changing the way we do that work, with far greater emphasis on automation and digital services.

The announcements we’re making today reflect that transformation. We are being, and will continue to be, open and honest about our thinking, and what the future is likely to hold.

There is a lot to share, so I’m going to take each announcement in turn. Q&As are available through links at the end of this message.

1. Consultation on closure dates for 14 offices

Last November, we explained that 14 of our offices did not feature in our medium to long-term plans, and that it was likely that all 14 would close.

On 5 June this year we launched a two-month consultation on proposed closure dates for these offices. We considered all of the information very carefully, and we want to thank everyone who responded. Although we recognise the impact on individuals working in these offices, none of the responses suggested that changing the date of closure would reduce that impact.

As a result, we have decided to close all 14 of the offices on the dates originally planned. This means that 453 people will join the redeployment pool now, and we will do our best to help them to find new roles. However, we have also made it clear that we believe opportunities will be limited, and so in January we will declare those who have not found new roles surplus, and invite them to apply for voluntary redundancy.

2. People working in AA roles in PT Operations

We have made enormous changes to the way in which we deliver our online and digital services in recent years. As a result, there has been a huge reduction in the work traditionally done by people working at AA grade, especially in the areas of PAYE and Self Assessment.

We are also, as you probably know, looking to make major reductions in the amount of post we send out and receive. In July this year, we started scanning mail that comes into PT Operations, removing the need to sort, catalogue and redirect it by hand.

By the end of this year, we plan to have completed the roll-out of mail scanning to cover all PT Operations post, unless it isn’t suitable for digitisation – more detail on what we plan to do with that post can be found below.

Because of these changes, we are now inviting approximately 690 people working at AA grade in PT Operations roles to consider applying for a voluntary exit.

3. ESS Regional Post Rooms

The transformation of the way we handle post also means change for our people in Regional Post Rooms.

Back in June, we announced the closure of our Cardiff and Bootle Regional Post Rooms and invited the 85 people at AA grade there to apply for voluntary redundancy. We said at that time that it was likely that the remaining three post rooms would also close.

Today, we are confirming the closure of the Regional Post Rooms in Cumbernauld, Shipley and Newcastle, on 31 March 2015.

In Cumbernauld and Shipley, we are placing eight people working at O and AO grade in both post rooms into the redeployment pool; again, we will do our best to find them new roles. We think that the chances of finding new roles for the 46 AA grade people working there are more limited, so we are inviting them to apply for voluntary redundancy.

In Newcastle, we will be opening a new Central Mail Unit on the site of the former post room in Benton Park View. This new unit will deal with all of the post received across HMRC that isn’t suitable for scanning, and will also handle outgoing mail until the introduction of our new Centralised Print Service. We’re planning to use the expertise of the staff in the current post room, who will all transfer into the new unit.

4. Wellesley House, Stockport

Earlier this year, we were given notice by DWP to vacate Wellesley House, Stockport by the end of March 2015. Since then, we have looked at where we need to be based in that area, and have done everything we can to find new locations for the 107 people working there.

Forty people who are outside of Reasonable Daily Travel of other locations are still looking for new roles. We will keep trying to redeploy them, but we are also inviting them all to apply for a voluntary exit package.

5. Redeployment pool review

As I said above, we do everything we can to find suitable new roles for people whose work is reducing or coming to an end. However, as HMRC gets smaller, this is getting harder.

We review the redeployment pool regularly throughout the year and identify people who cannot be easily redeployed. We will be contacting people who we believe will find it difficult to obtain new roles by the end of this month, and inviting them to apply for either a voluntary exit or voluntary redundancy.

6. Wingfield House, Portsmouth

Since 2012, we’ve been clear that we plan to close Wingfield House, Portsmouth, by 31 March 2015. This is because we thought that all HMRC people working in Portsmouth would be able to fit into Lynx House by that date.

We now know that the figures have changed, so we’ve decided to close five floors of Wingfield House and transfer 300 people to Lynx House by 30 October 2015. We’re keeping on two floors in Wingfield House, so 100 people will stay there for the time being.

Next steps

As I said above, I know that these announcements mean that some of our colleagues are facing challenging and important choices.

I want to make it very clear that the decisions are not a reflection on them or the quality of their work: I am grateful to all of them for their hard work and their commitment to HMRC and our customers.

We are committed to treating everyone affected sensitively and fairly, and will give them as much support as we can to ensure they can make informed decisions about their futures. Where people want to try to find a new role in HMRC, we will give them priority status for suitable vacancies through the redeployment pool. For people whose type of work is reducing or coming to an end, we are inviting them to apply for either voluntary exit or voluntary redundancy, with a good compensation package. We will also provide practical support and advice on finding a new role outside HMRC.

I recognise that these are not easy messages, but each one is part of the overall transformation of HMRC – into a Department able to cope with the demands facing us in the future.

Thank you.

Lin Homer

Chief Executive

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"