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, 22 August 2014

HMRC's Named and Shamed List


HMRC, to much fanfare, has published another one of its named and shamed lists (this being a list of tax evaders).

HMRC publishes details of deliberate tax defaulters - people who have received penalties either for either:
  • deliberate errors in their tax returns
  • deliberately failing to comply with their tax obligations
The law that allows this is Section 94 Finance Act 2009.
HMRC may publish information about a deliberate tax defaulter where:
  • HMRC has carried out an investigation and the person has been charged one or more penalties for deliberate defaults
  • those penalties involve tax of more than £25,000
However, their information will not be published if the person earns the maximum reduction of the penalties by fully disclosing details of the defaults.

HMRC will publish sufficient information to identify the deliberate tax defaulter, the penalties imposed for their deliberate defaults and the amount of tax on which those penalties are based.

HMRC publish this information once these penalties are final. A penalty becomes final on either:
  • the day after the end of the appeal period if the person does not make an appeal
  • the date when an appeal is finally determined
  • the date when a contract settlement is made
The law requires that HMRC do not publish any information about the person for more than 12 months from the date HMRC first publish it.

The current list totals around £30M (not exactly an humongous amount), of which £29.7M is accounted for by one company.

It seems an awful lot of work and fanfare for an amount that, in terms of the total tax take of HMRC, is so trivial.

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, 21 August 2014

HMRC Cut 41 Jobs In Dundee

PCS are angry with HMRC for cutting 41 jobs in Dundee whilst advertising the same posts elsewhere in the UK.

PCS spokesman John Davidson is quoted by the Courier:
What’s effectively happening is you have 41 people that are fully trained working in Dundee and they are at threat of redundancy. 

Whilst that’s happening, the department has created vacancies elsewhere for the same work and they’ve advertised some of those vacancies externally. 

It doesn’t seem to make a lot of business sense to us for HMRC to effectively pay off people, put them out of a job and at the same time having to retrain brand new people they are getting in off the street.

Obviously it’s really concerning why they are going down this route. 

They have not given us any adequate explanation as to why that’s the case because it’s exactly the same work that they’re getting rid of out of places like Dundee, whilst they are externally recruiting in places like the Midlands.

That strategy effectively means that there will be only 14 sites in the whole of the UK and only two would be in Scotland. There would be one each in Glasgow and Edinburgh and Dundee doesn’t figure in their long-term plans.”
An HMRC spokesperson said:
HMRC has 2,420 people on temporary fixed-term appointments and we recently concluded formal consultation with the department’s trades unions on the future of those whose contracts are due to end in September. 

As part of that consultation HMRC has advertised permanent vacancies in a number of locations that only people on fixed-term appointments could apply for.

In Scotland that has meant that more permanent roles were offered than we have people on fixed-term contracts.

Ensuring HMRC’s workforce and estate fits the needs of the business, and that the UK’s tax system is managed cost effectively, are important considerations.

This means that we will recruit at certain sites, expanding on our existing expertise and the infrastructure at these locations for roles that in some instances are specialised or can cover specific shortfalls.”

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, 20 August 2014

HMRC Too Incompetent To Be Trusted


In a letter to the Chancellor, the British Bankers' Association (BBA) state that HMRC is too incompetent to be trusted with powers to raid people's bank accounts.

An extract of the letter from Anthony Browne (CEO of BBA) is reproduced in the Telegraph:
It is clear that HMRC’s performance cannot yet be considered as sufficiently competent to wield an unchecked power this strong, at least not without significant reputational damage and potential litigation.

HMRC would effectively be a judge in its own cause.”
It is a rare occasion indeed when I agree with the BBA. However, in this particular case I am in full agreement with them.

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, 19 August 2014

Homer's Catastrophic Mess


The Home Office has been told to pay £224M to Raytheon, a major US corporation it sacked for failing to deliver the secure borders programme.

The order to make the payments comes from a binding arbitration tribunal. Home Affairs Committee chairman Keith Vaz called it a "catastrophic result".

The e-Borders programme launched by Labour in 2003 was a £1BN attempt to reform border controls.

In 2007 Raytheon won a nine-year contract for the programme.

Three years later, the coalition government terminated the contract, after claiming it was failing. It said it had lost confidence in Raytheon to deliver the programme after it fell a year behind schedule.

Raytheon threatened to sue ministers for £500M, blaming the UK Border Agency (that name will ring a bell with loyal readers) for the failings, before the two sides entered into binding arbitration to reach a settlement.

The BBC notes that in its ruling, the arbitration tribunal did not pass judgement on whether Raytheon had failed to meet its contractual obligations - but it criticised UKBA officials for failing to properly brief the home secretary on whether the company had an arguable case to hold on to the deal.

The full ruling has not been made public, but the tribunal said the Home Office should make the following payments to Raytheon:
  • £50m in damages for ending the contract
  • £126m for assets the company delivered prior to being sacked, such as IT systems
  • £10m to settle complaints relating to changes to the original contract
  • £38m in interest payments
In a letter to the chairman of the cross-party Home Affairs Committee, Home Secretary Theresa May says:
"The government stands by the decision to end the e-Borders contract with Raytheon. This decision was, and remains, the most appropriate action to address the well-documented issues with the delivery and management of the programme.

The situation the government inherited was therefore a mess with no attractive options. All other alternatives available to the government would have led to greater costs than the result of this Tribunal ruling."
Mrs May is writing to the National Audit Office to ask it review how the e-borders scheme was managed from its inception.

Keith Vaz said:
"This is a catastrophic result. Minister after minister and successive heads of the UKBA told the select committee that the government was the innocent party and that Raytheon had failed to deliver.

It is now clear that the UKBA didn't know what they wanted from the e-Borders programme.

It is important that those who have responsibility should be held to account for failing the taxpayer in such a costly way."
Can you tell me children who was in charge of the UKBA and its predecessor during this period?

Yes, that's right Lin Homer!

She was appointed Director-General of the Immigration and Nationality Directorate in August 2005. The Home Office was re-organised in 2008, with the formation of the Border and Immigration Agency, later renamed the UK Border Agency, of which Homer became the first chief executive until 2011.

It is a sad fact of corporate and civil service life that in order to remove some senior managers who are deemed to be so incompetent and useless that their presence threatens the organisation itself, instead of firing them, they are promoted far far away.

Thus we may expect in the coming months another promotion for Homer, in order that she be removed from HMRC before she completely destroys it and fingers those who were responsible in the first place for putting her in charge of it.

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, 18 August 2014

HMIC Nail HMRC's Excom Failings and Lies


My thanks to a loyal reader who pointed me to a report published by Her Majesty’s Inspectorate of Constabulary (HMIC) which independently assesses police forces and policing across activity from neighbourhood teams to serious crime and the fight against terrorism – in the public interest.

The report was published on 11 June 2014, and is called Her Majesty's Revenue and Customs – recovery of proceeds of crime revisit.

Between September and December 2013, HMIC undertook a revisit to assess how well HMRC had implemented 15 recommendations in the 2011 report into its performance in addressing the recovery of the proceeds of crime from tax evasion and benefit fraud.

The reports makes grim reading for HMRC's directors and management:
"This revisit has found that progress has been slow. HMIC considers that HMRC has failed to adhere to and implement the 2011 report 's recommendations in a way HMIC would have expected.

Although HMRC had developed an action plan, there was a lack of effective governance to ensure that sufficient priority and focus was given to addressing these recommendations.

Contrary to HMRC's March 2013 action plan which stated that all recommendations had been 'closed', HMIC found that only three of the 15 recommendations have been discharged."
Only 3 out of 15 recommendations have been discharged!

Yet HMRC happily lied by claiming in 2013 they had been closed.

May I ask what the fark are Excom doing, and why are their political masters not nailing their heads to coffee tables for this dismal performance?

HMIC twist the knife further:
"Between 2011 and 2013, HMRC had developed two strategic plans to improve criminal finances activity. 

However, neither had brought about any tangible results and by the time of this revisit, neither was being pursued. 

HMIC considers this a missed opportunity, as a robust strategy combined with strong leadership, could have brought about the required action in response to this recommendation."
In other words HMIC do not believe that HMRC has any form of effective leadership.

Why did Homer get a £20K bonus, and why does she think that her performance was "very good"?

Why are HMRC's political masters sitting on their hands doing nothing about HMRC's performance and leadership?

Wake up people it's your taxes that are being wasted here!

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, 14 August 2014

DRD Epetition


My thanks to Mike Truman (Editor of Taxation) for alerting us to a petition against the proposals to allow HMRC to take money from recalcitrant debtors' bank accounts (aka “Direct Recovery of Debt” - DRD).:
"Your readers may be interested to know that Taxation has launched an epetition to get these proposals pulled from the Finance Bill 2015 and have a proper consultation about the problem of deliberate non-payers. 

It's at http://epetitions.direct.gov.uk/petitions/68384 and has picked up well over 600 signatures in just a few days.

Mike Truman
Editor, Taxation magazine
"

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"