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, 25 April 2008

Gordon's "Quick Fix"

Gordon's Having introduced a 10p tax band a few years ago, that many believed did not actually help the poorest (who don't pay tax), Gordon Brown abolished it last year.

MP's in the Labour party, having realised that there are local elections coming next week, recently woke up to the implications of this well publicised abolition and have managed to pressure Brown into saying that he will try to ensure that those negatively impacted by it will be helped.

Needless to say, there will be a world of difference between what Brown is allowing his MPs to believe they think he has promised and what he actually does.

However, we can be assured of one thing, whatever "fix" he actually implements will involve a smorgasbord of complex tax credits, means tests and expensive adverts telling people that if they are affected they should apply for relief.

The net effect will be:

-The costs will outweigh the extra tax collected

-The taxpayer will be worse off

-HMRC will screw it up, as the tax and tax credit system is already far too complex and unwieldy to work effectively and efficiently

As long as Brown is in office, the tax system and HMRC will never be simplified and will never work as they should (ie be a cost effective, fair and efficient mechanism for collecting tax).

Brown doesn't do "simple".

Tax does have to be taxing.

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  1. Ken, as always I find myself agreeing with you, however, I do not observe the other two major parties offering to simplify the tax system. Who do I vote for so that NI is subsumed into income tax and a flat tax rate is introduced?

  2. Absolutely. I was thinking of writing a similar post myself but was too lazy.

  3. Paul

    Thanks, a very good question.

    Would someone from the "mother of parliaments" care to step up to the plate on this one?


  4. The Libertarian Party seem to be the boys for simplification, starting with no income tax.

  5. Yet another reason to feel ashamed for working for HMRC....