Halloween

Beware as you carve your pumpkins in readiness for tomorrow that, aside from ghosts and witches, the 31st is also the deadline for submitting tax returns on paper.

Whooooo!!!!!

Tax does have to be taxing.

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"

A Question of Qualifications

A wee while ago on this site I noted that HMRC's interim chief financial officer, Philip Moore, was not a chartered accountant (although he is an actuary, 2004 government guidelines stipulate that all CFO's running government departments must be "professionally qualified").

Annyhoo, Moore has now left HMRC to join a defined benefit pension buyout company, Pension Corporation.

Moore's role has now been split between Simon Hopkins, HMRC's director of financial planning and analysis, and Jon Fundrey, financial controller (both of whom are chartered accountants).

Doesn't splitting the role lead to confusion and conflict?

Moore was appointed temporary CFO in January 2008. He will not be lonely at Pension Corporation, HMRC's former chairman (Sir Nicolas Montagu) is on the board there.

Tax does have to be taxing.

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"

Lost in Cyberspace!

Accounting Web report that HMRC online filing still has a "few" gremlins. One being the disappearance of tax advisers' clients off previously filed online lists.

Quote:

"HMRC are absolutely rubbish.

With the first half of this ridiculous split filing deadline for self assessment approaching we've been through our online client list at HMRC and found 15 clients for whom we filed online last year have disappeared from the list.

Why?

Helpdesk haven't a clue.

If we are to be encouraged to file online PLEASE could we have some consistency from HMRC.

Or is that too much to ask?"

Does anyone have any ideas as to where the "disappeared" have gone?

I suspect that those who designed the HMRC system didn't have a clue as to how the tax system actually works, and those that approved its installation didn't have a clue as to how the IT system would work; ie neither the supplier, nor management of HMRC were up to the job.

"Tax does have to be taxing.

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"

Secret Address

Here is an interesting story sent to me by someone about HMRC changing their address, but not being very open about their new address.

My correspondent has for many years sent his VAT return by post using an enclosed brown envelope, and recorded delivery to ensure proof of sending.

Anyhoo, this quarter HMRC changed the colour of the enclosed envelope to white and the address on the envelope.

So far so good, except for one small problem...the address, whilst it did have a post code, didn't have a town.

In theory, this should still work for recorded delivery; unfortunately there was another problem.

Can you guess what that was?

Yes, that's right, the post office did not/could not recognise the post code (BX5 5AT) on the envelope.

My hapless correspondent then called HMRC, and was given a new postcode (BD98 1YY) to use.

Fair enough, except that the post office will not accept a letter for recorded delivery without a town as well.

Cue another call to HMRC, asking for the town.

Unfortunately, HMRC (for reasons best known to the lady at the call centre) wouldn't give the name of the town (it turns out from a later enquiry that it was Bradford).

Another call, to a more helpful call centre person, confirmed that the printed envelopes had a problem with the post code but that proof of postage can be obtained via a "certificate of postage".

I understand that there has been some trouble with the VAT returns in the period July/August because of this.

I wonder just how many VAT returns have been lost or delayed this quarter because of a misprinted post code on the envelope?

Tax does have to be taxing.

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"

Trouble in Store - 10 November

There may be a one day UK civil service and public sector strike strike on 10 November, hitting passports, Jobcentres, Tax Credits, immigration and customs, as well as driving licences, coastguards, driving tests and museums.

"There is a three week opportunity to avoid damaging industrial action, where the government can pay heed to the Bank of England's warning on the economic consequences that the squeeze on wages is having." Mark Serwotka, PCS general secretary.

The one day strike, which will be followed by an overtime ban throughout the civil service, comes as civil and public servants across the UK face mounting pressure on their finances as a result of the government's public sector pay cap.

Source PCS

Tax does have to be taxing.

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"

Who's In Charge? II

On 15 October I asked:

"So, who exactly is now in charge of HMRC out of the above three people...ie where does the buck now stop?"

Yesterday the FT asked the very same thing:

"The Revenue, which last year scored an own goal when it lost computer discs containing half the nation's bank details, also seems to have a plethora of chiefs. Instead of one boss - it used to be Paul Gray, who stepped down after the discs fiasco - it now has three. There is Mike Clasper, new chairman of the Revenue, though he is non-executive and part-time. Now Lesley Strathie, head of Jobcentre Plus at the Department for Work and Pensions, is to become chief executive officer, though she will be responsible mainly for the day-to-day running of the department rather than policy advice to ministers. Meanwhile, the affable Dave Hartnett, who has been acting head of HMRC, is to become permanent secretary, in charge of tax. I understand the smart money is on Mr Hartnett to call the shots even though Ms Strathie will technically be the boss.

I am told this uncertainty over who is going to be in charge has meant some Whitehall heavyweights refused to apply for the Revenue's top job - despite encouragement to do so. The names mentioned include Helen Ghosh, senior official at the environment department, Sir Leigh Lewis, head of DWP, and Rachel Lomax, former deputy governor of the Bank of England. "They wouldn't touch it because they felt accountability there was in such a muddle," says one senior figure.....

So which of HMRC's three bosses is going to be in charge of lost discs? "All three will have responsibility for data security.."

This muddled arrangement clearly will not work, and is an accident wating to happen.

Tax does have to be taxing.

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"

Training Counts

I understand that managers from the Customs side of the merged HMRC are being allowed to sign off contract settlements (these are the legally binding documents signed at the end of an enquiry).

Prior to the merger with Customs, senior Revenue inspectors would sign off the cases after a settlement was agreed.

Nothing wrong with that, if the Customs managers are trained in tax compliance.

The trouble is, according to my source, they aren't.

Maybe HMRC should ensure that those who sign legally binding documents receive the necessary training first?

Tax does have to be taxing.

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"

Gerrymandering

HMRC have been accused of "gerrymandering" a consultation exercise, in order to undermine union opposition to the proposed closure of certain Scottish HMRC offices.

That at least is the view of the Public and Commercial Services Union (PCS).

The PCS said that it was "disgusted" at the way staff at Dundee's Sidlaw House office, not affected by the proposals, had been included in an assessment of responses with the result that opposition appeared considerably diluted.

Approximately 70 jobs may be lost from Dundee and Perth.

The consultation process ran from June 11 until August 6, HMRC staff across Scotland were invited to pass comment on the closure proposals.

Sidlaw House workers were told that their jobs were safe.

John Oswald, the local union leader, described the inclusion of Sidlow House staff in the consultation as "underhand and despicable gerrymandering". Their inclusion diluted weight of the responses of affected staff to 27%.

Mr Oswald told the Evening Telegraph:

"This manipulation of figures is designed to undermine our campaign in the worst possible way. Members across Scotland, worried for their jobs, have been using this consultation to show their opposition to closure.

The department must either discount Sidlaw House from the review or reopen the consultation, hold meetings with the staff and actually directly invite them to contribute."

HMRC trying to manipulate the results of a consultation?

Surely not!

Tax does have to be taxing.

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"

Time Travel

I see that HMRC are now employing Timelords, that at least can be the only explanation for the strange phenomenon noted by one correspondent.

He sent me a copy of the HMRC website confirmation of the receipt of a recently submitted client's tax return for tax year end 2008.

The confirmation states quite clearly that the return was received on 20 February 2008.

Has anyone else had this happen?

Tax does have to be taxing.

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"

Who's In Charge?

Congrats to Dave "Nearly man" Hartnett on his appointment as new "permanent secretary for tax".

Congrats to Lesley Strathie who has been appointed as the Chief Executive Officer of HM Revenue & Customs.

Both of the above appointments were announced by Mike Clasper (Chairman of HMRC).

So, who exactly is now in charge of HMRC out of the above three people...ie where does the buck now stop?

Tax does have to be taxing.

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"

Diary of The Damned

A warm welcome to the blogosphere to The Diary of The Damned "where victims of Tax Credit overpayments speak out, using their own words".

Tax does have to be taxing.

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"

Phish Warning

Be warned, the following phish is doing the rounds at the moment.

The email, allegedly from HMRC, invites the recipient to click on the link and submit personal data.

It is of course scam, HMRC do not send emails out asking people to submit data.

You have been warned.

After the last annual calculations of your fiscal activity we have determined that you are eligible to receive a tax refund of 188.50 GBP. Please submit the tax refund request and allow us 6-9 days in order to process it.

A refund can be delayed for a variety of reasons. For example submitting invalid records or applying after the deadline.

To access the form for your tax refund, please click here.

Regards, HM Revenue & Customs

© Copyright 2008, HM Revenue & Customs UK.

Tax does have to be taxing.

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"

Money Well Spent

HMRC is doing its level best to reduce its cost base, and save us money.

The post-room at Fountain Court (the HMRC office in Middlesbrough) is being closed down, consequently letters issued by staff are not being picked up by the Royal Mail.

Therefore all letters issued from Fountain Court are now sent to Benton Park View (the Wearside HMRC office) to be placed in envelopes and issued from there.

In other words, a letter written in Middlesbrough is driven 40 miles by courier to be put in an envelope and posted.

Great!

Tax does have to be taxing.

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"

A State of Denial

The Low Incomes Tax Reform Group recently stated:

"The Government are now eager to improve the tax credits system. Yet HMRC are in denial about the extent of the delays in dealing with overpayment disputes and appeals.

One welfare rights adviser sent nine overpayment disputes, one appeal and one backdating request to HMRC between February and June 2008. As of the start of last week, only two had been acknowledged as received, and only one had elicited any substantive reply."

Read more on the LITRG site.

Denial does not help anyone.

Maybe someone could organise an "intervention"?

Tax does have to be taxing.

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"

Envelope Ban

HMRC is pushing ahead with its plan to force taxpayers to file VAT returns online.

Its latest tactic is to phase out pre-paid envelopes which it used to supply.

Malcolm Winston (UHY Hacker Young partner) is not impressed, he is quoted in the Birmingham Post:

"This is unfortunate timing as HMRC's recent data loss scandal is still fresh in everyone's mind. You would think that they would be a bit more sensitive to taxpayers' concerns before they tried to railroad them all into filing online.

There are still quite a few personal and business taxpayers who either don't have access to broadband or who are still very nervous about lodging sensitive financial information online."

HMRC claim that the phasing out of pre-paid envelopes is in line with the private sector.

However, that is not a fair analogy, as people have a choice as to which private sector organisation they use.

Tax does have to be taxing.

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"

A Question of Security - Don't Employ Illegals

Security is an important issue for HMRC, given the fact that HMRC holds personal data on every tax payer in Britain it is vital that the data is held securely.

Therefore it is disappointing to learn that seven immigrants lied their way into security jobs at HM Revenue and Customs (HMRC) with forged documents last year.

They worked for a contractor that guarded customs buildings before they were identified in December.

Since then one of the workers has been arrested, five have resigned and the other is on maternity leave while her immigration status is investigated.

This information belatedly came to light after a Freedom of Information request.

HMRC said the latest revelations had been exposed after a routine check on paperwork found "irregularities".

Shouldn't the paperwork be checked before employing people?

Tax does have to be taxing.

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"

Surely Not?

Is this for real?

"I have heard that in HMRC offices which do not have lockable storage for files/papers staff have been instructed to turn papers and files face down at the end of each working day "so as to keep them secure"... I kid you not!!!"

Source

Tax does have to be taxing.

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"

The Electric Commode

You will recall that I recently wrote about HMRC "management" imposing a rule whereby HMRC staff have to complete a spreadsheet every time that they go for a loo break, and advising staff not to drink so much.

One reader even commented that he/she had been threatened with a written warning over loo breaks.

Clearly there are issues within HMRC wrt toilets and lavatorial issues (anally retentive issues I would surmise), Freud doubtless would have had a field day.

Anyhoo, in the interests of improving morale and efficiency, I have designed a most excellent chair for staff to use when they are at their desks which would negate the need for them to go to the loo.

Ladies and gentlemen may I present "The Electric Commode".

I think you will agree it's a real winner, and the efficiency improvements will more than outweigh the capital costs.

Tax does have to be taxing.

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"