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.

Thursday, 16 September 2010

Hartnett Speaks II - HMRC Backs Down

Dave Hartnett
Oh dear it has been a "testing" few days from those "running" HMRC, hasn't it?

"Dame" Lesley Strathie (will someone please tell me why this person has been "Damed"?) and Dave Hartnett had to appear before the Treasury Select Committee yesterday for some ritual humiliation.

As a result of this, and Treasury orders, HMRC have now done a U turn and said that interest will not be charged on the tax underpayments caused by HMRC coding cock ups over the last two years.

Dame Lesley said:

"If they need time to pay, they won't pay interest. Ministers have asked us to put that in place."

As long as people facing a repayment contact HMRC to agree a timetable, no interest will be incurred.

Andrew Tyrie, the committee chairman, said:

"The fact that you have announced this today does look like a direct response to public pressure."

Quite!

Interestingly HMRC's upper echelons were told about the latest underpayments in July, yet the public only informed last week.

Funny though that the policy reversal re interest has only been cobbled together now, in the face of widespread ridicule and condemnation?

One would have thought that HMRC executives could have foreseen all of this, and had a plan in place to avoid the shambles that has been unfolding before our eyes over the last few days?

Hartnett said that he regretted his "insensitivity" in not recognising immediately that people affected deserved an apology. He went on to apologise for not apologising immediately the issue became public.

"I know how to apologise, I've had to do it before.

(Ken's reaction...ROFLOL!)

I did not do it then and I am sorry for that.

I think we could have done better in helping taxpayers to prepare for this
."

Hartnett also apologised for how he handled the BBC Moneybox interview.

(Quotes sourced from The Telegraph)

The sad thing is that this is but the tip of the iceberg; other things will come out and, like a West End farce, this farce will run and run.

BTW, where's "Three days a Week" Clasper gone?

Tax does have to be taxing.

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20 comments:

  1. I suppose the problems with getting in touch with HMRC will suddenly become a bigger problem again now.

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  2. Ken really shame on you "Two Days a week Clasper" he works three days a week for his £170,000! Just because he's not been seen for about two years maybe next time I buy a carton of milk his picture maybe on the side "Have you seen
    Mike last seen with a copy the vision leaving HMRC towers sometime in early 2008?"

    Yes I heard the BBC reporter yesterday calling Leslie "Dame" amsued me greatly, why has nobody in the media not questioned just who is running the department they all assume its Hartnett.

    There problems with the phones haven't stopped it just tax credits rather than PAYE that cannot get through now.

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  3. Re "sham on me"...oops mea culpa!

    Ken

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  4. "As a result of this, and Treasury orders, HMRC have now done a U turn and said that interest will not be charged on the tax overpayments caused by these HMRC coding cock ups over the last two years."

    Interest will not be charged on underpayments.

    Those underpayments have not been caused by HMRC coding cock ups. As an accountant you would know that.

    ReplyDelete
  5. RE: Anon at 09:59

    Isn't Mike "answers on a postcard if you've seen him" Clasper also working for a little company called EMI?

    ReplyDelete
  6. And itv as well and quite coincidently both companies are struggling.

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  7. Dame Lesley said:

    "If they need time to pay, they won't pay interest. Ministers have asked us to put that in place."

    £175,000 pound a year and Strathie is neither an accountant or a Tax Practioner and has only been with hmrc two years?
    Its obvious she is just their to shred thousands of jobs and then piss off just like Gray did with his 2 and half million pound handshake after the balls up he made.

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  8. Can you publish any substantive evidence that proves this is ALL HMRC's fault. The last time I checked PAYE being operated correctly involves 3 parties - HMRC, employers and the taxpayer themselves.

    Would be happy to see the response.

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  9. Well, that went well. Only losing the interest phew! and they were thinking that the uproar would cause such a staggering amount of calls that they would have to increase the disregard upto £500, then £800 and even £1000 if needed.

    So the good old public both SA and PAYE (who filed their tax affairs correctly) and received no disregard are happy that others have been let off with £350 worth of owed tax, how benevolent.

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  10. So the good old public both SA and PAYE (who filed their tax affairs correctly) and received no disregard are happy that others have been let off with £350 worth of owed tax, how benevolent.

    As a member of team SA no I am not impressed and would like my tax code changed to give me some extra allowances next year please. Or maybe I should just make a mistake or two.

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  11. Strathie has just been quoted on the BBC's Watchdog (I cannot confirm that she did actually say this but I have no evidence to say she did not) as having said "If we were a commercial business we could choose who our customers were".

    Actually you can choose who your customers are. You see you could piss off and do something else.

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  12. Watchdog had a two minute piece re HMRC from the ubiquitous Martyn Lewis without bothering to ask anyone on from the department.

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  13. Watchdog had a two minute piece re HMRC from the ubiquitous Martyn Lewis without bothering to ask anyone on from the department.

    They may have called HMRC to invite someone on but not able get through.

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  14. you have never paid interest on paye underpayments so hardly a climb down

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  15. I think the statement above shows just how well the management understand the tax system.

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  16. 17/9 08:59 is right. The only way the Revenue can make an assessment and hence a legal charge is to issue a Self Assessment return. I cannot see how they could have charged interest on any of these PAYE underpayments.

    In my experience they issue a nice letter asking for payment together with a payslip. Sometimes there is a hint that if it is not paid a Self Assessment return will be issued. There has never been any question of an interest charge.

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  17. A report by the BBC today lists some of the main reasons why tax is not collected. In amongst them is "legal avoidance strategies and legal challenges by taxpayers". I do not see how HMRC have failed to collect this tax if it was not due in the first place.

    Another reason could be people who find it easier to deal with the IRS and pay a higher rate of tax on overseas earnings.

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  18. But if there's more than 2K owing isn't it automatically put into SA which would have (previously) attracted interest if paid late?

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  19. No. If it is over £2k a letter is sent asking for a voluntary payment and a payslip is enclosed. If no payment is received then an SA return is issued.

    This was breifly mentioned at the Select Committee meeting when Dave Hartnett siad he expected very few cases to be put into SA.

    ReplyDelete
  20. Just found this from their own manauls
    PAYE90011 - Reconcile individual: underpayments: work item 236 - issue request for voluntary payment requirements (Action Guide)
    Work item 236 is created when an underpayment of £2000 or more arises or, the underpayment is less than £2000 but cannot be coded out. In these cases you may need to issue a letter to the individual concerned to request a Direct Voluntary Payment (DVP) in settlement of the underpayment.

    ReplyDelete