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.

Wednesday, 6 April 2011

Happy Worse Off Wednesday

cakeFrom the Telegraph:

"Dubbed "Worse off Wednesday", changes to personal taxes will shrink household income by £500m this year while welfare cuts remove a further £1.8bn, according to Capital Economics.

Coming on top of soaring inflation, the fiscal squeeze will have the effect of reducing real pay this month by 1.5pc.

Not everyone will be worse off. The personal tax allowance in being increased from £6,475 to £7,475, taking 880,000 people out of tax and gifting 23m basic rate taxpayers up to £170 each.

However, the cut is being paid for by an decrease in the higher rate threshold from £43,875 to £42,475, lifting 750,000 people into the 40p tax bracket, as well as a 1p rise in National Insurance.

Higher earners will be hit by a new stamp duty rate of 5pc on £1m properties and a reduction in pension tax relief from £255,000 to £50,000.

Welfare changes, such as switching to less generous inflation indexing, will cost those on benefits £2.7bn. Including January's VAT rise, everyone is worse off.

The squeeze comes on the back of the first official annual decline in household incomes since 1981 last year.

Tax does have to be taxing.

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  1. So all set for a new tax year, with a new round of fuck up's by the glorious 103rd brigade (HMRC for those new to this blog).
    I guess we can expect bigger and better data losses, errors, incompetence and excuses (from the pantomime dame)as we go through the year.
    Has anyone had their coding notice for this year? I have'nt, for the 10 year running, yet this is HMRC number one getout when errors by them occur "you should have checked your coding notice" bollocks.

  2. agree with 12.06.

    The 103rd brigade will not surprise us at all this year. I might manage to raise an eyebrow if the curtains finally close on the pantomime dame strappie.

    Nothing short of breaking that overbloated HMRC monster into edible pieces will suffice. Everything else is the same old shit served via a different cock-up

  3. So, if you aren't a higher rate taxpayer, and you have no kids, you're better off yeah? FFS. About time.

  4. Agree with 14:26, no kids and just under the new higher rate threshold - work close enough to walk (not far enough to affected by petrol rises significantly)although VAT may get me ... all that disposable income will have me supporting the retail market as usual.

  5. My other half says it looks as though the systems are already failing, watch these spaces
    as the next chapter unveils itself.
    The Pantomime Dame herself looks to be already on her way, bet you didn't know that she is already Head of Profession for operational delivery across government responsible not only for 45,000 people in HMRC who provide operational delivery to HMRC customers but by the looks of it the rest of HMG.
    This probably accounts for why she is not as focussed as should be?
    Wonder if there have been 2 salaries, wow, think of the bonuses never mind the remuneration.
    And you thought HMRC was in a mess, wait until they export a few managers to other parts of HMG.
    Be afraid, very afraid.

  6. 6 April 2011 18:57

    Let' hope they can get the NHS privatised before she gets near it.

  7. It's too late! Did you see BBC News this morning>
    The RAF are so short of aircraft they have had to use a hot-air balloon to invade france.
    Whatever next?
    Wacky Racers in charge of the highways?
    Professor pat.pending in charge of PaceSetter?
    Jack the Ripper in charge of the NHS (privatised)?
    And HMRC tops tje list of organisations to have got information wrong on your bill BBC Moneywatch quote on BBC News at 07:11)
    You couldn't dream it up.