Wednesday 30 November 2011

HMRC Hits The Phones



HMRC is concerned that so many people have been having a go at it about having trouble getting through to HMRC on the phone.

Therefore HMRC has decided to "hit the phones" and call the taxpayers!

Director of Finance reports that 6,000 taxpayers will receive phone calls from HMRC.

However, before you all wait eagerly by the phone in expectation of a call from HMRC to assist you with your tax problems/queries, I should point out that the 6,000 calls are being made to those whom HMRC believe hold Swiss bank accounts.

The rest of us will have to continue "hanging on the telephone".

Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 29 November 2011

SA252 Delays - As Per Usual



HMRC have issued an update about their SA252 letters.

SA252 is sent to taxpayers who are not in self assessment (SA), but who may be paying either too little or too much tax.

The SA252 letter has been redesigned, and is now being sent both to higher rate taxpayers and to basic rate taxpayers with more complex affairs (HMRC originally planned to only send these to higher rate payers this year). However, IT changes have prompted HMRC to change its mind.

Tax agents of those in receipt of these letters will not be receiving them.

For why?

HMRC can't afford to send out copies.


Here is an extract of HMRC 's update:

"We’d also like to mention that, because this will be a bulk processing issue for us, all letters will be dated 19 November although it’s possible they won’t be received until some weeks later. 

There is nothing unusual about this. 

We post bulk output letters in stages to help our contact centres to manage any additional customer demand that the letters might provoke.

As we have explained before we’re unable to send copies of the letter to agents but it does include a request that customers show the letter to their tax adviser if they have one.”

I dare say that agents can remind HMRC that they opposed the withdrawal of their copy letters at the time it was announced, and doubtless will also have a chat with HMRC about the delays in their clients receiving the SA252; as and when they let HMRC come and visit them at the coal face.

Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 28 November 2011

EU Nixes Swiss Deal



Well then, here's an interesting story in Accountancy Age.

It seems that the EU is threatening to sue the UK over its tax agreement with Switzerland, signed in October.

At the time of signing, Dave Hartnett said:

"The world is shrinking fast for offshore tax evaders and this agreement will ensure that we know where money that flees Switzerland is heading. We won't be far behind."


European Commission lawyers are not convinced, and are of the view that the deal is in breach of EU laws that they claim are tougher on tax evasion.

George Osborne has been warned that he must renegotiate the deal or face a writ from the EU.

The deal, as it currently stands, protects the secrecy of UK residents who have accounts with Swiss banks, in return for a large percentage of the capital in their accounts and a withholding tax. Oddly enough Germany had also negotiated a similar deal.

Notwithstanding that, the EU thinks that the deal contradicts the EU Savings Directive and undermines its negotiating mandate.




Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Friday 25 November 2011

Delays?



The Guardian reports that UK Uncut is concerned that HMRC is delaying a judicial review of the infamous £10M Goldman Sachs tax settlement.

UK Uncut claim that HMRC has twice extended the deadline for responding to its legal claim, even though the details of the settlement have already been challenged by MPs on the Public Accounts Committee.

The Morning Star reports that Leigh Day & Co (lawyers for UK Uncut Legal Action) wrote to HMRC this week, informing them that its ongoing delay in dealing with their claim is unacceptable.

Partner at Leigh Day Richard Stein is quoted:

"We believe that HMRC has had plenty of time to make 'enquiries' about the Goldman Sachs deal, particularly given its requirement to give evidence to the select committee about the issue.

We do not think their ongoing delay is acceptable."

A spokesman for HMRC said it had asked for a delay to the judicial review, because it needed more time to investigate the issues raised.

Methinks this will be one to watch!




Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 24 November 2011

Calling All Agents II - Deja Vu



In October I wrote about the ICAEW's and HMRC's appeal for tax agent firms to allow HMRC to come and see how things are done at the coal face:

"Michael Izza, the CEO of the ICAEW, has issued a public call for tax agent firms to allow HMRC staff to come and see what it is like at the "coal face" and visit the firms to observe procedures etc. HMRC have assured the ICAEW that there are no risks to the firms (or the clients of the firms) if they allow HMRC staff to come and visit."

Later, that same month, I quoted Clapser:

"HMRC has committed to a big challenge. However, improvements can only be made with the input of the profession and it is therefore important that firms come forward to volunteer to host HMRC staff. Council members are strongly encouraged to do so, and take their opportunity to share their experiences."

I then stated:

"I would note one thing, not everyone is of the view that there is such a cosy relationship between HMRC and the profession.

Anthony Thomas, President of the Chartered Institute of Taxation (CIOT), recently debunked the nonsense that there is a "special relationship" between HMRC and the professional bodies, calling it a "myth" (akin to that "relationship" between the UK and US governments).

 
This view may ruffle a few feathers over at the ICAEW, where Michael Izza (the CEO) claims that "we (the ICAEW) now have a partnership with HMRC".
 
Moving forward to the present, I was more than gemused to read on Nichola Ross Martin's site that the "visit the coalface" idea has been done before (even to the extent of visiting the very same tax agent!).

Ironically, neither HMRC or the ICAEW seem to remember this!

Here is Nichola's article in full, in the hope that it jogs the memories of both HMRC and ICAEW.
 
"We have a case of déjà vu: as part of the latest Agent Strategy HMRC are visiting firms to see what it is really like in practice. Hold on, hasn't that been tried already? Read on and see if you can spot the difference.
In 2008 HMRC director’s general of business tax – Melanie Dawes visited West Country firm A C Mole and Sons to “see what it is like for us - and experience the practical effects of HMRC's Change Programme as we do…” Paul Aplin, a partner in the firm and chairman of the Institute of Chartered Accountants in England and Wales (ICAEW) Tax Faculty enthused on his blog “I think that it completely changed the way she viewed our issues.”

Roll on three years, we now learn that HMRC’s director general of personal tax – Stephen Banyard, has just returned from a visit to... West Country firm A C Mole and Sons, speaking to staff and receiving feedback. Paul Aplin, a partner in the firm but now ex-chairman of the ICAEW Tax Faculty reports, “I think he went away with a better understanding of the problems we encounter.”

So, assuming that Mr Banyard has not taken a leaf out of his boss’ book (Dave Hartnett, “the most wined and dined mandarin of Whitehall”) and was not really taking the opportunity for a day out of London sampling local cuisine, we must conclude that the visit was really useful. Sad to say that judging by the effect that Ms Dawes previous visit seems to have had it is unlikely to create any noticeable changes for tax agents. We all agree that service levels and standards have spiralled into a lamentable decline in the past three years.

Probably the most embarrassing thing for both HMRC and the ICAEW is that three years ago after the Dawes' visit, Paul had also managed to tete a tete with HMRC's Chairman Mike Clasper. ”When I met Mike Clasper, last week I told him what it was like at the coalface - the wasted time dealing with piles of incorrect PAYE coding notices and the frustration and embarrassment caused by incorrect penalty notices…We spoke one to one - no officials present - for almost an hour and a half and I felt that I received a fair hearing…”

Not that any of what happened three years ago appears to have had any effect on service standards or agent relationships.

The acid test is probably whether members of the Parliamentary Accounts Committee (PAC) who are investigating the rolling saga of the combination of HMRC’s Permanent Secretary’s blunders with large business, together with HMRC's value for money and falling service standards will take heed and give Mr Clasper a prod. Why on earth do a one to one with the ICAEW's top tax man and do nothing?

It is of course too late to ask Melanie Dawes, she has now jumped ship to the Cabinet Office following a previous grilling by the PAC in September. Mike Norgrave has just been appointed to take her place, obviously, he cannot be held accountable."





Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 23 November 2011

Jack in The Box



I see that things are hotting up for Dave "Jack" Hartnett, wrt the Goldman Sachs and Vodafone tax deals.

A senior judge is to be brought in to investigate the deals, and is apparently going to be given powers to examine the accounts of the Vampire Squid and Vodafone.

The National Audit Office (NAO), keen not be left behind the curve on this, is also considering looking at the  tax affairs of other large companies in order to ensure that HMRC haven't signed off any other Vampire Squid deals.
This move is interesting, because it indicates that the government no longer trusts HMRC (which is itself a government body).
 
The NAO are now "scoping" the terms of the work, and determining who they need to actually do it.
 
Anyone care to volunteer?
 



Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 22 November 2011

HMRC, Aspergers and Accessibility



There was some "charged" debate on this site the other week wrt HMRC's treatment of those who have disabilities, and the accessibility of its services.

Ironically, Accountancy Age have published an interesting article about HMRC's treatment of a person with Asperger's syndrome. HMRC fined Peter Graf von der Pahlen £400 and the tribunal that he took his appeal against the fine to upheld that fine.

Case closed?

Well, reading the report in AA indicates that neither HMRC nor the tribunal came out of it particularly well:

"..the one organisation that is not making allowances for disability is HMRC.


Even if HMRC and the tribunal had their reasons for the imposition and upholding of the penalties, this case helped highlight numerous issues. HMRC acting aggressively to even the most vulnerable, the effect of service changes on that group and an apparent inconsistency in tribunal decisions."

In today's world, if you don't fit into a predetermined bureaucratic box then you are faced with quite a mountain to climb to satisfy the demands of the state.

Here is the article in full:

"A FIRST-TIER tax tribunal found that Peter Graf von der Pahlen did not have a reasonable excuse against a £400 fine imposed on him.
 
This case, held in June this year and published this month, is both fascinating and disturbing. It touches on many contentious elements around HMRC's service strategy: the taxman's increasingly aggressive stance; the lack of exemptions for people to file paper returns; and the closure of HMRC regional offices.


For von der Pahlen, director of two building firms, suffers from dyslexia, Asperger's syndrome, a walking disability and mental health problems. Changes to the way HMRC ran its service meant von der Pahlen was unable to submit his P35 employer returns forms in time. So what are the details of the case and what does it say about HMRC service?

Late returns
Von der Pahlen runs two businesses, JN Dimensions and Your Building Expert. He was under the impression that he had submitted the end of year employer returns in April 2010. However, he received two penalty notices for £400 each in September - accumulated since April.

The tribunal heard von der Pahlen was delayed because the HMRC software programme for submitting returns failed to work properly and he was told to download an additional programme for one return. He said he sent the return on time, but HMRC said it had not received it. For the other return, von der Pahlen filed the paper return in person on 17 May 2010 because of his problem with HMRC software. HMRC said it had not received this return. It also said that von der Pahlen had been notified repeatedly that he had to file online.

Beyond employer's control?
There were two arguments to be made against the penalty, both around reasonable excuse. HMRC's own definition of reasonable excuse says that is must be "beyond your control". Von der Pahlen claimed that his disabilities - and the fact that English was not his first language - were beyond his control.

The businessman had had face-to-face advice from HMRC since 2004 and tax documents had always caused problems. Because of this, he would often drive to HMRC offices several times a day.

But this service was removed. He could no longer speak to staff in the office so he had to phone call centres. A person with Asperger's syndrome has difficulties in having a proper phone conversation. The consequent stress, von der Pahlen claimed, had prevented him from filling in forms correctly.

Another element of this defence was that the change from paper filing to online filing disrupted his routine. A psychologist's report, mentioned at the trial, states: "Peter is inflexible in his routines and cannot break a routine once started".

Keith Lovett, director of AutismUK, says this is classic behaviour for someone with von der Pahlen's condition. "The change of the routine would be a big issue. It becomes more resistant depending on the degree. The more you show Asperger individuals how to do something, the more concrete that becomes in their minds."

What is a reasonable excuse?
The tribunal did not go for this defence. While the tribunal "sympathised" with von der Pahlen's situation, it found that these problems were "continuous rather than sudden or unexpected" and he should have taken them into account before beginning the process of filing.

But there was a second defence open to von der Pahlen. The requirement that "reasonable excuse" must mean "circumstances beyond your control" is simply HMRC's interpretation.

Geraint Jones QC, a tribunal judge not involved in this case, has ruled on many cases recently where reasonable excuse is treated in its plain English term - that is, an excuse that is reasonable. The cases where he found in favour of the taxpayer are wide-ranging. They include a cashflow problem, miscommunication between advisor and client and problems with computers, among others.

Robin Williamson, chair of the Low Incomes Tax Reform Group, points out the fact that von der Pahlen "is obviously a man who goes to some lengths to fulfil his tax obligations" having visited local offices up to three times a day. He did not use his health as the only reason for late filing as he made attempts to submit his form.

If nothing else, there is inconsistency in its application. "Perhaps the first tier tribunal must be a little more collegiate," Williamson says. "We would say look up reasonable excuse in the dictionary and it does not say exceptional circumstances."

HMRC defence
There were other factors in this case that might explain the tribunal's decision, says Hartley Foster, partner at lawyers Olswang. First, there is some doubt about whether von der Pahlen called the helpdesk when he said he did; and second, the impression given is that HMRC have lost patience as late filing penalties have been given in the previous four years.

However, this is an example of the HMRC's overly aggressive stance, Hartley adds. Not only has it led to an unfortunate decision, but HMRC has not gained much from allowing the case to run its course when costs are taken into account. "One hopes they will be more sensible in future. It is not cost-effective in managing resources," Hartley says.

Nigel May, tax partner at McIntyre Hudson, echoes this view. "The thing that shook me to the core was that HMRC took this to tribunal at all, let alone that the tribunal found for the Revenue. It seems to me that in the age of the Equality Act (see box), the one organisation that is not making allowances for disability is HMRC."

"Unfortunate" case
Even if HMRC and the tribunal had their reasons for the imposition and upholding of the penalties, this case helped highlight numerous issues. HMRC acting aggressively to even the most vulnerable, the effect of service changes on that group and an apparent inconsistency in tribunal decisions.

"It is a case one reads with sorrow," says May. "How can it have been right that this case was taken? It reflects badly on the entire system that the HMRC did not take account of the guy's disability, the tribunal did not take account of the disability and he went without representation.

"Not many people come out of this case with any credit."




Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 21 November 2011

The Mouse That Roared



The Financial Services Authority (FSA), the feeble and sleepy organisation that allowed scandals such as PPI mis-selling, RBS and Northern Wreck etc to occur on its "watch", has finally decided to bare its teeth.

The FSA is of the view that HMRC's draft guidance on adviser charging and VAT is contradictory, and should be revisited.

HMRC's draft guidance was issued last month. It states that VAT will not apply where a customer agrees to take out an investment product following adviser recommendations.

However, it also states that ongoing advice, such as regular reviews, will be subject to VAT.

There is then yet another caveat, if the ongoing advice includes portfolio rebalancing it will be exempt from VAT. However, it then goes on to state that investment management or portfolio advice services where an adviser suggests particular transactions will be subject to VAT.

Unsurprisingly this has caused some confusion. At the Personal Finance Society annual conference in Birmingham last week Rory Percival, conduct and risk division supervisor for the FSA, is quoted by fundweb:

I would suggest those two expressions are contradictory, because a portfolio advice service is exactly that, buying and selling and rebalancing.

So we need to go back to HMRC and say these two bits appear to be contradictory, and also ask exactly what it is getting at in saying that investment management is VATable.”

An HMRC spokeswoman declined to respond to the FSA’s comments, but then went ahead and did so in a round about way anyway:

The purpose of this informal consultation is to invite comments on the draft and let HMRC know if there are any areas that are unclear or where respondents think further explanation is required.”

Well then, let's see if HMRC takes any notice of the FSA.



Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Friday 18 November 2011

Confusion Abounds



I am somewhat confused over the government's and HMRC's attitude to the minimum wage and "internships".

The Guardian reported yesterday that the government is sending unemployed young people on unpaid "work experience":

"Britain's jobless young people are being sent to work for supermarkets and budget stores for up to two months for no pay and no guarantee of a job, the Guardian can reveal.

Under the government's work experience programme young jobseekers are exempted from national minimum wage laws for up to eight weeks and are being offered placements in Tesco, Poundland, Argos, Sainsbury's and a multitude of other big-name businesses.

The Department for Work and Pensions (DWP) says that if jobseekers "express an interest" in an offer of work experience they must continue to work without pay, after a one-week cooling-off period or face having their benefits docked."

However, the Guardian also reported (in a separate and unconnected article) that HMRC is cracking down on unpaid internships in the fashion industry:

"Revenue and Customs is planning to raid fashion companies employing unpaid interns in breach of minimum wage laws, the Guardian has learned.

Internal documents from Her Majesty's Revenue and Customs show it believes interns across the employment spectrum to be at "high risk" of abuse under national minimum wage laws, and that HMRC has convened a 12-person taskforce to make unannounced inspections of businesses where interns are being used as workers rather than just shadowing staff.

The special "dynamic response" unit will have powers to question managers and sift through accounts until it is satisfied that no abuse is taking place.

It is the first time intern abuse has been targeted by the HMRC, which is responsible for the enforcement of the minimum wage."

Why is the fashion industry being targeted, yet "Poundland" etc being encouraged to take on people at zero wages for short term work experience?

Is this a case of the right hand in government not knowing/caring what the left hand is doing?





Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 17 November 2011

HMRC External Engagement Awards



The winners of HM Revenue & Customs' (HMRC) External Engagement Awards have been announced.
 
The awards, now in the their second year, recognise the contribution that business, professional and voluntary communities make in helping HMRC run the UK’s tax system.
They were awarded to:

* Sarah Gillett – UK Ambassador to Switzerland and Liechtenstein – for her pivotal role as part of the UK team negotiating with the Swiss Government to seek ways to increase tax transparency for UK taxpayers, including the recent tax agreement.

* Paddy Millard – retired Chief Executive Officer of Tax Help for Older People (TOP) – for supporting HMRC with specialist advice about customers on low incomes, in particular his work on security and disclosure constraints.

* Rebecca Benneyworth – as contributing editor of Accounting Web – for her work in supporting HMRC’s consultation exercise on the future relationship with the tax agent community.

* Mike Sufrin – retired Director of Tax, Rolls Royce – for his commitment in working with HMRC to improve clarity and customer focus in Large Business, in particular his significant contribution to the development and implementation of the Senior Accounting Officer and the Large Business Transformation programme.

Presenting the awards, David Gauke, Exchequer Secretary to the Treasury, said:

I’m delighted to recognise the contribution that individuals outside the Department make to the development, operation and delivery of tax administration. These awards show there are some excellent working practices between HMRC and taxpayers. Making the tax system simple and transparent is vitally important."

Dave Hartnett, HMRC’s Permanent Secretary for Tax, said:

HMRC has recognised that we cannot improve the tax system all by ourselves. We need the help of individuals and organisations in the tax profession and voluntary community to help us. These new awards recognise their efforts and the vital part they play in making the tax system better.”

The awards took place yesterday (16 November) at 11 Downing Street and the winners were chosen by their peers in the tax community, using these criteria:

* Commitment – has made a significant individual commitment, either over a concerted period of time or in relation to a specific initiative, to drive forward clarity and ease of use of the tax system, above and beyond their professional position.

* Customer focused – has brought and championed customer understanding which has enabled processes, legislation or policies to be better designed from the perspective of both the customer and HMRC.

* Clarity – through their commentary and active contribution they have identified the need for greater clarity and worked with HMRC to achieve a positive change and greater ease of use of the tax system.

Notes for editors
1. Members of the panel:
External panel members:
* Francesca Lagerberg, Head of Tax, Grant Thornton and former Chairman of the Tax Faculty of ICAEW
* Mike Truman, Editor, Taxation magazine
* John Whiting, Tax Policy Director of Chartered Institute of Taxation and Director of Office of Tax Simplification
Internal panel members:
* Dave Hartnett, Permanent Secretary for Tax
* Judith Knott, Director, CT, International and Anti-Avoidance
* Stephen Banyard, Acting Director General, Personal Tax
* Brian Redford, Deputy Director, Business Customer & Strategy
2. Last year’s winners were:
* John Andrews – Low Income Tax Reform Group
* Teresa Graham – Chair of Administrative Burden Advisory Board (ABAB)
* Julie Hughff – tax partner, KPMG
* Peter van Dijk – Senior Vice President, Taxation TD Bank Financial Group

3. Photographs of the event are available from the HMRC press office or using the link below:
http://nds.coi.gov.uk/Content/Detail.aspx?ReleaseID=422098&NewsAreaID=2&ClientID=257

4. Follow HMRC on Twitter @HMRCgovuk.


Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 16 November 2011

Debt Collection



HMRC, in a desperate push to increase tax take, has over the last two years increased its use of distraint to seize the assets of late-payers.  In fact HMRC's use of distraint has increased four times, rising to 7004 in the last twelve months to April 2011, up from 1,675 in the tax year ending April 2009.

Stuart McNeill, Partner in the Litigation and Dispute Resolution team at McGrigors, is wary of the increase and notes that the assets seized are often at "fire sale" prices that do not cover the tax liability.

He states:


"It is almost inevitable that this is resulting in a more aggressive approach and short cuts, but as well as having drastic implications for late-paying businesses and their other creditors, it may also be counterproductive.
 

By barging in and selling the assets of a late paying company without making a proper commercial assessment of the firm’s medium term viability, HMRC risk sacrificing full payment in a few months’ time for far less cash up front."

Additionally, by forcing insolvencies on companies during a sever recession, HMRC is damaging the economy as a whole.





Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 14 November 2011

A Slurry of Consultations



The government and HMRC are keen to show everyone that they are very busy bees, and most certainly do not want to try to overload taxpayers with a deluge of consultations that ensures poorly drafted legislation and procedures are pushed through without proper consideration.

To this end the Exchequer Secretary, David Gauke, proudly announced a number of consultations that have arrived (much like a long awaited bus) all at once.

Consultation number one sets out the Government’s vision for a more transparent, open, and easier to understand personal tax system. Modernising the Administration of the Personal Tax System sets out a range of ideas how people can more easily access information on their personal taxes. 

The Government wants taxpayers, representative bodies, and tax professionals to give their views on:
  • what taxpayers know about the tax they pay;
  • what areas of the personal tax system create the most difficulty;
  • how technology can help them better access and understand their tax position; and
  • how we can engage with individual taxpayers in hearing their views on how the tax system could be modernised.

Additionally, the Government also published a paper setting out the next steps in its work on looking at the options to integrate the operation of income tax and National Insurance contributions (NICs). The Government is establishing technical working groups to identify and explore options over the coming months, and is looking for employers, tax and payroll professionals to join these groups.

Finally, just in case the above two papers didn't quite hit the mark, the government also published draft regulations for the introduction of Real Time Information.

Good luck with getting through that lot then!



Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

WTF!



My thanks to a loyal reader who dropped me a note about an event last week for Senior Managers in Personal Tax, which was held at Lawress Hall, one of the subjects being "Rebranding Pacesetter".

Apparently one of the speakers was Mark Nellthorp, an HMRC deputy director (he is also diversity officer).

Anyhoo, I am given to understand that Mr Nellthorp's speech about rebranding Pacesetter allegedly included suggestions that old people have poor hygiene and smell, and how cornflakes stop you masturbating.

When asked by someone about an email he sent concerning job relocations, he allegedly made reference to Hitler and modern warfare.

I dare say that, "in context", the above all made perfect sense.





Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Saturday 12 November 2011

People Survey 2011

My thanks to a loyal reader who has forwarded me a copy of the HMRC 2011 People Survey.

Headline figures (on a low response rate of 52%) show a marginal improvement compared with 2010:

- 40% engagement (up 6%)
- 22% proud of working for HMRC (up 7%)
- Difference from CS2011 -16 etc

Marginal improvements, especially as the response rate is down, are not that encouraging.

Anyone know what ranking HMRC now is when compared to the rest of the Civil Service?



Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Friday 11 November 2011

Missing Data



My thanks to a loyal reader who recently sent me a copy of the response that she received from HMRC, regarding a Freedom of Information enquiry that she made concerning the number of vehicles HMRC seized that are then auctioned off.

Rather bizarrely, even though HMRC recommend that taxpayers keep good quality financial records, HMRC don't have the information to hand!

"Thank you for your e-mail of 7 September asking for the following information. 

Dear HM Revenue and Customs, you state that in the period 2008/9 that you seized 5618 vehicles.

You further state that the sale of seized vehicles for the period 2008/9 totalled £4,259K.

I therefore request under FOI the following. 

For the period 2008/9 - How many vehicles were sent to auction (l understand the auction company you use is Wilsons Auctions)? 

How many vehicles were scrapped and to which company(s)? 

How many vehicles were restored to their owners? 

I am answering under the terms of the Freedom of Information Act 2000 (FoIA). 

I can confirm that the company the Department uses is Wilsons Auctions and would advise you that, following a search of our records, I have established HMRC does not hold the remainder of the information you requested. 

If you are not happy with this reply you may request a review by writing to the HMRC FOI Team, Room 1C/25, 100 Parliament Street, London SWIA 2BQ or email [email address]"



Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 10 November 2011

Poacher Turned Gamekeeper



CRN reports that HMRC has lost a court case, and will have to repay Crucial Components (a now defunct company that used to trade iPods etc) £120K plus interest wrt VAT withheld under its Extended Verification anti-VAT carousel fraud initiative.

Crucial were represented by CTM (a firm specialising in litigation).

The director of CTM is Liban Ahmed, an ex HMRC officer.

He is quoted thusly:

We forced two HMRC officers to give evidence, and the evidence was found wanting. Crucial Components traded in a perfectly reasonable way, the directors had nothing to hide and paperwork errors were just that – errors, and not suspicious at all.

The tide seems to be turning against HMRC.

These companies have to be given the opportunity for their case to be heard and we have to fight fire with fire. The judges appear to be realising that these are not normal MTIC (carousel) cases and need to be given a chance.

I dare say we will see other ex HMRC officers "batting for the other side" in due course.



Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 9 November 2011

Dame Lesley Strathie Steps Down

As first predicted on this site in August, Dame Lesley Strathie is stepping down from her role as CEO of HMRC.

It seems, according to media reports, she has cancer and her health is deteriorating.

HMRC (note they have yet to announce Strathie's departure on their website) state that Clasper will provide "leadership" and Dave Hartnett will continue to act as interim principal accounting officer.




Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Scant Regard



The Chartered Institute of Taxation (CIOT) is less than impressed with HMRC's apparent "Digital by Default" strategy.

CIOT is of the view that HMRC are going beyond Cabinet Office guidelines, which specify that every single government service must be available to everyone (irrespective as to whether they are online or not).

CIOT state:

"HMRC do seem to be heading for 100% on line with scant regard for those unable to use online systems, or unable to use them practically because of poor broadband.

Whilst encouraging those that can to use digital channels, HMRC must not hide the existence of a continued paper option, nor force people to accept assistance or to use an intermediary service which is more onerous than the online service."

The scant regard HMRC has for the taxpayer is rather surprising, given that HMRC refer to the taxpayers as "customers" (implying that there is a degree of "choice" in the relationship, whereby the "customer" can specify how he/she wants to be "served2).

Give HMRC an inch, and it will take a mile.



Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 8 November 2011

The Truth

Members of the Commons Public Accounts Committee took the unusual step of making Anthony Inglese CB, General Counsel and Solicitor HMRC, swear an oath at yesterday's PAC hearing into HMRC Accounts and Tax Disputes.

For why?
 
It seems that the committee did no feel that they were getting answers from Inglese.

For why?

He repeatedly declined to answer questions, citing taxpayer confidentiality.

I am amused to read this about him in The Lawyer:

"The veteran lawyer does admit to getting a thrill from reading about his work in the national press. 

'It’s exactly why I wanted to join ­government'.."

LOL!!

I guess he will be delighted to read this then!

Sir Gus O’Donnell (GOD) KCB, Cabinet Secretary, and Dave "Jack" Hartnett, Permanent Secretary for Tax, HM Revenue and Customs also appeared.

Inglese and Jack admitted admitted that mistakes had been made in the deals with Vodafone and Goldman Sachs (the giant vampire squid).

The committee chairman, Margaret Hodge, asked why HMRC appeared to have a special relationship with such big businesses that allowed them to do deals in a way that would not be possible for smaller businesses or individual taxpayers.
 
Jack managed to undermine what he said at a previous hearing (when he claimed that he had been advised by an HMRC official that there was a "legal impediment" to charging interest) by stating that an official from HMRC (not him) had lost his bonus as a result of the deals.

"The error was taken into account on someone's annual appraisal."

Why didn't Jack also lose his bonus, given that he signed off on the deal?

Farcical!

Watch the farce here The Farce.



Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 7 November 2011

The Fear

Christopher Lunn, the accountant who runs CLAC (Christopher Lunn and Company), which has been in a protracted dispute with HMRC, has been featured in the Telegraph.

The paper says that Mr Lunn claims that HMRC has attempted to frighten his clients into paying tax that they do not owe, and that the investigation has been "a catalogue of blunders".

His clients have received letters informing them that any tax rebates due have been frozen because of the investigation, and others urging them to make a full disclosure of any irregularities that they are aware of in previous tax returns.
One letter, dated July of this year, addressed clients who had not contacted HMRC "with the intention of making a full disclosure".

The letter added:

"I have noted that to date you have not contacted me with the intention of making a full disclosure. I will now be checking your tax returns and if I identify any irregularities then I will deal with these matters either by criminal or civil procedures open to HMRC depending on the nature of these irregularities. 
"Please note that until we have checked your Tax Returns, HMRC will not be making any repayment of monies shown as being overpaid."
HMRC have confirmed that Mr Lunn's clients are not being paid any money at present.

"We have endeavoured, throughout our dealings with CLAC's clients, to give them every opportunity to come forward and discuss their affairs with us.

We wrote to all clients on 29 July, 2011, explaining that repayments would not be made until all returns had been checked. All repayment claims are currently being reviewed and individual claimants will be contacted shortly."

No charges have been brought against Mr Lunn, and there is no suggestion that his clients deliberately mislead HMRC.
Clearly this is another case to watch with interest.



Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Friday 4 November 2011

GOD's Retirement Message



My thanks to the loyal reader who posted GOD's (Gus O'Donnell) retirement message (see below).

I wonder if GOD has had time to sort out the paperwork for Strathie's new job?

"I wanted to let you know that I am announcing my retirement today, after over six years as Cabinet Secretary, Head of the Civil Service and Permanent Secretary of the Cabinet Office. I will be leaving the civil service at the end of the year.

I have really enjoyed my time at the Cabinet Office and am extremely proud of the highly professional work that you do right at the centre of government. I have been a civil servant for 32 years and remain convinced of the importance of our traditional values of honesty, objectivity, impartiality and integrity in underpinning all the work that we do.

Turning to the future, we are taking the opportunity to restructure roles at the top. The Cabinet Office has expanded and taken on new responsibilities since the election. In recognition of this, it will be led by a dedicated Permanent Secretary. Ian Watmore, currently head of the Efficiency and Reform Group, will take on this role. Jeremy Heywood will take over as Cabinet Secretary. There will no longer be a Permanent Secretary at No.10. The role of Head of the Civil Service will be taken on by one of the current departmental Permanent Secretaries, after a competition. He or she will provide leadership to the civil service alongside their existing departmental responsibilities.

I would like to thank you all for your continuing hard work and commitment to public service. These are difficult times, but I am confident that you will continue to demonstrate professionalism and pace in facing the challenge of delivering better services with fewer resources. I am also sure that you will provide my successors with the same enthusiastic support which you have given me, and for which I am so grateful.
"



Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 3 November 2011

Online Submissions



My thanks to a loyal reader, who recently dropped me an email concerning the fact that HMRC do not provide free software for submitting a partnership short return online.

I sympathise.

However, given that HMRC are skint, and that I suspect that the "costs" of processing paper returns etc don't show up in the same "boxes" as the costs of providing free software, I doubt that they will ever provide the software for free.

Here is the text of the email, which I have been given permission to reproduce:

"I object to having to pay a third party in order to make a Partnership, short, return. 

HMRC provides a simple interactive form for personal S/A (which is arguably a more complex matter than partnership) but cannot do the same for partnership. 

Why must I pay to purchase software every year (since it is not reusable) to allow me to make a contribution from my hard-earned revenue? 

Furthermore, the source I chose (the cheapest) gave me 97 pages to fill in. The paper form has 8. 

I have complained formally but have received a brush off. 'There are relatively few partnerships in the land and it is not worthwhile for HMRC to provide their own software'. 

There are many software houses offering this service however! 

Why does not HMRC purchase one of  these and make it available free of charge? 

A Partnership return on paper is possible if submitted by 31/10 and that is now what I do. 

But this must be more expensive for HMRC. 

I accept the necessity for paying tax but I don't want to pay to pay it."



Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"