- About HMRC Is Shite
- RTI Resources
- Tax Insurance
- About KenFrost.com
- Contact Me
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, 10 February 2012
HMRC Disputes Redknapp Costs
HMRC have described as "nonsense" reports that it has spent £8M on the Harry Redknapp case.
HMRC claims that the costs of the five year investigations into Mr Redknapp, Milan Mandaric and Peter Storrie cost less than £300K, while Crown Prosecution Service costs were almost £1M.
Does this ring true?
Not really, as the BBC notes the cost of the trial to the public purse will have been far higher than just the cost of HMRC's investigation because of the costs of bringing the cases to court.
I would also note that an investigation of this length and complexity would have involved quite a few HMRC man hours. Although HMRC do not "charge" per hour, there is of course the internal opportunity cost of working on a specific case.
Let us assume that only one person (a senior manager) in HMRC ever worked on this case (a ridiculous assumption), and that his/her time was valued (in terms of internal opportunity cost) at £300 per hour (professional firms charge out rates are far higher than this for senior managers).
Using HMRC's £300K figure this would equate to 1,000 hours (before expenses), or (assuming an 8 hour day) 125 days.
It seems a tad "light" on the hours for a five year high profile investigation to me.
However, maybe they really only did spend 1,000 man hours on this?
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"