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, 5 April 2012

HMRC Delays Repayments - Updated



Economia reports that a survey, conducted by Bloomsbury Professional, highlights a consensus amongst those taxpayers surveyed that delays by HMRC in paying tax rebates are worsening.

Martin Casimir, Bloomsbury’s managing director, is quoted:
HMRC does not pay any interest on tax repayments which effectively gives it an incentive to drag its heels.

The concern for taxpayers is that the amounts involved can be substantial, which can cause serious cashflow problems. 

Businesses have been known to get into financial difficulty, or even go bust, while waiting for a tax rebate from HMRC.”
Delays in the payments of rebates have been discussed on this site before. Therefore, as ever, I am interested in hearing the views of loyal readers.

Do you agree with the survey's conclusion?

UPDATE

Oops, red faces all round.

As was quite correctly pointed out yesterday, by a loyal and observant reader, Martin Casimir's assertion that HMRC does not pay interest on tax repayments is wrong. HMRC (as I noted in the comments section) does in fact pay 0.5% (perversely it charges 3% for late payments).

I wrote to Martin yesterday about it, and Bloomsbury have acknowledged that they were wrong and will be asking Economia to correct their copy.

It is shameful that Economia (the professional magazine of the ICAEW) and myself (an FCA) didn't spot it when we published Martin's quotes!

So well done and thanks for pointing that out, and mea culpa on my part for being asleep yesterday!

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"

12 comments:

  1. “HMRC does not pay any interest on tax repayments which effectively gives it an incentive to drag its heels"

    EPIC FAIL!!!!! Yes it does. I hope the rest of Bloomsbury Professional is more, um, professional than this.........

    ReplyDelete
    Replies
    1. Nice to see the private sector has its own f**ckwits.....lol.

      Delete
    2. Good point, I have sent Economia a message about that.

      However, there is a disparity between rates on repayments and late payments 29/09/2009 3.0% 0.5%

      http://www.hmrc.gov.uk/rates/interest-late-pay.htm

      Delete
  2. I don't know where they get the idea that HMRC are dragging their heels... I've just left work having been dealing with repayments (including expenses, flat rate expenses and subscriptions to name but 3) and they've all been dated as received within the last 2-3 weeks. The only dragging of heels here is the individuals making the backdated claims.

    ReplyDelete
    Replies
    1. "they've all been dated as received within the last 2-3 weeks"

      Does that include the time they sat in a mail room waiting to be dated?

      Delete
  3. Also bear in mind that "in year" repayments, i.e. earlier years adjustments, through the tax code haven't happened for 2 weeks due to the cut off period for payroll to use the updated coding notice. Until P14/P60 start hitting our doormat (electronic or otherwise) repayments for 11-12 will be a while longer.

    ReplyDelete
  4. Economia is editorially independent of ICAEW. So I wouldn't make too much of the link between the two. They got a quote from a reasonable source and ran with it.

    ReplyDelete
    Replies
    1. Well I certainly should have spotted it!:)

      Delete
    2. Pat on the back Ken. I would show my manager this, as an example of how to deal with making a mistake. I would, but I'd be facing a disciplinary for reading/contributing to the blog.............lol.

      Delete
    3. Thanks:)

      You still banned from reading this then?

      Delete
    4. Yep. Or mentioning it. Or thinking about it........

      Delete
    5. What a daft policy!

      To stop people even looking at the site only draws more attention to it.

      Delete