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.

Tuesday, 1 May 2012

HMRC Contravenes EU Law



TaxationWeb reports that HMRC has admitted that its approach to charging business VAT on some of the private fuel made available for private use contravenes EU law, and that the rules need to be changed.

In the absence of detailed mileage records to derive an accurate apportionment, HMRC has required businesses to account for VAT at least to the extent of the Road Fuel Scale Charge (even where the business has made a smaller charge for the fuel made available for private use).

This means that some businesses will have been required to pay more VAT to HMRC than the element that would correspond to their actual charge for private use.

As HMRC now admits, this contravenes the Principal VAT Directive.

In a Technical Note ( VAT: Road Fuel Scale Charges - Changing UK Law to Comply with EU Law and Streamlining the Scheme ) they confirmed:

"A deemed supply cannot be imposed where consideration is paid
Under the provisions of the PVD, where a real supply exists no deemed supply can be imposed. Consequently, UK law is wrong to impose RFSCs where a taxpayer makes a real charge for road fuel but that charge is less than cost price."

Those businesses affected by this can make a claim against HMRC going back up to 4 years.


Tax does have to be taxing.

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"

No comments:

Post a Comment