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, 24 January 2013

HMRC Targets The One In Twelve



There are, apparently, 50,000 businesses that have failed to submit VAT returns. That represents 1 in 12 of the total of 600,000 businesses which should submit a monthly VAT return to HMRC.

HMRC, not unreasonably, are a tad fed up and have issued a warning that if the recalcitrant companies do not submit a return and pay any outstandings by 28 February then HMRC will take a "closer look" at their tax affairs.

Jayne Simpson, Senior Indirect Tax Manager at Menzies accountants, is quoted by Director of Finance:
There has always been the threat of penalty charges, interest and even criminal investigation for unpaid tax. But this announcement explicitly states that HMRC will take a much closer look at the tax affairs of those who do not pay what VAT they owe by 28 February.

The implication is that these businesses could be exposing themselves to the risk of a tax investigation, which can be very costly and disruptive. At that point once HMRC has a business under review, if further anomalies are found the penalties can only increase.
 

Because VAT can be so complex, businesses may be unaware that they owe anything. So if you have already received a demand from HMRC, do not ignore it. Even if you think you owe nothing, its best to straighten matters out with them. 

They will not go away.”
Bottom line, do not ignore correspondence/demands from HMRC!

Tax does have to be taxing.

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Click the link to read about: Tax Investigation for Dummies

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4 comments:

  1. 1 in 12 ratio of non-submission of VAT returns.
    Obviously all previous threats and penalties have not worked fo this lot then - any idea of the amount of tax at risk?
    50,000 x ? (av.liability) = £m?
    Well 50,000 x £1000 = £50m

    Is the motivation of HMRC along the lines of having been told in no uncertain terms to do what the Treasury and the taxpayers expect - get the fookin' money in!?

    Forgot the basics again - repeat after me - PROTECT AND COLLECT TAX.

    TAX DOES NOT HAVE TO BE TAXING...

    ReplyDelete
  2. The vast majority of businesses submit their returns quarterly, not many submit monthly.

    ReplyDelete
    Replies
    1. when I was in VAT, the vast majority of those on monthly returns were repayment traders i.e. HMRC paid them!!

      Delete
  3. "Is the motivation of HMRC along the lines of having been told in no uncertain terms to do what the Treasury and the taxpayers expect - get the fookin' money in"

    Why do you automatically assume that HMRC have been told anything " in no uncertain terms".

    They seem to be doing exactly what they should be... or perhaps you are too rabid to believe this is possible?

    ReplyDelete