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, 10 September 2013

Hargreaves Lansdown Challenges HMRC's Discount Tax

In March I noted that as from 6 April 2013 fund investors face paying income tax on "loyalty bonuses" paid by fund supermarkets, after HMRC ruled that the payments are "annual payments" and should therefore be taxed as income.

Hargreaves Lansdown (the UK's largest fund supermarket) has taken advice from counsel and decided to challenge HMRC's "discount tax", as the tax threatens their ability to pay loyalty bonuses and offer discounts on fund charges.

Chief executive Ian Gorham is quoted by Citywire:
"The introduction of the 'discount tax' was extremely disappointing news and an attack on the small investor. The 'discount tax' is anti-competitive. Loyalty bonuses have been hugely popular with investors and helped them save money on investing in their favourite funds.

We feel it’s important to take a stand on behalf of investors. When we introduced loyalty bonuses we consulted on its tax position and it was clear, as a refund of charges, it should not be subject to taxation."
Hargreaves Lansdown believes that it has saved investors over £1 billion in discounts and loyalty bonuses.

The legal challenge, unsurprisingly, is expected to take several months. The tax due to HMRC is being held in a fund while the issue is resolved. If Hargreaves Lansdown loses, the money will be paid to HMRC otherwise it will be returned to its clients.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance 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 Solar Tax Investigation Insurance

HMRC Is Shite (, also available via the domain, is brought to you by "The Living Brand"

No comments:

Post a Comment