Wednesday 24 December 2014

Flexi Offices

My thanks to a loyal reader who has advised me that HMRC are recruiting for flexi offices.

As to whether these roles are what staff really want to take up, is open to debate.

Merry Christmas!

Message from Ruth Owen – PT recruitment exercise opens today
15 December 2014

I’m writing to tell you about the recruitment exercises we’re launching from today for people to join Personal Tax, and to explain more about the roles we’re looking to fill – and why.

As you all know, over the past year we’ve spent a lot of time thinking and talking about the future of HMRC and how we need to transform, as part of Building our Future.

Although we have been reducing in size, and will continue to get smaller overall, we’ve said all along that this isn’t just about reductions – our transformation also means new roles, new types of work, and opportunities in key areas.

Already this year, HMRC has found roles for 1,400 of people on Fixed Term Appointment (FTA) contracts who would otherwise have left us, and we’ve promoted 420 people from AA to more challenging roles at AO grade.

We’re recruiting because we need to be ready to meet a range of customer demands. We have a range of new work coming into Personal Tax in the new year, including the Government’s policies on pension reform, on transferable personal allowances for married couples, and the introduction of the Scottish rate of Income Tax.

The new posts – both permanent and FTA – will be customer advisers at AO grade, dealing with a range of customer needs.  Shift patterns will be flexible, to make sure we’re available when our customers need us – including in the evenings and on Saturdays.


We expect to fill mostly permanent posts in Bathgate, Bootle, Bradford, Cardiff, East Kilbride, and Salford, and Fixed Term Appointments in Peterlee, Glasgow and Lillyhall.

We have looked carefully at whether the new work could be placed in sites where we have people in the redeployment pool, or where work is ending. However, this would go against our long-term intention to concentrate work on a smaller number of larger sites. For this reason, we’ve taken the difficult decision to put work into major sites that are likely to have a long-term future.

As always, people already working in HMRC will be considered first for these opportunities. If you are a priority mover, an AO in the Redeployment Pool, or an AA in the AA-AO promotion pool with a 1st, 2nd or 3rd choice preference for these locations, you will be considered ahead of any external appointments.

The remaining vacancies will be filled externally – so if you know someone who might be a good fit for us, please encourage them to apply.

Applications are open until January 12, and the vacancies can be found on Civil Service Jobs. You can search for the jobs using the details below:

CSR/2258/14 External FTA

CSR/2259/14 External Perm  - Linked with 2260/14

CSR/2260/14 External FTA  -   Linked with 2259/14

CSR/2261/14 Internal Perm

If you’re interested, make sure you only apply for the Stage Two/Three advert – this is the internal procedure. If you apply for Stage Four (which is for people outside the Civil Service) you won’t double your chances, and may cause confusion.

Interviews will take place in February, and the successful candidates should start to take up duty with us from April.

Ruth Owen,
Director General Personal Tax
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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday 18 December 2014

HMRC Markets The Services of Accountants

Despite HMRC bemoaning tax avoidance schemes devised by "evil" accountants it seems that, according to a loyal reader, it is dead keen that taxpayers use the services of accountants:
"Oh and I was told by managers not to give help to fill in returns. The customer should go to an accountant!!!"
Ooh the irony!

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Wednesday 17 December 2014

HMRC Is Farking Awesome


Well done HMRC, after conducting a survey of 145 people (that's a statistically reliable size isn't it?), it has concluded that it's doing well.

The survey, entitled "HMRC Stakeholder Engagement Research 2014", was carried out by ICM Research Ltd (ICM). Its objective was to:

1. Explore how stakeholders view HMRC compared to previous years, in order to track the impact of its efforts to improve its reputation

2. Evaluate attitudes towards HMRC’s communication and engagement with stakeholders to inform future stakeholder communications

3. Identify what HMRC can do to improve and what its role should look like in the future.

The results indicated that:
"Favourability has increased since last year and is driven, in particular, by close working relationships between stakeholders and HMRC . Those who feel that HMRC listens, understands and responds to their views are significantly more likely to be favourable. Corporate stakeholders, who have more regular contact with HMRC, are generally more positively disposed towards the department....

..stakeholders regularly praise HMRC’s senior leadership team and feel that it is increasingly willing to listen to, and engage with, stakeholders, but cite customer service, the digitisation of services and a lack of dynamism as key weaknesses."
I'm gobsmacked!

Clearly everything is absolutely fine (based on a survey of 145 people).

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Monday 15 December 2014

Hanging on The Telephone - 29% of Callers Face Delays/Cut Off


Which? has analysed a sample of 100 calls to HMRC in the run-up to the 31 January year end deadline. The analysis showed that 29% of callers seeking advice received an automated message, ie they were put in a long queue or cut off.

Callers were put on hold for an average of 18 minutes, with the longest recorded delay of 41 minutes.

Which? also found glitches with a voice recognition system designed to direct queries to the right department.

Richard Lloyd, its CEO, is quoted by the BBC:
"With large numbers of people soon to be seeking help with their self-assessment tax return, we want to see HMRC doing more to monitor and improve their call-waiting times." 

An HMRC spokesman, using the "C" word, said it receives more than 40 million calls a year:
"We know that some of our customers can struggle to get through on our helplines at very busy times.

This isn't good enough, and we are working hard to improve the range of services we provide.

This year we are introducing new technology to help us answer more calls quicker at busy times, and we are improving the digital services we offer so that more customers can find all they need online.

There is more to do, and we are committed to improving the service we offer all of our customers at all times."
The sample cannot be called "representative":

1 It was a mere 100 calls.
2 It was taken at the busiest time of the year.

However, as loyal readers (staff and non staff) have stated on this site, there are issues wrt calling HMRC call centres throughout the year. It is a situation, as HMRC moves towards ever increasing centralisation, automation and staff cuts that will most likely worsen.

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Wednesday 10 December 2014

A Question of Residence


Last week I wrote about a government "concession" wrt an EU VAT rule that will come into force 1 January 2015, regarding VAT registration requirements for firms selling digital services:
"HMRC conceded that while micro companies are still obliged to register for VAT in the UK to use MOSS, they will no longer be forced to charge UK VAT on their domestic sales."
All very well and "flexible" of HMRC and the government, maybe.

However, I also noted:
"The thorny question of proving online where someone actually resides is of course another matter!"
Fear not, HMRC have covered that and (of course) have made things a lot more complicated for the hapless SME's selling digital services.

As per HMRC:
"When you provide digital services in the circumstances below, you can presume that the location of your consumer is as specified below. If the service is supplied:

  • through a telephone box, a telephone kiosk, a wi-fi hot spot, an internet cafĂ©, a restaurant or a hotel lobby, the consumer location will be the place where the services are provided - for example, the member state where the phone box/kiosk etc is located
  • on board transport travelling between different countries in the EU (for example, by boat or train), the consumer location will be the place of departure for the consumer’s journey
  • through an individual consumer’s telephone landline, the consumer location will be the place where the landline is located
  • through a mobile phone, the consumer location will be the country code of the SIM card
  • through a decoder, the consumer location will be the postal address where the decoder is sent or installed
Where one of the presumptions apply, you’re only required to retain evidence showing the relevant place (for example, the place where the decoder is installed).

However, if you choose to, you may rebut the presumption using alternative evidence. To support this decision you’ll need to collect and to keep 3 pieces of non-contradictory commercial evidence. If you’re providing digital services in circumstances not listed above, you’ll need to support your decision about the consumer’s location by providing 2 pieces of non-contradictory commercial evidence."
All clear?

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Tuesday 9 December 2014

HMRC Guns For Solicitors

HMRC has now focused its gimlet eye on solicitors, via an initiative to collect unpaid tax from the profession.

HMRC is offering improved settlement terms to solicitors who volunteer information about any tax that they owe, offset by the threat of enhanced penalties for those who do not comply.

Taxpayers have until March 9 to declare their participation in the campaign, and then must disclose and pay their tax debts by June 9.

Caroline Addison, head of campaigns at HMRC, is quoted by the FT:
those who make a deliberate decision not to pay the taxes due could face a penalty of 100 per cent or more of the tax due, or even a criminal prosecution.
Fiona Fernie, a partner at Pinsent Masons, said:
I suspect they are targeting smaller, owner-managed practices where, like anywhere, there is less red tape.” 
In other words HMRC is going after easy to pick low hanging fruit, instead of going for large sums owed by the more powerful.

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Monday 8 December 2014

HMRC Goes For a J Arthur


The hard pressed pub trade has just had another kick in the nuts by the state, courtesy of HMRC.

This is Money reports that thousands of publicans have been sent letters by HMRC demanding they pay back money originally returned to them as VAT overpayments on slot machines.

Some of the demands, which are also being sent to other leisure outlets with slot machines, such as bowling alleys, amusement arcades and railway station cafes, run into thousands of pounds.

This is as a result of a long-running battle between casino operator Rank Group and HMRC over whether or not VAT should be paid on slot machine income. It was first settled in favour of Rank Group, meaning that HMRC refunded the group more than £30 million and started paying out refunds to other slot machine operators. However, HMRC successfully appealed the decision in October last year and is now writing to reclaim the payments.

One publican is quoted:
This could cause serious problems for some publicans, many of whom earn less than £15,000 a year and who would have problems finding the money. Many have gone bankrupt and are still being chased for the whole sum.’
The farce is going to continue, as Rank Group is appealing the most recent verdict, with a court hearing set for April.

This is of course precious little comfort for cash strapped publicans.

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday 5 December 2014

Beware Gov.uk


Milsted Langdon, a firm of accountants, is warning anyone relying on HMRC guidance published online to keep printouts or screengrabs to protect them in case they are subject to an investigation.

The reason for the firm's concern is the fact that information migrated from HMRC and other government department websites to the new gov.uk website has been simplified and abridged; often with incomplete or misleading advice.

Rob Chedzoy, Tax Partner at Milsted Langdon, is quoted by the Bristol Post:
"Anyone who has looked something up on gov.uk and then acted on the information, or decided they don't need to do anything based on what they have read, are recommended to have proof of the guidance they relied on in the event of a dispute with HMRC.

While HMRC will amend guidance as soon as it is aware it is incorrect, this is of no use to someone who has relied on any incorrect information given, especially if they are unaware that this guidance has subsequently been amended.

Therefore, to prove beyond doubt what the guidelines said at the time it was relied upon, taking screenshots or printing-out the guidance and date-stamping them is important for evidential purposes.

Our advice to every taxpayer is simple; before making any decision or relying on HMRC guidance, speak to a qualified accountant."
Despite the fact that in two legal cases, judges have stated that if the tax authority has made a clear and unambiguous statement on a matter, then any person acting on that information should be able to rely on it, and that Milsted has a vested interest in drumming up trade, its advice (wrt checking with a tax professional) is sound given that HMRC has history wrt acting in its own interests.

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday 4 December 2014

HMRC is Spectacularly Incompetent




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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

VAT Rule Change


It seems that lobbying by the media, and the creation of an online petition, has spurred the Government to change a VAT rule that thousands of UK business owners claimed was putting their companies at risk.

An EU regulation, due to be introduced on January 1 2015, would have forced UK firms selling digital services, such as ebooks and e-courses, in Europe to register for VAT in every country, as VAT on digital products will be chargeable in the place of purchase rather than the place of supply.

Alternatively, small business owners would have to register for a VAT “Mini One Stop Shop” (VAT MOSS) by registering for VAT in the UK, which would funnel the tax payments automatically but make the seller liable for VAT domestically, even if they fall below the threshold.

On Tuesday, HMRC conceded that while micro companies are still obliged to register for VAT in the UK to use MOSS, they will no longer be forced to charge UK VAT on their domestic sales.

A spokesperson for HMRC is quoted by the Telegraph:
"Businesses below the current VAT registration threshold that can separate their sales to UK customers from sales to EU customers can voluntarily register the cross border element of their business, and then use that registration number to register for MOSS. This means that their domestic sales will remain VAT free."
The thorny question of proving online where someone actually resides is of course another matter!

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Wednesday 3 December 2014

HMRC Wins Golden Bull Award


Congratulations to HMRC, for winning the 2014 Golden Bull Award presented by the Campaign For Plain English for ''the worst examples of written tripe''.

As per the Campaign For Plain English:
"Our Golden Bull winners, too, were of a typically high standard. We’ve once more carefully selected the worst of the year’s written tripe. This is never an easy task. But, after sifting through countless examples of dire communication, we have settled on a select awful few."
Well done HMRC!

Here is the entery that won it the gong:
"Can I switch from flexible drawdown to capped drawdown? 

[Schedule 165 (3B) Finance Act 2004]
No – the test on whether or not you qualify for flexible drawdown is only at the start of flexible drawdown. The decision to move to flexible drawdown is irrevocable under the tax rules and you can't lose the ability to take drawdown pension using flexible drawdown. Once you are in flexible drawdown it is for you and your scheme administrator to decide how much you take out and how often. The amounts drawn under flexible drawdown may be similar to or different from the amounts allowed under capped drawdown. However, there are tax consequences if you subsequently make contributions to or resume active membership of any registered pension schemes after taking flexible drawdown."
Gongs all round (eh Lin?;))!

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Tuesday 2 December 2014

HMRC Review of Its Powers of Entry

HMRC was ordered by the Chancellor to review its powers of entry, and published a report on 27 November.

HMRC has 39 powers, nine of which belonged to other departments or were powers to inspect rather than enter.

Five of the remaining 30 powers will be "modernised/consolidated".

It is interesting to note that HMRC performed the review itself, and itself determined "that 25 of the 30 powers need no amendment because they are necessary and proportionate in their current form".

Surely the review should have been performed by an independent party?

Anyhoo, leaving aside the thorny question of independence, as per HMRC:
"Under the Protection of Freedoms Act 2012, each secretary of state must review the powers of entry they are responsible for, and report back to Parliament.

This review, ordered by Chancellor of the Exchequer George Osborne MP, examines the powers of entry held by HM Revenue and Customs (HMRC).

It was laid before Parliament on 27 November 2014.

In summary, HMRC reviewed 39 powers.

Nine were found to belong to other departments or be powers to inspect rather than enter.

HMRC will retain 25 of the 30 powers in their current form. All of these powers were previously reviewed after the merger of HM Customs & Excise and the Inland Revenue in 2005, and this further review has reaffirmed that they are still proportionate and necessary.

There are five powers where there is a clear case for modernisation and consolidation, including a number relating to betting and debt management. These have been recommended for amendment and this will take place by the end of 2014."
Something worth keeping an eye on methinks!




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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Monday 1 December 2014

Fag Smuggling

Around mid November HMRC fined British American Tobacco (BAT) £650,000 for oversupplying its products (fags) to Belgium.

Apparently this is the first time that HMRC has imposed a penalty on a firm for supplying to areas that are a "high risk" for smuggling. Cigarettes are significantly cheaper in Belgium, compared with retail prices in the UK, because of lower taxes. Thus, in HMRC's view, there is a risk that the cheap fags will be "re-imported" (smuggled) back into the UK (doubtless via Dover - either in a small boat or on ferry).

It is an interesting fine, given that BAT is not in the business of smuggling and is not paid to act as a law enforcement agency. However, an 8 year old amendment to the Tobacco Products Duties Act of 1979 entitles HMRC to impose a fine if a manufacturer is deemed to have failed in its duty not to facilitate smuggling. The maximum penalty is £5m.

Unsurprisingly, BAT said it was appealing against the "unjustified" fine.

The company was quoted by the BBC:
"We are a business not a law enforcement agency".
This is the first time a fine of this nature has been handed out by HMRC.

HMRC said at the time:
"The supply-chain legislation enables HMRC to work with industry to restrict the volume of genuine products available to smugglers.

Sanctions are a last resort and only applied where there is evidence that a manufacturer is failing to comply with its legal obligations."
By happenstance there have been a number of comments on this site recently touching on the issue of cigarette smuggling, and the possibility that some confiscated cigarettes have found their way back into the market place (Dover's pubs and corner shops etc) thanks to "security issues" within the warehouse in which the confiscated fags are stored (eg this thread).

I confess to knowing very little about the procedures relating to confiscated fags etc. However, a cursory glance on the net indicates that HMRC has a list of organisations that act as Customs agents and that there are organisations (eg Smartwater) that can provide "chemical tracers" that will identify items (such as cigarettes) that have illegally re emerged into the market from a secure warehouse.

I assume, if cigarettes have illegally re entered the market, there will be sufficient CCTV footage from the warehouse to identify those who took them. I also assume that those responsible will be apprehended and brought to trial.

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday 28 November 2014

Friday Smile



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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday 27 November 2014

The Demise of Purdah II - Hartley Not Guilty



Yesterday I wrote about Jonathan Hall, a senior information officer at HMRC, who had received bungs from Sun journalist Clodagh Hartley in exchange for leaking stories to the paper.

Whilst Hall had admitted wrongdoing, Hartley stood trial. The verdict is now in, and she has been found not guilty.

As per economia:
"Clodagh Hartley has been cleared of conspiracy to commit misconduct in public office, two and a half years after being granted bail, as part of Operation Elveden.

The prosecution alleged that Jonathan Hall, a senior information officer at the Revenue, was paid over £4,000 by News International, a further £13,000 was paid into the account of his girlfriend Marta Bukarewicz – the majority of which was then transferred into his account, for leaks. Bukarewicz was also found not guilty.

Stories leaked to the Sun included details of an advertising campaign for the government website DirectGov, funded by £1.3m of taxpayers money.

On the morning of Budget Day 2010, the Sun also published a “leaked” announcement that there would be a rise in fuel duty.

It was revealed during Hartley’s trial that Hall has already pleaded guilty to misconduct in public office, according to the Guardian."
As I noted yesterday, doubtless Hall is but a single bad apple in HMRC's barrel. I wonder though whether he declared the income to HMRC, and whether HMRC will now cross check to see that he has done so?

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Wednesday 26 November 2014

The Demise of Purdah


As loyal readers may recall, I have on occasions bemoaned the fact that Budget Purdah is now a thing of the past.

It seems that one of the reasons (aside from flabby mouthed politicians) for the demise of Purdah, is the fact that an HMRC press officer was supplying The Sun with inside information in exchange for bungs. As per the Guardian:
"A reporter on the Sun newspaper allegedly paid £17,000 to an HM Revenue and Customs (HMRC) press officer for confidential information including leaked details of the 2010 budget, an Old Bailey jury heard.

Clodagh Hartley, 40, Whitehall editor of the Sun at the time, was “motivated by acquiring the next big scoop”, while her source, Jonathan Hall, a senior information officer at HMRC, was “motivated by greed”, the court was told.

Stories included details of the 2010 budget, published on budget day, “so readers of the Sun were reading details of the budget before the chancellor had got to his feet in the House of Commons”, said Zoe Johnson QC, prosecuting. Most of the payments were paid into the account of Hall’s live-in girlfriend, Marta Bukarewicz, “to cover his tracks”, it was alleged. Bukarewicz then transferred the money to Hall’s account “deceptively labelled as rent” and kept some money herself as “commission” for “her unlawful efforts”, it was alleged.""
Hall has accepted that he supplied stories to Hartley for which he was paid.

Let us trust that this is a one off, and that Hall is the only bad apple in HMRC!

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Tuesday 25 November 2014

OTS Employment Status Survey


In July the government commissioned the OTS in July to examine the dividing line between employment and self-employment and “whether it is drawn in the right place and in the right way”.

The Office of Tax Simplification is now seeking views on where the complexities lie in determining someone’s employment status for tax purposes. As such it has published a questionnaire, the deadline for which is 31 December 2014.

The OTS aims to publish its report at the end of February 2015, in time for Budget 2015.

It would be nice to think that this exercise will help simplify our massively complex tax system. However, I won't be holding my breath.

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Monday 24 November 2014

DRD Plans Watered Down - Seemingly

The Treasury's Direct Recovery of Debts (DRD) plans have, seemingly, been watered down. The plans now come with a number of safeguards; eg taxpayers will be afforded the right of appeal at court before any funds can be emptied from their bank accounts.

There will be a guaranteed face-to-face contact with an HMRC officer and the creation of a specialist unit to deal with cases involving vulnerable members of society, as well as the provision of a dedicated DRD team and helpline.

Additionally, action will only be taken against those with over £1,000 of tax or tax credits debt, a minimum of £5,000 will be left across debtors' accounts, a lien will only be placed on the funds in the affected account up to the value of the debt and the recalcitrant taxpayers will have 30 days (twice as long as originally planned) to contact HMRC and arrange repayment.

Many people are hailing this as a victory, and are expressing gratitude to the government for listening. All very well, and polite. However, I would make two observations:

1 There are perfectly adequate means, via the courts, already at the disposal of HMRC to recover tax debts. These extra powers are unnecessary.

2 The above modifications are merely "promises" made by Gauke et al. Until the proposed legislation is actually scrutinised, those offering thanks for a "listening" government may care to take their feet off the "gratitude pedal" and stop kowtowing.


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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday 21 November 2014

HMRC Wins an Award


My thanks to a loyal reader who pointed out that not everything in HMRC's garden is covered in feculence.

Yesterday Suzanne Newton, HMRC's RTI Programme Director, won a civil service award under the category Dame Lesley Strathie Operational Excellence Award (sponsored by BT).

The judges were looking for examples of outstanding teams or individuals who have innovated, impressed and made a difference in their area over the past twelve months. Nominations were considered against award-specific criteria as well as the following elements:

Promotion or demonstration of the core values and behaviours set out in the Civil Service Code: Has the nominee acted (where relevant) with honesty, integrity, impartiality and objectivity?
Measurable benefits: Does the nomination provide evidence that demonstrates how the project or programme is having a tangible effect?
Working in partnership: Has the nominee introduced effective joint working arrangements that bring together colleagues from multiple teams, departments or other internal or external organisations?
Sustainability: Will the initiative/practice described leave a lasting legacy and can it be replicated across government?
Innovation: Has the nominee used innovative approaches, and made the best of technology available, which have resulted in a step up from business as usual and delivered real benefits to end users?
Impact: Has the nominee made an impact beyond their immediate team/business area/department?

Here is why the judges thought that Suzanne should win:

Suzanne Newton, Real Time Information Programme Director

HM Revenue & Customs
Suzanne Newton led the successful delivery of Real Time Information (RTI), a major digital government programme to reduce the burden on employers during payroll processing. RTI is the biggest modernisation of the PAYE system in 70 years and is a huge change for employers, the pensions industry and HMRC. PAYE is more accurate for employees and provides richer, more accurate, real-time data so that benefits can flex with earnings, helping welfare reform become a reality. In 2013-14, more than 1.8 million PAYE schemes were reporting RTI for 48m records, 99 per cent of the total, and HMRC processed more than 31m submissions, reporting over 660m payments to employees. RTI recently won two prestigious awards, with the Real IT Awards judges describing it as a "fantastic achievement”, demonstrating that government can and does deliver high-quality digital transformation that works.

As we all know, RTI is a real success story!

Cough......

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday 20 November 2014

HMRC Engagement Index Falls


My thanks to a loyal reader who has sent me the following gem posted by Lin Homer, about the 2104 staff survey results, on HMRC's intranet.

To summarise, the results are shite!

HMRC is behind other departments, the engagement index has fallen, there is a fall in satisfaction with tools to do the job (RTI perchance?) and the response rate is a pathetic 53%. I understand that many answers are between -10 to -20% worse than the civil service as a whole.

Trying to put a brave face on it, Lin is softening the blow to her regime that the engagement index (44% in 2013) has fallen to 43% in 2014 by saying that things were worse in 2012.

You couldn't make this up if you tried.

Homer and HMRC are wallowing in their own feculence!

Here is the text of her message to staff:
"The headline results of HMRC’s 2014 People Survey are now available. I’m writing to let you know what they are and about the next steps for us all.

This year, our overall engagement score – which analyses how you feel about HMRC and your work – is 43 per cent.


This is a one per cent drop from last year, although our score is still two per cent higher than in 2012. The overall score for the Civil Service went up one per cent and we remain behind other departments, particularly big departments of comparable size.


I’m disappointed that our engagement score hasn’t improved this year, but I’m grateful to every one of the 35,117 of you who took the time to fill in the survey. The ten-point increase in our response rate to 53 per cent gives us a much fuller picture of how people across the Department are thinking and feeling.


ExCom now needs to examine that picture very carefully, and work out where we need to make changes. To help us do that, each line of business will be looking in depth at what they need to do differently and I would like you to get involved in the discussion. What needs changing in your team? What can your business do to help each of you feel engaged?


Your business/team level report will be available very soon, and will be shared with you by leaders in your lines of business.


There are some clear messages just from the headlines, for instance a drop in satisfaction with pay ( down five per cent) and with tools to do your job (down 9 per cent). Whilst there are some similar messages across the Civil Service, we need to understand what this means for us.


In January, everyone will have access to the Engagement Compass, which helps teams to understand and analyse their survey results, and think about what they can change at a local level. We will let you know when that’s ready.


There are some difficult messages in the survey results – and we need to understand them – but I am really glad to see that 81 per cent of you feel positive about your teams, and nearly 80 per cent of you want to stay with HMRC for at least the next year. I hope we can build on those findings, and continue to make improvements as we work together on Building our Future.


Thank you.
"
Why is this woman still in charge?

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Wednesday 19 November 2014

Update for Ex Com on Employee and Industrial Relations


PCS have published the transcript of an undated document entitled "Update for Ex Com on Employee and Industrial Relations" written by Jonathan Donovan, HMRC's Deputy Director Employee Relations and Advice.

It is not the most well crafted of documents I have ever encountered; the grammar and spelling leave much to be desired, eg page 2:
"..ARC have called of their dispute with HMRC.."
Notwithstanding that, the document boils down to saying relations with ARC are "normalised" but relations with PCS need to be improved, or its influence marginalised "by maintaining dialogue only to meet statutory minimum requirements".

The writing has been on the wall for many years, quite why this has taken PCS by surprise now is beyond me.

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Tuesday 18 November 2014

Reflections In A Pool of Darkness


Goodness me, how very active the comments section of this site has become over the last few days!

There appear to be two narratives being spun out. On the one hand there is the narrative that an expose is in the offing, and some posters (or poster) are/is encouraging staff to write into Watchdog or HR outlining their grievances.

The other narrative urges caution, lest this be a game played by people with ill intent.

I have yet to determine whether the expose is true or fake. However, it is telling that the questions I raised the other day in response to a specific comment have not been answered, either publicly or privately.

Anyhoo, by happenstance, on the subject of staff morale I am indebted to a loyal reader who dropped me a note about HMRC's performance management system that was revamped in April 2013. Whilst I have written about "guided distribution", wherein the lowest 10% are rated as "must improve", I was not aware of other "nuances" within the system.

I must point out at this stage, I have not yet been able to verify if what I have been told applies to everyone or just a few people.

My loyal reader advises me that not only are there an annual and "in year" reviews (which is the case with many professional organisations), but there are also monthly "one to ones".

These monthly meetings require the hapless staff member to complete a time consuming narrative of "tasks undertaken", which theoretically are meant to be linked to previously agreed objectives and behaviours. Not only that, staff are required to produce a "reflections" document and evidence having given and received constructive feedback.

Not content with this, there are also quarterly "expectations" documents that need to be produced.

As far as I can see, such a methodology might be appropriate for staff members deemed to be on their last chance, or who have been given numerous written warnings. However, for this to be required of every staff member is at the very best a massive waste of time, and incredibly soul destroying.

I have to ask, how on earth does anyone ever get any work done in HMRC?

I would appreciate hearing from people as to whether the above is an aberration being played out by a few managers in a limited area, or whether this is the case across the whole of HMRC?

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Monday 17 November 2014

HMRC's New Twitter Account


I see HMRC is using the "C" word again!

Here is a link to the timetable for HMRC's Twitter Clinics.

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Saturday 15 November 2014

HMRC's "Sinister" Plot - The Creeping Politicisation of HMRC


As loyal readers know, I have for many years warned about the creeping politicisation of HMRC.

Now, at the eleventh hour, it seems that PCS has finally woken up to that threat (albeit from a union perspective). As per PCS:
"The most senior civil servants in HM Revenue and Customs have hatched a "deeply disturbing" politicised plot to destabilise our union, it has been revealed.

A leaked memo, written for HMRC's executive committee, outlines a plan to "marginalise" us because of our continuing opposition to cuts and closures.

Our general secretary Mark Serwotka has written to HMRC chief executive Lin Homer to say we believe it signals a "major and damaging change in industrial relations" and to call on her to publicly disown it."
Fair enough that the leadership of PCS are concerned about their influence and power being marginalised, like it or not unions are themselves political organisations with their own vested interests. However, I am surprised it has taken a leaked memo to wake them up to the fact that the government doesn't like unions/industrial action messing up its plans for changing the civil service.

Sorry to say it, but that has been the reality for decades. Has PCS been asleep for the last few years?

In fact many loyal readers have posted comments on this site, over the years, expressing "disappointment/frustration" with the way that PCS conducts itself and its "cosiness" to the management of HMRC.

The issue is not so much "management's" attempts to "marginalise" PCS, but the role that HMRC members of PCS want it to play in representing their interests.

I would like to hear what PCS members think about PCS's performance wrt representing their interests over the past few years. Additionally, if anyone has a copy of the memo please feel free to pass it on to me.

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday 14 November 2014

RTI Scuttlebutt - Update


My thanks to the loyal reader who has updated me on the RTI cock up, that I wrote about a couple of days ago, involving the doubling of some employees' RTI salary records.

Seemingly the RTI year end has been processed twice by HMRC, thus doubling a large number of taxpayers' year end salary. HMRC have, apparently, realised that there has been a cock up and have stopped sending out the incorrect tax demands.

The loyal reader who told me about this says that HMRC have told him over the phone that it will take between 6-8 weeks to resolve cases, and that thousands of people (and many companies) have been affected.

I would be grateful to hear from anyone who has been affected by this cock up.

Additionally, I am at a loss to understand how a "real time" system can process the same data twice and double it up? This sounds to me more akin to a batch processing system, where the same data is fed through twice without being checked.

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 (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"