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.

Monday, 7 July 2014

FCO's Fruitless Payment To HMRC


On Friday I wrote that the SFO had been fined by HMRC because of non payment of VAT liabilities.

It seems that the SFO isn't the only government department that has a little trouble understanding the tax system, and paying its "fair share" (to use the meaningless phrase that the politicians have grown fond of over the last few months). Step forward the Foreign and Commonwealth Office, which has been charged £820,522 in interest by HMRC for a £15M unpaid tax bill.

The Telegraph reports that the bill arose because of a dispute between HMRC and the FCO over the status of locals employed by British embassies overseas.

Under HMRC rules, crown servants are subject to UK taxes, wherever they are employed in the world, in addition to the local taxes. The only exemption is in countries where a double taxation treaty is in place.

The FCO usually pays the UK tax on behalf of its employees. However, a backlog of unpaid taxes dating back to 2008 has left it with a large interest bill, which was paid this year.
The liability relates to around 500 locally engaged employees, who are often junior and support staff in non-diplomatic roles, in 80 countries.

The interest charge is rather amusingly recorded as a “fruitless payment” in the annual accounts, “arising on the late payment of income tax over a number of years by the FCO in respect of certain members of our locally engaged staff in countries not covered by a double taxation treaty".

The Foreign Office stressed there was no overall loss to the taxpayer, with the money moving from one public body to another.

Well that's all very well, maybe, in the eyes of the civil service. However, in reality as I noted on Friday:

The net result to the taxpayer?

A loss, given that this has cost time, money and resources to resolve!

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"

No comments:

Post a Comment