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, 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.

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  1. Really, NOT AGAIN!!!!!!!!!!!!!
    When is enough f@ck ups enough?
    a facking DISGRACE

    1. Why? A court has ruled in HMRC's favour and it's HMRC's job to collect the money. If the law says they should collect it then they are failing in their duty if they do not.

      The fact the money is due from from beloved but struggling publicans over some weird avoidance scheme is of no consequence. I don't think this is a farce at all.

  2. What is the issue -clearly a long running dispute through the courts... so HMRC is obliged to accept court decision.Anyone receiving rebate should have been aware of possibility that it might have to be returned.
    If there is a revelation to pursue then surely it relates to the length of time that litigation is taking and the inadequate resources both in MoJ and HMRC

  3. 24. VAT

    Machine games that are liable to MGD are exempt from VAT. This means that some businesses will become fully exempt for VAT purposes and others will become partly exempt. This may affect the amount of input tax that a VAT-registered business can claim. In principle, input tax cannot be claimed for purchases that are directly linked to exempt supplies, but it may be claimed where it is below certain limits.

    A business will be partly VAT exempt where it incurs input tax related to both taxable and exempt supplies it makes or intends to make.

    A partly VAT exempt business will need to undertake quarterly and annual partial exemption calculations so they can justify their input tax claim. The normal VAT partial exemption rules will apply.

    The above is copied from HMRC Notice 452 Machine Games Duty part 24 VAT 5 min. ago!

    1. CLEAR AS MUD!!!!!!
      that's the very problem that HMRC has got and continue to have, they talk TOTAL BOLLOX.
      Ever heard of KISS.......Keep It Simple Stupid..............
      Cmon guys sort it out!

    2. Overview

      Machine Games Duty (MGD) is a tax on gaming machines. It replaced both Amusement Machine Licence Duty and VAT charged on the income from
      these machines.
      MGD is charged when customers pay to play machine games to win a
      cash prize that’s more than the cost to play the machine. MGD isn’t
      payable on machine games that only offer non-cash prizes or cash prizes
      that are less than are less than the cost to play.

      taken from Business Tax Guidance Machine Games Duty today

      How the heck has this case come about?
      Or are slot machines different to gaming machines?

  4. HMRC has just lost a case, appealed that case and lost again the tax payer is now getting a bill for £80,000 compensation and £40,000 Legal costs......... Oops

  5. What's the case name please? Thanks

  6. Chelmsford Crown Court, Dutch haulage company, Vehicle seizure, 18 Months, company completely innocent HMRC and TAX PAYER now paying the bill.
    wont say more than that because I need to stay out of it.
    I'm sure with what I've said you can confirm it..... and prove I'm not a bull shitter

  7. I did a search or 2 on this, because it seemed odd to me that HMRC were making repayments when they were still disputing the case (VAT isn't my thing, but this would be highly unlikely in a Corporation Tax or Income Tax case). I came across this article discussing the case(s).

    It's pretty badly written, but the references to the European Court and fiscal neutrality suggest that the EC basically told the UK government to get the money back.

    Odd that the Mail reporters didn't go with that line. Either the Mail now hates HMRC even more than it hates Europe, or the reporters haven't understood it. (Even if my interpretation of the EC's involvement is wrong, I've have expected the mere mention of it to lead to a Daily Fail headline blaming the EU for the whole thing!)

    Stew G