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.

Friday, 20 October 2017

Brexit and The Future of Customs Inquiry - Deadline Today

Scope of the inquiry

HM Revenue & Customs (HMRC) was due to complete a five-year programme for a new Customs Declaration Service (CDS) by early 2017. However, delays mean that CDS will not be fully operational until January 2019.

In July the National Audit Office (NAO) published a report into CDS that found there are still significant amounts of work required to meet this new target. If there are further delays, CDS  may not be running fully by the time the UK is due to leave the European Union in March 2019.
Although HMRC due diligence has found that the CDS system will remain suitable following the UK’s withdrawal from the EU, there is considerable uncertainty as to what customs environment the UK will operate in.

On 9 October the Government published a White Paper describing future customs legislation for post-Brexit. It set out potential scenarios for a new customs relationship with the EU—but it is not yet clear whether HMRC’s existing CDS programme would work for all of them without modification. It is also not clear whether the proposed finish date of January 2019 would give time to make those modifications.

The Public Accounts Committee will ask officials from HMRC about CDS’ progress to date, outstanding risks to completion, and resilience in a number of potential scenarios for leaving the European Union. 

Submitting written evidence

If you wish to submit written evidence to this inquiry, the deadline to do so is midday on Friday 20 October 2017.

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, 18 October 2017

FTT Stops HMRC Snooping


HMRC has come a cropper in a first tier tribunal in the case of The Barty Party Co Ltd (TC06116).

AccountingWeb reports that the publican was in hot water with HMRC for failing to produce the books and records requested by a visiting HMRC officer in an information notice dated 10 November 2016.

The FTT supported the taxpayer and said that the notice had a “fundamental flaw.” It pulled the plug on HMRC and allowed the landlord’s appeal against the notice and associated penalty.

HMRC has the power to request information that is “reasonably required for the purpose of checking the taxpayer’s tax position”, (FA 2008, Sch 36). The key factor that persuaded the judge was that although the legislation gives HMRC the power to request information for the previous six years, their power of assessment is restricted to four years (VATA 1994 s 77). He felt that the onus was on HMRC to explain why information was required for the extra two years and because the officer had failed to do this, the notice was invalid and had a “fundamental flaw.”

Why did the officer ask for information covering the period 1 February 2012 to 30 November 2012 (as well as the other periods) when she had no power of assessment for these months, ie because the notice was issued in November 2016?

HMRC has the power to go back up to 20 years in the case of fraud, but in the Barty Party case there was no indication of deliberate errors being made. There was also another anomaly; an earlier visiting HMRC officer had apparently already reviewed the records up to 30 April 2012!

Overall, this was not a good day out of the office for HMRC. They also had to withdraw a £300 penalty issued on 21 December 2016, which was imposed when Mr Barton failed to provide the information requested in the flawed information notice.


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, 17 October 2017

IR35 Reform Delays Tube


My thanks to a loyal reader who sent me the following press release from Qdos Contractor wrt HMRC's claims that IR35 reform is not impacting public sector contracting:
"IR35: TfL project delays contradict HMRC who deny reform has impacted sector.

Delays to critical TfL London Underground repair work due to the exodus of public sector contractors further contradicts HMRC’s claim that IR35 reform is not impacting contracting and the public sector, highlighted Qdos Contractor of The Qdos Group.

TfL recently revealed a ‘significant number’ of contractors stopped working on projects as a result of IR35 changes – a move which has led to skills shortages and the significant delay to critical repairs.

HMRC has previously denied IR35 reform has led to contractors exiting the public sector, with HMRC Tax Assurance Commissioner Jim Harra stating:

“This has not happened. HMRC has been monitoring this. Contractors come and go, and the market is naturally fluid, but it would be wrong to suggest that the public sector has significant recruitment gaps because of this reform.”

Prior to IR35 reform, 85% of contractors surveyed by Qdos Contractor were prepared to leave the public sector should they be found inside IR35.

Qdos Contractor CEO, Seb Maley commented:

“That a vital TfL project faces delays is obviously a concern. It also further contradicts HMRC’s claim that IR35 reform has not affected contracting and the public sector itself. When will HMRC admit the mistakes they’ve made with regards to IR35 reform?

“Blanket and inaccurate IR35 determinations will continue to force contractors from the public sector. That HMRC adamantly denies any public sector skills shortages because of reform is hugely worrying, particularly when public sector organisations are beginning to speak out too.

“The success of vital public sector projects rest heavily on contractors. It’s therefore essential that accurate IR35 decisions are made. This will become all the more important should reform be extended to the private sector.”

Monday, 16 October 2017

Why Do You Evade Tax?


In a statement to The Mirror, HMRC confirmed it was seeking to interview both compliant and non-compliant people among Britain's 11,000 "High Net Worth customers."

HMRC said the research was part of an ongoing strategy to increase collection for the public and was focused on 'understanding the attitudes and behavioural triggers' of these people rather than gathering specific tax accounting intelligence.

Those asking the questions would be social researchers, not forensic accountants. Estimated cost of the survey up to £80K.

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, 13 October 2017

Elaine Clark Nails It!


Yesterday's article about HMRC stopping personal credit cards from being used to pay business penalties, elicited an observation that HMRC were helping people avoid debt by banning personal credit cards and that businesses were not being run properly if a personal card is used.

Well over on Elaine Clark's site, a similar point was raised, and she nailed it with this excellent response:
"I'd be interested to hear how you would explain this restriction to a self employed employer without a business bank account using his or her personal credit card to settle any debts with HMRC to get things back on track.😋 

The self employed do not need to have a business account. In fact many choose not to because of charges etc which decreases their income. 

I guess when you deal with these things day in day out everyday then you immediately see the unnecessary impact.🙂 

Not only is the decision ill conceived it costs money to implement. All too often these decisions are made by people who are so far removed from the 4 million plus micro businesses in the country."
Well said Elaine!

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, 12 October 2017

HMRC Stops Use of Personal Credit Cards for Payments - Bonkers!


CCH Daily reports that HMRC has confirmed that employers will not be able to pay PAYE penalties with a personal credit card from 13 January 2018.

However, it will continue to accept payments by company credit card or debit card, as well as BACS payments.

All payments must include the 14 or 15 character payment reference that begins with X and is on the payslip. Payments may be delayed if the wrong reference is used.

It will also not accept part payments by credit or debit card so any employers who are unable to make full payment by card will have to pay a different way, through telephone banking, CHAPS or Bacs using sort code 08 32 10, account number 12001020 via HMRC Shipley account.

Elaine Clark is unimpressed, and refers to HMRC's decision as "bonkers":
"Surely the role of HMRC is to collect tax!

If someone is willing to settle debts, regardless of the source of funds, isn't it HMRC's remit to collect the tax on behalf of the Government.

Otherwise what is their job?

Personally I think they HMRC have lost the plot or they have some sort of hidden agenda which we can all speculate about.

Whatever is happening this is just a completely bonkers decision which would have cost money to implement!"
I agree, on the face of it this decision makes no sense given that HMRC still accepts card payments.

Does anyone know why HMRC has done this?


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, 11 October 2017

CBI Notes Deterioration In HMRC Service



The CBI wants HMRC to improve the Business Risk Review Model, and note that many large businesses have identified a deterioration in the service they experience with HMRC.

As per HMRC:
"The Business Risk Review (BRR) is a core feature of how HMRC manages the tax compliance of the largest businesses. Customer Relationship Managers currently conduct a periodic BRR of each large business, assessing their risk profile and placing them into a binary ‘low risk’/‘non-low risk’ category. This assessment is a key determinant of the level of scrutiny and resource the business receives from HMRC. The process, while still effective, has undergone limited change since its introduction 10 years ago."
Over the last ten years this model has been used to assess where a large business sits on the compliance spectrum, and accordingly, how HMRC have deployed resources to man-mark large business. Since 2006, the environment has changed.

HMRC noted a decreasing trend in the use of avoidance schemes but an increase in disputes about the interpretation or application of tax law.

To help strengthen the ‘co-operative compliance’ relationship with large business, HMRC thought this was a good time to start a conversation about the Business Risk Review Model.

To shift compliance behaviour, HMRC are interested to know what might influence businesses to adopt a low risk strategy, such as a quicker clearance procedure, or real-time decisions on transactions.

Separately, the CBI has been liaising with HMRC’s senior leadership team, culminating in a meeting between CBI Director general, Carolyn Fairbairn, and HMRC’s Permanent Secretaries Edward Troup and Jon Thompson.

Many large businesses have identified a deterioration in the service they experience with HMRC, citing delays or an unwillingness to provide businesses with the certainty they need to get on and do business. The CBI is keen to see a reset in the ‘co-operative compliance’ relationship, to reduce business uncertainty.

The consultation is open until 6 December and can be found here.

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, 10 October 2017

Lorry Drivers Apparently Stung For Unpaid Tax

 

My sympathies to the lorry drivers apparently stung by this scam.

As per the BBC:

"More than 1,000 lorry drivers have been left owing large sums of tax after claims the accounting company they used disappeared with the money.

They say they were encouraged by agencies to set up as limited companies and use the services of the now-defunct Lincoln-based firm Think Accounting.

An HMRC inquiry is under way after drivers were hit with unpaid tax bills.

Company owners Lee Wilson and Symon Williams Cooke did not respond to BBC requests for a comment. 

It is alleged the pair, who were not qualified accountants, worked with HGV driving agencies, paying agency staff commission if they encouraged the drivers to set up as limited companies with Think Accounting.
These limited companies and the tax they were liable for were administered by the firm on the drivers' behalf.

Drivers were given a small weekly wage plus expenses and dividends and say they believed the firm was paying the correct level of tax owed.

One of the affected drivers, Ian Hannon, said he received a tax bill for £11,500 after dealings with the company.

"My national insurance, my corporation tax, my VAT - Think Accounting had not forwarded anything on to the relevant parties to the tune of £11,500."

'Expecting bailiffs'

The company operated from 2011 to 2016, first as Think Accounting, then New Wave Accounting and finally Igloo Accounting, all of which have since ceased trading.

Problems came to light when driver Ron Tierney from Barnsley posted about his experiences on an online forum used by truckers. 

"I put on had anyone been a victim of Think and I had 4,500 replies off other truckers in the same position," he said.

"I brushed it under the carpet. I didn't want to tell my wife, my family. I was expecting bailiffs to knock at the front door."
The drivers were directed to another accountant who reported concerns to the police. The investigation was then passed on to HMRC.

Accountant Nic Davison, who has worked with some of the affected drivers, said: "HMRC should have put a stop to it straight away, but what they are doing is prosecuting the people that can't defend themselves."

HMRC urged people to be clear what they were signing up to.

It said anyone who could not pay their tax debts should contact them."

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, 9 October 2017

HMRC Ends Post Office Payment Option

5. At the Post Office

You won’t be able to pay at the Post Office from 15 December 2017.

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, 5 October 2017

400,000 Auto Completed Tax Forms On Their Way


The Telegraph reports that HMRC has started sending out its “simple assessment form”, a form already fully completed by HMRC’s computers.

This is the beginning of a process that will see 400,000 such forms sent out by Christmas.

Good luck to those on HMRC's Christmas list!

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, 4 October 2017

HMRC Rigs IR35 Minutes


As I have noted before, HMRC is perfectly happy to rig things in order to present itself in the most favourable light eg

Therefore it should come as no surprise top learn that it also rigged the minutes of July's IR35 Forum.

Contractor UK reports that two advisers to contractors have raised serious concerns about July’s IR35 Forum after a member broke cover with ContractorUK to exclusively criticise the meeting’s minutes.

Status expert Kate Cottrell, who attended, was first to reveal that rather than being a straight record of the meeting, the minutes were “just a one-sided view” -- HMRC’s, of how IR35 reforms it made in April have bedded in.

Since publication of her article last Wednesday, similar concerns have now been raised by both the Association of Independent Professionals and the Self-Employed -- another IR35 Forum member, and Qdos, a non-member who specialises in IR35 contract reviews.

“The recent minutes do not accurately reflect the frank discussions at the July meeting and I have today expressed my concern about this to HMRC,” the association’s James Collings said on Thursday.

He added:
In the meeting, myself and other stakeholders raised serious concerns about the significant failings of, and damage created by, the rollout of IR35 changes in the public sector.

However, these conversations were not captured in the official minutes, which were published without forum members being informed.”  
He who writes the minutes controls history!

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, 3 October 2017

Another Nasty HMRC Scam



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"