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, 25 May 2018

MTD Unanswered Questions


Wendy Bradley signed up for the MTD webinar, but was left disappointed and had a number of outstanding questions:

- How can you trial a system when the software to make it work is unavailable?

- How can you get reliable results from a trial when the smallest businesses are excluded because there are no free products for them to use?

- Here is a chicken and egg question: Why don't self employed people keep their records electronically? Because there are no free apps for them to use.

- Why doesn't the software industry develop free apps for the self employed? Because no-one uses them so there's no way of monetising them.

- Why doesn't HMRC put together a stripped down app that does the basics free of charge? That, to me, is still the sixty-four thousand dollar question.

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, 24 May 2018

Downing Street Disses HMRC


HMRC's Jon Thompson, told MPs that the Brexit option of a “highly streamlined customs arrangement” would be significantly more costly than a more comprehensive customs partnership – the other option ministers are considering.

He said HMRC had estimated the cost to businesses of having to complete customs declaration forms after Brexit as £32.50 per shipment. There are around 200 million exports from Britain to the EU each year, meaning the total cost of customs declarations for UK firms would be £6.5bn each year. EU companies would have to pay a similar amount, taking the overall cost to £13bn.

Taking steps to meet EU regulations would cost businesses “several billion pounds more”, Mr Thompson said, raising the total cost of the customs arrangement to between £17bn and £20bn.

Worried?

Don't be, Downing Street has dismissed HMRC's figures as "speculation".

Irrespective of the accuracy or otherwise of HMRC's figures, Downing Street has publicly dissed 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"

Wednesday, 23 May 2018

Post Brexit Customs Checks



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, 21 May 2018

HMRC Going After NHS Staff


As per The Times social and health workers and IT contractors who face five-figure penalties for tax avoidance have submitted a petition to parliament demanding that the taxman halt action against them.

HMRC is seeking money owed by almost 100,000 contractors who used “disguised remuneration” and similar schemes going back to 1999 that involved avoiding national insurance or income tax. Some face bills of up to £900,000.

The contractors, most of whom work in IT or healthcare, claim that they were duped into believing that the schemes, which typically involve employers making payments to a trust that makes an interest-free “loan” to the contractor, were within the law.

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, 18 May 2018

HMRC Launches Off-payroll Working in the Private Sector Consultation

Summary

We are seeking views on the best way to tackle non-compliance with the off-payroll working rules (IR35) in the private sector.
This consultation closes at

Consultation description

In 2000, the government introduced the off-payroll working rules known as IR35. These rules ensure that people working through a personal service company (PSC) who would have been employees if they had been engaged directly, pay broadly the same Income Tax and National Insurance contributions (NICs) as if they were employed.

We have estimated that only 10% of individuals working in this way apply the rules properly, costing the Exchequer hundreds of millions of pounds in lost tax revenues every year.

In April 2017, the government reformed these rules for engagements in the public sector, and early indications are that this has resulted in an increase in public sector compliance.

In the Autumn Budget 2017, the government announced it would consult on how to tackle non-compliance with the off-payroll working rules in the private sector, and we are asking for comments on the best way to do this.

Before you send your response, we recommend that you read the independent research into the early stages of the public sector reform, HM Treasury’s press release, and the factsheet that accompanies the consultation document below.

Documents

Off-payroll working in the private sector - consultation document

This file may not be suitable for users of assistive technology. Request an accessible format.

Consultation on off-payroll working in the private sector - factsheet

This file may not be suitable for users of assistive technology. Request an accessible format.

Ways to respond

Email to:

offpayrollworking.intheprivatesectorconsultation@hmrc.gsi.gov.uk

Write to:

IPD Employment Status and Intermediaries Policy,
Room 3/46, 100 Parliament Street,
London SW1A 2BQ

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, 17 May 2018

HMRC and Private Debt Collectors



The Guardian reports that the amount HMRC pays to private-sector debt collectors has risen to £39.1m in 2017, which is 62% higher than the £24.1m that HMRC spent on these services in 2016.

The figure has increased annually for several years: it stood at £6.2m in 2014, then rose to £12.5m in 2015.
UHY Hacker Young said that HMRC had little day-to-day control over these firms, whose attitude towards debt collecting “could be seen as more aggressive than that of HMRC”.

HMRC deny that there are any problems:
They operate under strict codes of conduct to pursue debt and we expect them to uphold those codes at all times.

Where someone thinks they will have problems paying the amount due, they should get in touch straight away. All requests for further time to pay an amount due are considered individually based on the facts of the case.
Nothing to see here, move along!

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, 16 May 2018

FOI Re Counter Avoidance



Dear HM Revenue and Customs,
Please advise:
1) How much tax yield has been allocated to the activities of the Counter Avoidance Group since its inception?
2) How many cases previously worked in local compliance offices had been successfully progressed to conclusion with non-zero yield?
3) How many cases had been closed with zero yield by Counter Avoidance?
4) How many cases had been closed because the inquiry window has been passed since the cases were initially brought for inquiry?
Thank you
Yours faithfully,
Ken Frost

Track its progress 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, 15 May 2018

HMRC's Immoral Retrospective Taxation



Stephen Lloyd, the Liberal Democrat MP for Eastbourne, is taking aim at HMRC for “retrospectively taxing” thousands of contractors who used so-called "avoidance" schemes in the past 20 years.

The arrangements, usually involving loans and offshore trusts, were widely accepted as legal in the early Noughties and even briefly promoted by respected accountancy firms. However, since the introduction of a series of tough anti-avoidance measures, HMRC has cracked down on the users.

Many now face six-figure tax bills and a charge on any loans outstanding in April 2019. The scheme users, many of whom could be locum doctors or nurses, or IT contractors, say they were led into the arrangements by accountants they trusted.

Lloyd said it was “immoral” that HMRC is pursuing the ordinary people involved, while those who promoted schemes can continue to operate. He has introduced a motion calling on Parliament not to apply the loan charge to those who entered schemes before the recent rule changes.

Lloyd is quoted by the Telegraph:
Not only do I think HMRC should be going after the promoters but I think it’s immoral that they aren’t. I find it astonishing.”
His motion calls on the house to agree that “retrospectively taxing something that was technically allowed at the time, is unfair”. It states that the loan charge should not apply to those who entered into schemes before the Finance Bill gained royal assent last year.

HMRC, ignoring the point, said:
These schemes are tax avoidance and simply do not work. Don’t be seduced. If it sounds too good to be true, that’s because it is. HMRC will challenge them and you will be much worse off in the long run. We are cracking down hard on the promoters of avoidance schemes.”
There is nothing "moral" about tax, it is a charge/series of charges levied by the state the size and targets of which are dependent on what the state thinks it can get away with.

However, up until now, the state has shied away from retrospective taxation knowing full well that would be the straw that breaks the camel's back. In this particular case, the state once it knows it can't get away with this, will blame HMRC for "over zealously misinterpreting" the legislation.

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, 11 May 2018

SLC Were Warned About Lamey


As loyal readers know, Steve Lamey (ex CIO of HMRC) has featured a few times on this site.

Anyhoo, he is back in the news again following his less than happy time at the infamous Student Loans Company.

The FT reports that civil servants had in fact warned ministers against appointing Lamey as chief executive of the Student Loans Company (he was suspended over misconduct allegations after just over a year in the role).

Lamey was appointed to the SLC in June 2016, when the company was supervised by the business department. Monitoring passed in July 2016 to the Department for Education. He was suspended in July 2017 over a series of allegations, including some brought to the company’s attention by whistleblowers,.

The claims included allegations of:

- bullying behaviour (a prerequisite for management in HMRC, according to many staff who comment on this site),

-the taking out of a lease on a new building without proper approval,

-and unauthorised changes to the SLC’s governance.

Lamey, who denies any wrongdoing, was dismissed in November 2017.

It seems that, according to an NAO report (Investigation into oversight of the Student Loans Company’s governance, and management of its former chief executive) published today, Lamey’s references from HMRC “raised questions about Mr Lamey’s ability to build the right relationships, trust and rapport”.

Business department officials said it would be “too risky” to appoint him and recommended re-running the process. However, an unnamed special adviser at the business department pointed out that Lamey’s 2011-12 performance review at HMRC called him a “top performer”.

The adviser also questioned the fairness of the HMRC references, and raised concerns about the cost of starting a new recruitment process.

Hence warnings about him were ignored!

He was eventually dismissed for gross misconduct in public office over a series of allegations, including breaches of the Nolan principles on standards in public life, guidance on the management of public money and the company’s code of conduct.

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, 10 May 2018

Taxpayers More Honest Than HMRC Would Have Us Believe!



Despite the ongoing propaganda from HMRC and the cretins in the government, it would appear that tax dodging is less rife than previously thought .

HMRC has unexpectedly discovered that Britons typically err on the side of caution, inadvertently overpaying on their self-assessment forms.

Contrary to the expectation that taxpayers play down their incomes as much as possible – or, as in recent high-profile cases, evade taxes – a trialled new system (that I wrote about in September 2017)  revealed the opposite to be more commonly true.

An automated system that used existing data to pre-write a taxpayer’s income found that it reduced the income declared more often than not.

Jon Thompson, chief executive of HMRC, revealed the discovery in a letter to MPs.

As per the Telegraph this “had a small net negative impact on overall tax receipts due to improved accuracy of self-assessment returns”.

He added:
Decreases in overpayments outweighed the reductions in small ­underpayments.
In otherwords the state will be worse off under the new system!

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, 9 May 2018

HMRC To Offer Free Sidecars To The Self Employed



Guy Opperman, minister for pensions and financial inclusion, referring to HMRC's MTD plans said that the government will be able to create nudges and saving models for the self-employed.

The state requires that by 2020 most businesses, self-employed people and landlords will have to use software or apps to keep their business records and provide regular updates of information to HMRC.

Speaking at a hearing at the Treasury select committee 8 May, Opperman said once the reform is concluded, the new system will be "one of the greatest levers that we could utilise to address the self-employed in particular".

Fear not he really does have his finger on the pulse of what it is like to be an ordinary taxpayer, as per Wikipedia:
"he understood what it was like to live on a zero-hours contract because he once worked as a £250-per-hour barrister."
Quite!

Anyhoo, quoted by the FT, he said:
"Because once your tax return is done on a digital basis, in a total revolutionary way, your ability to do nudges and sidecar versions of savings through a tax return will massively go through the roof. 

But that is for the future."
Unfortunately, as you can see, he wasn't speaking English and as such no one understood what the fuck he was talking about!

Sidecar anyone?

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, 8 May 2018

The Conduct of Tax Enquiries and the Resolution of Tax Disputes Inquiry



HMRC is responsible for the collection and management of taxes, duties and national insurance contributions. In its code of governance for resolving tax disputes, HMRC outlines internal governance processes that are intended to ensure that it deals with all tax disputes fairly and in an even-handed manner.

The Treasury Sub-Committee will examine whether HMRC’s approach to conducting tax enquiries, resolving tax disputes and determining the amount of tax to be paid meets those standards.
The Treasury Sub-Committee invites written submissions addressing any of the following questions:
  • How do HMRC governance and settlement processes affect its ability to resolve tax disputes in a proportionate and fair way?
  • Does HMRC’s litigation and settlement strategy provide a rational and sound framework for resolving tax disputes?
  • Do HMRC’s collection and management powers set out in the Commissioners for Revenue and Customs Act 2005 provide HMRC with sufficient flexibility to achieve cost-effective and fair results?
  • Does HMRC’s approach to enforcing compliance with tax law, including its approach to penalties and other sanctions, result in disproportionate or unjust outcomes? If so, how can the situation be remedied?
  • Is there sufficient governance over the whole of HMRC’s enquiry process to ensure that HMRC’s interventions are well-targeted and that taxpayers are treated fairly and professionally throughout?
  • Do HMRC’s governance processes provide sufficient scrutiny and assurance for clearances and approvals given to taxpayers outside the formal enquiry process.

Submit written evidence

The deadline for written submissions is Thursday 31 May 2018

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, 3 May 2018

Why?



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, 2 May 2018

Sajid Javid Nails It!

 
I would note that this "confusion" has been brought about by politicians deliberately conflating the two terms to suit their own personal agendas.

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, 1 May 2018

Poetry Corner


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"