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, 17 August 2018

IR35 Court Case Database



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, 16 August 2018

HMRC Customs Declaration Service Goes Live - Sort Of!



HMRC’s Customs Declaration Service is now live, and a small group of importers can use the system to make ‘certain types of supplementary declarations’.

HMRC went live with the first part of its Customs Declaration Service (CDS) on 14 August.

The second phase of the deployment will come in November, when the majority of importers will be able to use the system. However, importers will have to either develop their own, or buy software that is CDS compatible to use the system.

HMRC’s customs transformation programme director, Kevin Franklin, is quoted by ComputerWeekly as saying that the first release of CDS “is a major milestone”.
Going live on time is a great step to fully introducing the new system and is testament to the hard work of HMRC staff and our partners.

We have been engaging closely with trade representatives, including software developers, community system providers, freight forwarders and traders about CDS, and we value the support from these organisations in preparing importers and exporters for the upcoming changes.

Our priority now is to make sure software developers, agents and their clients are ready, and we will continue to work closely with them throughout the transition.”
The CDS is intended to replace the current Customs Handling of Import and Export Freight (Chief) system for handling import and export freight from outside the European Union (EU).

Chief, which has been in place for 25 years, can only handle around 60 million customs declarations per year. However, a no deal Brexit means that CDS might be required to handle volumes of up to 255 million declarations annually.

The final and third phase of the roll out, covering the export functionality of the system, will not be released until December 2018, meaning traders who export goods will have only one month to complete the migration, as the entire process of migrating users from the old system to CDS by the end of January 2019.

May God have mercy on our souls!

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, 15 August 2018

Interest For Late Payment Rises To 3.25%



Following the increase in the Bank of England base rate to 0.75% from 2 August 2018, HMRC has announced an increase in the rates of interest on late paid tax. 

The rates of interest for late payment will increase from 3.00% to 3.25% from 21 August 2018.


The exception is quarterly instalment payments of corporation tax, for which the rate rises from 1.50% to 1.75% from 13 August 2018.

Repayment interest remains unchanged at 0.5%.


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"

Ignorance of The Law Is a Reasonable Excuse


In Bradshaw v HMRC [2018] UKFTT 0368 (TC), the First-tier Tribunal (FTT) has held that a taxpayer's ignorance of the law is a reasonable excuse in relation to the late filing of a non-resident CGT return (NRCGT return).

As per RPC Mr Richard Bradshaw and his wife (the taxpayers), emigrated to Canada in 2004. The taxpayers were resident in Canada at the time they disposed of a UK property on 29 June 2015. 
On 20 October 2016, the taxpayers each delivered an NRCGT return to HMRC in electronic form.  The NRCGT returns claimed private residence relief until 20 July 2004 and showed no gain or loss.  As such, they declared no CGT liability. 

On 2 and 5 December 2016, HMRC wrote to the taxpayers issuing each with a notice of assessment for a late filing penalty.  The penalties were issued by HMRC on the basis that the NRCGT returns were not filed within 30 days of the disposal of the UK property, as required by section 12ZB, Taxes Management Act 1970. The 30 day time limit was introduced by paragraph 43, Schedule 7, Finance Act 2015, in relation to disposals made on or after 6 April 2015 (the New Law). 

The taxpayers appealed the late filing penalty assessments on 15 December 2016 and requested an internal review by HMRC.  The decision to issue the penalty assessments was upheld on review.

The taxpayers contended that their ignorance of the law was a reasonable excuse as HMRC had failed to publicise the introduction of the New Law and as soon as they became aware of the New Law they submitted NRCGT returns.  

The FTT held that ignorance of the law can be a reasonable excuse for the late filing of a NRCGT return.

This ruling means that the concept of "reasonable excuse" is wider than HMRC's suggestion of an "unforeseeable or inescapable" event. 

Another key point from the ruling is that taxpayers can rely on the advice of a third party, which has implications for those stuck in the IR35 and loan charge debacle. 


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, 14 August 2018

HMRC Is "Trump-esque"



Unsurprisingly, HMRC's IR35 proposals (the deadline for responses to the consultation was last Friday) have received a deluge of criticism.

ContractorUK reports that replies are uniform in their criticisms of HMRC's proposals.

Terms such as “unconscionable”, ‘shambolic,’ “short-sighted” and “madness” have been used; with one describing HMRC as ‘Trump-esque’ -- “just doing what you feel like and not listening.”

What's the betting HMRC and the government will ignore these criticisms?

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, 13 August 2018

HMRC Calls Taxpayer "A Fucking Bitch"



HMRC has apologised and paid compensation to a businesswoman who overheard an adviser calling her a “fucking bitch”.

The woman had phoned a tax helpline in March to discuss a possible rebate and when put on hold, she heard the call-handler utter the insult.

When she originally complained she was offered £30 as a goodwill gesture. After demanding a recording of her conversation, she lodged her complaint with the HMRC’s chief executive. HMRC has apologised for the “unacceptable language and paid her tax rebate plus £750 compensation.

So much for HMRC's claim that taxpayers are "customers" (which implies some form of service is being provided)!

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, 10 August 2018

HMRC Wants Its Cake Both Ways



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, 9 August 2018

HMRC Investigating Allegations HMRC Colluded To Ruin Businessman


HMRC has launched an internal investigation into the conduct of officers involved in a flawed prosecution bought against Frank Dowling, a high-profile London restaurateur.

The four-year investigation into Mr Dowling, who ran several venues in London’s O2 Arena, collapsed in 2017 and cost the tax payer over £250,000.

Dowling claims the debacle cost him his business empire and affected his mental health. He faced ten years in prison during the ordeal.

The internal inquiry, which was launched in May, will probe allegations of a criminal conspiracy against Mr Dowling.

His multi-million-pound business was put into liquidation soon after he was arrested in 2013 for alleged non-payment of tax.

All charges against Mr Dowling were eventually dropped last year and he was awarded £274,000 in costs after the prosecution admitted it had no evidence to offer in the case.

HMRC internal affairs officers are now understood to be scrutinising court documents and witness statements following complaints that tax office personnel involved in the case, codenamed Operation Byword, colluded with accountants and insolvency practitioners to ruin the American businessman.
At the time of his arrest, Mr Dowling was working with accountants to restructure his business in order to refinance and pay off debts. The three leases he owned in the O2 are believed to have been worth around £18m.

Following his arrest, administrators working with HMRC seized his company and placed it into liquidation.

In addition to the venues at the O2, which were Union Square, American Bar & Grill and Inc Club, MrDowling’s company, Greenwich Inc Trading Ltd, ran several other pubs, bars and restaurants including the Elbow Rooms pool bar chain, Trafalgar Tavern, Admiral Hardy and Bar du Musee.

The collapse of the business left Greenwich Council with a £350,000 hole in its coffers through lost business rates.

It is expected that the scope of the inquiry will extend to look at links between senior tax office investigators and several accountancy service businesses involved in the case.

Mr Dowling is quoted by The Telegraph:
The original accusations were made by individuals to forward their own commercial interests and accepted by authorities although they had proof to the contrary.

I and my family have been through hell as they tried everything they could to ruin me.
It has been devastating for my business interests as many third parties decided to treat me as guilty and sought illegal and immoral means to seek commercial advantage, but the truth is out there for everyone to see now.  There’s a feeling of relief that it is over but also anger at what they have put me through and how much money has been wasted.”
He believes the documents disclosed to him show a web of collusion between parties and maintains that he was the target of a malicious campaign. He believes details of his arrest were leaked to the press by officials and that investigators were intent on prosecuting him before any evidence had been uncovered.

He alleges a string of offences have been committed including perjury, perverting the course justice and conspiracy to defraud. The investigation is expected to take several months.

An HMRC spokesperson said:
“We do not comment on the affairs of individual customers.”
This will be one to watch!

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, 7 August 2018

HMRC Is Getting Too Big For Its Boots!



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"

The Cash In Hand Economy



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, 6 August 2018

HMRC Is Clueless


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, 3 August 2018

CEST Tool Is Shite!



Contractors and the self-employed are being routinely misled by an official Government tool which is meant to give clarity over employment status.

According to a 14-month investigation by advice website Contractor Calculator, HMRC's “check employment status for tax” (CEST) tool comes to the wrong conclusion in almost half of cases.
  • CEST only returned a properly correct outcome in 14 out of 24 cases – just 58%.
  • 7 cases (29%) resulted in CEST giving the wrong answer.
  • 3 cases gave the right answer, but for the wrong reasons – called “false positives”
  • 3 of the cases which passed (of the 14) demonstrated an over-reliance on substitution, which otherwise would not have produced the correct result, contrary to the courts direction.
The government and HMRC have yet to admit that it is shite.

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, 2 August 2018

Sort Yourselves Out...Or Else!



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, 1 August 2018

HMRC Challenged Over Data Sharing



An EU national is challenging HMRC over new rules that require tax authorities around the world to automatically exchange information on millions of their citizens who live abroad. In a complaint to the UK’s data protection regulator, the EU citizen said the common reporting standard — a key measure against tax evasion developed by international experts that is now being gradually introduced by more than 100 countries — made her personal information vulnerable to cyber hacking or an accidental leak.

In her complaint against the common reporting standard to the UK Information Commissioner’s Office, the EU citizen said the exchange of information required by the rules will expose her to “a disproportionate risk of data loss and potentially hacking”.

She is quoted by the FT:
This risk has crystallised recently in light of incidents in which HMRC has lost data concerning UK taxpayers and recent data breaches concerning UK banks.” 
Her complaint cited how HMRC had lost the personal records of 25m taxpayers in 2007, as well as a media report in 2017 outlining how the tax authority’s website was vulnerable to cyber attacks. HMRC subsequently took action to fix the weaknesses.

HMRC declined to discuss the case but added:
HMRC shares some personal data with overseas tax authorities to ensure that the right tax is being paid. HMRC only ever shares information when it’s entirely lawful to do so. This includes complying with applicable GDPR requirements.” 
The fact is data is vulnerable to hacking, even when the data is stored by "reputable/professional" organisations!

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"