Thursday 23 December 2021

My Thanks To Caroline Lucas


I would just like to thank Caroline Lucas (my MP) for emailing HMRC on my behalf to chase up a matter with them that had been outstanding for over one year.

HMRC have now resolved the outstanding matter.

Those of you who have issues with HMRC, that HMRC have been tardy addressing, would be advised to write to your MP asking them for help. HMRC have a Ministerial Correspondence Team (with a real email address) that proactively handles and answers emails from MPs.

Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:

  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 21 December 2021

"Trusted and Modern" - HMRC's Vision


Trusted and modern: HMRC’s vision for the future

Delivered by Lucy Frazer, Financial Secretary to the Treasury.


Good morning to everybody, both those who are here in person, and those who are online. Jim, thank you very much for inviting me today. I am really delighted to be joining you in Stratford this morning. And I’m very pleased to be attending my first HMRC Stakeholder event. I know this is an important event in the organisation’s calendar and it’s a great opportunity for the team to learn more about your priorities.

I wanted to talk today about some of the issues Jim has raised. The digital modernisation work that’s underway at HMRC. But before I get into that detail, I also wanted to share some reflections on my first few weeks in the job and how I hope we can work together. I’m also going to touch on the important issue of customer service.

Opening Remarks

When I started in September, I knew I had to hit the ground running. Because there was a Budget, a Spending Review, preparations for the Autumn Tax Administration and Maintenance Day, as well as starting to take the Finance Bill through the House of Commons. And all of that within the first two months.

Then there were many other aspects of my brief: The details of our tax system, HMRC’s digital modernisation programmes – which I’ll be discussing later - and trade and customs policy.

What I honestly didn’t expect, though, was that I would spend my first weeks in the job learning quite a lot about false teeth! That’s not because I’m expecting some bad outcome from my next trip to the dentist. But it’s because, as some of you will know, there’s a measure about the tax treatment of dental prostheses in this year’s Finance Bill.

The point I’m making is that I’ve learned very quickly how HMRC’s work makes a difference to every single bit of our daily lives. As a result, I’m very aware that you, the people who support and guide taxpayers, have an incredibly important role – both for your clients and also for the wider economy.

I also wanted to say that I’ve been extremely impressed with all the HMRC teams I’ve worked with so far and their efficiency, their responsiveness and commitment to their roles.

I know that there is some very productive work taking place between stakeholders and HMRC, through organisations like the Representative Body Steering Group, the Administrative Burdens Advisory Board and the Employment and Payroll Group. I’ve no doubt that these close relationships are going to become even more critical, as we continue our national recovery from Covid and make our way outside the EU. Because now, more than ever we need to develop the services that will support people, businesses and the wider economy. So I wanted to particularly thank you for all you’ve done – particularly over the past 19 months and all that you continue to do.

Customer Service

As I mentioned, I wanted to touch on customer service, because I know that this is an issue that you, and others, have raised with us.

My first point here is that it’s been very apparent to me that HMRC workers care deeply about the people and businesses they serve. I’ve also seen how this is a highly innovative organisation brimming with creativity and technological expertise. And we can use this ingenuity to improve HMRC’s customer experience.

But it’s also clear that HMRC needs to get the basics right. People need to have confidence that their calls will be answered promptly and their letters will get a timely response. And recently HMRC hasn’t achieved its usual high standards.

The past months’ events have played a part: HMRC had to get the Government’s Covid-support schemes going in double quick time and keep them running until the end of September – with all the specific customer support work that was involved. And, of course, while the pandemic was unfolding, HMRC was also supporting businesses through the EU Transition Period.

These were challenging and fast-moving situations. And they meant that HMRC had to make choices about the work it prioritised to protect people’s livelihoods and to continue vital services, like dealing with self-assessment returns and tax credits.

As HMRC’s Deputy Chief Executive Angela MacDonald said at last week’s Public Accounts Committee – this is not an excuse. I know that HMRC is very conscious that you quite rightly expect and deserve better service. And as Angela said last week, HMRC is making progress, with service levels expected to reach pre-pandemic standards in Spring. And I know HMRC is focused on making sure you see change, as soon as possible. For me this is also critically important.

Modernisation

Of course, over the longer-term HMRC’s digital modernisation programmes will help improve service levels and in so doing build greater trust.

There’s further benefits too - enhanced resilience, readiness to support future crises and greater compliance.

I am delighted to be taking up office at a time when much of this work is already in train as I believe that no company and no part of government can ignore the technological innovations that are taking place across the globe.

As you may know around 85% of HMRC’s customer service contact is now digitalised and 15% carried out by post and over the phone. And while it’s right that HMRC keeps these forms of communication as an option for those who need them – Covid-19 has underlined the need to keep up the modernising momentum.

A clear example is the Self Employment Income Support Scheme. I think we would all agree that it was a lifeline to millions of people during an immensely difficult period. But with more timely data about people’s income, we could have targeted help more precisely and provided it more rapidly.

I want to update you on three key areas: Making Tax Digital, Real Time Information and the Single Customer Account, that all fall within HMRC’s digital modernisation work. Then, I’ll talk about a few other initiatives as well.

Making Tax Digital

So turning to Making Tax Digital. As I’m sure you’re aware, this is the first phase of HMRC’s move towards a modern, digital tax service fit for the 21st century. I’ve no doubt it will be a real gamechanger, helping businesses to reduce errors, giving them greater interaction and guidance and providing the digital experience many have come to expect in their everyday lives.

There are some longer-term advantages for businesses too – because the integration of tax management with other business processes can contribute to productivity gains.

As you know, Making Tax Digital for Income Tax Self-Assessment was due to launch in April 2023. However, whilst the pandemic has revolutionised the way businesses use technology – it’s also been immensely challenging for many firms. So, when you told us, this was the wrong time to impose a big change to the way businesses deal with their tax affairs – we listened.

As a result, it’s postponed this phase’s introduction until April 2024, with general partnerships joining the following April. This extra time will help businesses prepare, allow HMRC to test the pilot further and allow it to deliver the most robust service possible.

Real Time Information

HMRC is also pressing on with rolling out Real Time Information – another central plank of its modernisation work. Just like Making Tax Digital, Real Time Information will bring the tax system into the iPhone age – giving people more up to date information about their tax affairs and cutting the chance of mistakes.

Beyond this, Real Time Information has a part to play in addressing a long-standing problem. Right now, many people pay their tax long after the income was originally received – making it harder for them to manage cash flow.

This year HMRC has started the conversation on this issue with a call for evidence on timely payments and it’s just published those responses. Again, any future changes here will be made in close collaboration with you and with plenty of warning.

Single Customer Account

As I mentioned earlier, HMRC is innovative, however there are still some areas of its online experience that customers can find frustrating. And I know HMRC is working hard to eliminate these issues, through its plans for the Single Customer Record and Account. The ambition for this work is to provide a single point through which taxpayers can interact with HMRC. In effect, this will mean that HMRC advisers can see what the customer is seeing – allowing them to give tailored support.

The Single Customer Account will also help to tackle the issues some people say they experience when trying to pay their tax online, like being able to find log-in details for different Government Gateway accounts. Or working their way through pages of information that doesn’t relate to their circumstances and which can make it harder to understand what they owe. And I’m pleased that HMRC secured funding at the Spending Review to get this valuable initiative off the ground.

Single Trade Window

Finally, I’ll talk briefly about some of the other digital initiatives underway. These include plans to save businesses time and energy, when conducting their affairs at the Border through a cross-government initiative known as the Single Trade Window.

Similar schemes have already proved successful in places like Singapore, Sweden, the USA and New Zealand. And we think that the Window will be a great advance for businesses here. Essentially, it will create a single-entry point, allowing firms to lodge all their documents and information needed to meet their import, export and transit requirements in one place.

Ultimately the digital initiatives I’ve mentioned will boost efficiency through fewer errors, less duplication and by improving communications between different parts of the organisation. At the same time, they will make it easier for those who need most to speak to HMRC to get in touch. Of course, some of these initiatives will require data. And, as Jim has acknowledged, part of the future challenge for HMRC will be to make the case of how it can harness this information to help people and make their lives easier and to do that safely.

Tax Administration Framework

As a final point on modernisation – the work of building an HMRC that’s fit to meet the challenges of the 21st century, needs to start at the tax system’s foundations.

As we all know, the tax administration framework is the bedrock of that system. The framework plays a critical role in how people experience it and in turn the trust they place in it. Clearly, if HMRC is to deliver the projects I’ve just mentioned, that framework needs to change substantially.

In March, HMRC published a call for evidence on how this legislation could be updated. I know many of you have since responded with your thoughts and last week, at the Autumn Tax Administration and Maintenance Day, the Government published a summary of those responses – along with a range of other measures that will help build a better tax system.

Partnership

As I’ve outlined today, there are some great strides being made towards creating a modern and more trusted HMRC. But digitalisation on its own can never be the full answer. HMRC will also have to stay true to its values of professionalism, integrity, respect.

Nor can HMRC achieve its goals alone. It needs you, its stakeholders, to continue to share your expertise, continue to hold it to account and continue to help it create more effective services. I’ve every confidence that HMRC will play its part in that conversation, by listening to you too. And as a minister I will do that as well.

Concluding Remarks

Let me conclude by saying that I know that over the last few months, I know that your interactions with HMRC have been not up to the usual standard. As I explained earlier there are reasons for this. But I know that Jim’s team is determined to fix these as rapidly as possible. And for my part, I can assure you that I take a personal interest in this matter.

However, given our subject today, I wanted to end with a few words about HMRC’s vision for the future. In my mind, that’s a future where it’s easier to pay and collect tax because the system works for all.

A future where people and businesses trust HMRC – to provide them with the service that they need and that they deserve.

And a future where HMRC’s modernisation work means the organisation is ready to deal with the demands of the modern world.

I’m pleased that at the Spending Review, HMRC secured funding to turn this vision into reality. That includes money to extend Making Tax Digital, over £136 million to deliver the Single Customer Record and Account, and £468 million to continue modernising the tax system.

And I’ve every confidence that this modernisation work, combined with HMRC’s immediate focus on improving customer services, will create an organisation that can better serve this country today and tomorrow.

So I look forward to working with you and the HMRC team to achieve all this. My door is always open to you, so don’t hesitate to get in touch. And I’m very sure that together we can make a real difference.

Thank you very much.

Published 17 December 2021

 



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

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Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
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  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 December 2021

System Problems

 



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

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Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
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  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
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Please click here for details.

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 8 December 2021

HMRC Doesn't Know The Law


 



Tax does have to be taxing.

Tax Investigation Insurance

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Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
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  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 25 November 2021

HMRC's Humongous Backlog

 

HMRC update on registration for Self-Assessment and issue of UTRs

24 Nov 2021

We are sharing the following message on behalf of HMRC:

“Where Self-Assessment registration forms are completed fully and all details match the information held by HMRC, UTRs will normally be issued within 10 days.  The exception to this is registrations submitted between mid-February and April, which are held and issued during April, following the start of the new tax year.

Where forms are not completed fully or data does not match that held by HMRC, these will be reviewed clerically which may cause a delay.

We are now working through the stocks of post and clerical interventions that built up over the past year, as we prioritised delivery of the government’s COVID-19 support packages, the UK’s smooth transition from the European Union and the essential services that keep the tax system running. We are now seeing steady reductions in clerical registrations, and these reductions will continue in the coming weeks, following which we will continue with our best endeavours to keep these within acceptable levels.

We understand the frustrations of customers and agents who are waiting for us to get to their individual enquiry, and we are sorry that we can’t get to everyone more quickly. In addressing our work queues, we’ve prioritised our initial efforts where we can protect livelihoods and put money in the pockets of our customer groups in greatest need.    

Customers who have advised HMRC that they are liable for Self-Assessment by the deadline of 5 October following the end of the tax year in which Self-Assessment criteria was first met, will have 3 months and 7 days from the date on the SA250 Welcome Letter to submit their return and any payment due. 

HMRC are unable to provide agents with UTRs in advance as these are system generated and issued as part of the registration process.”



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

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Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 22 November 2021

The State of HMRC!


 



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

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Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 17 November 2021

NAO Lambasts HMRC Staffing Levels



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

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Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:

  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 9 November 2021

HMRC Serves Petition for Bankruptcy on Adam Afriyie MP


 

Adam Afriyie is facing bankruptcy proceedings over unpaid taxes. Court records show a petition for bankruptcy has been filed by HMRC against the MP, 

His IT firm went into insolvency in 2017 apparently due to a £1.7million tax debt

Under parliamentary rules MPs have to stand down if they are declared bankrupt. 

A spokesperson for Afriyie says: 

“The petition arises for complex reasons related to Adam’s past business interests. 

Negotiations have been ongoing for several years and the petition is subject to legal challenge as his advisers are working towards reaching an agreement.” 

Afriyie adds: 

“I will of course pay any tax that is due.”
Tax does have to be taxing.

Tax Investigation Insurance

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Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:

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  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 8 November 2021

Landmark Victory Against HMRC


 

Accountancy Age reports a “landmark” court judgement has been delivered against HMRC after its denial of £1m worth of SME R&D tax relief to construction firm Quinn London Limited.

HMRC’s denial of the relief was based on its recently tightened interpretation of subsidised R&D expenditure. It contested that, because Quinn’s R&D projects are typically carried out for clients, any expenditure on that project should be treated as subsidised.

Appealing the judgement, specialist R&D tax relief consultancy ForrestBrown argued that HMRC’s interpretation of the legislation was too broad and will narrow the scope of SME R&D tax relief.

Accepting the appeal in favour of Quinn, Judge Morgan stated in her verdict: “It would be wholly out of kilter with the overall SME scheme if an SME were to be denied relief solely because it seeks to recover some or all of the relevant costs under its commercial contracts with its clients.

“If HMRC’s approach were to be adopted, the circumstances in which an SME could claim enhanced R&D relief would seem to be confined to those where it has no prospect of exploiting the R&D for commercial gain.”

HMRC had adjudged that, despite meeting the criteria of the SME R&D relief scheme, Quinn’s subsidisation of expenditure meant it was only eligible for the far less generous R&D Expenditure Credit (typically claimed by larger organisations).

Over the period in question, the difference in value between the two was calculated to be worth more than £1m.

Which rather proves the old adage, don't let the bastards grind you down!

Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

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Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 2 November 2021

#COPOUT26 - HMRC Jumps on The Net Zero Bandwagon


 



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
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  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 28 October 2021

When is a Tax Cut Not a Tax Cut?



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

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Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
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  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 27 October 2021

Budget Live - #Budget2021 #Budget2022



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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"

Happy #Budget2021 or #Budget2022 (Depending on Your Preference)



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:

  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 26 October 2021

#Budget2021 - Whither Purdah?


 

Tomorrow is Budget Day, yet given the amount of pre Budget briefings by HMT and Rishi we could be forgiven for thinking that Budget Day lasts for a week or so!

I am of an age where I remember a thing called "Purdah", where Budget leaks were forbidden!

Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:

  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 13 October 2021

HMRC Has Ground To a Halt


 

HMRC is doing its best to destroy small businesses because of crippling delays, which have resulted in rebates going unpaid for months on end. 

HMRC is taking several months to process post and deal with issues that should take weeks under normal circumstances.

Taxpayers are missing out on large refunds, which has severely impacted businesses’ cash flows. Accountants said the tax authority had “ground to a halt”. 

Experts said the large numbers of HMRC staff working from home was likely to blame, as well as the clampdown on furlough fraud which they said had resulted in more taxpayer requests requiring additional verification.

Myelin Verboom of tax firm Mcas said one of her clients was still waiting on a six-figure payment. Her business could go bust if it did not receive the money soon, she warned.

“We have a property developer who bought a block of buildings, incurring a £250,000 VAT bill which was deductible. They have been trying to claim it back but the delays are so bad they have not even been able to register their business to pay the levy. 

There is a real risk these delays will end up pushing firms out of business because of the cash flow problems they are causing.”

Stuart Crofton of accountancy firm Stuart Crofton Tax said anything that required human intervention was taking longer than normal.

“I have one rebate of £50,000 still outstanding which we applied for in April. It is a massive loss for our clients. While HMRC will handover the paltry 0.5pc or so in interest the refund has accrued whilst it has sat in the tax office’s accounts, it pales when compared to the returns they could have enjoyed investing that money in the FTSE” .

HMRC aims to refund overpaid VAT within 30 days. However, its turnaround times have lengthened significantly since the start of the pandemic. 

Two thirds of letters addressed to HMRC went unanswered for more than two weeks in April and performance levels are still low, as the above chart shows. 

Lisa Styles of Hespera, another tax firm, said even simple tasks such as registering for self assessment were taking far longer than normal, meaning newly self-employed people faced being fined for late filing or tax payments next year.

If someone became self-employed last year and needed to register as self-employed to file their return and pay tax by January 31, the deadline to do this was October 5. But delays mean some are being told they will not be added to the system until March 2022, accountants said. 

Ms Styles said part of the backlog was down to a higher number of fraud checks than normal. HMRC has been tasked with recovering billions lost to fraudulent furlough claims. Higher numbers of staff are now working away from the office, after new rules allowing staff to work from home two days a week were introduced.

Self assessment services were also impacted after 5,000 staff were seconded to provide Covid-19 support during the crisis, although service levels in that department have since recovered to more normal levels, according to tax office sources. 

A spokesman for HMRC said: 

“We know there is more to do to improve turnaround on customer correspondence, and we expect to see further improvements as we emerge from the pandemic and continue to rebalance how we prioritise our resources.”

Tell that to the people whose livelihoods you have destroyed because of your delays!

Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 11 October 2021

HMRC Staff Return To The Office for One Day a Week


 

Public Technology reports that HMRC has begun its return to the office, although staff across the department will continue to work remotely for four days a week, on average.

In an all-staff memo sent last week, permanent secretary Jim Harra said more than 16,000 staff who had been working from home during the coronavirus pandemic had returned to offices by the end of September. They included 4,300 staff who had come into the office for the first time in the week leading up to the memo.

He said that by the end of last week, he expected “all colleagues in England and Scotland who have been temporarily working from home during the pandemic, will have agreed a plan with their line manager to return to the workplace for an average of one day a week, using the discussion toolkit”.

Those returning join around 4,000 HMRC staff who have been working from offices during the pandemic. Those civil servants are considered key workers and could not do their jobs remotely.

Staff in Wales and Northern Ireland should continue to work from home, he said.

I trust that in the coming weeks many of you will have the chance to re-connect face to face with your colleagues and enjoy a taste of office life again,” he said.

Harra said the expected one-day-a-week return “won’t be the same for everyone”.

Depending on your personal circumstances, you may need more support in making arrangements, so it’s really important that you talk to your manager about what is right for you,” he said. He said National Inclusion Week, which fell on the same week as his message, was a “real reminder to us all to continue to be respectful, kind and inclusive towards each other as more of us return to our offices”.  

The perm sec said he expected there will be “teething problems” as the number of staff working from HMRC’s buildings increases.

Please help your estates colleagues and location leads, who are doing an excellent job of coordinating all this for us, by reporting any issues that you see, and being patient as we move to our new arrangements,” he said.

The returns process and the toolkit Harra mentioned has been agreed with unions.

The PCS union has told its members they should only return if HMRC meets its agreed criteria to have a plan in place with their line manager, and if it is suitable for their individual circumstances.

PCS's advice is clear: the discussions between jobholders and managers must happen, so that any concerns about returning can be identified. Where it is not yet possible to establish a set date when you will start working in the office, you can continue to work from home; and you should agree with your manager when during the coming weeks, the situation will be reviewed,” the union said.

It added that union reps have “reiterated to the department that any attempt to force members back to the office would be unacceptable”.

For its part, HMRC has given a commitment to working with staff, to take reasonable steps to address their concerns and to support them to return. We’ve agreed with HMRC that any concerns arising from the agreed process and procedures will be escalated and resolved,” it added.

Harra’s email came the same week the coronavirus furlough, self-employment support scheme and sick pay rebate schemes came to an end.

I wanted to take a moment to say thank you to everyone for enabling the department to deliver these schemes so brilliantly, whether you have worked directly on the schemes or held the fort on our usual work,” Harra said.

He said civil servants’ “hard work and commitment” had helped to protect 11.6 million jobs and directly supported 2.9 million self-employed people across the UK.

I am deeply proud of your dedication and the huge scale of what we have been able to deliver together for individuals and businesses – so, thank you,” he added.


Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 4 October 2021

HMRC To Review The Pandora Papers



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 23 September 2021

MTD Delayed

Statement

The Government has set out an ambition to become one of the most digitally advanced tax authorities in the world.

Making Tax Digital (MTD) is the first phase of our move towards a modern, digital tax service fit for the 21st century. It supports businesses through their digitalisation journey and provides a digital service that many have come to expect in their everyday lives. MTD helps businesses reduce common errors in their tax affairs and allows for better customer interaction and guidance through digital prompts and nudges.

Since the introduction of MTD for VAT in 2019, over 1.5m businesses have joined and many are already experiencing benefits. MTD users are reporting that preparing and submitting returns is easier, and that MTD has increased their confidence in managing tax affairs and using technology. MTD also puts businesses on a path to further digitalisation: integrating tax management with a range of business processes can contribute to productivity gains.

During the pandemic, UK businesses increasingly turned to digital tools to communicate remotely and work collaboratively. Businesses adapted rapidly to the challenges posed by the pandemic, using digital solutions to maintain resilience and reduce disruption.

Over the past year, HMRC have worked closely with partners in the business and tax communities on the proposed design and scope of MTD for Income Tax (ITSA).

Today the Government has laid Regulations in Parliament to help those impacted by the changes to prepare, and for their representatives to develop their own support and guidance.

The Government recognises the challenges faced by many UK businesses and their representatives as the country emerges from the pandemic over the last year. In recognition of this and of stakeholder feedback, we will now be introducing MTD for ITSA a year later, in the tax year beginning in April 2024.

General partnerships will not be required to join MTD for ITSA until the tax year beginning in April 2025. The date at which all other types of partnerships will be required to join will be confirmed later.

In March 2021, the Government announced a new system of penalties for the late filing and late payment of tax for ITSA. This will now be introduced for those who are mandated for MTD for ITSA in the tax year beginning in April 2024, and for all other ITSA customers in the tax year beginning in April 2025.

Alongside the Regulations, HMRC have also today published a Tax Information and Impact Note (TIIN) setting out the projected benefit and cost impacts of MTD for ITSA, as well as a Policy Paper to help different businesses understand what their transition to MTD could look like in more detail.

A later start for MTD for ITSA provides more time for those required to join to make the necessary preparations and for HMRC to deliver the most robust service possible, affording additional time for testing in the pilot.

HMRC will continue to work in close partnership with business and accountancy representative bodies and software developers to ensure taxpayers are well supported as they adopt MTD for ITSA.

The Government has also recently consulted on a reform of the complex basis period rules that govern how self-employed profits are allocated to tax years. Many respondents said that the reform was a sensible simplification but asked for more time to implement the changes. In recognition of these concerns, these changes will not come into effect before April 2024, with a transition year not coming into effect earlier than 2023. The Government will respond to the consultation in due course providing the next steps.



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 20 September 2021

Less Than 100 Days Until Christmas - Beware Customs Charges!

Tax and customs for goods sent from abroad

Skip to contents of guide

Tax and duty

You’ll be contacted by Royal Mail, Parcelforce or the courier company if you need to pay any VAT, duty or delivery charges (‘handling fees’) to receive your goods.

They’ll send you a bill stating exactly which fees you need to pay.

They’ll normally hold your parcel for about 3 weeks. If you have not paid the bill by then, your parcel will be returned to the sender.

You will not have to pay anything to the delivery company to receive goods worth less than £135 unless they’re gifts over £39 or excise goods (for example, alcohol and tobacco).

VAT

VAT is charged on all goods (except for gifts worth £39 or less) sent from:

  • outside the UK to Great Britain
  • outside the UK and the EU to Northern Ireland

VAT is not charged on goods that are gifts worth £39 or less.

You pay VAT when you buy the goods or to the delivery company before you receive them. If you have to pay VAT to the delivery company, it’s charged on the total package value, including:

  • the value of the goods
  • postage, packaging and insurance
  • any duty you owe

VAT is charged at the VAT rate that applies to your goods.

Goods worth £135 or less in total

If you bought the goods yourself and they are not excise goods, the seller will have included VAT in the total you paid.

You will need to pay VAT to the delivery company if the goods are:

  • gifts sent to you by someone else and worth more than £39
  • excise goods

Goods worth more than £135 in total

You will have to pay VAT to the delivery company either before the goods are delivered or when you collect them.

Customs Duty

You’ll be charged Customs Duty on all goods sent from outside the UK (or the UK and the EU if you’re in Northern Ireland) if they’re either:

  • excise goods
  • worth more than £135

If you’re charged Customs Duty, you’ll need to pay it on both:

  • the price paid for the goods
  • postage, packaging and insurance
Type and value of goods Customs Duty
Non-excise goods worth £135 or less No charge
Gifts above £135 and up to £630 2.5%, but rates are lower for some goods - call the helpline
Gifts above £630 and other goods above £135 The rate depends on the type of goods and where they came from - call the helpline

You pay Customs Duty on excise goods of any value.

Excise Duty

If you’re sent alcohol or tobacco from outside the UK, you’ll be charged Excise Duty at current rates.

If the goods are sent from the EU to Northern Ireland, check that the Excise Duty was included in the price. If it’s not, your goods may be seized.

It does not matter whether you buy the goods or they’re sent as a gift.

If you receive large amounts of alcohol or tobacco for your business, use the Trade Tariff to check duty rates.

Your goods can also be seized if they’re:

  • spirits over 35 centilitres without a UK duty stamp
  • cigarettes or hand-rolling tobacco without UK health warnings or fiscal marks

If you’re charged too much or return your goods

Ask for a refund of VAT or Customs Duty if you:

  • return your goods
  • think you’ve been charged too much

Download and fill in:

  • form BOR 286 if Royal Mail or Parcelforce delivered the goods
  • form C285 if a courier or freight company delivered the goods


Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 17 September 2021

The Plastic Packaging Tax - Not an April Fool's Joke!



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 8 September 2021

The Health and Social Care Levy


 

Good luck to HMRC, tax advisors and tax agents implementing and dealing with the new Health and Social Care Levy.

At first this will be as a 1.25 percentage point increase in National Insurance.

From April 2023 National Insurance will return to its current rate, but a new health and social care tax will be introduced at a rate of 1.25% - making up for the change to National Insurance.

On wage slips it will appear as a "Health and Social Care Levy".

The levy - unlike National Insurance - will also be paid by pensioners who work.

People who earn under £9,564 don't have to pay National Insurance or the new levy.

Employers will pay more National Insurance - and the levy.

Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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 September 2021

The Peasants Are Revolting - Taxpayers Call on HMRC To Stop and Think!

 



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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"