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.

Thursday, 23 September 2021

MTD Delayed


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:
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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

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  1. Off-topic... Any thoughts on how IR35 has contributed to the lorry driver shortage and the chaos that has followed ?

  2. Yep it's made a bad situation into a dire situation. Industry opposed IR35 reforms on masse, but did government listen, did they hell. Government got themselves into this mess, a classic case of turkeys voting for Christmas.

  3. Not just IR35 - significant thought it is. Also huge backlogs at DVLA caused by staff *refusing* to work in the office are impacting on the whole situation.
    About time the government ordered the lazy, fat, shirkers at DVLA, HMRC, DWP and the rest back into the office.

    1. They won't send civil servants back to the office as 'working from home' will eventually allow the government to close yet more offices and further reduce departmental budgets. Sod the service to the public.

      Interestingly given your rant, four of the government's senior members ( Raab, Patel, Truss and Kwarteng) wrote a book saying that all British workers are lazy, fat shirkers. They seem to have gone a bit quiet on that one now they're reliant on the 'red wall'.

    2. It's time for all HMRC, DVLA, DWP and all government agencies to get up off their lazy ar*es, get out of their PJs and GET BACK TO THEIR OFFICES!!! Put another way, stop being a parasite and a drain on the productive parts of the economy.

    3. As I understand it, HMRC's Field Force Collection Team is still not undertaking visits to debtors, and their staff are instead sat on the sofa at home watching Netflix and phoning taxpayers - on full pay as well. All for a mostly harmless virus, for which the majority of HMRC staff will have been vaccinated. Laziness or cowardice? Either way, Field Farce has proven itself to be eminently dispensable. Perhaps it will be a P45 for all of them at the government's next review of this shambolic and failed collection unit?

    4. Most staff working from home are being told to work from home. As the number of offices is being reduced from 170 to 13 in order to save money for Johnny Taxpayer this is unlikely to change.
      Do you have any statistical data on outputs from people working from home as opposed to those in the office. I'll save you the time -no you don't.
      What about all the private sector ubermensch working from home? Are they all parasites? Oh, I forgot, that'll be different won't it?
      "Mostly harmless virus". Why on earth would Bill Gates, George Soros, Pope Francis, the Chinese Communist Party, the BBC, the UN, the EU, Barack Obama,Jeremy Corbyn, the Illuminati, Mossad, the Rothschilds, all Muslim immigrants, the Archbishop of Canterbury, George Clooney, Oprah Winfrey, the Duke and Duchess of Sussex, bullying HMRC managers and their HR enablers go to the trouble of creating and spreading a virus if it is mostly harmless?

    5. LOL! Tbh the majority of civil servants at HMRC etc are no better than welfare scroungers> Its welfare for otherwise unemployable dregs...

    6. Oh dear, oh dear!
      Somebody's got a tax bill and is in a bad mood.

    7. @Anonymous29 September 2021 at 15:25

      Field Force have been doing face to face visits since early July.

  4. This is becoming a Daily Mail comments section.....yawn

  5. My HMRC jammies are very warm and cosy....some on here just seem bitter and twisted public sector haters.....and dare i say it....a tad jealous?
    Grow up,you child !!

  6. These HMRC 'workers' just don't get it...
    We pay the big fat wages of these lazy people...
    They should grow up and start working in the real world for a living!!!

    1. If they're lazy and getting big fat wages for doing nothing then why would they want to start working in the 'real world'.
      You really haven't thought this one through have you?

    2. Would that be the furloughed real world?
      Dry your eyes

    3. Because the way they steal a living off of the tax payers is morally repugnant !!! If there happy having no values, no morals , then what sort of people are employed there? Total scum by the sounds of it

    4. News alert - people who work for HMRC (and the rest of the civil service) pay tax as well!

      "Morally repugnant", "no values, no morals", "total scum". That tax bill you got must have been a whopper!!

    5. Why are HMRC workers so thick that they don't understand that they pay tax on the money we give them . Let me spell this out > without the tax money given to them from people working in the real economy they would not have any income and so would'nt pay any tax.
      They live off the hard work of other people

    6. Those who work for HMRC are not 'given money by "people working in the real economy". They have a contract with HM Government under which they receive remuneration for work carried out - a bit like everyone else really!
      I'm afraid that your blind, irrational hatred is making you look a bit of a saddo.

    7. Yes, quite correct. The bloated public sector is a parasite bleeding the country dry. It needs cutting by at least 75%. I would favour the private sector running and streamlining our tax system and sacking all HMRC staff. The minority of bright and innovative ones with integrity could secure employment in this field in the private sector (this what I did, getting 2.5 times a Band O salary and with no bullying or pacesetter meetings). For the rest, it would be sink or swim.

      start by

    8. Let the saddo rant....he/she is just making a fool of themselves....and it's funny to read.
      Let me get out my tiny violin and play it slowly as they witter on.....

    9. @ 2 October at 08.25.
      So you would save money by making 60,000 staff redundant and hiring and training their replacements from scratch (assuming there are 60k people queuing up for the job).
      No chance of anything possibly going wrong with that.
      Then you would have the tax system run by the taxpaying private sector. Absolutely no chance of any conflict of interest there!
      And you have managed to nearly treble your salary by leaving the civil service gravy train to join the hard-up, low paid private sector. Surely this is simply not possible?
      And out of interest, what would you "start by" ?
      A nation holds it's breath.

  7. All those working in the private sector are as thick as mince. Should have joined the Civil Service gravy train* shouldn't they?

    *For the ranter, that is a joke.