Thursday 28 July 2022

HMRC's Data Grab

Open consultation

Improving the data HMRC collects from its customers

Published 20 July 2022

Summary

Subject of this consultation

This consultation document proposes a number of potential options for improving the range of data HM Revenue and Customs (HMRC) collects, uses and responsibly and safely shares across government. We want to ensure that the data we hold gives us as accurate and up to date picture of citizens and businesses to help build a trusted, modern tax administration system and improve government policy making.

Scope of this consultation

The consultation identifies six areas where HMRC’s data could be improved, along with specific implementation options. These are:

the business sector of the self-employed
the occupations of employees and the self-employed
the location of an employment or a business
the hours employees work
dividends paid to shareholders in owner managed businesses
the start and end dates of self-employment

For the purpose of this consultation, we refer to employees as those whose earnings are subject to Pay As You Earn (PAYE) and those who are self-employed as someone who has trading income.

This consultation seeks views on all these proposals before final decisions are made regarding which data to collect, from whom and from when.

Who should read this

The changes in this document will potentially affect all self-employed taxpayers, all employers, employees about whom additional data may be stored and shared, as well as tax agents and tax or payroll software providers for these groups.

We would be particularly interested in hearing from businesses with multiple branches, owner-managers of limited companies, and businesses who employ a significant number of staff through agencies or on irregular working patterns (as well as employment agencies themselves).

We would also be interested in hearing from stakeholders with a wider interest in government data use and data strategy.

Duration

This consultation will run from 20 July 2022 to 12 October 2022.

Lead official

The lead official is C. Connor of HM Revenue and Customs (HMRC).

How to respond or enquire about this consultation

Please contact responsivenessdataconsultation@hmrc.gov.uk stating the organisation you represent.

Additional ways to be involved

Please contact responsivenessdataconsultation@hmrc.gov.uk if you are interested in meeting with us to discuss this consultation.

After the consultation

We will consider all responses received by the deadline and plan to publish a response later in the year.

Getting to this stage

HMRC already collects a wide range of data from its customers and uses this successfully to drive improvements in tax administration and to target compliance interventions and customer support.

Ministerial foreword

The world is changing, and for government to be effective in the 21st century it needs to be joined up, innovative and efficient. Data, the driving force of the world’s modern economies, is central to making that happen.

Businesses, the public sector, and civil society across the UK already harness the power of data to achieve great things. But to keep pace with change, government must continue to adapt its approach to data. The government needs to consider what data it collects, including through the tax system, and how it smartly and securely uses and shares that data.

This was brought to life for me in my ministerial roles at the Ministry of Justice (MoJ). Linking data between the MoJ, the Department for Work and Pensions (DWP) and HMRC provided robust evidence to show that securing employment was key to reducing re-offending rates. One-year re-offending rates were lower for offenders who found a job in the twelve months after release. Reoffending costs the public purse around £18 billion per year. So this evidence helped make the case for improving employment outcomes for prisoners and enabled us to measure what employability interventions worked and how well.

In addition, the government’s economic response to the coronavirus (COVID-19) pandemic was only made possible through the powerful use of data to make big policy decisions and deliver our interventions. Despite the challenges we faced, the UK is emerging from that crisis with unemployment close to historic lows and remains a competitive and dynamic place to do business.

The pandemic brought into stark relief where we know too little about the citizens and businesses we serve. But looking ahead, the administrative data collected by HMRC and other departments is increasingly the best source available for key economic statistics. This data, when it is timely and linked to other information, can generate tremendously valuable insights and lead to better policy and operational decision-making across government. These are the sorts of benefits we should reap for the taxpayer and our public services.

A modern and forward-thinking data regime will ensure the UK remains a highly competitive and resilient place to work and do business. In the National Data Strategy, the government set out its ambition to harness the power of data to drive productivity, create jobs, improve public services and position the UK as a frontrunner of the next wave of innovation. How HMRC administers the tax system will be crucial in achieving this.

HMRC is already driving improvements through the Tax Administration Strategy, delivering greater resilience and ease of use for taxpayers and businesses in the tax administration system. Listening to stakeholders throughout this process is central to the department’s approach, helping HMRC maintain public trust in the use of their data.

This consultation plays an important role in delivering on these pledges by exploring how HMRC could collect additional data as part of the tax system, helping to make tax easier to get right and harder to get wrong, as well as better share data securely across government to improve policy making to provide better outcomes for citizens and businesses. We are committed to working with businesses and stakeholders to ensure that any additional burden is minimised, including options around how and when we collect any additional data.

We need a whole-government approach to meet the challenges of today and tomorrow. Smart use of data will allow us to do this. I welcome and look forward to hearing the views of businesses, civil society and other partners on what data HMRC should be collecting and how we should use it most effectively.

The Rt Hon Lucy Frazer QC MP
Financial Secretary to the Treasury

Tax does have to be taxing.

Tax Investigation Insurance

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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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Tuesday 26 July 2022

HMRC Fines Company For Filing Too Early!

HMRC, for reasons best known to itself, charged a taxpayer with three penalties for filing too early.

This decision was quite rightly reversed on appeal.

"In the hearing, HMRC agreed that the returns had been filed on 4 September 2020 and explained that the penalties had been issued because the returns had been filed too early and were therefore treated as not having been filed correctly and in time. The return for March 2021, also filed on 4 September 2020, had been accepted but HMRC were unable to explain in the hearing why this return had been accepted but the returns for the earlier periods, filed in the same submission, had not been accepted."

HMRC yet again wasting time and taxpayers' money on pursuing half arsed vendettas.

Tax does have to be taxing.

Tax Investigation Insurance

Market leading tax fee protection insurance for businesses, sole traders and individuals. Protect yourself from accountancy fees in the event of an HMRC enquiry.

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 accountant's (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 22 July 2022

Less Than 50% of Tax Specialists Are Satisfied With HMRC

It seems that less than 50% of all tax specialists had a “positive overall customer experience” when dealing with HMRC last year (a fall of 20% from the previous year).

That at least is the conclusion of HMRC's "customer" survey published in its annual report this week.

The FT reports that 48% of agents reported a positive overall experience in 2021 when dealing with HMRC, down from 61% the previous year.

The poor showing is partly down to the post Covid backlog.

The Charter Stakeholder Group, which comprises representatives of leading tax and accountancy bodies, noted that there are “several deep-rooted issues” and that while the pandemic has had an impact, “HMRC’s service levels in many areas have been unsatisfactory for several years.”

David Feldman ex HMRC and now tax adviser saud:

“Overcoming HMRC inertia remains the most difficult area for me and it’s difficult to explain that to clients
Technical responses from HMRC are more often than not very poor, showing lack of experience and training.”

HMRC said:

“We’ve made solid progress towards offering our customers a better service, reducing work that had built up during the pandemic and clearing a backlog of around 1.5mn items of post.
The challenging economic outlook means we expect to see continuing pressure on our services for some time — but we’re focused on recovering our customer services, compliance yield and debt balance.”

So that's alright then!

Tax does have to be taxing.

Tax Investigation Insurance

Market leading tax fee protection insurance for businesses, sole traders and individuals. Protect yourself from accountancy fees in the event of an HMRC enquiry.

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 accountant's (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 12 July 2022

HMRC App for Tax Credits

More than 33,600 tax credits customers use HMRC app to renew

More than 33,600 customers have successfully used the HMRC app to renew their tax credits claim so far this year, a 39% increase on last year, HM Revenue and Customs (HMRC) has revealed.

Tax credits help working families with targeted financial support, so it is important customers act now to renew before the quickly approaching 31 July deadline to ensure their payments don’t stop.

HMRC is encouraging more customers to use the highly-rated app as it is a quick and easy way to get this vital job done.

It is free and simple to use and allows direct access to tax credits at the touch of a button. There are many benefits of the fully secure app, which can be used on any smartphone or tablet, at any time, eliminating the need to call HMRC and helping customers to save time and money.

Customers using the HMRC app can:

renew their tax credits
make changes to their claim
check their tax credits payments schedule, and
find out how much they have earned for the year

There are nearly 259,000 tax credits app users, who have used the app more than 10 million times in the last year to do things like check their payment dates and amount.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

“Time is running out for our tax credits customers to renew their claims. It’s quick, easy and free to complete a renewal on the HMRC app – search ‘HMRC’ in your smartphone app store.”

Customers can download the app at the App Store or Google Play. Online reviews at both indicate plenty of satisfaction with the app’s performance, as it currently holds a score of 4.5 stars on the App Store, and 4.7 on Google Play.

HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.

Once signed into the app after initial download, there are options for users to set up and select facial recognition, a fingerprint or a 6-digit pin to get fast and fully secure access to their details.

Customers can also renew their tax credits and manage their claims online on GOV.UK. Customers can log into GOV.UK to check on the progress of their renewal, be reassured it’s being processed and know when they’ll hear back from HMRC.

The UK Government has recently announced a Cost of Living Payment of £650, payable in two separate lump sums of £326 and £324, for households receiving certain benefits or tax credits, to help with the cost of living. If receiving tax credits only, they are eligible for each payment. HMRC will contact them and issue payments automatically, with the first being made by the autumn. Customers do not need to contact HMRC or apply for the payment.

More information on the Cost of Living Payment, including eligibility, is available on GOV.UK.

Tax credits are ending and will be replaced by Universal Credit by the end of 2024. Many customers who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check. If customers choose to apply sooner, it is important to get independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces.

As the deadline for renewals approaches, customers hurrying to sort out their accounts could be more vulnerable to scammers. HMRC is warning people that if someone contacts them saying that they are from HMRC and wants the customer to transfer money urgently or give personal information, they should never let themselves be rushed. HMRC is also urging customers never to share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name. The department urges people to take their time and check HMRC’s advice about scams on GOV.UK.

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 July 2022

HMRC's Ever Changing FOI Response - Something Stinks There!

here’s a little mystery involving HMRC insisting only two weeks ago that it wasn’t investigating *any* ministers over their tax affairs
— Jim Pickard (@PickardJE) July 10, 2022

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"