HMRC Can't Count

HMRC got its sums wrong on the number of individuals taking up a tax break for married couples and civil partners after it counted claimants more than once.

The FT reports that in June last year the Treasury claimed 3m couples were already using the marriage allowance, a tax break introduced in 2015 that lets non-taxpaying spouses transfer 10 per cent of their £12,500 tax-free personal allowance to their partner.

However, on Thursday HMRC admitted it had miscalculated the total to the tune of more than 1m. Its revisions found the real number of claimants was likely to be below 1.8m for the 2018-19 tax year.

HMRC had inflated the figures by counting the same claimant multiple times, as it included their backdated claims as well as those for the current tax year.

“The original methodology was based on counting all the years for which applications were made.

This included unsuccessful claims and previous years claimed when individuals made backdated claims.

The new estimate of successful claimants does not include any estimate of backdated claims for that tax year."

Well done lads! 

Tax does have to be taxing.

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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"

DMB Field Force Lunch Allowance Banned

My thanks to a loyal reader who dropped me a note yesterday about HMRC DMB Field Force collectors and their claims for lunch, tea and coffee:

"You might care to speculate why every single one of HMRC DMB Field Force collectors was recently told that they would no longer be able to claim for tea, coffee and lunch taken while out on the road (max £8.25 per day). 

According to management lizards, they should never have been entitled to claim at all. 

Interestingly, when they protested, they were told in no uncertain terms to back off, otherwise an exercise to recover the last 5 YEARS in claims was on the cards. 

I wonder:

a) If this money was improperly paid in the first place 

b) If it was, why is it not being recovered (taxpayers should be lucky!), or 

c)  If they are nasty bullying shits trying to score points with excom by making up the rules as they go along.....??"

Views and comments welcome.

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"

HMRC Email Mistaken For Scam

An email from HMRC, that is actually genuine, has caused confusion as it has been mistaken by some as being a scam.

The email about the new marriage allowance (signed by Ruth Owen, HMRC’s director general for personal tax) is supposed to help people claim the allowance.

It warned that taxpayers would need to have personal details ­confirmed, and that this may have to be done with a credit card or ­mortgage details.

However, because there are numerous fake emails purporting to be from HMRC, and because this email mentioned credit cards many people simply assumed that it was a scam.


Colin Willetts is quoted by This Is Money:

"The suggestion I’d need a photo ID and details of recent credit card and mortgage payments rang oddly, as my wife and I have neither — we’re both pensioners."

David Lawson, from Northampton, deleted it instantly:

‘The way it looked, with a picture of wedding rings, and its language talking of credit card details and even a photo ID really made it feel like a fake or phishing email."

It has been possible to register for the new allowance since February online. However, a helpline will also be launched later this year.

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"

Restriction of Non Residents' Personal Allowances

The hard up Treasury is planning more tax raids, this time on British expats who have an income in the UK (eg from renting out property).

Under plans, first mooted by Osborne in the March Budget, expats will be denied the right of the £10K personal allowance.

The rationale for this being that it would bring the UK tax system into line with the US, Canada and much of the EU.

The reality being that the state is broke and is desperate for cash.

The Telegraph notes that at the moment this might affect up to 400,000 people, but not the 1.2M retirees who are counted as UK residents for tax purposes (because they spend half the year in the UK, or because they are only taxable in the country of residence).

However, there will need to be exceptions inserted into any legislation; otherwise former civil servants, NHS workers and council officials living overseas will pay more tax as may British diplomats and missionaries.

A spokesman for the Treasury said:

“The increases the government has made to the personal allowance support hardworking people by helping them to keep more of the money they earn and, as a result, is one of the most generous in the world. 

At the same time, we believe that it is reasonable to consider whether non-residents who receive income from the UK are paying a fair share of tax on that income, in this country.”

The phrase "fair share" has become government mantra for "pay what we decide you should pay".

On the assumption that the expats were "hardworking" when in the UK, and paid a "fair share" when they were here, why should they now lose the allowance that everyone else is entitled to?

The deadline for comments on the consultation is 9 October.


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"

Minister Challenges HMRC

LGC reports that local government minister Brandon Lewis is challenging HMRC over its decision that councillors should pay tax on travel allowances for journeys from their residences to the town hall.

Lewis got involved when several authorities began to tax the allowances in response to the warnings from HMRC.

Under HMRC guidance, councillors must pay tax on the allowances unless they can prove their home is the site of their core work, which includes being the location for their meetings with constituents.

Several councils have indicated that tax officials have started raising the issue in routine visits, since an HMRC ruling that Kent CC tax its members on the allowances.

I am a tad confused as to why the councillors have only just started being taxed on their "to council" travel allowances, given that (subject to them meeting their constituents in their homes) their normal place of work is the council. Private sector employees are not entitled to claim tax relief on travel allowances paid for travel between their homes and their normal place of work, why should councillors be treated differently?

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"