HMRC Self-Assessment Helpline Closure Strands Construction

 

The construction industry's army of self-employed workers have been left stranded after HM Revenue and Customs (HMRC) closed its self-assessment helpline for 12 weeks.

The helpline, which is normally open from 8am to 6pm Monday to Friday, was shut down on June 12 and will not reopen until September 4. This means that self-employed construction workers who need help with their tax returns or other queries will have to go without support for the next three months.

This has caused widespread anger and frustration among self-employed construction workers, who say that the closure of the helpline is a major inconvenience and could lead to mistakes being made on their tax returns.

"This is a complete disaster," said one self-employed construction worker. "I've been trying to get through to HMRC for weeks, but I can't get through. I need help with my tax return, but I don't know what to do."

Another self-employed construction worker said: "I'm really worried about making a mistake on my tax return. I've never done one before, and I don't know what I'm doing. I wish the helpline was still open so that I could get some help."

HMRC has defended the closure of the helpline, saying that it is necessary to free up staff to deal with more urgent cases. However, self-employed construction workers are not convinced.

"This is just a way for HMRC to save money," said one worker. "They don't care about us. They just want to make our lives as difficult as possible."

The closure of the helpline is the latest in a series of problems that have faced self-employed construction workers in recent years. In 2019, HMRC introduced a new online tax return system that was plagued with problems. Many self-employed workers were unable to file their tax returns on time, and some were even threatened with penalties.

The closure of the helpline is another blow to self-employed construction workers, who are already facing a number of challenges, including rising costs and a shortage of skilled workers.

"This is just another way for the government to make life harder for us," said one worker. "We're already struggling, and now this. It's just not fair."

The closure of the helpline is a major inconvenience for self-employed construction workers, and it is likely to lead to mistakes being made on tax returns. It is also another sign of the government's neglect of the self-employed sector.

Tax does have to be taxing.

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HMRC's Double Standards

Accountancy Age reports that HMRC lost a tribunal, brought against them by Philip and Tracey Ithell (who run a construction firm), because HMRC failed to produce evidence that it sent a computer-generated letter to the appellants.

The appellants claimed that they did not receive a letter from HMRC giving them notice that their gross payment status was being cancelled. HMRC had no evidence that the letter had been sent, other than a screenshot of a note that a letter had been sent.

HMRC lost the case because they could not establish with certainty that the appellants had been given notice of cancellation.

The ruling highlights the double standard (ie hypocrisy) in HMRC's "mindset" wrt letters and postal delays.

Send HMRC a payment (or letter advising them of a material change in tax circumstances) which arrives late or is lost, and HMRC will not accept/listen to evidence wrt the delay/loss.

Yet, in this case (with the boot very much on the other foot), they were attempting to argue that because "they knew" and could "prove" (proof which was not accepted by the tribunal as being sufficient) that they had sent the letter it must have arrived at the intended destination on time.

HMRC can't have it both ways!

Tax does have to be taxing.

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Peterlee – Emerald Court, Bracken Hill Business Park

I have, on occasions, mentioned Mapeley (an offshore property company) and the rather lousy deal that HMRC made with Mapeley.

Here is a wee example of how HMRC, albeit inadvertently, have helped others make a nice little profit.

Source Drivers Jonas Deloitte

Client
Matrix Securities Ltd

Area of Advice
Disposal of a call centre

Vendor
Matrix Securities Ltd

Purchaser
Mapeley

Terms
Sold for £11.1m to show a net initial yield of 6.0%.

Date of Deal
June 2006

Our Role
We arranged the sale of a 61,000 sq ft call centre, let to the Inland Revenue, with a passing rent £717,000 pa.

The syndicate, put together by Matrix who funded the construction of the property on a speculative basis 7 years ago, were thrilled with the outcome - some £1m over expectations and provided them with a very healthy return."

I suppose though that an element of the profits made by all the parties involved, those who are onshore at least, are taken back by HMRC via tax.

Tax does have to be taxing.

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Question

If offshore tax havens are so evil, in the eyes of the Treasury and HMRC, why are HMRC's buildings subject to a sale and leaseback deal with Mapeley PLC (a property company based offshore in Guernsey)?

"In April 2001 we purchased the portfolios of the department of Inland Revenue, HM Customs & Excise and Valuation Office Agency (since merged into HM Revenue & Customs - HMRC). These portfolios totalled 147 freehold properties and 454 leasehold properties. Our agreement with HMRC includes 20 year sale and leaseback and the provision of comprehensive property and facilities management services to most of the HMRC estate.

As at 30 June 2008, the total value of this portfolio was £526.8 million.

Under this contract we own the freeholds and manage the leaseholds occupied by HMRC as principal (we take the risk of rising rents and we benefit from falling costs), provide a full facilities management and carry out construction fit-out works on behalf of HMRC to a pre-agreed price."

Tax does have to be taxing.

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Computer Says No - HMRC Shuts Down Its System

Those of you attempting to engage with certain parts of HMRC's online systems today will have a few problems.

HMRC will shut down its main online processing systems from 8am today (20th August) for 24 hours, to undertake essential maintenance and upgrade work.

The online mechanism for entering data and filing self assessment tax returns, VAT returns, Corporation Tax and PAYE returns will be unavailable according to a very well hidden page on HMRC's site.

Also shutdown will be the online systems for administering Child Benefits, the Construction Industry Scheme (CIS), the EC Sales List (ECSL) and Reverse Charge Sales List (RCSL), Inheritance Tax (IHT) form requests, pension schemes, Stamp taxes and the shared workspace facilities.

Here's a radical thought, how about putting information such as this on the main web page?

Could it be that they don't want too many people to know that their online systems suck?

Tax does have to be taxing.

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Judge, Jury and Executioner

I am amused to see that the people running HMRC are fans of Judge Dredd; where Dredd is judge, jury and executioner.

It certainly seems that HMRC have taken this fantasy story as being a fact based model, on which to base their new modus operandi.

Under new penalty provisions, HMRC will set the level of fines for tax offenders and also decide the degree of fault.

That's nice!

I assume that it will help cut down on all that time wasting bureaucracy, whereby a third party would have to become involved in assessing guilt and determining the level of fine (if appropriate).

The new provisions (published on 1st of April - no joke!) will result in a penalty of up to

-30% of the tax due if the error is "careless";
-a penalty of up to 70% of the tax due if the error is "deliberate";
-and a penalty of up to 100% of the tax due if the error is "deliberate and the customer conceals it".

The new penalties will initially apply to errors on returns and documents for income tax, VAT, PAYE, national insurance, capital gains tax, corporation tax and the construction industry scheme.

They will kick in on return periods starting on or after 1 April 2008.

The sting in the tail with the new penalties is not just the level of penalty, but also the fact that HMRC will decide the degree of fault.

HMRC state that their benchmark of "reasonable care", when determining the seriousness of the "error", will vary according to the person involved, their circumstances and their abilities.

Somewhat subjective, don't you think?

Don't worry though; HMRC, like the Pope, is infallible (in its mind anyway).



Tax does have to be taxing.

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