Hypocrisy In Action

HMRC have appointed Volker Beckers to one of its Non Executive Director roles.

The appointment of Beckers has raised a few eyebrows because he was CEO of RWE npower, a company that hit the headlines last week after it emerged that it had paid no tax in the years 2009-2011.

An out of date CV of Beckers can be found on GOV.UK , aside from not mentioning his new role within HMRC it also neglects to mention the fact that he stepped down as Npower's CEO in January 2013 (although he does remain in an advisory capacity).

Ian Lavery MP, a member of the Commons Energy and Climate Change select committee, is quoted by the Guardian:

"(Chancellor) George Osborne has serious questions to answer about why he has appointed the boss of an energy firm which paid no corporation tax in the last three years, despite making £766m in profits, to the board of HMRC. HMRC has a bad enough record at stopping tax avoidance as it is."

EDF*OFF, a group set up to campaign against the dominance of the big six suppliers, is also unimpressed and claims that the appointment is deeply embarrassing for the HMRC at a time when it is trying to rebuild public trust following the departure of former head, Dave Hartnett, after signing much-criticised sweetheart tax deals with Goldman Sachs and then joining HSBC.

Npower says that the low tax payments result from the fact that the German-owned company has been investing billions of pounds in new gas and other power stations.

Meanwhile HMRC told the Guardian:

"Non-executive directors bring valuable external and commercial experience to HMRC. However, they are not responsible for the day-to-day management of HMRC, nor are they responsible for tax policy or for handling confidential individual or corporate taxpayer issues." 

I have absolutely no problem with companies/individuals arranging their affairs in order to reduce their tax bill. However, this government and HMRC have repeatedly voiced their opposition to tax avoidance; hence the appointment of Beckers seems a tad "out of kilter" with current government policy towards avoidance.

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



Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Mayday Mayday!

A Mayday warning from HMRC about their £10 per day penalty charges for late online filing:

"If you haven’t sent in your 2011/12 tax return online, be warned – you’ll be hit with more penalties from next month if you still haven’t filed. 

From 1 May, HM Revenue and Customs (HMRC) will charge a £10 daily penalty for each day your online return is late, up to a maximum of 90 days. This is in addition to the initial £100 late-filing penalty for missing the 31 January filing deadline.

For paper returns, daily penalties started on 1 February, as they were due by the earlier deadline of 31 October. So don’t send a paper return now, as it will trigger an amount equal to, or close to, the maximum daily penalty charge of £900.

Looking ahead, further penalties of at least £300 (or 5 per cent of the tax due, if that is more) will be issued for returns that are 6 and 12 months late.

Anyone who’s received a late-filing penalty, hasn’t yet sent a return, but thinks they don’t need to be in Self Assessment, should call HMRC on 0845 900 0444. If HMRC agrees, the return and any penalty will be cancelled."

You have been warned!

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



Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Faster Payments Confusion

My thanks to loyal reader Stuart Jones, who pointed me to an article on his site 3CA Blog about a wee bit of confusion caused by HMRC's advice contained in Employer Bulletin Issue 44 (April 2013) about faster payments.

The Faster Payments website states:

"The service allows customers to make payments over the phone or through online banking all day, every day, and be assured that they reach their destination almost at the touch of a button."

Unfortunately HMRC have issued a rather confusing caveat about speed of payments. As per Stuart:

"HMRC suggest that a payment made on Wednesday 22 isn’t credited until Thursday 22 (whichever day that is!). I’m not certain if they do agree that the money will be credited on Wednesday 22 or they disagree and it will not be credited until the following day, i.e. Thursday 23"

 

Helpfully, HMRC then state that:

"Late payment penalties are wholly avoidable by allowing enough time for cleared payments to reach us by the payment deadline."

Anyone care to clear up the confusion?

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



Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Child Benefit Not Taxable

It's official, child benefit is NOT taxable.

That is at least the view of GOV.UK!

However, the reality is that those on higher rate who receive it have it clawed back via tax.

This "little snafu" by HMG just goes to show how complex that tax system really is, because if the people who actually make up the rules for tax can't get it right then what hope do the rest of us have?

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



Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Unpaid Interns

Sky News reports that the details of 100 companies accused of breaking the law by using unpaid interns in paid roles have been handed to HM Revenue and Customs by Employment Minister Jo Swinson.

I wonder if David Gauke is on the list (he advertised for an unpaid intern in March 2012)?

Oh, and by happenstance, I see that Paul Burstow MP is advertising for one now.....as does Rory Stewart MP.

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



Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Lean On Me - Toyota In Another Massive Recall

Toyota, the company that bequeathed the world and HMRC "LEAN", has had to issue yet another recall of cars along with Nissan and Honda.

Reuters reports that 3.4 million cars are being recalled because of issues over airbags.

As per a loyal reader this morning:

"LESSONS FROM THE WHITEBOARD STILL NOT LEARNT...

Memo to all managers and evangelista's

Its all gone pear-shaped, again!

Manufacturer's of what are sometimes known as "rice burners" such as Toyota, Nissan & Honda would appear to have been involved in yet another round of multi-millon, world-wide vehicle recalls involving safety issues (don't forget, recalls are usually a last resort after ignoring the problem with collective insertion of heads into places where the sun don't shine).

Is there a lesson to be learnt from this?

There is, despite all the hype, Pacesetter/Lean systems, as developed from the land of the rising sunny (Nissan), are unable to cope with the rigours of mass production environments.

What does this mean? Despite years of man/women hours and billions of Yen, Pounds and Dollars it is now there for all to see, it does not work, and continues to fail regularly.

Watch out for falling lemmings and other practitioners of hari kari (that's falling on your sword for Excom!)."

Sadly I suspect that HMRC will not give up using LEAN, whatever the cost!

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



Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"