Death and Taxes - HMRC's Bespoke Approach

Irrespective of the fact that people pay taxes during their lifetimes, the state still requires its pound of flesh when they die.

However, although it won't cut the taxes due, HMRC is going to cut down on the amount of information it requires for the bereaved to reclaim tax or pay tax when someone dies.

In 2012, HMRC gave a commitment to improve its service for bereaved taxpayers. 

One of the main changes will make relates to form R27, which is for reclaiming tax or paying tax when someone dies. The FT Adviser notes that of the bereavement calls received by HMRC, 34% were about filling in the form and 15% were to get an update on the progress of the form.

HMRC, in an effort to free up its phone lines, will now use real time information to obtain all the pay and tax information it needs from bereaved taxpayers, making the form R27 unnecessary and ready for removal on 13 October.

For PAYE taxpayers, there will be an automated process, and for self assessment taxpayers there will be what HMRC calls “a tailored service,” which includes letters that match the individual’s circumstances.

According to HMRC, removing the form means taxpayers will get their tax affairs sorted quickly and need to contact it less. That of course is only true if the data used by HMRC is accurate.

As the old saying goes, there are two certainties in life death and taxes!

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"

Nudge Nudge, Wink Wink

Beaker Alexander has proudly told the world that HMRC is now using a team of psychologists and "behavioural economists" to make people feel guilty if they don't pay their taxes on time.

LOL!

Those who deliberately evade taxes don't give a fark about feeling "guilty".

Anyhoo, it seems that HMRC has subtly altered the wording of hundreds of thousands of letters sent out to the public to encourage people to pay up.

The Telegraph reports that the letters include statements highlighting how the "great majority" of people pay their taxes on time, while also setting out the importance of taxes in funding public services.

A similar "nudge" approach, developed by the government's "behavioural analysis team", is being used to target potential tax evaders who are being sent letters asking them to clarify their tax affairs.

Earlier this year HMRC has sent 5,000 "nudge" letters to people with Swiss accounts, urging them to pay any outstanding tax. Those who do not respond face a full tax inquiry.

Beaker told his Liberal colleagues:

"We are using psychologists and behavioural economists in HMRC to get the money quickly. 

Tax dodgers beware – we know where you live, we know how much you owe, and now we know how you think. Your behaviour is unacceptable, and we are coming for our money."

HMRC said it conducted "large scale" trials involving 100,000 taxpayers to "pinpoint the exact words and concepts" which make people more likely to pay their taxes.

The letters now include phrases such as "nine out of 10 people in the UK pay their tax on time", or "most people with a debt like yours have now paid it". In many cases, local comparisons were used to encourage people to pay up.

I wonder if HMRC has sent such letters to companies such as Google?

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"

Money Money Money

HMRC August data for expenditure above £25K shows that it spent over £800,000 on credit card commission charges in August.

Other tidbits include our old friends Mapeley which received £18.7M (which included costs of utilities payments and refurbishments).

HMRC also paid £77M for the accommodation and ‘other’ expenses of information management service provider Aspire. Capita received £579K for training costs, law enforcement training, HR services, debt management and knowledge analysis and intelligence.

Exchequer Partnership received £2.5M for the serviced accommodation at 100 Parliament Street, London (HMRC's bunker).

 

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"

Scanners

According to the Telegraph recently, within months a major British bank will start using personality tests as part of its decision making about whether or not to lend to individuals.

In theory this will allow lenders to form an idea of how we would be likely to behave in certain scenarios. It tests our work ethic and, according to the firm that pioneered it, VisualDNA, it assesses our “humility”.

“Do you feel you have a right to material goods such as cars and expensive TVs? Or do you feel you have to earn and afford these things?” asks one of the firm’s directors, in explaining the type of information the test elicits. “Not everyone has a credit score, but they do have a personality.”

What has this got to do with HMRC?

Alarmingly the article goes on to speculate that HMRC will adopt this technique, as it has been quick to adopt much of the data-screening technology of the private sector.

This will not end well!

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"

ICAEW Survey

The ICAEW Tax Faculty will conduct a survey this October, garnering the views of members working in small practices about HMRC's service standards.

As per the ICAEW:

"Over the next few weeks, you might be contacted by Kudos Research, an independent market research agency we have commissioned, to take part in this important study.

HMRC service standards have been a major concern for practitioners for a number of years and we would like to use the results of this research not only to highlight the major areas of concern, but also to identify any areas where there have been improvements. The results will be fed back to HMRC and also published on our website.

Your feedback and input is vital and we would appreciate your contribution if you are approached. The interview should take no more than 10 to 15 minutes and can be arranged at a time most suitable for you. Please be reassured that that all feedback will remain anonymous and confidential.

Please note that this research is a follow up to our previous annual online surveys the results of which can be found through ICAEW 2012 survey HMRC service standards.

HMRC publishes its own performance statistics and it is important for us to find out how your experiences as an agent match the results of HMRC’s survey.

If you have any questions about the research please contact Philippa.Stedman@icaew.com at ICAEW."

The results will be interesting, as to whether HMRC acts on the findings is of course another matter.

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's Digital Journey

HMRC has published Digital Strategy: 2014:

"Every customer in the UK will have their own personalised digital tax account, so we can help make it simpler, quicker and easier to pay the right tax at the right time. 

This will have big implications for our staff, as well as our customers, involving changes to the types of job we will be doing and the skills we will need."

Moving on:

"Our ‘exemplar’ digital projects for individuals have already been launched:

• PAYE for Employees – making it easier for customers to tell us about changes that affect their tax code
• Digital Self-Assessment – making Self-Assessment filing a completely digital process"

Beyond 2018 most interaction with "customers" will be automated through digital self-service, and data will be collected and analysed over short periods (e.g. daily or hourly); enabling near real time responses to change.

HMRC states that it is building a new digital platform with a common infrastructure that links existing and new systems. The objective is to be more consistent and responsive. The platform will be secure, reliable, flexible and scalable. HMRC wish to manage customer contact flexibly through a range of communication channels including phone, secure messaging and webchat.

"To ensure that no one is excluded from our digital services, we will provide extra support to customers who need it through our assisted digital and inclusion services."

HMRC will recruit new staff; ranging from experienced specialists to talented graduates and apprentices and form flexible multi-disciplined teams, located together.

"This is our digital journey."

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"