HMRC's Bulging Sack

Much like Santa Claus, HMRC seems to be suffering from a bulging sack.

John Battle MP (Leeds) recently claimed that a six week backlog of mail has built up at HMRC's offices in Lisbon Street. Mr Battle discovered the backlog after phoning up HMRC on behalf of a firm in his constituency.

The call took a somewhat circuitous route, first to Cardiff then to Wrexham.

Mr Battle is quoted in the Yorkshire Evening Post:

"People's papers seem to be scattered around the country with no serious tracking mechanism.

People really do want a more satisfactory service, not least because it could mean a serious risk to jobs at a time when there is a squeeze.

I am tabling questions to ask whether the Treasury can address the responsiveness of the Leeds tax office.

If they need more staff, get a few more staff to cope with the pressure and help stop businesses from going under."

HMRC have denied that there was a six week backlog in unopened post.

Tax does have to be taxing.

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Bankrupting For Britain

Official figures reveal that the number of personal bankruptcies triggered by HM Revenue and Customs is expected to be almost 33,000 this year. In 2006-07, before the economic turmoil, the tax authorities bankrupted just 12,134 people.

Source The Telegraph.

Way to go HMRC!

Tax does have to be taxing.

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"

Madness!

The BBC reports that thousands of parents are paying claims management firms to reclaim a now defunct tax-allowance, even though they could do it themselves by contacting HMRC directly.

Back-dated claims for the old Children's Tax Credit must be made by 31 January 2009.

Is it not time that our creaking, massively over complex and confusing tax system was given a thorough overhaul and simplified from top to bottom?

Tax does have to be taxing.

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"

Tis The Season - An Appeal

At this time of year, when many are overindulging in the annual Christmas booze/gluttony fest, it is only decent that we spare a thought for people less fortunate than ourselves who cannot partake of such merriment due to their particular circumstances.

In particular I would like to highlight the plight of tax agents at this time of year, who are toiling all hours to make complete their clients' tax returns in time for the tax year end.

I received a missive from one such agent the other day who noted, with a degree of exasperation, that yet again (as per previous years) HMRC have employed a market research company to garner "customers'" views on the performance of HMRC.

Whilst the survey (estimated to take around 15 minutes or so) may well be of benefit to both the "customers" and HMRC itself, the timing of the survey (at the busiest time of the year for tax agents) could not be worse.

This year's appeal is to HMRC, to ask them to reschedule the survey to a time of year when their "customers" have time to go through the survey and submit more considered and useful responses.

Come on HMRC, spare a thought for those who are toiling away trying to meet the year end deadline.

Tax does have to be taxing.

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"

SAYE Bonus Rates Reduced

Bonus rates for the Save As You Earn (SAYE) Sharesave scheme, administered by HMRC, have been reduced as a result of the cut in interest rates.

The FT notes that:

"On a three-year contract, the bonus rate is now 1.5 times the value of an employee's monthly payments, down from 2.4 times. This lowers the effective interest rate to 2.67%, down from 4.23%".

When will the rate charged by HMRC on overdue tax be cut in line with interest rates?

Tax does have to be taxing.

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"

MP Thrown Out of HMRC Office - Update

Sources close to Edward Timpson MP have advised me that the morning that HMRC announced the closure of HMRC Crewe, Mr Timpson travelled straight up to the office from London to meet his constituents and the campaign team that he had worked with over the last 6 months.

Local managers were told in advance, and Mr Timpson had met with the Financial Secretary to the Treasury (FST) twice in the preceding two days.

However, because Mr Timpson hadn't specifically requested permission from the FST and Workforce Change that morning, a regional manager in another office ordered his ejection.

Mr Timpson lodged a protest with the FST, and his staff were told that the FST would apologise in the lobby.

HMRC seemed to have forgotten to tell the press that bit.

Tax does have to be taxing.

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"

MP Thrown Out of HMRC Office

Here is rather an odd story published in the Crewe Chronicle, about Crewe & Nantwich MP Edward Timpson being forced to leave the HMRC Crewe office.

I wonder what the particular "protocol" that he didn't follow was that so annoyed HMRC?

CREWE & Nantwich MP Edward Timpson has lodged a formal protest after being forced to leave the premises at Crewe tax office.

Mr Timpson had hot-footed it by train from London following the announcement the Crewe office was to close.

But he was forced to meet with worried staff, some of them in tears, on a car park opposite the Oak Street office after being told to leave the premises.

As he left the office building, an angry Mr Timpson said: “I have been asked to leave because they (management) said the proper protocol was not followed. I was here to see the workers in that building, most of whom are my constituents, who have just found out they’ve lost their jobs and want my support.

“That’s why I’ve come all the way from London and I can’t believe I’ve been asked to leave.”

The Conservative MP said he had travelled to Crewe to lend his support to the workers at this difficult time. He has now complained to Financial Secretary Stephen Timms’ office about his treatment by HMRC managers.

Mr Timpson added: “To deny an MP access to his constituents at a time when his constituents need him most is an outrage.”

An HMRC spokesman said: “We apologise for any inconvenience to Mr Timpson but we do have protocol and strict guidelines in place for visits to any of our offices.

“Mr Timpson is aware of the protocol as he’s gone through it before on previous visits and it does appear to have been sidestepped on this occasion.”

Mr Timpson has branded the consultation process leading up to the closure of the tax office “a sham”.

Tax does have to be taxing.

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"

MPs Recommend Anti Terror Legislation

Members of the Commons Public Accounts Committee have, according to Accountancy Age, recommended that HMRC beef up its investigations into the "cash in hand" economy by using anti terror legislation.

Quote:

"The Department should consider whether to seek alternative powers to strengthen this work."

I cannot say that I agree with the committee:

1 The anti terror legislation was brought in to deal with terrorists, not moonlighting taxi drivers et al. RIPA is already massively misused by local authorities.

2 A better solution would be to simplify the tax system; cut direct taxes, introduce a single band of tax, increase personal allowances and increase VAT. That will draw in the undeclared tax from the "cash in hand" economy, and cut the cost of administering our already over complex tax system.

Tax does have to be taxing.

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"

Changing The Rules of The Game

You know that the government is strapped for cash when the rules of the game are charged wrt tax reclaims.

New rules introduced by HMRC, effective from April 2009, will mean that even if a business wins a claim in a VAT Tribunal for overcharging it may not be able to reclaim its legal and accountancy costs from HMRC, unless it can prove that HMRC has acted unreasonably.

Proving that HMRC acted "unreasonably" will be tough.

This effectively means that small firms will not bother to try to reclaim overpayments, unless they are excessive.

Is this fair that small firms are being disadvantaged in this manner?

No.

However, small firms are easy targets; especially when a government is broke.

Tax does have to be taxing.

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"

Recession Bites

Clearly we are heading for a deep recession, whereby incomes will be slashed and by definition tax take reduced, as HMRC are (according to the Public and Commercial Services union) shedding 3,400 jobs over the next two years.

However, The Telegraph notes that HMRC have accused the PCS of "scare-mongering".

Tax does have to be taxing.

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"

Online Submission Problems

Can anyone help Sandra with her query posed on AccountingWeb?

Is anyone else having this problem?

I submitted a tax return on hmrc's website, using their online software. I keeping getting this message>>>>>>

'ERROR: We cannot verify that your return was successfully submitted to HM Revenue & Customs. Please click 'Next' so that we can do this now and verify your return was submitted'

On clicking next I get this message>>>>>

System busy
We are not able to confirm that your return has been successfully received

I've spoken to HMRC helpline about this several times and each time, they tell me their IT department is dealing with it and they cannot tell me how long it would take to resolve.

I'm a bit concerned as i submitted this return about 3 weeks ago and it seems a long time to wait for this to be resolved.

Has anyone on this board encountered this type of problem and what did they do to resolve it?

Many thanks

Sandra

I wonder if HMRC have considered "turning it off and turning it on again"?

Tax does have to be taxing.

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"

LOL!

SIR - Following the result of using the Royal Mail recorded delivery service, I have a cunning plan to save people money during the credit crunch.

I sent a very important cheque for my tax return to the tax man by Royal Mail recorded delivery.

I went online each day to check the progress of the letter.

After six days the letter had not 'arrived', but my bank statement showed the cheque had been cashed!

I continued to check the progress of the letter, but after 21 days, according to the Royal Mail computer, it still had not been delivered.

I phoned the Royal Mail and was told that large numbers of letters to places like the tax return office were checked only with a list of the recorded letters, so that it only requires one signature for the lot.

My letter was still reported as undelivered, so I sent a letter of complaint and received an apology and a book of six first class stamps.

So here is my cunning plan:

Buy 50 cheap envelopes and send them (empty) to HMRC Accounts Office BD9 88AA by second class recorded delivery. This will cost about £50, including the envelopes.

Wait 21 days and fill in a complaint form at your local post office for each non-recorded delivery (they won't be recorded).

You will receive 50 apologies and 50 books of six first class stamps, valued at £108.

That's a profit of around £58.

What can possibly go wrong?

Cheers.

Bruce Piggott (electronic engineer retired), WGC.

Source Welwyn and Hatfield Times 24.

Tax does have to be taxing.

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"

A Hammer To Crack a Nut

Brian Collins, chief scientific advisor at the Department for Transport and the Department for Business, spoke at a conference recently about last year's Datagate scandal when HMRC lost the personal details of 25 million people.

He said that the loss should have been prevented, and that the system should have flagged up a warning not to transfer such large amounts of personal data onto unencrypted discs.

"The system design should never have allowed the [data loss].

They should be designed to stop people going off the edges of what is acceptable. Why are we not doing this?

Because it costs."

Maybe so, most certainly about cost cutting leading problems wrt security and service levels. However, he ignores the fundamental issue wrt Datagate namely that the data was sent by courier on an unencrypted disc.

No expensive system add on was needed to "flag up" that using couriers and unencrypted discs to transfer sensitive data was just daft. Decent procedures and training should have covered that point.

Tax does have to be taxing.

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"