Friday, 30 July 2010

Debt Collection Farmed Out


A few weeks ago I noted the following:

"HMRC debt collection agents out in the field are now forbidden from contacting HMRC offices to validate the debts that they are being asked to collect.

For why?

It seems that the support teams back at base do not have the time to take phone calls.

That at least is the official explanation given to the field farce. However, it is widely suspected that the real reason is that HMRC is preparing the ground for this work to be given to private debt collection agencies. These private agencies, quite correctly, will not be able to phone up HMRC offices and ask for details from confidential records.

FYI, the budget announced that another £500M of debt would be handed over to private debt collection agencies to chase.

For why?

Well it seems that a pilot scheme went very well for the debt collection agencies.

The agencies were given a tranche of work to do, and a control tranche was left with HMRC teams (but was left completely untouched).

Can you guess what happened?

Yes, that's right, the debt collection agencies won!

Simple!
"

The FT now reports that four debt collection agencies (Commercial Collection Services, Credit Solutions, Fairfax Solicitors and iQor Recovery Services) will be used by HMRC to collect an extra £140M of tax owed this year.

I dare say a wander through Google may well highlight the "house style" and "idiosyncrasies" of these firms (eg iQor Recovery).

HMRC cite the fact that their "pilot scheme" (that I referred to a few weeks ago) was so successful, that using private firms is therefore a good idea.

We shall see!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Thursday, 29 July 2010

HMRC Owes £3BN


Yesterday's list of certain HMRC email addresses caused a degree of consternation amongst some readers, who expressed concern that "bulk emailing" people would produce no tangible beneficial result.

Were HMRC a well run organisation, with only the occasional blip wrt "customer care", which had effective and efficient means of communication to/from the taxpayer then I would be inclined to agree.

However, it doesn't:

-There is a postal backlog of at least 8 weeks.

-Call centres are overloaded.

-There are no email addresses (or indeed web contact forms) published on the HMRC.

The taxpayer has little option left than to make a "protest", and to show how dissatisfied they are with how their tax communications/problems are being handled.

Bulk mailing that, in effect, "jams up the works" will force those responsible for the mess that HMRC has become to focus their minds a little more on the problems that taxpayers (and indeed HMRC staff) are having.

Sorry folks, the traditional means of communication are failing, the taxpayer needs another method to make his/her voice heard.

On that subject I see that the National Audit Office (NAO) reports that because of the problems with HMRC's new computer system, which combined National Insurance and PAYE payments for the first time, there is a backlog of overpaid taxes of £3BN going back two years.

HMRC are also owed around £1.4BN in unpaid tax.

These problems, according to the NAO, affect around 15 million people.

For good measure the NAO noted that the problems with the new system cost HMRC (or rather cost the taxpayer) an additional £33M.

It seems to me some bulk emailing (polite, not abusive), nothing else has worked, is just what HMRC needs to help focus its attention and to "unbung" its internal blockages.



Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Wednesday, 28 July 2010

Making Contact With HMRC II

HMRC Call Centre
My thanks to a loyal reader who sent me this list of email addresses of the "great and good" (please note the "..") in HMRC and others with a passing interest in HMRC issues.

Maybe a bulk mailing of all of these people is worth trying, if all else fails when trying to resolve a tax issue/make contact with HMRC?

As with any list, it is time sensitive.

Alan.carter@hmrc.gsi.gov.uk

alison.kenyon@hmrc.gsi.gov.uk

andrew.cullenaine@hmrc.gsi.gov.uk

andrew.miller@hmrc.gsi.gov.uk

andrew.pardoe@hmrc.gsi.gov.uk

anne.shevas@hmrc.gsi.gov.uk

Avril.Clydesdale@hmrc.gsi.gov.uk

Barbara.e.Jones@hmrc.gsi.gov.uk

Basil.Rajamanie@hmrc.gsi.gov.uk

bernadette.kenny@hmrc.gsi.gov.uk

Bob.Gaiger@hmrc.gsi.gov.uk

bruce.stewart@hmrc.gsi.gov.uk

carol.mellor@hmrc.gsi.gov.uk

carole.henderson@hmrc.gsi.gov.uk

ccp.disclosure@hmrc.gsi.gov.uk

cherryne.mclennan@hmrc.gsi.gov.uk

cherryne.mclennan@hmrc.gsi.gov.uk

Chris.Hopson@hmrc.gsi.gov.uk

chris.tailby@hmrc.gsi.gov.uk

christopher.allen@hmrc.gsi.gov.uk

claire.gough@hmrc.gsi.gov.uk

clare.hutchison@hmrc.gsi.gov.uk

Clare.Merrills@hmrc.gsi.gov.uk

claudine.lashley@hmrc.gsi.gov.uk

Cliff.Hathaway@hmrc.gsi.gov.uk

colin.kirk@hmrc.gsi.gov.uk

Cosima.Duggal@hmrc.gsi.gov.uk

dave.hartnett@hmrc.gsi.gov.uk

david.b.bailey@hmrc.gsi.gov.uk

David.Hogg@hmrc.gsi.gov.uk

david.lowe@hmrc.gsi.gov.uk

david.richardson@hmrc.gsi.gov.uk

david.thomas@hmrc.gsi.gov.uk

Dawn.Charles@hmrc.gsi.gov.uk

dawn.page1@hmrc.gsi.gov.uk

derek.tilstone@hmrc.gsi.gov.uk

Des.crawford@hmrc.gsi.gov.uk

douglas.tweddle@hmrc.gsi.gov.uk

duncan.calloway1@hmrc.gsi.gov.uk

Elaine.Graham@hmrc.gsi.gov.uk

Emma.l.bailey@hmrc.gsi.gov.uk

Francis.Taylor@hmrc.gsi.gov.uk

gabs.makhlouf@hmrc.gsi.gov.uk

geoff.i.webb@hmrc.gsi.gov.uk

geoff.lloyd@hmrc.gsi.gov.uk

george.jones@hmrc.gsi.gov.uk

georgina.harper@hmrc.gsi.gov.uk

gill.jayes@hmrc.gsi.gov.uk

grant.smith@hmrc.gsi.gov.uk

Hasan.Mustafa@hmrc.gsi.gov.uk

Helen.Danson@hmrc.gsi.gov.uk

Helen.Jones@hmrc.gsi.gov.uk

hema.rana@hmrc.gsi.gov.uk

iain.mcneill@hmrc.gsi.gov.uk

jan.marszewski@hmrc.gsi.gov.uk

jane.frost@hmrc.gsi.gov.uk

jane.hodge@hmrc.gsi.gov.uk

jane.humphreys@hmrc.gsi.gov.uk

Jennie.Kendall@hmrc.gsi.gov.uk

John.brandwood@hmrc.gsi.gov.uk

john.loughney@hmrc.gsi.gov.uk

john.owen@hmrc.gsi.gov.uk

John.Spence@hmrc.gsi.gov.uk

jon.allen@hmrc.gsi.gov.uk

June.Davison@hmrc.gsi.gov.uk

karen.culliford@hmrc.gsi.gov.uk

katherine.fox@hmrc.gsi.gov.uk

Kathryn.Corcoran@hmrc.gsi.gov.uk

kathy.barnes@hmce.gsi.gov.uk

kevin.robertshaw1@hmrc.gsi.gov.uk

lisa.billard@hmrc.gsi.gov.uk

malcolm.phelps@hmrc.gsi.gov.uk

mark.fuchter@hmrc.gsi.gov.uk

nic.perks@hmrc.gsi.gov.uk

nicholas.clappen@hmrc.gsi.gov.uk

Nigel.Philipson1@hmrc.gsi.gov.uk

peter.starling@hmrc.gsi.gov.uk

robert.drummondmurray@hmrc.gsi.gov.uk

uktradeinfo@hmrc.gsi.gov.uk

val.hennelly@hmrc.gsi.gov.uk

val.n.price@hmrc.gsi.gov.uk

willie.hill@hmrc.gsi.gov.uk

bev.morgan@hmrc.gsi.gov.uk

chung-yin.chu@hmrc.gsi.gov.uk

customs.confidential@hmrc.gsi.gov.uk

darren.partridge@hmrc.gsi.gov.uk

don.macarthur@hmrc.gsi.gov.uk

duty.stamps@hmrc.gsi.gov.uk

Fiona.Cook@hmrc.gsi.gov.uk

graham.walton@hmrc.gsi.gov.uk

Ian.Tucker@hmrc.gsi.gov.uk

jane.farley@hmrc.gsi.gov.uk

John.Connor@hmrc.gsi.gov.uk

june.shearing@hmrc.gsi.gov.uk

kerrie.spendiff@hmrc.gsi.gov.uk

Kevin.rice@hmrc.gsi.gov.uk

lee.duffy@hmrc.gsi.gov.uk

Lenny.Barry@hmrc.gsi.gov.uk

Lisa.Billard@hmrc.gsi.gov.uk

lorna.mckinlay@hmrc.gsi.gov.uk

Maddy.Ratnett@hmrc.gsi.gov.uk

Maria.Finelli@hmrc.gsi.gov.uk

Mark.e.taylor@hmrc.gsi.gov.uk

marketing.online@hmrc.gsi.gov.uk

Martin.McDonnell@hmrc.gsi.gov.uk

martin.peach@hmrc.gsi.gov.uk

mary.hay@hmrc.gsi.gov.uk

mary.thompson@hmrc.gsi.gov.uk

melanie.dawes@hmrc.gsi.gov.uk

melanie.smith@hmrc.gsi.gov.uk

Melissa.McCumiskey@hmrc.gsi.gov.uk

melvyn.neate@hmrc.gsi.gov.uk

michael.hanson@hmrc.gsi.gov.uk

michael.hughes@hmrc.gsi.gov.uk

Michelle.Potts@hmrc.gsi.gov.uk

Mike.Burrell@hmrc.gsi.gov.uk

mike.eland@hmrc.gsi.gov.uk

Mike.Faulkner@hmrc.gsi.gov.uk

mike.norgrove@hmrc.gsi.gov.uk

Mike.Shipp@hmrc.gsi.gov.uk

mike.wells@hmrc.gsi.gov.uk

mitchell.johnson@hmrc.gsi.gov.uk

naomi.ferguson@hmrc.gsi.gov.uk

ncts.helpdesk@hmrc.gsi.gov.uk

nick.lodge@hmrc.gsi.gov.uk

nicolas.williams@hmrc.gsi.gov.uk

Nigel.daniels@hmrc.gsi.gov.uk

norman.gemmell@hmrc.gsi.gov.uk

northregionepuoperations@hmrc.gsi.gov.uk

open.days@hmrc.gsi.gov.uk

pa.harris@hmrc.gsi.gov.uk

pat.sorren@hmrc.gsi.gov.uk

patrick.o'brien@hmrc.gsi.gov.uk

paul.eaves@hmrc.gsi.gov.uk

paul.franklin@hmrc.gsi.gov.uk

Paul.Gray@hmrc.gsi.gov.uk

paul.king@hmrc.gsi.gov.uk

Paul.Mathews@hmrc.gsi.gov.uk

penny.ciniewicz@hmrc.gsi.gov.uk

powers.review-of-hmrc@hmrc.gsi.gov.uk

rakesh.bhandari@hmrc.gsi.gov.uk

ray.feeney@hmrc.gsi.gov.uk

ray.payne@hmrc.gsi.gov.uk

raymond.evans@hmrc.gsi.gov.uk

richard.alderman@hmrc.gsi.gov.uk

richard.mcguire@hmrc.gsi.gov.uk

Richard.Riley@hmrc.gsi.gov.uk

Ron.Barrie@hmrc.gsi.gov.uk

roy.clark@hmrc.gsi.gov.uk

Ruth.bulteel@hmrc.gsi.gov.uk

sandra.tudor@hmrc.gsi.gov.uk

sarah.knight@hmrc.gsi.gov.uk

sarah.moore2@hmrc.gsi.gov.uk

sarah.walker2@hmrc.gsi.gov.uk

sdsteam@hmrc.gsi.gov.uk

sean.griffin@hmrc.gsi.gov.uk

Sheila.Good@hmrc.gsi.gov.uk

simon.norris@hmrc.gsi.gov.uk

Simon.Oliver@hmrc.gsi.gov.uk

simon.p.smith@hmrc.gsi.gov.uk

simon.smith@hmrc.gsi.gov.uk

Sinead.Murray@hmrc.gsi.gov.uk

stephen.banyard@hmrc.gsi.gov.uk

steve.coad@hmrc.gsi.gov.uk

steve.coomber@hmrc.gsi.gov.uk

steve.lamey@hmrc.gsi.gov.uk

stuart.hartlib@hmrc.gsi.gov.uk

sue.davies2@hmrc.gsi.gov.uk

suzanne.bartlett@hmrc.gsi.gov.uk

Tom.Waples@hmrc.gsi.gov.uk

valerie.hagan@hmrc.gsi.gov.uk

vic.evans@hmrc.gsi.gov.uk

aidan.callan@hmrc.gsi.gov.uk

alec.cross@hmrc.gsi.gov.uk

alison.kenyon@hmrc.gsi.gov.uk

andrew.cullenaine@hmrc.gsi.gov.uk

andrew.hayward@hmrc.gsi.gov.uk

andrew.mawson@hmrc.gsi.gov.uk

anne.shipton@hmrc.gsi.gov.uk

bob.decroos@hmrc.gsi.gov.uk

bruno.giordan@hmrc.gsi.gov.uk

caroline.halls1@hmrc.gsi.gov.uk

chief.operations@hmrc.gsi.gov.uk

colin.mcHardy@hmrc.gsi.gov.uk

Craig.richardson@hmrc.gsi.gov.uk

customs.confidential@hmrc.gsi.gov.uk

Daniel.birkett@hmrc.gsi.gov.uk

David.mcintyre@hmrc.gsi.gov.uk

domains@hmrc.gsi.gov.uk

duncan.calloway1@hmrc.gsi.gov.uk

envirotax.bst@hmrc.gsi.gov.uk

gemma.beardsley@hmrc.gsi.gov.uk

geoff.i.webb@hmrc.gsi.gov.uk

Gill.valentine@hmrc.gsi.gov.uk

Gina.Ridley@hmrc.gsi.gov.uk

Graham.Taylor1@hmrc.gsi.gov.uk

Guy.Clarke@hmrc.gsi.gov.uk

guy.westhead@hmrc.gsi.gov.uk

hasmukh.dodia@hmrc.gsi.gov.uk

hazel.challenger@hmrc.gsi.gov.uk

hazel.kilpatrick@hmrc.gsi.gov.uk

henry.hoad2@hmrc.gsi.gov.uk

intenquiries@hmrc.gsi.gov.uk

intenquiries@hmrc.gsi.gov.uk

jobs.hmrc@hmrc.gsi.gov.uk

John.J.Hughes@hmrc.gsi.gov.uk

Joy.Guthrie@hmrc.gsi.gov.uk

julie.dufty@hmrc.gsi.gov.uk

kathleen.silvestro@hmrc.gsi.gov.uk

Kevin.Golightly@hmrc.gsi.gov.uk

lenny.barry@hmrc.gsi.gov.uk

lisa.billard@hmrc.gsi.gov.uk

maddy.ratnett@hmrc.gsi.gov.uk

Malcolm.Taylor@hmrc.gsi.gov.uk

malcolm.white@hmrc.gsi.gov.uk

margaret.allcock@hmrc.gsi.gov.uk

mark.w.young@hmrc.gsi.gov.uk

mary.thompson@hmrc.gsi.gov.uk

matthew.rablen@hmrc.gsi.gov.uk

McClory@hmrc.gsi.gov.uk

melanie.smith@hmrc.gsi.gov.uk

Michelle.McNicholas@tsol.gsi.gov.uk

moneylaunderingpolicy@hmrc.gsi.gov.uk

nicholas.clappen@hmrc.gsi.gov.uk

nicholas.williams@hmrc.gsi.gov.uk

northregionepuoperations@hmrc.gsi.gov.uk

pa.harris@hmrc.gsi.gov.uk

pat.bell@hmrc.gsi.gov.uk

patrick.wilson@hmrc.gsi.gov.uk

paul.myers@hmrc.gsi.gov.uk

Rhiannon.cross@hmrc.gsi.gov.uk

Richard.Crerar@hmrc.gsi.gov.uk

richard.mcguire@hmrc.gsi.gov.uk

Richard.Riley@hmrc.gsi.gov.uk

richard.tomsett@hmrc.gsi.gov.uk

Sean.Rabbett@hmrc.gsi.gov.uk

sharon.mole@hmrc.gsi.gov.uk

stephen.matthews@hmrc.gsi.gov.uk

Suzanne.west@hmrc.gsi.gov.uk

Sylvia.Cranston@hmrc.gsi.gov.uk

turn@hmrc.gsi.gov.uk

Val.Campbell@hmrc.gsi.gov.uk

phishing@hmrc.gsi.gov.uk

aidan.callan@hmrc.gsi.gov.uk

Alan.Chambers@hmrc.gsi.gov.uk

andrew.button@hmrc.gsi.gov.uk

andrew.pardoe@hmrc.gsi.gov.uk

bill.carr@hmrc.gsi.gov.uk

cheryl.weeks@hmrc.gsi.gov.uk

claire.gough@hmrc.gsi.gov.uk

Deepak.Singh@hmrc.gsi.gov.uk

geoff.i.webb@hmrc.gsi.gov.uk

iain.mcneill@hmrc.gsi.gov.uk

james.repper@hmrc.gsi.gov.uk

JCCC.Secretariat@hmrc.gsi.gov.uk

john.owen@hmrc.gsi.gov.uk

jon.allen@hmrc.gsi.gov.uk

June.Davison@hmrc.gsi.gov.uk

kevin.robertshaw1@hmrc.gsi.gov.uk

malcolm.phelps@hmrc.gsi.gov.uk

Mike.Hanson@hmrc.gsi.gov.uk

mike.pope@hmrc.gsi.gov.uk

nic.perks@hmrc.gsi.gov.uk

Nigel.Philipson1@hmrc.gsi.gov.uk

paul.oakes@hmrc.gsi.gov.uk

Richard.Summersgill@hmrc.gsi.gov.uk

Robin.Roberts@ezi.net

saorderline.ir@gtnet.gov.uk

Stuart.Cruickshank@hmrc.gsi.gov.uk

tellmemore@brandspanking.co.uk

val.n.price@hmrc.gsi.gov.uk

willie.hill@hmrc.gsi.gov.uk

andrew.turek@tsol.gsi.gov.uk

Ashley.Craske@tsol.gsi.gov.uk

bvinfo@tsol.gsi.gov.uk

caroline.anerville@tsol.gsi.gov.uk

christopher.knuckey@tsol.gsi.gov.uk

ClientCare@tsol.gsi.gov.uk

Contact.foi@tsol.gsi.gov.uk

daniel.denman@tsol.gsi.gov.uk

David.Bennet@tsol.gsi.gov.uk

david.dunleavy@tsol.gsi.gov.uk

david.sims@tsol.gsi.gov.uk

debbie.davies@tsol.gsi.gov.uk

Diane.Furnari@tsol.gsi.gov.uk

Elisabeth.Jenkisnon@tsol.gsi.gov.uk

emma.black@tsol.gsi.gov.uk

foi@tsol.gsi.gov.uk

frances.nash@tsol.gsi.gov.uk

gareth.buttrill@tsol.gsi.gov.uk

groupwise.postmaster@tsol.gsi.gov.uk

hayley.devine@tsol.gsi.gov.uk

ilana.conn@justice.gsi.gov.uk

Jason.Duck@tsol.gsi.gov.uk

john.davis@tsol.gsi.gov.uk

Kathy.hosker@tsol.gsi.gov.uk

laurance.odea@tsol.gsi.gov.uk

lee.john-charles@tsol.gsi.gov.uk

Lesley.Frost@tsol.gsi.gov.uk

liam.gleeson@tsol.gsi.gov.uk

Lydia.Hatton@tsol.gsi.gov.uk

mary.esplin@tsol.gsi.gov.uk

McNicholas@tsol.gsi.gov.uk

Michelle.McNicholas@tsol.gsi.gov.uk

Narita.Jally@tsol.gsi.gov.uk

nic.ash@tsol.gsi.gov.uk

ODea@tsol.gsi.gov.uk

peter.bennett@tsol.gsi.gov.uk

peter.whitehurst@tsol.gsi.gov.uk

philip.kent@tsol.gsi.gov.uk

privateoffice@attorneygeneral.gsi.gov.uk

privateoffice@attorneygeneral.gsi.gov.uk

privateoffice@attorneygeneral.gsi.gov.uk

Rakes.Parmar@tsol.gsi.gov.uk

robert.aitken@tsol.gsi.gov.uk

rukshana.shah@tsol.gsi.gov.uk

Ruth.Dunn@tsol.gsi.gov.uk

simon.harker@tsol.gsi.gov.uk

thetreasurysolicitor@tsol.gsi.gov.uk

Tim.Heywood@tsol.gsi.gov.uk

tom.macgruer@tsol.gsi.gov.uk

Trudy.Morgan@attorneygeneral.gsi.gov.uk

Urmila.Patel@tsol.gsi.gov.uk

Victoria.vincent@tsol.gsi.gov.uk

victoria.warren@attorneygeneral.gsi.gov.uk

zoe.bryanston-cross@tsol.gsi.gov.uk

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Tuesday, 27 July 2010

A Nice Little Earner

A Nice Little EarnerCongratulations to HMRC's ex Chief Information Officer, Deepak Singh, who according to ifaonline was paid £149,500 by HMRC to work three months (June 2009 - September 2009) after his leaving date.

Singh's 3 year (£160K per annum) contract ended in June last year.

However, HMRC persuaded him to stay on for another 3 months in the guise of his consulting company Orwell Consulting.

In the private sector, when headcounts are being reduced, a well known "fiddle" is to sack someone then rehire them as a consultant (thus avoiding them appearing in the headcount figures).

Needless to say, I am sure that this was not the intention or the case here.

One rather nice little benefit for Singh of this arrangement, is that he is only liable for corporation tax of up to 28% on his earnings for these 3 months, compared with the higher-rate of income tax of 40%.

I have no problem with tax avoidance. However, HMRC claims that it disapproves of it (when dealing with non HMRC staff).

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Monday, 26 July 2010

Making Contact With HMRC

Call Centre
As loyal readers of this site know, one of the recurring themes/gripes that people have wrt HMRC is the difficulty of contacting staff who can actually help with a tax query/issue.

There is a postal backlog of at least 8 weeks, and the call centres are overloaded with calls.

Therefore I am grateful to one commentator, who posted this very timely piece of advice the other day about email addresses:

"The easiest way to get through to the jokers at the top is email them direct. The address is easy, first name, dot,surname @hmrc.gsi.gov.uk eg dave.hartnett@hmrc.gsi.gov.uk. leslie.strathie@hmrc.gsi.gov.uk
simple.
"

Do remember though that they are unlikely to reply, unless you also openly copy your email to your MP or the media.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Friday, 23 July 2010

Physician Heal Thyself

Nurse
It seems that those in the medical profession, whom HMRC suspect of under declaring their tax liabilities, are going to feel the full force of HMRC's "wrath" in the coming weeks/months.

Not that doctors have anything better to do!

The Chartered Institute of Taxation have issued this press release on the subject:

"The Chartered Institute of Taxation (CIOT) has expressed surprise - and concern - at the statistics released today by HM Revenue & Customs (HMRC) about the outcome of their 'Tax Health Plan' initiative.

Only some 1,500 medical professionals are understood to have made disclosures under the arrangement.

The Tax Health Plan (THP) is the most recent stage in HMRC's efforts to encourage taxpayers with undeclared tax liabilities to come forward and get their affairs in order, the incentive being the offer of relatively modest penalties.

All of these initiatives have been backed by information that HMRC have obtained from their wider compliance activities and which give HMRC targets to pursue if people do not come forward. Gary Ashford, chairman of the CIOT's Management of Taxes committee, said:

"We understand that HMRC's data suggested there were some 30,000 medical professionals who might have undisclosed tax liabilities. If only 1,500 have come forward, that is a considerable surprise and suggests that either many professionals are not taking this seriously - or of course that HMRC have failed to get their message across properly.

"We have been told that HMRC will start using the full powers available to them for non-compliance in this area from 1 August. Any medical professional with undisclosed tax liabilities really should take advantage of this brief window to take advice and start getting their affairs in order. It's clear to us that HMRC are intending to come down hard on defaulters."
"

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Thursday, 22 July 2010

Bunged Up!


As has been noted on this site for yonks, HMRC have an enormous backlog of unresolved tax cases.

Now the National Audit Office (NAO) has publicly spanked HMRC for failing to deal with this backlog, which stands at a staggering 18 million unresolved income tax cases.

The NAO believe that around 50% of these cases might involve underpayment or overpayment of around £4.4BN of tax.

Could it be the restructuring that HMRC has endured over the last few years, and will continue to endure, is actually making things worse?

Could it be that a means to reduce future backlogs and the workload of HMRC would be to simplify the tax system?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Tuesday, 20 July 2010

The Orifice For Tax Simplification


Yesterday I wrote the following:

"This presents a golden opportunity for the government to radically simplify the tax system, thus making it easier for taxpayers and HMRC to 'administer' taxes and reduce the associated costs.

However, politicians by their very nature abhor 'simplification' as it makes them 'redundant' in the eyes of the voters.
"

Well, blinkey blonky blimey, as if by magic the government have announced today that they will set up an Orifice (or is it "Office"?) For Tax Simplification.

The chairman of the new body will be former Conservative MP and Treasury minister Michael Jack. Its director will be John Whiting, formerly of PricewaterhouseCoopers, who is tax director at the Chartered Institute of Taxation. Neither will be paid.

Treasury minister David Gauke is quoted by the BBC:

"The tax system created by the previous government was overly complex and has made the tax affairs of millions of families and businesses across the UK extremely complicated.

We need to reduce the complexities in our tax system and the coalition is committed to delivering that goal.

The Office for Tax Simplification will provide important advice that will help inform us in making the right reforms to the tax system that will help to pave the way to bringing more international business to the UK, which will give our economy the boost it so urgently needs in the years ahead.
"

Currently the UK has an 11,000 page tax code, aptly described by the Chancellor as a "spaghetti bowl"

The BBC reports that the Chancellor says:

"Britain has one of the most complex and opaque tax codes in the world.

And he wanted a "permanent body to push against the forces of complication" and make life easier for firms.

Announcing the new body, Mr Osborne said his "dream" was "that people might actually understand the tax laws which with they actually being asked to comply with".

The new body will initially conduct two reviews - streamlining 400 tax reliefs, allowances and exemptions and simplifying the tax system for small businesses, including a simpler alternative to the controversial IR35 code.

It will advise ministers where the tax system is too complex but it will not look at tax credits, which Mr Osborne said he considered part of the benefits system.
"

Not tax credits?

Aren't they one of the complicating factors?

If they are part of the "benefits" system, why do they fall under HMRC's remit?

So, loyal readers, are we to look forward to a massive simplification of our tax system?

Could it be that I was wrong, when I said that politicians "abhor simplification"?

Could it be that politicians really do want to make things simpler?

Let's see shall we?

I won't be eating crow just yet!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Monday, 19 July 2010

Death By A Thousand Cuts


The Independent reports that HMRC has warned the government that planned cuts to the public sector, if applied to HMRC, will result in a lower tax take.

Treasury minister David Gauke was warned by HMRC in a private meeting earlier this month that the cuts, particularly redundancies, would be counterproductive.

This presents a golden opportunity for the government to radically simplify the tax system, thus making it easier for taxpayers and HMRC to "administer" taxes and reduce the associated costs.

However, politicians by their very nature abhor "simplification" as it makes them "redundant" in the eyes of the voters.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Friday, 16 July 2010

Bank Levy Consultation

As announced in the emergency Budget, HMRC this week published the Bank Levy Consultation:

"Risk taking in the banking sector was a significant contributory factor in the recent financial crisis. In particular, problems with risky funding led to serious liquidity problems that played a key role in the financial crisis. Banks should make a contribution that reflects the potential risk to the UK financial system and wider economy from bank failures and consequent loss of consumer and investor confidence."

Institutions and groups will only be liable for the Levy (0.07%), which is expect to raise £2BN (small beer by banks' standards) where their relevant aggregate liabilities subject to the Levy amount to £20BN or more. The Levy does not apply to small firms.

The banks will still of course argue that the levy (even though it is small beer) will reduce their ability to lend money, as it will hit their profits/cashflow etc. This might have a very small element of truth, except for the fact that the government is already castigating them for not lending enough now.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Wednesday, 14 July 2010

HMRC Knows Best III - No It Doesn't

Confused
The row over HMRC's new powers wrt withdrawing tax relief from any charity, if it feels that any of the charity's senior employees or trustees is untrustworthy, has pushed HMRC into revising its stance on the issue.

HMRC has backtracked, and issued revised guidance released last week. In the new guidance HMRC have removed the statement that all cheque signatories would be considered "managers", and therefore subject to the test.

The new guidance says:

"Most large charities have a board of trustees and an executive board of senior employees. In such cases the trustees and members of the executive board would be managers of the charity."

However, as Civil Society reports, there is still disquiet in the charity sector over the powers that HMRC may think that it can use.

Clive Cutbill, head of the charities and philanthropy team at Withers, is unconvinced and is quoted:

"It seems unlikely at this stage that any future revised guidance will limit the scope of the new test to charity trustees alone since the fraud risk HMRC has identified extends also to persons with control of charitable assets.

If the guidance continues to refer to 'managers' being all those with control over charitable assets, it will be difficult for charities to decide with certainty how far this control test goes and whether those who determine charity budgets (or who manage petty cash) will be caught.

HMRC's wide interpretation may be open to legal challenge and this, combined with pressure from sector groups, may in time lead HMRC to amend its guidance further.
"

A recipe for confusion, doubtless we can expect further revised statements from HMRC on this matter.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Tuesday, 13 July 2010

Do As We Say - Not As We Do

Snouts in the trough
Given that the last and the current government were/are doing their best to "illegalise" the perfectly legal and perfectly rational practice of tax avoidance, I was amused to read an article in Citywire about the soon to be emasculated government organ the Financial Services Authority (FSA).

Seemingly, the FSA have paid £230K to KPMG for tax advice for 43 international staff on secondment in 2009.

The FSA are quick to point out that:

"The tax advice relates to the individual's FSA remuneration and the actions which the FSA must take to fulfil its tax obligations to HMRC."

Nothing to do with tax avoidance then?

Of course not!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Monday, 12 July 2010

Delays

Pissing In The Wind
It seems that it not just "Joe Public" who has trouble getting through to HMRC, even professional tax advisers are having problems.

The FT reports that Sue Moore, associate director for Baker Tilly Tax and Accounting, has been struggling to get hold of anyone at HMRC.

"We're having difficulties when dealing with the HMRC. It would seem that most offices are eight weeks behind dealing with post. When you telephone it is just the call centre and if you want to speak to somebody actually dealing with the case, that is almost impossible. All this was before the cuts in the department spending.

Everybody is affected by the delay. Issues take longer to resolve and cost the clients more in professional fees as we have to keep chasing HMRC. Working on a case is very inefficient as we have to pick up the threads of the case after several months' delay.
"

Still, at least they make some money out of the extra time spent chasing HMRC; a portion of this extra revenue then goes as tax to HMRC.

Everyone's a winner, except for the hapless taxpayer!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Friday, 9 July 2010

Gone Fishing


Nick Morgan warns that HMRC are allegedly demanding personal financial records from business people, without proper grounds for suspicion. He also notes that section CH223430 (from the investigators' handbook) has been dropped.

Section CH223430 tells inspectors that they need to find something significantly wrong, questionable or suspicious in a business's record (ie they need to 'break' the record) before they can demand personal financial details from an owner or director of that business.

However, Morgan quotes Mark Morton, head of tax at Mercia Group:

"I am increasingly coming across requests for private bank details in opening letters. In early meetings the Revenue has focused purely on private affairs."

Anne Eager, enquiries manager at Robert James Partnership, is also quoted:

"I have had requests for private bank records from my clients in opening letters. When I challenged the request, the inspector said that it was to save time, as he felt it was very likely there would be issues with the records.

He added it was a 'standard approach' under the new regime.
"

In other words HMRC are indulging themselves in fishing trips into people's private bank records. Once HMRC have access to those records every payment into the account would be under suspicion, and it would be for the taxpayer to prove that the payments in do not constitute taxable income.

How would a taxpayer prove, for example, that money paid in for a friend's share of a social non business related dinner was not taxable income?

HMRC claim that Section CH223430 will return.

Why has it disappeared then?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Thursday, 8 July 2010

Confusion

Confused
On Tuesday I noted that HMRC had issued a statement announcing a U turn on rules relating to drawdowns, by those aged between 50-54, on their pensions:

"The Government intends to bring forward regulations to remove the unauthorised payments tax charge where an individual aged 50 and over but under 55 transfers their pension in payment to another pension provider."

However, Citywire reports that there is still some confusion over this issue. They quote Skandia pension development manager, Adrian Walker, who warns that 40% charges would apply to lifetime annuity purchases made from income withdrawal funds before age 55.

"HMRC has confirmed that the draft regulations announced in that release do not cover the unauthorised payment charge that will be generated if an individual looks to purchase a lifetime annuity or scheme pension from an income withdrawal fund prior to age 55."

It is expected that HMRC will make a further statement on this matter, so as to end the confusion.

As I noted on Tuesday all of this fuss could have been avoided, if HMRC had listened to the advice given by finance professionals to it at the time.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Wednesday, 7 July 2010

Money Well Spent II

IT Matters
Aside from paying its top people a "decent" salary (nothing wrong with that, if they actually deliver a decent service), HMRC are not averse to paying outsiders a "decent" wad when it comes to website design and development.

Rory Cellan-Jones writes:

"What would it cost to create and run a government website for three years?

How does £105m sound?

After we covered a couple of stories about government spending on websites and iPhone apps someone got in touch to suggest we take a look at one particular site, businesslink.gov.uk.

The correspondent said this site, run by Her Majesty's Revenue and Customs (HMRC), had cost £35m a year to build and operate for three years and suggested that it had been poor value, delivered an unsatisfactory service to users and proved technically shaky.

I could not quite believe that figure - it sounds an awful lot of money for one site
but it turns out to be true. Businesslink.gov.uk was among the sites singled out last week by the Cabinet Office as very expensive in terms of cost per visit.

When I went to the lengthy document in which the Central Office of Information (COI) examined central government websites, I found that £35m staring out from a table.

Only the NHS Choices site, at £21m, comes anywhere close. But it has around six million unique users a month, whereas the Business Link site, which offers all kinds of advice to businesses, has just over a million.

The site is the work of a major outsourcing company called Serco, which has sub-contracted the technology to a little business called BT. So how do the costs break down?

The COI report has some detail - £6.2m on strategy and planning, £4.4m on design and build, £4.7m on hosting and infrastructure, £15.3m on content provision and £4.5m on testing and evaluation. What I can't work out is why that cost is repeated for three years.
"

Needless to say HMRC and Serco think that it is good value:

"HMRC and its supplier Serco also put up a robust defence. HMRC said the businesslink.gov.uk site delivered benefits of over £800m a year to companies - a huge return on the £35m invested. I always wonder how those kind of figures are worked out, in the public or private sector.

Serco also cites that £800m figure and goes on to say that it has continually looked for efficiency savings since winning the contract in 2005, and these have amounted to £44m so far.
"

So that's alright then!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Tuesday, 6 July 2010

U Turn

WTF
In May I noted that HMRC's stance on pension drawdowns for those aged 50-54 was "illogical".

HMRC had viewed transfers of drawdown funds from one pension provider to another as "unrecognised", and liable to a maximum 55% charge.

Now HMRC have done a full U turn, and issued the following statement:

"The Government intends to bring forward regulations to remove the unauthorised payments tax charge where an individual aged 50 and over but under 55 transfers their pension in payment to another pension provider."

Changes will be backdated to cover transfers on or after 06 April 2010, when the minimum pension age change became effective.

All of this fuss could have been avoided, if HMRC had listened to the advice given by finance professionals to it at the time.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Monday, 5 July 2010

Money Well Spent


As the pay of civil servants is frozen (though apparently not the bonus pot) in order to help the country's battered finances, Citywire reported last week that seven directors of HMRC earned up to £1.24M in pay and benefits last year.

The best paid civil servant at HMRC was director general of benefits and credits, Steve Lamey, who was paid between £205,000 and £209,999. The chairman of HMRC, Mike Clasper, was paid between £150,000 and £154,999 for working three days a week.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Friday, 2 July 2010

IT Spending Freeze

IT
The National Audit Office (NAO) has warned HMRC that its IT spending freeze might cause serious problems in achieving efficiency targets set by spending reviews, and coping with future growth in data.

The NAO went on to warn that cutting some costs will have "consequences" in the long term interests of having accurate records. Twelve long standing data issues remain, in particular concerning data mismatches between HMRC and the Department for Work and Pensions, which could affect people's future pension and benefit requirements.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"

Thursday, 1 July 2010

Debt Collection III


I understand from a loyal reader that the HMRC Field Farce saga continues.

HMRC debt collection agents out in the field are now forbidden from contacting HMRC offices to validate the debts that they are being asked to collect.

For why?

It seems that the support teams back at base do not have the time to take phone calls.

That at least is the official explanation given to the field farce. However, it is widely suspected that the real reason is that HMRC is preparing the ground for this work to be given to private debt collection agencies. These private agencies, quite correctly, will not be able to phone up HMRC offices and ask for details from confidential records.

FYI, the budget announced that another £500M of debt would be handed over to private debt collection agencies to chase.

For why?

Well it seems that a pilot scheme went very well for the debt collection agencies.

The agencies were given a tranche of work to do, and a control tranche was left with HMRC teams (but was left completely untouched).

Can you guess what happened?

Yes, that's right, the debt collection agencies won!

Simple!

Anyhoo, why does it matter if field farce teams (or for that matter private debt collectors) cannot contact HMRC support offices?

Surely a debt is a debt, which should be collected, and that is the end of the matter?

Not quite, for I am also given to understand that the field farce estimate that a large percentage (maybe up to 60%) of the debts they are given to chase up are in fact incorrect.

The field farce have been told that, if challenged by a "customer" (taxpayer to you and I), the onus is on the "customer" to prove that HMRC are wrong.

Guilty until proven innocent is the motto!

How can there be such a large percentage error in debts being chased up?

Due to delays in processing returns, field farce are regularly chasing estimated debts which have been, or should have been, displaced by returns submitted. The returns have either gone down the online black hole, again a regular occurrence, or are sitting in an office somewhere waiting to be dealt with.

Additionally, when they are chasing current PAYE, their cases are sometimes prepared up to 3 weeks in advance.

Guess what?

Most have been paid by the time they get to them.

I won't say what I was told about the validity of New Tax Credit debts!

Things will only get worse!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

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"