Dedicated to the taxpayers of Britain, and the employees of Her Majesty's Revenue and Customs (HMRC), who have to endure the monumental shambles that is HMRC.
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.
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.
My thanks to a loyal reader who dropped me a summery of the Face to Face Customer Survey Satisfaction Results April to November 2010:
-98% of customers are satisfied with the service they received. -98% of customers were happy with the time between requesting and receiving an appointment. -99% of customers felt they were dealt with in a professional way. -97% found the EC environment friendly -99% felt they were treated as individuals by staff. -73% of interviews were tax, 17% Tax Credits, 10% Other HMRC -54% of customers tried to get information from other HMRC options before their appointment (48% tried phone, 6% wrote and 7% website)
As you can see, they are very good indeed.
Yet HMRC have not publicised these either externally or internally.
For why?
HMRC's "strategy" is to move away from face to face encounters with "customers", survey results that show they do this very well are not at all welcome. Indeed Richard James, Head of Face to Face operations, is looking for ways to increase the 54% of respondees who used other HMRC options first.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
Why did Dave Hartnett, Permanent Secretary for Tax, fly business class to Mumbai at the beginning of December with Melissa Tatton (HMRC's Deputy Director of Business International) to participate in a third rate talking shop for Indian accountants and tax officials?
The four nights they spent in rooms on the executive floor of the five-star ITC Maratha Hotel in Mumbai would doubtless have been bearable, but was their trip really necessary?
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
The 2010 HMRC staff survey results have now been published on the HMRC website. (For comparison purposes here is the 2009 survey - published by the government in 2010)
- Engagement index 3% lower than last year and 23% below civil service average.
- 12% would recommend HMRC to work in (3% down on last year), and 15% are proud to tell people they work form HMRC (3% down).
- 9% think that changes made are for the better (1% down).
- 12% think that HMRC is run well (1% down), 18% think that senior managers will take action based on the survey (3% up)...and so on.
You can read what Strathie said (in June this year) about the last survey (which was published in February 2010) here.
Here is a brief extract:
"We may not see much, if any, improvement in the next set of People Survey results. These issues are deep-seated and will take time to turn round; with your help, we can do that."
All in all things have got worse, even the response rate (69%) is not that encouraging.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
It seems that HMRC are enacting some form of "blockade" (usually regarded as an act of war when conducted on the international stage) against Christopher Lunn & Co (CLAC), a Sussex accounting firm.
The firm claims that HMRC is refusing to deal with it, and will not allow it to file certain tax returns while it is being investigated.
According to the FT CLAC were raided by HMRC in June 2010 and the firm's files taken.
Despite the investigation going on for the last 6 months, HMRC have not told them why they are being investigated. CLAC suspect it is part of HMRC's much vaunted (unless of course you are Vodafone or a friend of Hartnett) anti avoidance campaign.
In a letter sent by HMRC to clients on 30 November 2010, HMRC stated:
"The Commissioners of Revenue and Customs have come to the decision that in light of all the circumstances, there is no alternative other than to cease to deal with CLAC as an agent or representative for any of our customers. This includes communication in writing, via the telephone or by any electronic means."
A decision on the High Court civil action is due in the coming weeks.
Guilty until proven innocent appears to be the maxim of HMRC.
Should this department be given such powers, and be allowed to treat firms and individuals in such a high handed manner without due process?
Power of this nature, especially when in the hands of unelected bureaucrats, corrupts.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
Unfortunately, they have not yet been published on a department by department basis.
Could it be that some departments are trying to hide their shame, and will release the results at a time when everyone is pissed on the last working day before Christmas?
The deadline for departmental publication is not very challenging, 31 January 2011!
In the event that anyone has a copy please either leak it to me or WikiLeaks.
Thanks.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
As the deadline for filing tax returns online approaches, those who use this method would be advised to read the following cautionary tale reported in the Observer.
"I used the HMRC online income tax return system last year, but received a £100 fine for non-submission. My return was on time and I have no intention of paying. A formal letter to HMRC has produced another snarling request for payment. ML, Rugby
When you wrote to me eight months ago I asked HMRC to sort out what should have been a straightforward issue and, in April, it confirmed it was in the process of responding to you. It insisted there were no problems with the online reporting system last year. In May someone suggested you resubmit the return through the Government Gateway, but you tried and failed twice.
In June your tax office sent you a paper version of the tax return that you sent in, but the £100 fine was still outstanding. Your appeal was upheld in November.
Another year's deadline for filing electronic tax returns is close; readers should make sure they get a safe-receipt email from HMRC."
Make sure that you get a receipt!
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
According to an article published on Integral Search and Selection HMRC has warned taxpayers that it never supports tax avoidance schemes, even those that have been assigned a scheme reference number (SRN).
HMRC has issued this warning in its Spotlights internet publication, which aims to outline the risks of being involved in any form of tax avoidance, whether intentionally or "unwittingly".
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.
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.
It seems that, despite claiming that it wants to simplify the tax system, the government is determined to add ever more layers of complexity.
That at least is the conclusion to be drawn from the government's proposals to clamp down on tax avoidance (a perfectly legal activity) by introducing a general anti avoidance rule (GAAR). GAAR was considered by the previous Labour administration. However, it was decided that it would be too expensive and complex to administer.
Critics note that the effects of GAAR will be most keenly felt by small and medium sized business.
Accountancy Age quote Andrew Jupp, head of tax at Haysmacintyre:
"It is unnecessary and unwelcome, and will introduce yet more uncertainty into the tax system. Unless it is coupled with a vast range of pre-transaction approvals it will stifle businesses ability to operate and make sensible commercial decisions.
Whilst the largest British companies might be able to cope with a GAAR, I cannot see how the smaller businesses, which are the lifeblood of the UK economy, will manage. These businesses constantly tell us that they want less red tape, not more."
James Bullock of McGrigors said:
"The problem is that there will inevitably be a situation - probably many situations - where commercial pressures mean that transactions have to be completed before specific HMRC clearance can be obtained confirming that they do not fall foul of a GAAR.
You will then have precisely the situation that applies at the moment - HMRC challenging the tax treatment of transactions after the event, on the basis that the GAAR applies. Taxpayers will oppose these challenges and the whole thing will end up being interpreted by the Courts - just as happens at the moment".
GAAR will simply push companies to move out of the country and reduce the tax take, thus being counterproductive to the economic well being of the country and the coffers of the government so hungry for cash.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
The Mail is venting is spleen against HMRC over the claims being sent out by HMRC for tax underpayments (estimated to affect 1.4 million people).
Whilst it is perfectly correct that HMRC reclaims underpaid tax, the issue that wrankles with the Mail is HMRC's response to appeals sent in by many on the basis of the A19 tax concession (which allows claims for underpaid tax to be abandoned under certain circumstances).
HMRC are sending out standardised computer generated rejections of appeals from one centre, stating simply that the appeal does not fall within the A19 concession.
This is a similar approach taken by banks and other financial institutions when rejecting people's claims for excess overdraft charges, mis-sold endowments etc; one that is designed to stone wall claims.
HMRC have belatedly realised that, whilst this approach may be OK for tax professionals (who can fight their corner), doing this to a large number of people who normally do not interact on a daily basis with HMRC (but who make excellent copy - eg widowed pensioners - for tabloids) is very unwise. As such the content and format of the letters is now being reviewed, and a more "personalised" rejection will be sent in the future.
Whatever the format of the rejection, the taxpayer can still appeal and if rejected again can go to the Adjudicator's Office.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
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.
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.
I understand that the results of this year's civil service staff survey are due to be released this week, and that HMRC's scores are worse than last year's.
Please could someone forward me the survey, or a link to it, as and when it is released?
Thanks.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
Despite the ongoing restructuring of HMRC, which will result in a further reduction in staff numbers by approximately 13,000, HMRC still need to take in and train younger recruits who will be the "future" of HMRC.
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.
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.
Quite rightly HMRC are more than fed up with having to chase up tax credit claimants who do not update them with changes in their circumstances.
The government claims that approximately £400M a year is being overpaid in tax credits, because parents don't tell HMRC about changes in their childcare costs. Approximately 345,000 tax credits paid in 2008/09 (4.5% of the total) contained errors relating to childcare.
Aside from the loss of tax revenue, there are additional costs incurred by HMRC in chasing up and correcting these errors.
Tax credits is just one example of the many of Gordon Brown's ever so complex and unwieldy "tweaks" that he was addicted to making to the tax system.
It is high time that the tax system be radically overhauled and simplified. A good staring point would be to abolish tax credits and raise personal allowances to a decent level, eg £15K.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
How nice to read that, during this time of economic crisis, HMRC is advising struggling businesses applying to defer taxes to "max out" their company credit cards first.
This helpful advice needless to say costs the hapless businesses 20% or more in interest payments, plus a 1.25% credit card handling fee added on by HMRC.
This approach is of course "understandable"; the £4.8 trillion debt built up over the years by our elected representatives needs to be serviced, otherwise there would not be enough money in the kitty to pay our "beloved" MPs and subsidise their bars and restaurants at Westminster.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
