Thursday 28 March 2013

HMRC Online Closed


Post Easter HMRC are performing their usual IT upgrades, as such the systems will be down.

As per the ICAEW Tax Faculty:

HMRC has published details of when its online services will be unavailable next week. The systems downtime is planned and is needed to process the IT upgrades before the start of the new tax year.
Most online services are expected to close from 06:00 on Thursday 4 April 2013 and open for use by 06:00 on Saturday 6 April 2013.

More details of the times/dates when each online service will be unavailable can be found on the Service availability page of the HMRC website.

The downtime varies between the services, eg online VAT registration will be unavailable from 17:30 on Wednesday 3 April, so it is worth checking the details for the services you plan to use.

The PAYE online service is particularly affected – unsurprisingly, given the need to upgrade for the introduction of Real Time Information (RTI) from 6 April 2013. In particular note that:
  • Following the scheduled upgrade you may experience a delay in receiving your online acknowledgement of PAYE submissions. HMRC asks users not to re-submit returns if they experience a delay in receiving their response message. All acknowledgements will be sent by Tuesday 9 April.
  • HMRC will accept PAYE in real time reports for 2013/14 from 6:00 on 6 April. Any sent earlier than this will be rejected.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

The Phantom Menace


It seems that there are "phantoms" within the machine, or rather that HMRC are issuing P800T forms showing overpayments of tax after taxpayers have already claimed and received repayments.

AccountingWEB have received a number of reports of "phantom P800T" forms being issued.

HMRC said that it had isolated the issue behind the mis-issued refund notices and was working to resolve it:
Most customers’ tax affairs are automatically and correctly worked out by our systems. A minority of customers who are in both SA and PAYE get their affairs worked out by both systems, incorrectly, and we regret the inconvenience this causes them and their agents.” 
According to Tax faculty member Shirley Martin, the issue goes back to 2010:
One of the processes is where NPS should be notified automatically when an SA record is set up/closed down (SAM100090). The process is supposed to set the SA indicator on the NPS record. The purpose of the indicator is to tell NPS that a P800T is not required because the tax will be settled  through SA (PAYE 93032).

The first cases of SA taxpayers getting refunds from NPS were attributed to a reported broken link between SA and NPS.”
HMRC has been aware of the problem for more than two years. Indeed it was reported by a loyal reader on this site in 2011:
"OK what we are experiencing is HMRC issuing unsolicitored P800T tax calculations for 10-11 when a 10-11 SATR has already been lodged! Clients are getting two repayments and some getting refunds when they owe tax "computer says PAYE and SA records not linked". FFS!"
However, the issue has yet to be fixed.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Wednesday 27 March 2013

VAT Downtime


As per HMRC:

"The VAT Online service will be unavailable between 6am on Thursday 4 April and 6am on Saturday 6 April.

During this period you will not be able to register or deregister for VAT, or to make changes to your registration details, online. Neither will you be able to view your account, arrange a new Direct Debit, or submit a VAT Return.

HMRC apologises for any inconvenience this may cause.

HMRC strongly recommend that if you who need to submit a return by 7 April you do so before 4 April. If that is not possible you can of course submit your return when the system is back up on 6 April and 7 April.

You can make payments even while you are unable to access the VAT Online service. You should make sure that your payment clears to HMRC’s account by 7 April. Remember, this can take up to three working days.

If you pay by Direct Debit you must make sure that your return is submitted by 7 April so that payment can be collected on time.

You will not be penalised if your return or Direct Debit payment is late and this is due to HMRC systems being unavailable during the period before the 7 April due date.

If you try to submit your return before 7 April you should keep a record of any error messages you receive in case of difficulty."

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Tuesday 26 March 2013

UKBA Abolished


I am gemused to read that the government has just abolished the UKBA.

This is the same UKBA that Lin Homer set up and ran (sorry, I mean grossly mismanged).

On this basis may we assume that the government will also abolish HMRC?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

RTI Springs A Leak


Oh dear, it seems that HMRC's flagship RTI has just sprung a leak.

As per the ICAEW Tax Faculty:
"We are receiving reports that agents and their clients are experiencing delays in receiving activation codes from HMRC.

HMRC’s guidance sets out the process. The final step is for the client to pass their activation PIN to the agent. However these numbers are only valid for 30 days and expire at the end of that period. If the client does not receive the code and pass it to the agent within that time then the whole process must start again."
Is anyone having problems with this?

If so, please let me know.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Loyalty Bonuses Taxed


Here's an interesting development.

The Telegraph reports that fund investors face paying income tax on "loyalty bonuses" paid by fund supermarkets from next week, after HMRC ruled that the payments are "annual payments" and should therefore be taxed as income, starting in the new tax year - April 6.

Does this set a precedent for HMRC to tax cashbacks/loyalty rewards offered by supermarkets and credit card companies?

HMRC said claims that cashback in other industries could be targeted next were "complete rubbish".

So then, clearly HMRC won't tax cashback schemes ever.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Monday 25 March 2013

Lin Homer and The DfT - Not Fit For Purpose


My thanks to a loyal reader who prodded me to take a look at Lin Homer's time in the Department for Transport.

Can you guess who was in charge of the DfT when it was described as being "not fit for purpose"?

Yes, that's right, Lin Homer!

As per the Express from October 2012:
"ONE of the key figures in the Department for Transport’s West Coast main line fiasco was the former boss of the UK Border Agency when it itself was described as “not fit for purpose”.

Millionaire mandarin Lin Homer was the Permanent Secretary at the DfT throughout 2011 when details of the new rail franchise business model were being thrashed out.

She was named by Sir Richard Branson last month as one of a handful of officials at the department whom his Virgin Rail team met during 2011 to voice concerns over the bid process.

Those concerns were ignored, said the rail boss whose warnings proved correct last week when the Government U-turned on its decision to award the lucrative franchise to his rival First Group due to an alleged catastrophic business model error.

The mistake is estimated to cost taxpayers £100million and the DfT has now been labelled “not fit for purpose”.
As per the Transport Committee - Eighth Report Cancellation of the InterCity West Coast franchise competition (published 23 January 2013):
"A more direct description of what happened [than that provided by Laidlaw] is that ministers and senior officials were lied to about how the outcome of the franchise competition had been reached. A major unanswered question is why ministers and senior officials were misled about how the SLFs had been calculated, the issue which led directly to the cancellation of the franchise competition. We recommend that the Department explain why this happened, if necessary after decisions have been reached on whether or not to take disciplinary action against particular members of staff. (Paragraph 26)
 
3.  In our view, we cannot categorically rule out the possibility that officials manipulated the outcome of the competition not only to keep First Group in the running for as long as possible, as Mr Laidlaw suggested, but to ensure that First got the contract. We recommend that the DfT find a way of undertaking a full email capture, reporting to someone suitably independent, to help get to the bottom of why DfT staff discriminated against Virgin and in favour of First Group during the ICWC franchise competition. (Paragraph 28)"

Therefore to repeat my question asked this morning:

Why the fark was this useless woman appointed in the first place???????

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Lin Homer - Not Fit For Purpose



In December 2011 the world awoke to the gobsmacking news that Lin Homer was to become CEO of HMRC. I wrote the following at the time, warning about Homer's track record:
"In 2005 Birmingham was declared to be a "banana republic" by the Election Commission.

For why?

Wholesale electoral fraud in the council elections.

The Election Commission ruled that Labour had been responsible for “massive, systematic and organised postal ballot fraud.”

He then made a few choice remarks about the Chief Returning Officer, also the chief executive of the council.

She had "thrown the rule book out of the window”.

To whom did he refer?

Why none other than Lin Homer.

Labour helped her out by making her head of the UK Borders Agency.

This being the very same UKBA that threw the rule book out of the window and relaxed border controls.

Lin, clearly a career minded woman, moved on from there this summer (just before the shit hit the fan) and became Permanent Secretary at the Department of Transport.

Now she moves to HMRC!
"
Fast forward to 2013, and we now see that Parliament may finally be waking up to the fact that Homer is not fit for purpose and that her appointment was farcical.

The cause of this "Damascus Moment" is the appalling performance of the UK Border Agency (UKBA), Homer's proud legacy!

The Commons Home Affairs Committee has said today that it was "astounded" when Homer was appointed to run HMRC.

Newsflash: Had they been on the ball in 2011 they would have seen that everyone else was also "astounded" that this walking disaster area was placed in charge of a failing department (HMRC).

The committee expressed “little confidence” in Homer's ability to "lead" HMRC, following “catastrophic” leadership failures in her previous role at the UK Border Agency.

This is all very well, but her failures were well known at the time!

Why the fark was this woman appointed in the first place?

Homer's legacy from the UKBA has been exposed for all the world to see, the UKBA has a backlog of unresolved asylum cases that will take 24 years to clear. The total backlog of unresolved or disputed immigration cases in the UK was 312,726 at the end of September last year, but it is not possible to be sure if that figure was accurate.

The committee have accused the UKBA and Homer of misleading them for the past six years. As per Economia:
"The status quo, in which catastrophic leadership failure is no obstacle to promotion, is totally unacceptable.

We recommend that in future any failures of this nature should have serious consequences for the individual's career.

The whole episode raises serious concerns about the accountability of the most senior civil servant to parliament. It is shocking that after five years under Lin Homer's leadership an organisation that was described at the beginning of the period as not being fit for purpose should have improved its performance so little.

For six years the committee was misled by UKBA chiefs about the agency’s unacceptable performance.


It appears more like the scene of a Whitehall farce than a government agency operating in the 21st century. No sooner is one backlog closed than four more are discovered.”
So that we are all clear as to exactly what the committee thinks of Homer, here is what they said about her as per the BBC:
"Lin Homer, who was in charge of the Agency for much of the period in question, has repeatedly misled the Committee over the size of the asylum backlog and still refuses to take responsibility for her failings.

It is shocking that after five years under Lin Homer's leadership an organisation that was described at the beginning of the period as being 'not fit for purpose' should have improved its performance so little. 

Given this background, we are astounded that Ms Homer has been promoted to become Chief Executive and Permanent Secretary at Her Majesty's Revenue and Customs and can therefore have little confidence in her ability to lead HMRC at what is a challenging time for that organisation."
I did warn you she was no good, back in 2011!

So, I will repeat my question:

Why the fark was this useless woman appointed in the first place???????

As ever opinions and comments from loyal readers, especially HMRC staff are welcome.

As to the future, will Homer be sacked?

Not yet, the politicians will wait for RTI to fail; as and when that happens she will then be sacked and blamed for that!

A lousy solution, and one that does neither the staff of HMRC nor the taxpayers of the UK any good whatsoever!


Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Sunday 24 March 2013

Does Homer Face The Sack?



Is this the end for Homer?

Let's see what happens tomorrow.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday 22 March 2013

HMRC's Failed Probes



Tax-News reports that HMRC increased the number of IR35 investigations during the first half of this tax year six-fold. In 2011/12 there were 59 investigations, yet in the first half of 2012/13 there were 193 new investigations.

What has been the result of this increased probing?

Diddly squat!

The increase in investigations into "disguised employment" arose as a result of the recent furore over senior public sector figures being paid through personal services companies, to avoid liability to personal income taxes and national insurance contributions.
Martin Casimir, Managing Director at Bloomsbury Professional, said:
HMRC has been stung into action by a handful of very high profile cases where individuals and employers may not be IR35 compliant. Ordinary contractors and freelancers are now dealing with the fallout.

IR35 is a very problematic piece of legislation as it adds unnecessary complication to the tax system and makes it hard for ordinary contractors to work out their tax bills; It is very easy to fall foul of the legislation. Now ordinary freelancers and contractors have the added complication of HMRC breathing even more closely down the back of their necks.

It is a common misconception that people only use personal service companies to avoid tax. For some individuals with more than one employer or for those working on a temporary basis, registering as a personal service company is a legitimate way to work.

IR35 is a good example of how out-of-date the UK tax system is. It doesn’t take into account the changing face of employment, and assumes that all taxpayers work in the same job for a long period of time.”

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday 21 March 2013

Where's Osita?


Where is whistleblower Osita Mba?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Wednesday 20 March 2013

Auditor Independence - Perceptions Matter


As an ex auditor (both external and internal) and having had some considerable experience of fraud investigations and compliance work, I can state that it is a fundamental requirement in order for an auditor to be able to do his/her job in a professional and credible manner (and for the audit report to have credibility) that he/she and the department that they work for are not only independent but perceived to be independent.

When that independence is undermined by, eg, an unhealthy close relationship with the auditee, or by unhelpful dissemination of information about ongoing audits to third parties, then the auditor can no longer perform his/her function.

My thanks to a loyal reader who pointed me to a recent article in the Guardian that shows that the National Audit Office (NAO) has had its independence severely compromised by the alleged actions of its own boss Amyas Morse.

The Guardian reports that Morse, who set up a judge-led review into the "sweetheart" multimillion-pound tax deals between HMRC and corporations, undermined the whole process by telling Dave Hartnett (when he was still head of HMRC) that the inquiry would find "nothing of substance".

For good measure Morse told his staff that the review by Sir Andrew Park would find no evidence of serious wrongdoing.

In an email marked "private and confidential – please do not pass on to anyone without coming back to me", sent by Hartnett on 15 December 2011 to 10 senior HMRC officials Hartnett wrote that he had held a meeting that afternoon with Morse which was "useful and interesting". 
Hartnett went on: 
"Amyas has been insistent that Andrew Park tackles the cases one at a time. He [Morse] has told me that he has made clear to the NAO that his expectation is that nothing of substance will be found in the review."
Morse apologised for the way that Hartnett's officials had been treated by PAC:
"He [Morse] did not envisage things playing out the way that they have and was sorry for the individuals in HMRC who had been bruised by the actions of the PAC and for the difficulties the department had experienced." 
It is clear from the text that the relationship between NAO and HMRC has become far too cosy; as such the perceived independence of NAO has been severely compromised, which means that NAO can no longer perform its role effectively.

QED!

By the way, does anyone know what has happened to the whistleblower Osita Mba?
Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Happy Budget Day



In keeping with the day, some PCS staff at HMRC are on strike.

Please let me know if this affect service in anyway.

Thanks.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Tuesday 19 March 2013

HMRC Official RTI Announcement

As per HMRC

Reporting PAYE in real time (Real Time Information or RTI): relaxation of reporting arrangements for small businesses

HM Revenue & Customs (HMRC) recognise that some small employers who pay employees weekly, or more frequently, but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time. HMRC have therefore agreed a relaxation of reporting arrangements for small businesses.

Until 5 October 2013, employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).

HMRC will continue to work with employer representatives during the summer to assess and understand the impact of RTI on the smallest businesses and consider whether they can make improvements to real time reporting which will address their concerns without compromising the benefits of RTI or the success of the Department for Work & Pension's Universal Credit.
Please see HMRC's guidance on exceptions to reporting PAYE information 'on or before' paying an employee.

Exceptions to reporting PAYE information 'on or before' paying an employee

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Last Minute RTI Changes



HMRC have decided to make some last minute changes to RTI.

Payroll World reports that HMRC is set to announce a Real Time Information (RTI) reporting easement for small businesses with less than 50 employees that pay their staff weekly or more regularly.

The announcement will be made by HMRC later today.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Debt Collection - Release The Hounds



HMRC has increased the amount that it spends on using debt collection agencies to chase up tardy taxpayers, in fact HMRC has more than doubled the amount it spends on debt collection agencies from £5.8M in 2011 to £13.4M in 2012.

Mark Giddens, head of private client services at UHY Hacker Young, is quoted by the FT:
HMRC is under a lot of pressure to increase its tax take, and bringing in professional debt collection agencies to follow up on debts is seen as a cost effective.

The less professional end of the debt collection market has a reputation for being over-zealous and trying to collect the debt no matter what.

On top of this, communication between the different parts of HMRC can occasionally break down, with in-house teams pursuing taxpayers for debts that have already been paid or aren’t owed in the first place. It’s important that HMRC gives debt collection agencies the correct information to work from.” 
Quite so, the "success" or otherwise of farming out debt collection to the private sector depends very much on the quality of the private sector firm used and the validity of the information they are given to work with.

It is also worthwhile remembering that once you have unleashed the hounds, it is sometimes rather difficult to rein them back in.

Please feel free to share your experiences of HMRC's debt collection tactics.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Monday 18 March 2013

Sharpen Up



Despite the fact that HMRC is closing its Enquiry Centres and forcing people to use the phone to make contact, it seems that its performance wrt call handling is still not up to snuff (this of course is no surprise to loyal readers, as the subject of call handling often features on this site).

Anyhoo PAC have said that HMRC's target of answering 80% of calls within five minutes is "unambitious and woefully inadequate", and would still leave 16 million people waiting longer than five minutes.

Margaret Hodge went so far as to use the word "abysmal".

The industry benchmark is to answer 80% of calls within 20 seconds.

PAC's message to HMRC is that it needs to sharpen up.

You can watch Lin Homer's performance on Breakfast this morning, where she tries to blame "customers" for some call failures, here.

As ever, I am always happy to receive "customer" feedback about problems wrt contacting HMRC.



 Tax does have to be taxing.


Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday 15 March 2013

PCS Brief On Enquiry Centre Closures



My thanks to a loyal reader who sent me the following transcript of PCS's brief (issued today) on the announcement by HMRC of the closure of the Enquiry Centres:
"HMRC approached us to emphasise that they were fully prepared to enter into meaningful dialogue with PCS and ARC on a strictly confidential basis. These talks were to be ahead of any firm decision about the future direction in respect of customers needing enhanced support. We welcomed this offer and dialled into a telecom on 21 Feb in what can only be described as a very bizarre meeting. The heading of the meeting was 'the future of f2f enquiry centres' but when we tried to discuss this we were informed it was now changed to 'customers who need enhanced support'

We made it clear at the meeting what PCS response would be to closures and it was agreed in the spirit of employee relations agreement to hold weekly meetings. HMRC hoped to inform us of timescales at first meeting as well as give details of trials and research undertaken.

These meetings never took place and following cancellation of second scheduled one by HMRC our group secretary deputy and full time officer were invited to a confidential.meeting last week in which they were informed of the plans.
"
It looks as though HMRC were playing games with the unions.

Do bear in mind that HMRC have been planning the demise of the Enquiry Centres for quite some time.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

The Demise of The Enquiry Centres



Given yesterday's announcement by HMRC about the closure of its Enquiry Centres, I had a trawl through the site to look at a couple of earlier articles that I had published about Enquiry Centres.

Sadly, for the 2.5 million visitors to these centres and the 1,300 staff who work in them, the writing has been on the wall, for quite sometime about their demise.

In June 2010 I wrote the following:
"...those who "run" HMRC are determined to reduce the number of opportunities that taxpayers have for face to face discussions with a member of staff.

The Low Incomes Tax Reform Group (LITRG) report that HMRC has cut the opening hours in 58 of its 280 tax enquiry centres, with some now open for just one or two days a week.

They also note that another 117 might suffer cuts as well, as a result of a consultation that is currently underway....


HMRC contend that the staff who work in the enquiry centres facing cuts will be deployed to other duties (eg answering correspondence)..."
In May 2012 I wrote the following:
"My thanks to a loyal, reader who has proffered some friendly advice to taxpayers who are stuck in a call centre phone queue waiting to try to get through to someone.

Hang up and go round to your local enquiry centre!

For why?

HMRC will do nothing about improving call handling times because they know that when the Universal Benefit comes into force many taxpayers will be calling DWP instead, thereby reducing the number of calls to HMRC and improving the KPI's used to monitor HMRC call handling performance.

Therefore I am advised that the least worst option is for taxpayers to go to an enquiry centre, where the phones are free, and basically jump the queues.

No, I don't understand either how calling from an enquiry centre will get you through quicker than calling from your own phone; but that nonetheless is the advice given by my loyal reader.

UPDATE

I am advised that the phones used at enquiry centres have speed dials which jump the queues of people using the normal number, as the programmed speed dial number is not the same as the ones used by taxpayers when ringing from home.

It is believed that this queue jump facility is to minimise the length of time people physically spend in enquiry centres and thus reducing the risk of them "kicking off".

In an aside, I understand that taxpayers who come to an enquiry centre to actually see someone (as opposed to speak to someone on the phone) are still forced onto the phone first at the enquiry centre by a "floorwalker", in order to see if the query can be resolved by phone, thus minimising the number of people who have to make an appointment to actually to see someone at the enquiry centre.

So all you have to do is find a conveniently located enquiry centre, before those that remain are closed down!
"
HMRC claim that the number of visits to Enquiry Centres has fallen (to my simple mind 2.5 million visits still seems a large number!).

The reason for this decline is clear, HMRC have been making it increasingly more difficult for people to actually sit face to face with a member of staff (even if the hapless taxpayer manages to find an Enquiry Centre in their area that is open).

In my opinion the demise of the Enquiry Centres has been deliberately engineered by HMRC.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday 14 March 2013

HMRC To Close 281 Enquiry Centres



As per Karen Barrett:
"HMRC to close its 281 enquiry centres in 2014. Looks like the system is about to get more confusing!"
As per the BBC the closures will put 1,300 jobs at risk, although HMRC aims to deploy these staff elsewhere.

The centres (currently used by 2.5 million people per annum) will be replaced by a telephone service and home visits (better put the kettle on!), which in theory will save HMRC £13M per annum.

Lin Homer is upbeat, as per the Telegraph:
"HMRC will provide a more modern and accessible service that will target the right support to customers who need it, where and when they want it.” 
Problem solved!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

RTI Savings?



With less than a month to go until the introduction of RTI, HMRC has launched an advertising blitz telling the world how wonderful it will be (they even manage to mention Churchill - the late Prime Minister, not the insurance dog).

In a press release issued Monday HMRC claimed that:
"It will reduce administrative burdens for employers by around £300 million every year."
Errmmm....I'm not entirely sure as to where that £300M figure has been derived from (Homer quoted the same figure in February, but did not validate it)?

I also wonder if the costs to those SME's without payroll functions has been taken into account?

Additionally as I noted in January, companies will need to invest in new payroll software, or update their current systems to comply with RTI; these costs have to be borne by the companies.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Wednesday 13 March 2013

Is RTI The Panacea That HMRC Claim It Will Be?


My thanks to a loyal reader, who has posted the following comment concerning HMRC's inability to deal with matters "real time".

The reader makes the valid point that the system is incapable of transmitting realt time data between DWP and HMRC.

This clearly has implications for RTI and Universal Credits.

My question to those of you have intimate knowledge of the RTI flagship is, will RTI satisfactorily deal with, resolve and be able to cope with the issues raised by this loyal reader?
"An individual (me) has 2 forms of "income" which consists of a pension following 40yrs employment and a DWP minimum ESA payment of the taxable kind.

A succession of tax codings ends up with notification of 2013/14 to include an "underpayment restriction" amount of -£X, cue rapid query via endless wait on phone!


Pray tell me HMRC says I, what does this amount relate to and how did you arrive at the figure?
HMRC - We don't know what your income is going to be and we have to estimate it.


But says I (and herein lies the RTI scenario bit)


my pension is paid from you as my ex employer through the realms of MyCSP (my civil service pension) and your closest partner agency DWP pay me the reduced ESA, what gives?


HMRC states we don't know what DWP pay you (ESA taxed by HMRC via instructions to MyCSP as DWP can't collect the tax due for whatever reason) until the end of the tax year! Cue incredulity on my part at this stage as besides the fact that HMRC are estimating that which it is possible to calculate, by my calculations I am due to receive an inflation busting increase in my ESA of 14.65%.

So what does all this mean for the taxpayers of the UK?


I don't know what an incorrect tax code costs to put right but multiply it by the number of time my tax code has been "adjusted" in 6 months (7) and you begin to get the picture.


Then there is the "underpayment restriction" which unchallenged would result in a tax-free loan by the taxpayer - me, to HMRC, prior to the subsequent adjustment the following year.


Now, call me a cynic, but do you suppose that the vast majority of these adjustments are one-way and unethical?

So, what does it all mean?

Think carefully with RTI looming.

There is the archaic system of ESA taxed via pension provider - a system of taxation via third party involvement, with all the opportunities for mistakes along the line...

The system is incapable of transmitting real time information from DWP to HMRC.

Even with all the correct information to hand (i.e. its own and DWP data, HMRC is incapable of calculating "the right amount of tax at the right time".

HMRC obtains a positive balance in this area at the expense of the taxpayer, not creative accounting but certainly unethical especially during a reccesion.

What does that mean for the Universal Credit and RTI systems?

Over to you Ken.
"

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"