Flexi Offices

My thanks to a loyal reader who has advised me that HMRC are recruiting for flexi offices.

As to whether these roles are what staff really want to take up, is open to debate.

Merry Christmas!

Message from Ruth Owen – PT recruitment exercise opens today

15 December 2014

I’m writing to tell you about the recruitment exercises we’re launching from today for people to join Personal Tax, and to explain more about the roles we’re looking to fill – and why.

As you all know, over the past year we’ve spent a lot of time thinking and talking about the future of HMRC and how we need to transform, as part of Building our Future.

Although we have been reducing in size, and will continue to get smaller overall, we’ve said all along that this isn’t just about reductions – our transformation also means new roles, new types of work, and opportunities in key areas.

Already this year, HMRC has found roles for 1,400 of people on Fixed Term Appointment (FTA) contracts who would otherwise have left us, and we’ve promoted 420 people from AA to more challenging roles at AO grade.

We’re recruiting because we need to be ready to meet a range of customer demands. We have a range of new work coming into Personal Tax in the new year, including the Government’s policies on pension reform, on transferable personal allowances for married couples, and the introduction of the Scottish rate of Income Tax.

The new posts – both permanent and FTA – will be customer advisers at AO grade, dealing with a range of customer needs.  Shift patterns will be flexible, to make sure we’re available when our customers need us – including in the evenings and on Saturdays.

We expect to fill mostly permanent posts in Bathgate, Bootle, Bradford, Cardiff, East Kilbride, and Salford, and Fixed Term Appointments in Peterlee, Glasgow and Lillyhall.

We have looked carefully at whether the new work could be placed in sites where we have people in the redeployment pool, or where work is ending. However, this would go against our long-term intention to concentrate work on a smaller number of larger sites. For this reason, we’ve taken the difficult decision to put work into major sites that are likely to have a long-term future.

As always, people already working in HMRC will be considered first for these opportunities. If you are a priority mover, an AO in the Redeployment Pool, or an AA in the AA-AO promotion pool with a 1st, 2nd or 3rd choice preference for these locations, you will be considered ahead of any external appointments.

The remaining vacancies will be filled externally – so if you know someone who might be a good fit for us, please encourage them to apply.

Applications are open until January 12, and the vacancies can be found on Civil Service Jobs. You can search for the jobs using the details below:

CSR/2258/14 External FTA

CSR/2259/14 External Perm  - Linked with 2260/14

CSR/2260/14 External FTA  -   Linked with 2259/14

CSR/2261/14 Internal Perm

If you’re interested, make sure you only apply for the Stage Two/Three advert – this is the internal procedure. If you apply for Stage Four (which is for people outside the Civil Service) you won’t double your chances, and may cause confusion.

Interviews will take place in February, and the successful candidates should start to take up duty with us from April.

Ruth Owen,

Director General Personal Tax
Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

HMRC Markets The Services of Accountants

Despite HMRC bemoaning tax avoidance schemes devised by "evil" accountants it seems that, according to a loyal reader, it is dead keen that taxpayers use the services of accountants:

"Oh and I was told by managers not to give help to fill in returns. The customer should go to an accountant!!!"

Ooh the irony!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

HMRC Is Farking Awesome

Well done HMRC, after conducting a survey of 145 people (that's a statistically reliable size isn't it?), it has concluded that it's doing well.

The survey, entitled "HMRC Stakeholder Engagement Research 2014", was carried out by ICM Research Ltd (ICM). Its objective was to:

1. Explore how stakeholders view HMRC compared to previous years, in order to track the impact of its efforts to improve its reputation

2. Evaluate attitudes towards HMRC’s communication and engagement with stakeholders to inform future stakeholder communications

3. Identify what HMRC can do to improve and what its role should look like in the future.

The results indicated that:

"Favourability has increased since last year and is driven, in particular, by close working relationships between stakeholders and HMRC . Those who feel that HMRC listens, understands and responds to their views are significantly more likely to be favourable. Corporate stakeholders, who have more regular contact with HMRC, are generally more positively disposed towards the department....

..stakeholders regularly praise HMRC’s senior leadership team and feel that it is increasingly willing to listen to, and engage with, stakeholders, but cite customer service, the digitisation of services and a lack of dynamism as key weaknesses."

I'm gobsmacked!

Clearly everything is absolutely fine (based on a survey of 145 people).

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

Hanging on The Telephone - 29% of Callers Face Delays/Cut Off

Which? has analysed a sample of 100 calls to HMRC in the run-up to the 31 January year end deadline. The analysis showed that 29% of callers seeking advice received an automated message, ie they were put in a long queue or cut off.

Callers were put on hold for an average of 18 minutes, with the longest recorded delay of 41 minutes.

Which? also found glitches with a voice recognition system designed to direct queries to the right department.

Richard Lloyd, its CEO, is quoted by the BBC:

"With large numbers of people soon to be seeking help with their self-assessment tax return, we want to see HMRC doing more to monitor and improve their call-waiting times." 

An HMRC spokesman, using the "C" word, said it receives more than 40 million calls a year:

"We know that some of our customers can struggle to get through on our helplines at very busy times.

This isn't good enough, and we are working hard to improve the range of services we provide.

This year we are introducing new technology to help us answer more calls quicker at busy times, and we are improving the digital services we offer so that more customers can find all they need online.

There is more to do, and we are committed to improving the service we offer all of our customers at all times."

The sample cannot be called "representative":

1 It was a mere 100 calls.
2 It was taken at the busiest time of the year.

However, as loyal readers (staff and non staff) have stated on this site, there are issues wrt calling HMRC call centres throughout the year. It is a situation, as HMRC moves towards ever increasing centralisation, automation and staff cuts that will most likely worsen.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

A Question of Residence

Last week I wrote about a government "concession" wrt an EU VAT rule that will come into force 1 January 2015, regarding VAT registration requirements for firms selling digital services:

"HMRC conceded that while micro companies are still obliged to register for VAT in the UK to use MOSS, they will no longer be forced to charge UK VAT on their domestic sales."

All very well and "flexible" of HMRC and the government, maybe.

However, I also noted:

"The thorny question of proving online where someone actually resides is of course another matter!"

Fear not, HMRC have covered that and (of course) have made things a lot more complicated for the hapless SME's selling digital services.

As per HMRC:

"When you provide digital services in the circumstances below, you can presume that the location of your consumer is as specified below. If the service is supplied:

• through a telephone box, a telephone kiosk, a wi-fi hot spot, an internet café, a restaurant or a hotel lobby, the consumer location will be the place where the services are provided - for example, the member state where the phone box/kiosk etc is located
• on board transport travelling between different countries in the EU (for example, by boat or train), the consumer location will be the place of departure for the consumer’s journey
• through an individual consumer’s telephone landline, the consumer location will be the place where the landline is located
• through a mobile phone, the consumer location will be the country code of the SIM card
• through a decoder, the consumer location will be the postal address where the decoder is sent or installed

Where one of the presumptions apply, you’re only required to retain evidence showing the relevant place (for example, the place where the decoder is installed).

However, if you choose to, you may rebut the presumption using alternative evidence. To support this decision you’ll need to collect and to keep 3 pieces of non-contradictory commercial evidence. If you’re providing digital services in circumstances not listed above, you’ll need to support your decision about the consumer’s location by providing 2 pieces of non-contradictory commercial evidence."

All clear?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

HMRC Guns For Solicitors

HMRC has now focused its gimlet eye on solicitors, via an initiative to collect unpaid tax from the profession.

HMRC is offering improved settlement terms to solicitors who volunteer information about any tax that they owe, offset by the threat of enhanced penalties for those who do not comply.

Taxpayers have until March 9 to declare their participation in the campaign, and then must disclose and pay their tax debts by June 9.

Caroline Addison, head of campaigns at HMRC, is quoted by the FT:

“those who make a deliberate decision not to pay the taxes due could face a penalty of 100 per cent or more of the tax due, or even a criminal prosecution.”

Fiona Fernie, a partner at Pinsent Masons, said:

“I suspect they are targeting smaller, owner-managed practices where, like anywhere, there is less red tape.” 

In other words HMRC is going after easy to pick low hanging fruit, instead of going for large sums owed by the more powerful.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

HMRC Goes For a J Arthur

The hard pressed pub trade has just had another kick in the nuts by the state, courtesy of HMRC.

This is Money reports that thousands of publicans have been sent letters by HMRC demanding they pay back money originally returned to them as VAT overpayments on slot machines.

Some of the demands, which are also being sent to other leisure outlets with slot machines, such as bowling alleys, amusement arcades and railway station cafes, run into thousands of pounds.

This is as a result of a long-running battle between casino operator Rank Group and HMRC over whether or not VAT should be paid on slot machine income. It was first settled in favour of Rank Group, meaning that HMRC refunded the group more than £30 million and started paying out refunds to other slot machine operators. However, HMRC successfully appealed the decision in October last year and is now writing to reclaim the payments.

One publican is quoted:

‘This could cause serious problems for some publicans, many of whom earn less than £15,000 a year and who would have problems finding the money. Many have gone bankrupt and are still being chased for the whole sum.’

The farce is going to continue, as Rank Group is appealing the most recent verdict, with a court hearing set for April.

This is of course precious little comfort for cash strapped publicans.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

Beware Gov.uk

Milsted Langdon, a firm of accountants, is warning anyone relying on HMRC guidance published online to keep printouts or screengrabs to protect them in case they are subject to an investigation.

The reason for the firm's concern is the fact that information migrated from HMRC and other government department websites to the new gov.uk website has been simplified and abridged; often with incomplete or misleading advice.

Rob Chedzoy, Tax Partner at Milsted Langdon, is quoted by the Bristol Post:

"Anyone who has looked something up on gov.uk and then acted on the information, or decided they don't need to do anything based on what they have read, are recommended to have proof of the guidance they relied on in the event of a dispute with HMRC.

While HMRC will amend guidance as soon as it is aware it is incorrect, this is of no use to someone who has relied on any incorrect information given, especially if they are unaware that this guidance has subsequently been amended.

Therefore, to prove beyond doubt what the guidelines said at the time it was relied upon, taking screenshots or printing-out the guidance and date-stamping them is important for evidential purposes.

Our advice to every taxpayer is simple; before making any decision or relying on HMRC guidance, speak to a qualified accountant."

Despite the fact that in two legal cases, judges have stated that if the tax authority has made a clear and unambiguous statement on a matter, then any person acting on that information should be able to rely on it, and that Milsted has a vested interest in drumming up trade, its advice (wrt checking with a tax professional) is sound given that HMRC has history wrt acting in its own interests.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

HMRC is Spectacularly Incompetent

HMRC is "spectacularly incompetent" says David Davis. Punchy.
— TaxPayers' Alliance (@the_tpa) December 4, 2014

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

VAT Rule Change

It seems that lobbying by the media, and the creation of an online petition, has spurred the Government to change a VAT rule that thousands of UK business owners claimed was putting their companies at risk.

An EU regulation, due to be introduced on January 1 2015, would have forced UK firms selling digital services, such as ebooks and e-courses, in Europe to register for VAT in every country, as VAT on digital products will be chargeable in the place of purchase rather than the place of supply.

Alternatively, small business owners would have to register for a VAT “Mini One Stop Shop” (VAT MOSS) by registering for VAT in the UK, which would funnel the tax payments automatically but make the seller liable for VAT domestically, even if they fall below the threshold.

On Tuesday, HMRC conceded that while micro companies are still obliged to register for VAT in the UK to use MOSS, they will no longer be forced to charge UK VAT on their domestic sales.

A spokesperson for HMRC is quoted by the Telegraph:

"Businesses below the current VAT registration threshold that can separate their sales to UK customers from sales to EU customers can voluntarily register the cross border element of their business, and then use that registration number to register for MOSS. This means that their domestic sales will remain VAT free."

The thorny question of proving online where someone actually resides is of course another matter!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

HMRC Wins Golden Bull Award

Congratulations to HMRC, for winning the 2014 Golden Bull Award presented by the Campaign For Plain English for ''the worst examples of written tripe''.

As per the Campaign For Plain English:

"Our Golden Bull winners, too, were of a typically high standard. We’ve once more carefully selected the worst of the year’s written tripe. This is never an easy task. But, after sifting through countless examples of dire communication, we have settled on a select awful few."

Well done HMRC!

Here is the entery that won it the gong:

"Can I switch from flexible drawdown to capped drawdown? 

[Schedule 165 (3B) Finance Act 2004]
No – the test on whether or not you qualify for flexible drawdown is only at the start of flexible drawdown. The decision to move to flexible drawdown is irrevocable under the tax rules and you can't lose the ability to take drawdown pension using flexible drawdown. Once you are in flexible drawdown it is for you and your scheme administrator to decide how much you take out and how often. The amounts drawn under flexible drawdown may be similar to or different from the amounts allowed under capped drawdown. However, there are tax consequences if you subsequently make contributions to or resume active membership of any registered pension schemes after taking flexible drawdown."

Gongs all round (eh Lin?;))!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

HMRC Review of Its Powers of Entry

HMRC was ordered by the Chancellor to review its powers of entry, and published a report on 27 November.

HMRC has 39 powers, nine of which belonged to other departments or were powers to inspect rather than enter.

Five of the remaining 30 powers will be "modernised/consolidated".

It is interesting to note that HMRC performed the review itself, and itself determined "that 25 of the 30 powers need no amendment because they are necessary and proportionate in their current form".

Surely the review should have been performed by an independent party?

Anyhoo, leaving aside the thorny question of independence, as per HMRC:

"Under the Protection of Freedoms Act 2012, each secretary of state must review the powers of entry they are responsible for, and report back to Parliament.

This review, ordered by Chancellor of the Exchequer George Osborne MP, examines the powers of entry held by HM Revenue and Customs (HMRC).

It was laid before Parliament on 27 November 2014.

In summary, HMRC reviewed 39 powers.

Nine were found to belong to other departments or be powers to inspect rather than enter.

HMRC will retain 25 of the 30 powers in their current form. All of these powers were previously reviewed after the merger of HM Customs & Excise and the Inland Revenue in 2005, and this further review has reaffirmed that they are still proportionate and necessary.

There are five powers where there is a clear case for modernisation and consolidation, including a number relating to betting and debt management. These have been recommended for amendment and this will take place by the end of 2014."

Something worth keeping an eye on methinks!