HMRC's CONNECT - "We Might Not Find You!"

I think it worthwhile highlighting this comment posted by a loyal reader yesterday, in response to my article about CONNECT:

"Here we go again, La-La Land revisited.

Such short memories, we have forgotten the strong criticisms levelled at HMRC 'taskfarces'
How effective are the taskforces? HMRC tells Accounting WEB that since its taskforces have collected £200m in additional tax, which was previously undeclared.

Not bad, but to put this figure in context, it’s less than 1% of the £35bn UK tax gap - the difference between the tax HMRC thinks should be collected and the amount actually collected. Other estimates reckon the tax gap is £120bn.

Also, it’s not clear how many leads of alleged tax evasion the taskforces found but weren’t able to collect – because, say, the taxpayer went missing, or a business went bankrupt.

And we don’t know how much taskforces cost. HMRC didn’t reveal the cost of running the taskforces as “[each] one is slightly different”. It said about 350 staff will work on them this year.

One purpose of the taskforces is to deter tax evasion but this is hard to measure.
(Query - would this be of a similar nature to the Preventive effect of a uniformed Customs Officer? Pepys must be a turning in his grave!)

http://www.accountingweb.co.uk/article/hmrc-taskforces-how-much-have-they-really-raised/566012 10/10/14

Those with long memories will recall the somewhat jaundiced view that was held of these taskforces by MP's who previously criticised them for incurring hidden expenses such as car hire, hotels, and whether removing staff from other areas was in fact resulting in further losses.

Perhaps the real reason for trumpeting their 'success' is to divert attention from the criticisms reported in the PAC report (see todays Daily Mail article 'Tax credit fraud and errors cost £1bn)? It would appear the idiots are paying out more to fraudsters than the meagre amounts their taskforces are collecting, albeit the low hanging fruit variety, eh Ken?!

Oh, and their Connect system ain't as connected as they say it is, and it also appears to have taken them more than a couple of years to work out what they can do with the information they have been holding for years. As for unannounced visits, any Compliance Officer or what were they called, LVOIT staff (local VAT Investigation Teams) will tell you all about the value of such visit and the use of Cash Teams which were all abolished by the management.

In any economic downturn, non-compliance and fraud increase, its a fact of life, therefore, the opportunities to harvest low hanging fruits and windfalls increase.

Ho, Hum, time for another waxer..."

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.

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HMRC's CONNECT - "We Will Find You"

CONNECT is showing HMRC who to target and which industries to look at. Message is "we will find you" seek help. https://t.co/nrsQRA0r6z

— John Brassey (@1JohnBrassey) October 26, 2015

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 Targets Wealthy Scots

Those wealthy residents of Scotland who are toying with the idea of crossing the border to England (via changing the address of their "main" home) in order to avoid paying higher Scottish income taxes (due to commence April 2016), may need to think again.

HMRC has disclosed that it plans to use “external data” to identify Scots who change their addresses and identify “high risk cases such as mobile employees and taxpayers with high incomes.”

In a submission to Holyrood’s finance committee, HMRC also disclosed that it has worked with SNP ministers about getting address information from NHS Scotland records.

HMRC said it believes that 98% of people it has listed as being Scottish taxpayers are “likely” to have been correctly identified as liable for the new rate of income tax.

Needless to say, the idea that HMRC are looking for wealthy Scots has not gone down well North of the Border. Eben Wilson, director of low-tax campaign group Taxpayer Scotland, is quoted by the Telegraph:

“We want transparency on what HMRC is doing as the idea that they are trawling for wealthy people to trap them is appalling – we need more of them in Scotland.”

Association of Taxation Technicians (ATT) has criticised the HMRC guidelines of who will be a Scottish taxpayer as unclear, inconsistent and “extremely subjective”.
ATT has warned that workers with homes on both sides of the Border could register to vote in England to avoid paying higher taxes in Scotland.

HMRC will write to taxpayers in December informing them they will be treated like a Scottish taxpayer and advising them of how to report a change of address. Separately, it will write to those who appear on the electoral register in Scotland but have an address elsewhere in the UK.

“If the Scottish rates diverge from the rates which apply elsewhere in the UK, there will be an incentive for taxpayers to claim that they live on one side of the border, when they live on the other.

HMRC will use external data to highlight changes of address, and identify high risk cases such as mobile employees and taxpayers with high incomes and will undertake appropriate compliance activity to address any risks that arise.”

It plans to cross-reference the addresses given by taxpayers with those provided by employers and the Department for Work and Pensions.

The submission said the cost to the taxpayer of administering the new system will be between £2 million and £2.5 million next year if MSPs choose to keep income tax rates the same as the rest of the UK.

However, this cost increases to between £5.5 million and £6 million if they elect to have a higher or lower rate.

What could possibly go wrong?

Tax does have to be taxing.

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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"

Halloween Deadline

#TaxReturn #fine scare at Halloween https://t.co/2piJp5uiqF via @WhichUK pic.twitter.com/G2sFr0APGl

— Intouch Accounting (@IntouchAcc) October 26, 2015

Over 10m people submit a self-assessment tax return to HMRC each year. If you choose to do this by filling out a paper form (SA100) the deadline is 31 October.

Miss this and you'll receive an automatic £100 fine.

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"

Meet Wankie - £8M of Taxpayers' Money Well Spent!

Something BIG is here! Meet Workie the #workplacepension. Find out more at https://t.co/ogibxassKv #DontIgnoreIt pic.twitter.com/zivbJG3ABV

— #DontIgnoreIt (@DWP) October 21, 2015

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"

Bitcoin Declared VAT Exempt

BREAKING Bitcoin declared VAT exempt by EU court today https://t.co/DrIVWNeNHi pic.twitter.com/a3AKudygCZ

— Richard_Asquith (@Richard_Asquith) October 22, 2015

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 Fesses Up To Repayment Delays

HMRC has told agents that it has identified delays in issuing repayments due under self assessment rules.

However, don't panic, for HMRC says it is working with the professional bodies ‘to establish the precise nature of the problem’.

Hoozah!

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's £20M IT Tender

HMRC recently launched a £20M tender for consulting firms to guide its IT department.

HMRC wants increased control over projects, as well as increased competition lowering profit-making. The current contract with Capgemini ends in 2017 and, theoretically, HMRC wants the new changes up and running by then.

Currently Capgemini co-ordinates HMRC's main sub-contractors Fujitsu and Accenture. However, aside from issues highlighted by a 2014 National Audit Office report, recent benchmarking studies also show that of the around £10BN (yes you did read the figure correctly!) the project is expected to cost by 2017, Capgemini will be making 16% profit (ie £1.2BN).

FACTOID: The original profit projection was a "mere" £0.5BN!

Under the new procurement system, HMRC will seek to have its IT systems managed by up to 400 IT subcontract suppliers, with no contract worth more than £100M.

However, as Consultancy UK notes, not everyone believes however that bringing in a large number of small players will improve the quality of service or lower operating costs. Mark Dearnley, HMRC's Chief Information and Digital Officer, says that getting rid of Aspire for a new system could itself cost up to £600M.

Additionally, the government’s Chief Commercial Officer Bill Crothers warns that if wide-ranging changes are to be made then planning needs to start early:

“This is enormous, risky and important, and that should guide what we do. Sitting behind this is getting better capability, being a better client and doing things in a phased way as much as possible...we should not be complacent.”

When has a government department ever fucked up an IT project?

Oh, hang on......

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"

Starbucks - "Nobody Wants To Pay Taxes More Than Me"

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 U-Turn

On 4 August 2014, HMRC withdrew its concessional practice published in 2010 in HMRC’s guidance manual RDRM33170 wrt its treatment of foreign income and gains, as it was seeing large numbers of arrangements not considered to be within the intended scope of the concession.

However, since then, there has been a wee change of mind by HMRC:

"To ensure the transitional period does not have an unintended effect, after careful consideration HMRC has decided it will, with effect from today, not seek to apply the change announced on 4 August 2014 to arrangements where the loan was brought into or used in the UK before that date. From today, there is no requirement to repay or replace foreign income and gains collateral with non-foreign income and gains collateral before 5 April 2016."

For why?

"Discussions with representative bodies since the announcement have brought to light that for some loan arrangements it may be difficult or impossible to unwind or replace the foreign income or gains used as collateral."

Well then, HMRC does sometimes listen; after the event.

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"

Offshore Tax Evasion - A Question of Proof!

The Chartered Institute of Taxation says that the proposed £5K statutory minimum threshold of tax evaded, wrt offshore evasion, is not high enough to protect people in the more complex cases.

The threshold, set by HMRC, is meant to ensure that people who make errors over relatively small sums of tax do not receive a prison sentence of up to six months.

However, CIOT want the threshold to be raised to £25,000.

John Cullinane of CIOT is quoted by Contractor UK:

“We are pleased to note that there will be a statutory defence of reasonable care.

This will be vital in limiting the scope of the offence.
But it would be a stronger safeguard for the taxpayer if the burden of proof was on HMRC to prove that reasonable care had not been taken, rather than being on the taxpayer to prove they took reasonable care.

We are also concerned that this proposal could be counterproductive for HMRC because the fear of prosecution, with no need to prove intention on HMRC’s part, could discourage taxpayers from coming forward voluntarily.”

As ever with HMRC, the concept of innocent until proven guilty doesn't apply!

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 Has Limited Appetite For Learning

I have clearly been asleep at the wheel, and missed that in mid September the Adjudicator's Office published its annual report on HMRC for year end 31 March 2015.

It does not make great reading for HMRC:

“limited appetite for reflection and learning from their interaction with customers....

...A failure to embed change may be costly”

The largest proportion of complaints received by the Adjudicator were about tax credits and HMRC’s refusal to write off overpayments. Other complaints included PAYE issues around Extra Statutory Concession A19.

No surprises there then!

Also of particular concern to the Adjudicator was the failure by HMRC staff to consider the circumstances of vulnerable taxpayers, especially where the department had the opportunity to exercise discretion.

Again, sadly this should be of no surprise to loyal readers!

The report contains a number of case studies, which HMRC would be advised to read.


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"

The Curious Case of Facebook's £4K Tax Bill

Facebook paid £4,327 in corporation tax last year, this is less than the annual cost of travel for some people commuting to London from Brighton each day and less than many taxpayers (based on the average) paid in income tax.

Despite revenues of £105M in 2014, Facebook incurred losses of £28.5M.

This loss was partly in due to £5.6M of tax losses being brought forward from the previous year, and also due to the company's finances going largely through its European headquarters in Ireland where it's able to minimise taxes through the "Double Irish" loophole.

Unsurprisingly there has been a right old hoo hah about this.

However, £35M of bonus payments were made to British staff which I assume (depending on their tax arrangements) are taxable.

That aside, those who are in a flap over this should bear in mind that Facebook has not broken the law but has used the law to minimise its taxes.

The laws that Facebook uses have been passed by our "respected" MP's. Therefore, if people do not like these laws, they should have a word with their MP's and ask them to pass laws that extract higher tax bills from Facebook.

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"

Charity Faces Unexpected £1M VAT Bill

Keith Fernett, CEO of Caritas Anchor House Homeless charity, has written an article for the ITV news site about a potential £1M VAT bill being levied on his charity by HMRC, as a result of a change of description about what the charity does:

"Caritas Anchor House, based in the London Borough of Newham, provides accommodation and support to more than 230 single homeless people a year, many of whom experience difficulties with mental health, drug and alcohol misuse, domestic abuse and offending.

In November 2014 we began building 25 "move on" flats, designed to help homeless residents achieve a sustainable transition into independent living. This building will also accommodate a suite of training facilities, including e-learning zones, workshop spaces and a training kitchen.

However, HM Revenue and Customs has since changed our VAT treatment after 42 years. 

An additional £1 million in VAT is now due for this vital development, after HMRC determined that our description as a "residential and life skills centre" rather than a "homeless hostel" left us subject to VAT despite no change in our services or client group. 

In essence, we are being penalised for positively and accurately describing our work, having received professional advice that the VAT liability for the development would be only £250,000.

This situation is a serious threat to Caritas Anchor House. The change to our VAT status and the consequent £1 million bill from HMRC is putting the charity, its homeless residents and service users at risk. This is in spite of the numerous benefits we offer to the most vulnerable, and society as a whole.

For every £1 invested in Caritas Anchor House, we deliver savings to society of nearly £4. 

This means that ultimately, HMRC’s demand will cost more than it would secure in taxes. At a time when Government is seeking savings, it needs the likes of Caritas Anchor House. Hopefully this is recognised and a decision is taken not to pursue a tax when it is in no-one’s best interest."

My initial thoughts are that Caritas should first of all take it up with their professional advisers who said that the liability should be around £250K, and focus on why they were advised to change their description and why (after 42 years) this has impacted their VAT bill.

Views and comments welcome.

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"

Are HMRC and Concentrix Breaching Data Protection Rules?

On Wednesday I wrote about the ongoing travails of Debbie Balandis wrt HMRC accusing her of sleeping with a newsagent, her previous tenant and her landlord.

My thanks to a loyal reader for pointing out that this series of fuck ups by HMRC are courtesy of Concentirx, the US company paid for by UK taxpayers to do what HMRC used to do wrt checking taxpayer details and chasing debts.

As the Independent reported in February 2015, Concentirx has form wrt being crap at what it does:

"Thousands of people on low incomes are being sent letters by an American outsourcing company accusing them of cheating on their tax credits and warning them that they may have their benefits stopped.

Concentrix, part of a multi-billion pound US business services company, has been accused of going on a vast “fishing expedition” as part of a controversial contract with HM Revenue and Customs to outsource its fraud and error detection.

Staff working at Concentrix have told The Independent that they are under pressure to open between 40 and 50 new tax-credit investigations every day and often don’t have time to check whether the allegations they are making stack up."

Aside from the complete incompetence and waste of money, there is another rather pertinent issue.

How is it confidential taxpayer details are being passed on to a US third party, and how is it that a US company is allowed to go trawling through people's bank accounts, tenancy agreements, credit card etc etc?

This is surely a breach of the laws covering confidentiality and data protection?

Do our "respected" MP's not a give a flying fuck about the rule of law anymore?

Why is HMRC allowed to pass on confidential details to an incompetent US company, and why is that company allowed to breach data protection and confidentiality rules?

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 Owed Up To £200M

HMRC has defeated an avoidance scheme mainly used by property developers and IT contractors. As such HMRC may be owed up to £200M in unpaid tax.

The scheme, which was used by more than 2,000 people, aimed to exploit the UK’s double taxation agreement with the Isle of Man.

Those using the scheme believed that it would reduce their rate of income tax to 5% or less. The scheme was blocked by parliament in 2008 and HMRC was given allowances to enforce the new legislation retrospectively.

Electrical engineering consultant Robert Huitson subsequently challenged the ruling but, following a decision by a first tier tribunal, that appeal was dismissed.

Jim Harra, HMRC’s director general of business tax, is quoted by economia:

“This is yet another example where some people try to abuse the tax system to deprive the UK of money for vital public services. 

This is unfair on the majority who pay their fair share.”

All very well and good (disregarding the meaningless and woolly"fair share" comment). However, retrospective legislation is a dangerous path to take!

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 Phishing - The Many "Lovers" of Ms Balandis

Last week I wrote the following:

"Debbie Balandis, a single mother, has had a wee bit of a falling out with HMRC, after HMRC threatened to stop her £140 per week child tax credits; because it thought that she was in a relationship.

The "man" that HMRC identified as her partner, based on activity viewed by HMRC of her bank account, was Martin McColl.

All very fine, except that Martin McColl is the trading name of her local branch of RS McColl (a chain of newsagents)."

Sadly for Ms Balandis HMRC are not taking their error lying down, as Ms Balandis is quoted by the Daily Record:

“I went to a Citizens Advice office on Wednesday to get this sorted out as I have literally not a single penny. A representative called HMRC and they told her they actually have me on their records as having three boyfriends now.

I’m apparently having a relationship with the post office, a previous tenant and now my landlord which is completely untrue.”

Presumably the landlord and previous tenant have also shown up on her bank statements.

Sounds like a bit of a phishing trip to me!

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"

Diamonds Aren't Forever- HMRC Resembles Stealth Fighter

My thanks to a loyal reader, who pointed out that Homer's "diamond-shaped" HMRC in fact resembles a stealth fighter.

Lin Homer on 'diamond-shaped' future at HMRC @CSWnews http://t.co/EzvDon2rxS. Dept shapes 2014 http://t.co/Y6ZytXoeDk pic.twitter.com/yatiNTxuNR

— Gavin Freeguard (@GavinFreeguard) September 10, 2015

Oh dear, given how expensive those things are, this does not augur well for the future!

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"

Diamonds Are Forever! - HMRC Becomes Diamond Shaped

In August I wrote that HMRC had bought some land in Stratford wrt HMRC's plans for hubs.

Moving forward to the present, my thanks to a loyal reader who advised me that HMRC is likely to reduce its office capacity from 170 offices at present, to around a dozen regional centres in five years.

A few "transitional sites" will continue a little longer, presumably because there are too many staff there now for HMRC to be able to afford to pay them off.

Announcements to the staff will take place region by region from 10th to 19th November.

A message sent to HMRC staff by HMRC's chief people officer William Hague this week (seen by Civil Service World) says the "overwhelming majority" of employees will be moved to the regional offices as smaller units are closed, and sets out plans for a series of more limited "transitional sites" to allow some staff to continue to work locally. 

As per Hague:

"These changes are one of the biggest building blocks of our transformation, as we simply can't transform the way that we serve the public without fundamentally changing how and where we work.

That's because the way that we're currently organised, across 170 offices, simply doesn't make business or financial sense. It makes it hard for us to collaborate, develop people, or respond to operational priorities – and has created a position where we have isolated pockets of colleagues who have limited career opportunities. 

The only way that we can change this is by rationalising our estate. Our estate contracts are structured in such a way that we need to act now. The alternative would involve us being forced to keep deteriorating buildings that we can do little about." 

Loyal readers with long memories may recall that HMRC has estate contracts (around 60% of HMRC's estate is contracted to Mapeley) with Mapeley (feel free to search this site for details about Mapeley).

The good news is that, according to Homer, HMRC is on a course to become more

"diamond-shaped"

Whatever that means?

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"

Petition Demands Open Enquiry Before HMRC Issues APN

The BIG GROUP (an action group of contractors directly affected by the existing and proposed legislative tax changes) has launched a petition asking that HMRC evidence the existence of an open enquiry before issuing an APN.

As per the petition website:

"This petition is organised by WTTBig Group (http://goo.gl/RK7xXp). This action group represents Contractors who are being pursued by HMRC for alleged retrospective tax liabilities arising from working in a manner that was and remains perfectly legal and was disclosed to HMRC between 2006 and 2010.

Legislation introduced by Finance Act 2014 allows HMRC to issue a demand (Accelerated Payment Notice) for an amount they, unilaterally, consider to be in dispute but which has not yet been held in a Court to be payable.

These demands are being made five to ten years after the legal arrangements were made. They create significant personal distress, send carefully considered financial plans into disarray and will cause many to declare bankruptcy, leading to loss of family homes, careers and credit rating.

As a minimum, HMRC's obligation is to ensure the demand meets the conditions of, and is compliant with the spirit and letter of, the legislation.

Unfortunately experience shows that HMRC's error rate is unacceptably high.

The first condition for issuing an APN is valid open enquiry into the year in question. Big Group is able to evidence many examples of HMRC issuing these terrifying demands without meeting this first requirement. This event leads to one of two outcomes:

1) The recipient does not know their rights and therefore either makes the payment or is forced into bankruptcy by HMRC's Debt, Management and Banking operation for their inability to pay an amount which is not due.

2) The recipient challenges HMRC's APN following which HMRC fail to respond for as long as six months, leaving months of uncertainty and worry. Again, Big Group is able to evidence this outcome occurring.

This petition is to demand that HMRC qualify any APN's issued by attaching evidence that the year in question is validly opened, with a copy of the S.9A notice sent to the taxpayer for the year in question."

Those who are affected should sign the petition.

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"