Happy #BrexitDay everyone!
Now that Brexit has been formally triggered, I would be interested to hear people's views as to how they think HMRC will cope with both Brexit and MTD.
What's the betting MTD will be delayed?
Tax does have to be taxing.
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Brexit, MTD AND the "Building Our Future" transformations? As HMRC are universally regarded to be as effective at their job as a chocolate teapot, any one of the issues in isolation would be difficult for them to handles. More chaos is ahead it would seem, which has to be a concern for the nation's finances and for business taxpayers who deal with them frequently.
ReplyDeleteI am not an expert on this, but I understand the impact on VAT will be huge. Currently UK VAT law is derived from EU law and legislative bodies, and the UK has to comply with EU directives and rulings from the ECJ. Also, many UK businesses trade with businesses in other member states. Do HMRC have a plan? Will this have detrimental affect on UK VAT registered traders? Do HMRC have the experienced staff to handle this complex area? Was it such a wise decision to sack thousands of experienced staff with years of experience?
Like it or not (and I can see little benefit from leaving) a proposal for a Referendum was on the political agenda for years, and if HMRC haven't planned (including having the right resources in place) then it will be a massive failing on the part of their Departmental Senior Civil Servants to consider all democratic possibilities which were evidently on the horizon. Will they be held accountable for their success or otherwise?
Fairly recently I expounded on here about this subject (less MTD), and predicted a clusterfeck and SNAFU scenario.
DeleteThe Politicians, much less the Civil Service and HMRC will be unable to sort this out in the little time remaining unless an almighty transitional agreement is agreed by all and sundry (doubtful in the circumstances).
So why the gloom and negativity? It's neither, more a case of pragmatism when you consider some of the factors such as Customs, Excise duties, VAT, procedures to replace free circulation and the aquisition and dispatches as well as the reverse charge rules, then there will be valuation, misdescription and a few other things besides. Can't see the UK Border Farce taking on any more C&E work without more resources.
Gauke & Co. will huff and puff and the media circus will go ballistic seeing all the fallout as a direct outcome of Brexit.
Personally, I am sure, like most of my ex. HM C&E colleagues wh retired, were pushed or otherwise, that the snsuing mess will have all been predicted from day 1.
So, what about a refreshing change, split HMRC back, fill up a few thousand posts in HM Customs & Excise, ditch anything pink and fluffy, including Lean and that Comms Dept. Crap and get back to some real revenue protection, you know it makes sense.
HoHoHo, the wheel turneth and Samuel Pepys laugheth!
I have to agree with the comments about splitting HMRC up. The thing with our tax authority, as tax payers and accountants know only too well, is they lack any humility to admit their mistakes (or worse), and therefore it'll never happen. So the shambles will continue...
DeleteBy the way, you do wonder if senior management kinda like all the chaos and crisis as it provides examples for their CV, as they climb on the civil service career ladder - SOCIAL MOBILITY IT AIN'T! Think of it like their incompetence creating a problem and then wanting to be rewarded for thinking of some superficial 'solution' to it.
Tax payers will suffer but for the senior civil servants at HMRc it all aboard the gravy train...
Revolving doors, keep it up and Homer will be back running one of the 2 new Departments! LMAO.
DeleteIt's seems a cushy little gig if your contacts, or your ability to be a shameless sycophant, gift you a role in HMRC Senior Management!
ReplyDeleteAt the end of the day though they have nothing to lose if their part of Brexit is an unmitigated disaster as expected - its the small trader who risks their money, business and livelihood.
HMRC need to get out of their ivory towers and meet real people, who they are paid to serve. If they consult far and wide with business big and small across all sectors, including the accountancy profession, that will give them the greatest chance of success.
ReplyDeleteIf they just keep having luxury away days, like the ones they have Arsenal FC's stadium, talking through the theory of how great HMRC will be in the future, and if they stick with their 'we know best attitude', and if they surround themselves like usual with toadies and yes people, then it'll be a complete failure.
Various media outlets are reporting that HMRC's new IT system designed to cope with the five-fold increase in customs declarations expected after Brexit will not be ready. Its described as "in doubt" and with "major risks".
ReplyDeleteThe main risk is to trade with all the consequences that would bring. It surely will need the high level of scrutiny that Andrew Tyrie is calling for.
However, those concerned should rest easy, it looks as though the HMRC communications department have told the media that they are "fully focused" on making a success of the UK's exiting of the EU. So there we have it. We all know of their track record in delivery, so there's clearly nothing to worry about...
Far be for me to big up HMRC, (as a recently retired employee of 32 years service )
ReplyDeleteI have my own thoughts on management etc but most of the posters here moaning about MTD
Are blaming the wrong people.
There’s one person that started this farce, Francis Maude, His office created the Govt Digital Service
With the remit to revamp Govt Services that serve more than 100,000 users from offline to digital, anyone remember his mantra “Digital by Default” savings were estimated at 1.8 Billion per annum.
HMRC have no option but to bring in Govt policy.
If you’re looking for blame try Lord Maude of Horsham, who caused havoc and mayhem in the Civil Service from 2010-2016 and has now got a nice retirement billet in the Lords .