As this recent article in the FT shows, HMRC software simply isn't up to the job:
"Software glitches are putting thousands of people at risk of paying hundreds of pounds too much tax next year, as programmers struggle to cope with an increasingly complex tax system.What hope is there for Making Tax Digital on time, on budget and fully functioning?
Experts blamed the “horrendously complex” changes to the taxation of dividends and savings income for errors in the tax computation software for the 2016-17 tax year which ended on Wednesday. They said the problems were caused by the interaction of the new tax-free allowances for dividends and savings and the zero per cent savings rate band.
HM Revenue & Customs will provide a fix for 2017-18 tax returns but in the meantime those affected are asked to file paper returns.
Giles Mooney of Absolute Accounting Software, a software provider, said the “insanely complicated set of rules” were to blame for the inability of the HMRC coders to solve the problem before the end of the tax year.
Caroline Miskin of the ICAEW, the professional institute, said the problems affected a “quite small” number of people but followed similar problems affecting HMRC’s online filing systems. “They seem to struggle to implement software changes necessary to reflect changes in law.”
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"
This is not a surprise.
ReplyDeleteWe can all see HMRC Senior Management being given HUGE wages from our tax money. When we also see time again MAJOR FAILURE in the tax department and in the system - so what are getting those HUGE wages for???
Is it reward for failure or all aboard the gravy train???
This country needs a new & fresh Government to sort out the mess in our tax system and at the failing HMRC!!! All part of making a success of Brexit!!!
ReplyDeleteWe just need someone of influence to state HMRC is a runaway train that needs stopping, and to get it stopped
ReplyDeleteIndeed, HMRC must be run for the many, not just the few.
DeleteReading about the huge salaries and bonuses for HMRC senior management while the country and the public sector suffers austerity, it seems like a runaway gravy train.