Saturday 29 December 2018

Arise Sir Jon Thompson

Thompson had been made a Knight Commander Of The Order Of The Bath.

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"

Saturday 22 December 2018

HMRC People Survey Results 2018

Civil Service 2018 scores vs HMRC Satisfaction ratings:

Engagement : CS 62% v HMRC 49% (-13%)
My Work: CS 76% v HMRC 67% (-9%)
Organisation Objectives : CS 83% v HMRC 80% (-3%)
My manager : CS 70% v HMRC 69% (-1%)
My Team : CS 81% v HMRC 82% (+1%)
Learning & Development : CS 54% v HMRC 54% (-)
Inclusion and fair treatment : CS 78% v HMRC 73% (-5%)
Resources and Workload : CS 73% v HMRC 68% (-5%)
Pay & Benefits: CS 31% v HMRC 22% (-9%)
Leadership/Managing Change : CS 47% v 38% (-9%)

Not exactly a stellar performance!

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"

Friday 21 December 2018

HMRC Report on the Bullying, Harassment and Discrimination Interviews – Report issued January 2016



Large Business 2014 People Survey: 

Report on the Bullying, Harassment and Discrimination interviews – Report issued January 2016 

Large Business 2014 People Survey Bullying, Harassment and Discrimination 

Interviews Large Business Leadership Team Message 

This report is a response to the concerns the Large Business leadership team had about the bullying, harassment and discrimination results in the 2014 People Survey.

We wanted to get a better understanding of what lay behind those responses and more importantly what action we need to take to improve things. We therefore commissioned an independent team to gather your views in a confidential environment and provide an anonymised report to allow us to take this issue forward.

We are very grateful to everyone who took the time to take part.

This report does not make comfortable reading and we were both shocked and upset by the findings .

However we are determined to take action and have already taken some of the steps needed to address the issues raised.

Please do discuss this report in your teams and share your thoughts on how we can make improvements for everyone in Large Business .

Kind regards,

Judith Knott and LBLT


Our anonymised report details the feedback f rom LB staff who took part in that interview process . The headline results from the People Survey 2014 figures for LB are:

Number of people who completed the survey - 1403 (response rate of 63%)

- Staff who had experienced bullying and harassment – 11 %
- Staff who preferred not to say – 9 %
- Staff who had experienced discrimination at work – 15 %
- Staff who preferred not to say – 10 %

At the time of writing this report we feel it is important to note the results of 2015 People Survey as they reaffirm the need for action on these issues .

Number of people who completed the survey - 1715 (response rate of 70 %)

- Staff who had experienced bullying and harassment – 14 %
- Staff who preferred not to say – 7 %
- Staff who had experienced discrimination at work – 18 %
- Staff who preferred not to say – 10 %

Read full report here.

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"

Thursday 20 December 2018

HMRC's Brexit Bonus


CSW reports that the five biggest Brexit preparation allocations have been made to the Home Office (£480m), Defra (£410m), HMRC (£375m), BEIS (£190m) and the Department for International Trade (£128m).

HMRC is expected to use the cash to will employ over 3,000 additional customer service and compliance staff in operational roles to handle increases in customs activity, as well as introducing new technology at the border. 

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"

Wednesday 19 December 2018

Free Webinar on MTD - By Happenstance It Is 100 Days Until Brexit and MTD!


Accountants & Bookkeepers: It’s officially 100 days until the Making Tax Digital for VAT deadline.
To get your firm ready for MTD in no time, QuickBooks has partnered with HMRC to host a FREE 60-minute webinar tomorrow @ 11am GMT.
Join HMRC’s Verna Gellvear from the Customer Readiness Team and QuickBooks’ Making Tax Digital Lead, Alex Davis, as they discuss:
  • Recent MTD for VAT updates
  • Key learnings from the MTD for VAT pilot
  • Important insights around when small businesses will take action
This interactive 60-minute session will include a live Q&A session to answer all of your MTD questions.
    REGISTER NOW    
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"

Monday 17 December 2018

HMRC Is Defective



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"

Friday 14 December 2018

HMRC Told Not To Discuss Post Brexit Customs



Hans Maessen, a Dutch customs expert, recently told a Parliamentary committee that HMRC have been refusing to engage in any discussions on customs, going as far as to claim that HMRC were “not allowed” to do so due to a “political instruction” following the Chequers agreement to pursue the ‘Facilitated Customs Arrangement’ instead.

Money was put aside for the UK to make preparations for leaving the Customs Union by the Chancellor over a year ago, yet Guido understands that senior figures in the Treasury and the Cabinet Office are still putting the brakes on it being spent.

Sometimes it is not always HMRC's fault that things are shite!

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"

Thursday 13 December 2018

ICAEW MTD Hub Updated



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"

Tuesday 11 December 2018

The No Deal Collection

Customs, VAT and Excise regulations: leaving the EU with no deal

This collection brings together regulations, explanatory memoranda, and an impact assessment in preparation for day 1, if the UK leaves the EU with no deal. 

Details

The Withdrawal Agreement and Political Declaration on the future relationship between the UK and EU was endorsed by leaders at a special meeting of the European Council on 25 November. The government will lay these before Parliament ahead of the parliamentary debate and vote on the approval of these documents.

The Withdrawal Agreement sets out the terms of the UK’s smooth and orderly exit from the EU and the Political Declaration sets out the framework for the future relationship between the EU and the UK.

The government does not want or expect a no deal scenario. However, it is the duty of a responsible government to prepare for a range of potential outcomes, including the unlikely event of no deal. In the event of leaving the EU without a deal, legislation will be necessary to ensure the UK’s Customs, VAT and Excise regimes function as intended after the UK leaves the EU and so, on a contingency basis, HM Treasury and HM Revenue and Customs will lay a number of Statutory Instruments (SIs) under the Taxation (Cross-border Trade) Act 2018 (TCTA) and the EU Withdrawal Act 2018 (EUWA).

As these SIs are laid they, and any accompanying documentation, will be published on this page. This will include an impact assessment, draft notices and public notices that will be made before exit, under these SIs and the TCTA respectively. In addition to this, as two of the SIs incorporate a number of documents by reference, these documents are also listed and linked below, beneath the SI to which they relate.

This legislation is designed to broadly replicate the current EU legislation and minimise disruption of a no deal scenario on the UK’s international trade. To further support this there are step by step guides to importing and exporting which explain the steps that businesses can take to prepare for a no deal scenario.

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"

Monday 10 December 2018

State Uses Tax Avoidance




Oh dear, it would seem that the state is not practising what it preaches.

NHS trusts are flouting orders not to use tax avoidance schemes.

The Mail reports that under a tax loophole, temporary staff are employed by financial consultants and supplied to hospitals as ‘medical services’.

It means they are exempt from the 20 per cent VAT usually levied on agency workers.

An HMRC spokesman said:
‘HMRC expects all businesses, including public bodies, to apply the tax rules correctly. Government guidance explicitly states public sector organisations should not engage in tax evasion or avoidance.’
Well of course the state should practice "evasion" (as that is illegal!). I am not sure I get why the state shouldn't use legal tax avoidance though?

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"

Friday 7 December 2018

HMRC Carries On Regardless, Ignoring Warnings



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"

Thursday 6 December 2018

Another HMRC Victim



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"

"I Do Not Think, In My Opinion, Parliament Can Let This Continue"


Chris Leslie, a former head of investigations at HMRC, added his voice to those who know that HMRC is abusing its position wrt IR35 and the loan charge scandal.

He pointed out that as a general rule, HMRC should have exercised “reasonable discretion” when probing taxpayers caught by the charge.

The Lords found HMRC to be guilty of a “failure to pursue taxpayers proportionately to their circumstances”, so much so that it caused them “anguish”.

Leslie is quoted by ContractorUK:
The extent and nature of the investigations should be proportionate to tax risk.

The inequality of arms and costs are well-illustrated [by the Lords in their report].

[While] there is a balance to be struck and HMRC are tasked to achieve results, with newly trained investigators with substantial regulatory powers, the matter is ‘concerning.’ I do not think, in my opinion, parliament can let this continue.”
Quite!

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"

Tuesday 4 December 2018

HMRC's Response To Lord Forsyth - It Doesn't Give a Fuck!



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"

Lord Forsyth Savages HMRC's Retrospective Tax


Powers given to HMRC to tackle tax avoidance and evasion are undermining the rule of law and justice.

This is devastating the lives of middle and lower income individuals, from the private and public sector (including the National Health Service) who used disguised remuneration schemes, in many cases being required to do so by their employers.


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"

Monday 3 December 2018

Chancellor Takes Excess Comfort From One Company's MTD Progress


At a small business reception at 11 Downing Street, Philip Hammond asked Gary Turner, managing director at software company Xero, about Making Tax Digital and Xero’s preparations to which Turner confirmed that Xero are ‘all sorted’ and are working with HMRC on the project.

From 1 April 2019, VAT registered businesses earning above the current VAT threshold of £85,000 are mandated to keep digital records and submit VAT returns using MTD-compatible software.

Xero is one of many software providers who are providing compatible software for businesses to use come April 2019.


Now whilst this is all well and good, as far as the Chancellor hearing what he wanted to hear, there is rather a large fly in Hammond's ointment, as espoused by Damon Anderson, director, partner and product at Xero, who told Accountancy Daily:
Our research has shown that 25% of small businesses currently are not even aware of Making Tax Digital and these that are only 23% realise it’s compulsory, so it is important for us to make sure that everyone is aware that it is coming up very soon.

People have been able to file VAT in Xero for a long time, but we have taken the opportunity to upgrade the experience and have added 30 new features so Making Tax Digital for VAT is taken care of. We are not worried about our ability to prepare for Making Tax Digital we are more concerned about people realising that it is something they have to do.
Yup, there are a lot of businesses that are not ready for MTD...is 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



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 29 November 2018

HMRC and The Tax System Exposes Taxpayers To Fraud



As loyal readers, and non readers, are aware the number of scams whereby the perpetrators claim to be HMRC are on the rise.

BBC Radio 5 Live's Wake Up to Money reported that cases had risen to about 85,000 a month now, compared with 70,000 on a typical month last year. These are cases when fraudsters contact potential victims via phone, text or email, claiming to be from HMRC, and often suggesting people are owed a tax refund or need to pay more.
 
Chas Roy-Chowdhury, who is head of taxation at ACCA, said that taxpayers (that's all of us) were the weak point in the battle against fraud. They should not be criticised, he said, as con artists were exploiting the lack of interaction with the authorities.


He is quoted by the BBC:
"The weakest link is the taxpayer. It is difficult to be too critical of the taxpayer and HMRC because many of the scammers are using the opaqueness of tax and our interactions or lack of with HMRC to steal the taxpayers money.

Most people are scared of HMRC and regardless of how fully up to date their tax affairs are will always, because of the opaqueness of tax, give HMRC the benefit of the doubt and think they have underpaid."
He suggested people checked that any correspondence with HMRC tied in with an individual's tax assessment.

He also urged people to look up the official HMRC phone numbers before calling, rather than assuming any number they were told was correct.
"It is a new world we live in when it comes to tax scams, don't be a victim and do your own due diligence. Just a few simple checks to avoid being taken for a ride."
He's being very polite, part of the weakness of the system that exposes taxpayers to fraudsters is the complexity of the tax system (so complex that even HMRC doesn't understand it), and the lousy systems and practises that HMRC operates that makes it all but impossible not to be afraid of it or to communicate meaningfully with it.

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"

Wednesday 28 November 2018

HMRC's Enquiry That "Drifted Along Aimlessly".



The FTT is unimpressed with the "progress" of an HMRC enquiry that the FTT stated "drifted along aimlessly" and, unsurprisingly, has ordered it closed.


Background

Mr Patel (the taxpayer) is a chartered accountant who incorporated his practice to become Ashley King Ltd (the company). The company was charged a fee under a licence agreement for the use of the practice name, business contacts and web domains, the goodwill of which the taxpayer claimed was a personal asset.

The licence fee received under the licence agreement was declared on the taxpayer's self-assessment tax return as income. HMRC opened an enquiry into the taxpayer's 2014/15 tax return in late 2016, in relation to the licence fee and goodwill. The taxpayer provided HMRC with a copy of the licence agreement which explained the nature of the relationship and the payment terms.

HMRC suspected that the licensing arrangement was intended to avoid employer NICs and the matter was referred to various specialist teams within HMRC for advice over the course of the next 12 months.  

At no point did HMRC seek to enquire into the tax return of the company, despite HMRC considering that there could be charges to PAYE and employer NICs as a result of the licence fee arrangement.

The taxpayer made an official complaint, claiming that HMRC were ignoring the information he had provided and his technical arguments. He also informed HMRC that he would seek a direction from the FTT requiring HMRC to close its enquiry. HMRC sought further information from the taxpayer and some 21 months after the enquiry had been opened, issued an information notice to the taxpayer pursuant to paragraph 1, Schedule 36, Finance Act 2008.

The taxpayer considered that he had provided all relevant documents and information to HMRC and applied to the FTT for a direction requiring HMRC to issue a closure notice pursuant to section 28A, Taxes Management Act 1970.

FTT decision

The application was allowed.

HMRC argued that it had not concluded its enquiry in relation to the licensing of the goodwill. Its initial view was that the goodwill could not be personal, in which case the taxpayer would have no goodwill to licence. It was possible that the licence fee payments received from the company should be recharacterised as salary and it therefore required further information from the taxpayer in order to form a definitive view.

HMRC agreed at the hearing that the specialist teams from whom advice had been sought had not been provided with the full facts of the matter and when questioned by the judge, the HMRC enquiring officer confirmed that there was no investigation in respect of the company and that if Class 1 NICs were payable, it was the company, not the taxpayer, which would be liable to pay them. Additionally, if the licence fee payments were salary, then the company would be liable under the PAYE system and as such no amendments would be required to the taxpayer's return.

The FTT referred to Estate 4 Ltd v HMRC [2011] UKFTT 269 (TC) and concluded that HMRC's admission that no amendments could be made to the taxpayer's return settled the matter in his favour. There was no tax at risk since Class 1 NICs cannot be recovered from an employee. Additionally, it was not sensible for the enquiry to be kept open when there was no possibility of an enquiry into the company.

The FTT directed HMRC to issue a closure notice in respect of its enquiry into the taxpayer's tax return.

There it is folks as per this sentence:
"HMRC agreed at the hearing that the specialist teams from whom advice had been sought had not been provided with the full facts of the matter."
HMRC deliberately tries to rig the "game" in its favour when engaging with taxpayers by hiding data and information.

Do not trust HMRC to treat you fairly or honestly!

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"

Tuesday 27 November 2018

One Day HMRC Will Come For You!


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"

Monday 26 November 2018

Lord Forsyth Sticking It To 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



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"

2018 People Survey

Hi folks

I still have been unable to find a link to the results.

Please can someone point me in the right direction?

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



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 22 November 2018

MTD Is Bollocks!



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"

Wednesday 21 November 2018

Jon Thompson Questioned By Treasury Committee



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 Tells People To Take Out Commercial Loans To Pay Tax



The Telegraph reports that people with outstanding debts to the taxman have been told to take out personal loans to pay the money owed.

Seemingly HMRC has written to those affected saying they should make every effort to pay, including selling assets or taking out a commercial loan.

The average rate on a £10,000 personal loan is currently 4.6pc, according to data service Moneyfacts, while the tax office typically charges just 3.25pc.

Ironically this comes as the Government is consulting on a new “Breathing Space” programme, which aims to help those with problem debts by giving them additional statutory protections from predatory collectors.

However, be not afraid, for you see HMRC deny that they are doing this:
We never tell people how to pay their tax debt – it makes sense for all options to be considered, including taking out a commercial loan, to work out what is best for them. The first step in this process is to contact HMRC so we can discuss the help that we can offer.

We are working hard to help thousands of people out of avoidance for good and as part of this we aim to offer manageable and sustainable payment plans whenever we possibly can.
Hah!

Methinks HMRC is playing with words again.

Wrt the second paragraph, I apologise for being thick, but that the hell does "We are working hard to help thousands of people out of avoidance for good" mean?

Is HMRC saying that legal tax avoidance causes debt?

Or is it saying that whatever tax avoidance practises that are currently being utilised by people, at some stage in the future HMRC will charge retrospective tax on them?

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"

Tuesday 20 November 2018

Chancellor Admits He Was Talking Bollocks Over The Loan Charge



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"

Even Royalty Has Tax Problems!


This will be highly entertaining!

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"

Monday 19 November 2018

2018 People Survey - Engagement Falls

A loyal reader has just posted this:
"2018 People Survey Main Results:

Engagement figures DOWN in 7 out of 9 Sections

64% filled in survey...DOWN 3% from last year ever after all the bullying to fill it in.
Overall engagement figure is down 1%....senior management will be gutted about that...that's their headline figure.

The main dissatisfaction is with pay 22%.....Leadership 38%....and the useless learning and development 54%.

Jon Thompson has already come out with the usual waffle....."disapointing results...but great to see brilliant HMRC values....the Intranet comments section is already filling up.

No senior management or brown nosed corporate communications to be seen on the comments section....they will give it a few days....and then start the spin."
 Does anyone have a link to the actual results please?

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"

Mel Stride To Move On?

Mel Stride


There are rumours on Twitter that Mel Stride (the cheer leader for the Loan Charge) might be moving on.

Anyone got any further information on this?

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"

Thursday 15 November 2018

BBC Working With HMRC On Updating HMRC’s Employment Status Manual


As per the National Audit Office:
"Following concerns raised by Parliament and individuals employed by the BBC, the National Audit Office has investigated the nature of, and associated issues related to, individuals hired by the BBC on a freelance basis, particularly those hired through personal service companies (PSCs)1.

In its investigation, published today, the NAO has found that the BBC has taken steps to help affected individuals, however issues remain unresolved and a number of possible outcomes may have future financial implications for the BBC.

The BBC hires thousands of freelancers every year, covering a number of different roles both on and off-air, including actors, entertainers and off-air workers, such as camera operators. Between 2004 and 2013, the BBC developed policies for what contracting method could or should be used when hiring freelancers in on-air roles, resulting in some roles being contracted through PSCs. It based its decisions on whether roles were employed or self-employed for tax purposes on its understanding of HM Revenue & Customs’ (HMRC) guidance and, for on-air presenters, of industry practice.

The government introduced legislation in the Finance Act 2000, commonly known as IR35, to counter concerns that some people were using PSCs to avoid paying the correct amount of tax. It sought to ensure that people who work in the same manner pay comparable income tax and national insurance, whether they are employed directly or work through a PSC. 

Central to the application of IR35 is the assessment of an individual’s employment status for tax purposes. However, assessing employment status is complicated as there is no precise statutory test and instead each case must be assessed individually against a number of factors.

The Committee of Public Accounts first addressed the BBC’s use of PSCs in 2012 as part of a wider enquiry into off-payroll working across the public sector.

In April 2017, the government transferred responsibility for determining employment status for tax purposes of people hired through PSCs to the public bodies hiring them. Prior to this date, PSCs did this themselves and therefore bore the risk of incorrectly assessing employment status and paying the incorrect amount of tax.

The BBC applied HMRC’s 2017 assessment tool to determine employment status for on-air roles. This generated a different employment status for tax purposes in many cases, compared to the BBC’s previous use of its own assessment test and understanding of HMRC guidance. By June 2018 the BBC had assessed 663 on-air freelancers using HMRC’s tool and 92% received an ‘employed for tax purposes determination’. In contrast, prior to this, the BBC assessed the majority of on-air freelances as self-employed.

Between April and September 2017 the BBC paid £8.3 million of tax on account to HMRC to avoid any penalty charges for not paying tax that was potentially due. It started to recoup this money when it was certain about an individual’s employment status for tax purposes, but has not yet fully done so, in part because of concerns raised by individuals. By June 2018, it was yet to recoup £2.9 million.

The BBC’s implementation of these changes has adversely affected its relationship with some of its presenters, who have expressed fears that a change in their assessed status will open up a retrospective HMRC investigation. 170 presenters publicly expressed concerns with the employment status for tax purposes given to them by the BBC through an open letter, with claims that the BBC bears some responsibility in relation to HMRC’s tax demands. Individuals have said they only started operating through PSCs because the BBC required them to do so if they were to receive work from the BBC, and they feel that they have received misleading or limited information from the BBC. 

The BBC has taken steps to help affected individuals. For example, for some people it has paid bridging loans and given a contribution towards additional book-keeping fees arising from the IR35 compliance changes. In addition, in March 2018, the BBC announced its intention to set up an independent mediation process for cases where on-air presenters, who were hired through PSCs, believe the BBC bears some responsibility in relation to HMRC demands for employers’ national insurance contributions.To improve guidance available to those working in the media industry, the BBC is also currently working with HMRC, alongside others in the media industry, on updating HMRC’s employment status manual.

By May 2018, the BBC estimated that some 800 presenters, nearly 300 of whom were hired through PSCs, warranted further review as they were at risk of being challenged by HMRC. This could involve tax arrears for the BBC and for the PSCs.  According to HMRC, as at October 2018, there were about 100 open investigations into BBC-related PSCs.  All open cases relate to tax years prior to 2017 and the vast majority of these were opened prior to the reform.

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"