Contractors Guilty Until Proven Innocent

The FT reports that GlaxoSmithKline has found itself at the centre of a tax crackdown after HMRC accused nearly 1,500 of its self-employed contractors of being “disguised employees”.

HMRC sent identical letters last week to contractors working in various GSK departments including IT and biomedical sciences.

“We’re writing to you because you told us you were self-employed when you worked for and received payments through, your own company.

Whether a worker is employed or self-employed for tax purposes is not a matter of choice. Instead, you need to look at the facts of the working relationship between you and GSK.” 

The letters told the contractors that, if they accepted their GSK contract was caught by “IR35” rules on self-employment, they should calculate their employee payroll tax and national insurance contributions for the 2018/19 tax year and make payments by September 22.

If they disputed this, HMRC told them to reply with evidence by September 19.

Seb Maley, chief executive of Qdos, an IR35 tax specialist, said the letters were “aggressive” and that HMRC was trying to “terrify” contractors.

“HMRC is working off the basis that these contractors are guilty until proven innocent.”

Rebecca Seeley Harris, head of off-payroll at employment law specialist Re Legal Consulting, said contractors need not be afraid.

“Although it sounds very threatening, the letter has no legal basis.”

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"

Computer Says No

The https://t.co/EX1v1Ldgi6 website after I clicked Continue has advised me "There is a problem". Is this to reassure me that because NASA managed to save Apollo 13 with less computing power than an automatic washing machine, Her Majesty's Government will be able to sort out MTD?

— Stuart Jones (@StuartJones) August 28, 2019

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"

Auto Enrolment In EORI

HMRC will start automatically enrolling companies in a key customs system in preparation for a no-deal Brexit

More than 88,000 companies will be allocated an Economic Operator Register and Identification (EORI) number in the next two weeks, adding to the 72,000 firms who have already registered.

Sajid Javid is quoted by Public Technology:

"There can be no time for delay which is why HMRC has allocated thousands of businesses with a trading number to ensure they can continue to trade their goods through Europe from day one.

This will help ease the flow of goods at border points and support businesses to trade and grow."

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

A Little Light Relief

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 Looking For Fraud Digital Platform

HMRC has issued an early engagement notice to inform potential suppliers that it is “considering procurement options” regarding its need for a “digital notebook application”. Such an application is needed to allow the department’s field officers to record evidence and other information during investigations into civil or criminal fraud cases.

HMRC is seeking to deploy off-the-shelf commercial software that can be installed on the smartphones and Microsoft Surface Pro hybrid devices used by its Fraud Investigation Services (FIS) division. The software must also integrate with the department’s wider technology estate and infrastructure.

“The application will have the capability to: record notes, take photographs, record video [and] audio, receive witness signatures and perform speech-to-text in multiple languages.

All case-related notebook entries will adhere to evidential standards, to ensure that contents are admissible as evidence in court. The application will have GPS and date/time-stamp functionality, which will be recorded against the file note when uploaded and saved. Once saved, the file will 'lock' editing functionality.”

SIMPLES!

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 Waives MTD Fines

Approximately 120,000 self-employed people have failed to meet the first deadline for filing their MTD tax returns.

Since April, the vast majority of small businesses with a turnover above the £85,000 VAT threshold have been required to submit returns online using third-party applications.


In total, 1.2 million businesses will be forced to comply with the new regime. About 490,000 should have completed their first return by August 7 but 120,000 have yet to register with HMRC.

The Telegraph reports that in normal circumstances those who had failed to comply would have received a fine of at least £100. However, it is choosing not to enforce these penalties during the first year.

The Federation of Small Businesses (FSB) called on HMRC to extend this policy for a further year, allowing businesses to fully prepare for the possibility of a no-deal Brexit.


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"

PCS Calls HMRC's 2% Pay Rise "Derisory"

HMRC's proposals to impose annual pay rises of up to 2.08% for its lowest paid staff have been attacked by the Public and Commercial Services Union.

PCS said that HMRC was locked in an “embarrassing spectacle” of having to uprate its own lowest pay band on an annual basis to make sure it complied with the earning minimum set by government.

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The union said HMRC had told it that the rise would be paid at the end of next month, fully consolidated and backdated to 1 June.

It gave a range of 1.86% to 2.08% for the rises and said the award would be worth from £360 a year for administrative assistants based outside London to £1,410 for grade 6 staff based in the capital.

PCS said it would be convening members’ meetings on pay in September and later in the month would meet outgoing perm sec Sir Jon Thompson for a final time.

That's all very nice and dynamic. However, Thompson is leaving, what is the point of meeting him in September when he will be already mentally (albeit not physically) long gone from 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"

Security Incidents Double In Wales Over 5 Years

via GIPHY

The BBC reports that the number of "security incidents" across the five HMRC offices in Wales has almost doubled in five years.

The figures have risen from 807 in 2014-15 to 1584 in 2018-19.

Unauthorised disclosures - data revealed to the wrong people - has also doubled.

An HMRC spokeswoman said "we take all security incidents seriously and ensure that lessons are learnt from all cases".

The bulk of the incidents, at offices in Swansea, Wrexham, Porthmadog and two offices in Cardiff, were "unauthorised disclosures" of data.

This category of incidents increased from 642 in 2014-15 to 1353 in 2018-19, according to information obtained using a Freedom of Information request.

HMRC point out that unauthorised disclosure figures "will not all be related to customer data. Some may be internal HMRC data such as policy, guidance, workings/calculations, court proceedings etc".

As well as unauthorised disclosures, the total of 1584 incidents in 2018-19 cover a wide variety of circumstances including 66 cases of data loss through the post and three electronically, theft, loss of building passes and IT security.

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"

Chief Security Officer Role

HMRC, is looking for a new Chief Security Officer, who will be accountable for the department’s security and data protection strategy and risks.

In a job listing posted online, HMRC said that the new Security Chief will sit within the Chief Digital Information Office Group (CDIO) and will be responsible for setting relevant security policies and standards across the organisation. 

The role will take into account the department’s GDPR “strategic vision, direction and budget”. 

The salary is currently at £149,500 per annum, but the job notice states that more may be available for an “exceptional candidate”, subject to Ministerial approval. 

Jacky Wright, HMRC’s CDIO, said: 

This is an exciting time for digital and technology in HMRC. We are in the middle of a major transformation process that will fundamentally improve the department’s networks, technology, and digital services for our customers and colleagues. I have only been part of our journey for a short period of time, but am constantly amazed by the scope of HMRC’s operation and the opportunities we have to become a world leader in government technology.

To achieve our goals we’re innovative in our  approach using the latest technology available. It’s not just our customers we focus on - we want our colleagues’ experience of working with us to be an outstanding one, and have career pathways that are rewarding and fulfilling for everyone in the department. We’re creating a genuinely diverse and inclusive workplace where everyone feels able to bring their best.

Roles and responsibilities 

The successful candidate will need to demonstrate experience of anticipating major change and preparing organisations to meet that change, whilst “managing confidently through uncertainty and bringing stakeholders along the journey”. 

HMRC is also seeking someone with strategic influencing skills, as well as strong decision making, negotiating and conflict resolution skills. 

In terms of key responsibilities, some of these are set to include: 

• Deliver a set of technical security services to internal customers and programmes across HMRC in a way that is agile and risk-informed. 
• Establish and maintain HMRC’s security program to ensure that information assets and associated technology, applications, systems, infrastructure and processes are adequately protected in the ecosystem in which HMRC operates.
• Strengthen HMRC’s personnel security position by designing and implementing an appropriate personnel security framework.
• Liaise with other functions outside CDIO, including finance, HR, legal and ethics teams and 3rd parties, to ensure security and data protection risks are understood, considered and satisfactorily mitigated as an intrinsic part of HMRC’s organisational activities. 
• Drive the implementation and monitoring of compliance to relevant regulatory and government requirements. Oversee the identification, evaluation and reporting of legal and regulatory, IT, and cyber security risk to information assets, while supporting and advancing business objectives. 
• Provide leadership oversight to ensure threats that HMRC and our customers face are addressed effectively and expeditiously; Ensure appropriate response to security incidents and drive continuous improvements by learning from them. 
• Ensure the design, development, operation, evolution and promotion of a business continuity model that is fit for purpose.
• Represent HMRC on relevant cross-government Boards, and engage with the Government Security Group to influence the cyber, physical and personnel security agenda across government.

Interested candidates have until 8th September to apply and it is expected that final interviews will take place the week commencing 7th October.

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 £112M Microsoft Deal

Public Technology reports that HMRC has gained central approval for Microsoft (the company that routes its sales through Ireland) licensing deals worth £111.75m, according to data published late last month. 

The department received the green light for spending of £106m on ‘Microsoft Licence E5’ on 25 March. Microsoft’s Office 365 Enterprise E5 licences usually include Skype for Business, security and compliance features and Power BI analytics, as well as the suite’s standard software. It also gained approval to spend £4.9m on Office 365 on 22 January, and a further £850,000 on the same on 22 March.

HMRC’s current chief digital and information officer Jacky Wright is on a two-year secondment from Microsoft, scheduled to end this October. HMRC’s annual report published in July said:

“She does not participate in any commercial decisions specifically concerning Microsoft.” 

When I was an auditor many moons ago, training to be an FCA, we were always told that we should not just be independent, but look independent!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

A Loan Charge Strategy In The Form of a Flowchart

HMRC are pushing hard to settle over 10 years including personal guarantees. My strategy suggests waiting a while longer. What would you do? @loanchargeAPPG @LCAG_2019 pic.twitter.com/TD20EaP5Xu

— My Loan Charge Story (@ChargeStory) August 5, 2019

Views on the above welcome (NB: for clarity it is not my flowchart, and I don't have any loan charge issues with 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"

HMRC's Head In The Cloud

A year ago HMRC was reconsidering its cloud migration project.

One year on and HMRC is now pressing ahead with a major move towards the use of cloud services and has agreed a deal to work with a migration expert. HMRC has tasked Belfast-based digital transformation firm Kainos with providing “specialist migration services”. The two parties have signed a year-long contract that took effect this week.

The deal relates to the department’s Securing Our Technical Future project, which is a “three-year programme to migrate HMRC services from Fujitsu datacentres to the public cloud and private crown environments”.

Kainos has been asked to help “define HMRC’s approach and strategy… for [the] move to cloud [and] to build and seed a testing plan strategy”.

Services provided by the firm will include “specialist migration testing of the application estate” of the department to ensure it is ready to move from HMRC’s premises to a cloud environment of Microsoft Azure and Amazon Web Services.

The initial stages of work are due to be conducted across seven sprints, beginning with an exercise to “agree backlog and plan” and concluding the development of a “test execution service and governance model”.

The Kainos contract runs until 31 July 2020, with an option to extend the deal by a further 12 months. If more support is required beyond summer 2021, “the parties will work together to facilitate this”.

HMRC plans to complete cloud migration by June 2022.

All this and Brexit too!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

HMRC Is "Whitehall's Unruliest Department" - Javid Lays Down The Law

Sajid Javid has ordered HMRC to make no-deal Brexit planning its "absolute top priority".

Treasury sources said the letter from Mr Javid was an instruction to "Whitehall's unruliest department" to prepare for no deal.

In the letter to Thompson, Sajid Javid said:

"HMRC must make no deal preparation their absolute top priority as the UK prepares to exit the European Union on 31st October 2019, with or without a deal."

He said HMRC must deliver "critical internal systems and staffing" to function on October 31, including the 5,000-plus additional staff required to support and handle the increase in businesses making customs declarations.

Mr Javid also said HMRC should work across Whitehall to set up an "ambitious" central helpline to support firms with concerns about Brexit.

He said customs officials must work with counterparts from the Treasury, Home Office, Department for Environment, Food and Rural Affairs and Border Force to deliver the "necessary changes to customs, tax and welfare arrangements in order to ensure a smooth exit and transition".

In his instructions to Sir Jon, Mr Javid said he expected to receive "weekly delivery-focused updates from HMRC to ensure progress remains on track" in the run-up to October 31."

An excellent kick arse approach!

Pretty fucking appalling that the Treasury regard HMRC as being the unruliest department in Whitehall! 

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 Phoenix Companies

The FT reports that the government published draft legislation last month to counter tax abuse where companies exploit the insolvency rules to avoid or evade paying their tax liabilities.

"Phoenixism" is where the directors resurrect essentially the same business but in a different guise.

The new measure will allow HMRC to issue persons that controlled the company, and were responsible for or benefited from the avoidance or evasion of taxes, with a joint and several liability notice.

Any tax liabilities will then be the joint and several liability of the directors and the company.

This is a very important change in the way company liabilities are viewed by HMRC and will no doubt result in the erosion of the concept of ‘limited liability’ for directors and shareholders, in certain circumstances, where it is suspected that the directors have no intention of paying the taxes owed.

Traditionally, HMRC have kept a close eye on trades that were associated with tax evasion and were known to sidestep tax liabilities by going into liquidation rather than pay the taxes due.

The new powers allow HMRC to issue a joint and several liability notice to the persons controlling the company where there is a “serious risk” that the company will enter into insolvency, and there is a “serious possibility” that some or all of the liabilities will not be paid.

The company does not necessarily need to have begun insolvency proceedings for the notice to be raised.

Let us trust that HMRC will not be overzealous when using its pre-emptive powers!

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"