HMRC To Close Self Assessment Helpline for 3 Months

 

HMRC has announced that it will close its self assessment helpline and be trialling a seasonal model for the self assessment helpline, where queries will be redirected to digital services – such as online guidance, digital assistant and webchat – from 12 June until 4 September. 

The sudden closure decision was taken with no prior consultation and gives taxpayers only four days’ warning. 

The tax department explained that the “seasonal model” will free up 350 full-time equivalent HMRC advisers to answer calls and taxpayer correspondence in other areas, and this will enable the advisers to answer 6,600 calls each day.

Lying Twats!

Tax does have to be taxing.

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Trust in HMRC "Hammered"

 

The Chartered Institute of Taxation (CIOT) has warned that poor service levels at HM Revenue and Customs (HMRC) are "hammering away" at trust in the tax system.

In his inaugural speech, new CIOT president, Gary Ashford, said that HMRC has 6,000 fewer customer service staff than it did five years ago. He argued that this has led to "unacceptable" delays in processing tax returns and dealing with queries.

Ashford said that poor service levels are not just a "pain" for taxpayers and advisers, but they also "harm tax compliance, hinder business activity and hammer away at trust in the tax system".

He called on the government to provide HMRC with the resources it needs to improve its service levels.

The CIOT's warning comes as HMRC is facing increasing pressure to collect more tax revenue to fund the government's spending plans.

However, Ashford said that HMRC's focus on collecting more tax should not come at the expense of providing good service to taxpayers.

He said that "a strong economy needs an effective tax system" and that "trust is essential for an effective tax system".

What does this mean for taxpayers?

The CIOT's warning is a reminder that taxpayers have a right to expect a good level of service from HMRC.

If you are experiencing problems with HMRC, you should contact them directly to raise your concerns.

You can also contact the CIOT for advice.

What can be done to improve HMRC's service levels?

The CIOT has made a number of recommendations to improve HMRC's service levels. These include:

• Increasing the number of customer service staff
• Investing in new technology to improve efficiency
• Making it easier for taxpayers to contact HMRC
• Providing more information and guidance to taxpayers

The government has said that it is committed to improving HMRC's service levels. However, it remains to be seen whether these measures will be enough to address the concerns raised by the CIOT.

Tax does have to be taxing.

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HMRC Continues To Be Shite

How the hell can I do my job if I phone HMRC and there is a message which says "We're very busy right now. Please call back later." and then disconnects the call? Succcessive Governments have turned us into a third world country. BTW HMRC have imposed a time limit for my reply!

— Stuart Jones (@StuartJones) June 2, 2023

Tax does have to be taxing.

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HMRC Closing VAT Registration Helpline in 5 Days!

 

HMRC is closing its VAT registration helpline on Monday, May 22, 2023. The helpline was a subsidiary of the main VAT helpline and was dedicated specifically to helping taxpayers who had a concern around their VAT registration application. Advisers from this helpline will be redeployed to spend their entire time processing VAT registration applications instead of answering calls through the helpline.

HMRC says the decision to close the helpline was made after a review of taxpayer service offerings. The agency says it is committed to being responsive to taxpayer needs and to ensuring that its business model represents the best possible value for money for the taxpayer.

HMRC says taxpayers who have a concern around their VAT registration application can still get help by contacting the main VAT helpline on 0300 200 3701. 

This is of course a load of old wank. 

Agents were originally told in an email from HMRC that the service will close on 22 May 2024. As such people have been given just 5 days notice!

This is yet another example of HMRC talking bollocks wrt caring about handling taxpayer queries!

Tax does have to be taxing.

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How To Simplify The Tax System

 

How to simplify the tax system:

1. Reduce the number of taxes. The UK has a complex tax system with a wide variety of taxes, including income tax, corporation tax, capital gains tax, National Insurance, VAT, excise duties, and stamp duty. Reducing the number of taxes would make the system simpler and easier to understand.
2. Flatten the income tax brackets. The UK income tax system has five different tax brackets, with rates ranging from 20% to 45%. Flattening the income tax brackets would reduce the complexity of the system and make it easier for taxpayers to calculate their tax liability.
3. Remove the personal allowance taper. The personal allowance is the amount of income that you can earn before you start paying income tax. The personal allowance is currently £12,570, but it is tapered away for higher earners. Removing the personal allowance taper would simplify the system and make it fairer.
4. Reduce the number of tax reliefs. The UK tax system has a wide variety of tax reliefs, which can be complex and difficult to understand. Reducing the number of tax reliefs would make the system simpler and easier to comply with.
5. Improve the tax code. The UK tax code is over 100,000 pages long and is constantly being updated. This makes it difficult for taxpayers to understand their tax obligations. Improving the tax code would make it simpler and easier to understand.

These are just some of the steps that could be taken to simplify the UK tax system. By taking these steps, the government could make the system simpler, fairer, and easier to comply with.

In addition to the above, the government could also consider the following:

• Consolidating tax legislation. The UK tax code is currently spread out over a number of different Acts of Parliament. Consolidating this legislation into a single document would make it easier for taxpayers to find and understand the rules that apply to them.
• Using technology to improve tax administration. The government could use technology to improve the way that taxes are collected and administered. This could include things like using online filing and payment systems, and making it easier for taxpayers to get help and advice.
• Working with businesses and taxpayers to improve the tax system. The government could work with businesses and taxpayers to get their input on how to improve the tax system. This could be done through things like surveys, focus groups, and roundtables.

By taking these steps, the government could make the tax system simpler, fairer, and more efficient.

Suffice to say, it won't!

Tax does have to be taxing.

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ICAEW Asks HMRC To Drop Quarterly Reporting

 

In a letter addressed to HMRC’s Joanna Rowland and Jonathan Athow, ICAEW’s Frank Haskew said:

"In particular, we consider that the administrative burden associated with quarterly updates is disproportionate and needs a rethink. Even when a taxpayer is maintaining digital records on a regular basis, having to ensure that these records are complete and checked by specific quarterly deadlines adds extra compliance burdens, especially where a bookkeeper or agent is involved as we expect in the majority of cases. Quarterly updates provide HMRC with little or no assurance about the quality of the underlying digital records. One of the reasons why quarterly reports are getting all the attention is because they can lead to late submission penalties. 

Record keeping penalties are not being reformed despite that being the primary behaviour that needs to change. We suggest that HMRC starts by introducing the requirements to maintain digital records and to submit details of income from self-employment and property directly from software but that the current annual reporting cycle is maintained. Quarterly reporting could be considered in the future, once an annual system is established, if that does not lead a sufficient improvement in record keeping. We anticipate, however, that given the increased impetus towards digitalisation, that requiring the use of software and digital records should provide most of the benefits sought. More frequent MTD ITSA reporting could be considered for those VAT registered businesses that already report on a quarterly cycle. Quarterly updates could be optional."

Pound to a penny HMRC does not drop the requirement!

Tax does have to be taxing.

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HMRC Strike - No One Will Notice!

 

The Public and Commercial Services (PCS) Union has confirmed 432 HMRC workers will go on strike for 18 days in May and June amid a campaign over pay, pensions, job security and redundancy terms.

The union said members working as customer service advisers in Glasgow and Newcastle-upon-Tyne will walk out on 10 May for three days. 

They will also walk out between 15 and 19 May, 22 and 26 May and 29 and 31 May, as well as 1 and 2 June.

Given that calls are not answered, or cut off and letters remain unopened for months; no one will notice this "strike"!

Tax does have to be taxing.

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HMRC Official Let Off For Breaching Legal Embargo

 

A senior policy adviser with HMRC who emailed an embargoed result of a judgement around Whitehall has avoided any further action.

The unnamed individual had received a draft of a judgement where the Home Office and HMRC had been the defendants, then proceeded to email various government departments revealing the favourable outcome.

In World Uyghur Congress (2) v Secretary of State for the Home Department & Ors, Mr Justice Dove said this individual had failed to read and observe important instructions under which the draft judgment had been provided.

The breach, he said, was short-lived and rapidly closed down by the Government Legal Department, but the judge said this was a ‘noteworthy and cautionary incident’ with lessons for all involved in litigation.

The draft of the first judgement had been circulated in January to counsel and solicitors for the purposes of obtaining editorial changes. It had been made clear this was confidential and that neither the draft nor its substance should be disclosed.

The GLD circulated the draft to a ‘limited number’ of people at the Home Office, HMRC and National Crime Agency (the other defendant). It was again made clear in the email that the contents should not be shared.

Nevertheless, a policy officer at HMRC (to whom the draft judgement had been sent by the GLD) wrote to individuals in the Home Office, the Department for International trade, the Cabinet Office and the Foreign, Commonwealth and Development office to say the result had been favourable.

His witness statement explained that ‘I did this because I was acting on the mistaken assumption as to the nature of embargo judgements generally, and due to pressure of work.’ 

He expressed his deep regret that at the time of receiving the embargo draft judgement he did not take the time to properly read the instructions which accompanied it.

Tax does have to be taxing.

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HMRC Names Marquee Ltd As A Tax Avoidance Scheme

🚨 We have named Marquee Ltd as a tax avoidance scheme. Anyone using this umbrella company should get help to exit. Find more details below 👇https://t.co/HEoFXz86Mk pic.twitter.com/33Buoxtyxo

— HM Revenue & Customs (@HMRCgovuk) April 24, 2023

These are schemes you gave DOTAS numbers that enabled the promoters to sell them for years as ‘HMRC-registered’.

Years later, you publish information about them while allowing the promoters to tweak them and get new DOTAS numbers from you to sell them as as ‘HMRC-registered’. pic.twitter.com/bL7gJP9G8f

— Osita Mba (@DrOsitaMba) April 20, 2023

Tax does have to be taxing.

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LITRG's 40 Pillars of Wisdom

 

Given that tax professionals have enough trouble trying to understand tax legislation and deal with HMRC, it is hardly surprising that the hapless taxpayers are completely at sea.

As such, the Low Incomes Tax Reform Group have come up with 40 recommendations  Good Guidance: The importance of effective guidance for unrepresented taxpayers, that they hope HMRC will adhere to in order to help the hapless taxpayers who fund the state and its organs. 

Here are the first 10 recommendations, the full report can be accessed via the link above.

Recommendation 1: The level of technical detail offered by a page of guidance should be immediately clear when landing on a page. 

Recommendation 2: HMRC should publish guidelines to help guidance writers decide what matters and circumstances to include and exclude. 

Recommendation 3: HMRC should consider how their user testing can be expanded to determine whether users get to the right answer, not just whether they find guidance easy to use. 

Recommendation 4: HMRC and GDS should review ‘user need’ requirements from the perspective of unrepresented taxpayers, to ensure they do not represent a barrier to effective guidance being published for this group. 

Recommendation 5: The GOV.UK feedback route which offers a reply to the user should be easier to find. 

Recommendation 6: HMRC should design and implement an ongoing process to help proactively identify areas where guidance is missing, and rectify these areas as soon as they are identified. 

Recommendation 7: Whenever any changes or new policies are introduced, there should be a published guidance assessment to ensure that any associated guidance is as complete as possible. 

Recommendation 8: The search function on GOV.UK should be much improved to ensure users are directed to the most appropriate pages, potentially by working with commercial search engines to improve underlying technologies behind it. 

Recommendation 9: Guidance should always clearly state its intended audience and scope. 

Recommendation 10: Where exceptions apply, links should be provided to more information on those exceptions

I wish the LITRG good luck in trying to get HMRC to implement these, given that had HMRC followed its charter the recommendations would in the main be unnecessary!

Tax does have to be taxing.

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HMRC's Impossible £185K Loan Charge Demand

 

A contractor has received from HMRC, detailing a request for £185,840 – something he called the “impossible demand” 

Dated the 24th March 2023, the letter requested that its recipient pay the sum “no later than 23 April 2023” – giving the self-employed worker just 30 days to pay.

!!!

Tax does have to be taxing.

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One in Three Calls To HMRC Not Answered

 

Service levels at HMRC have worsened.

One in three calls to HMRC are now not answered compared with 27.8% in January. 

The majority of callers waited more than 10 minutes for an answer, equating to the worst performance since April 2022. 

The average pick-up time now stands at 21 minutes and 40 seconds compared to 12 minutes 35 seconds a year ago.

Slow hand clap of derision for HMRC!

Tax does have to be taxing.

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HMRC's Chinese Whispers

 

HMRC⁩ has admitted to MPs that it allowed 11,000 Chinese firms to register for VAT at a single residential flat in Wales without checking who lived there.

It was only discovered when the owner received 580 letters from HMRC asking for £500K in VAT payments.

Well done lads!

Tax does have to be taxing.

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Is HMRC Listening?

 

Richard Wild, head of tax technical at the Chartered Institute of Taxation (CIOT), believes that HMRC is now open to collaboration from the industry in an attempt to improve is woeful performance.

Wild attended a stakeholder conference notes it was a collaborative occasion, and that HMRC was definitely in “listening mode.”

We shall see!

Tax does have to be taxing.

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Lineker Wins £4.9M Tax Case Against HMRC

Lineker wins his £4.9m tax appeal on the contract law doctrine of privity. FTT held there were contracts "directly between" him and BBC & BT which means that IR35 that applies “where services are provided NOT under a contract directly between client and the worker” doesn't apply. pic.twitter.com/SM9zapRG6F

— Osita Mba (@DrOsitaMba) March 28, 2023

HMRC will most assuredly appeal this, if they don't IR35 is fucked!

Tax does have to be taxing.

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Beware The Ides of March and Budget Day

 

The day used to be enthusiastically celebrated among the common people of Rome with picnics, drinking, and revelry.

Tax does have to be taxing.

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Lineker's Cunning Tax Plan

 

The UK media has got itself into a right old state over Gary Lineker's recent outbreak of Nazi Tourettes, in which he equated proposed changes in the UK asylum regulations with Germany in the 1930s.

This in turn caused a fall out with the BBC, and a spat about whether he was allowed to "speak his mind" etc etc. All dutifully salivated over by our pathetic media.

However, beneath this very public spat lies a possible method in Lineker's madness. The media have dutifully ignored that fact that he is currently in an IR35 dispute with HMRC, over a not so trifling sum of £5M. It hinges on whether Lineker can prove he really is freelance, as opposed to a full time employee. His little bust up with the BBC is designed to show he is freelance, thus saving him a tidy £5M.

Tax does have to be taxing.

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When In Doubt, Just Make The Tax System Even More Complex!

 

Hunt plans new investment relief in budget, when corporation tax rises to 25%. One option discussed was temporary full (or 50-80%) expensing for 3yrs with a permanent plan in manifesto. At £11bn, he can't currently afford a permanent giveaway. W @Joe_Mayeshttps://t.co/rJM1FqeuIV

— Philip Aldrick (@PhilAldrick) March 8, 2023

Just cut the rate you idiot!

Tax does have to be taxing.

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Hunt Told To Invest in HMRC

 

The accountancy, bookkeeping, payroll and tax professional bodies have joined forces to highlight the impact poor HMRC service levels are having on the businesses and agents. 

The open letter goes on to blame insufficient resourcing and underinvestment in HMRC’s systems for causing severe delays, business disruption and frustration.

Good luck with that then!

Tax does have to be taxing.

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Tax Avoidance vs Tax Evasion

 

Tax avoidance and tax evasion are two terms used to describe different types of behaviour related to paying taxes.

Tax avoidance refers to the legal practice of arranging one's financial affairs in a way that minimises the amount of taxes owed. It involves using legal tax deductions, credits, and exemptions to reduce one's tax liability. Tax avoidance is considered acceptable and legal by all, except the ignorant and politicians looking for a soundbite.

Tax evasion, on the other hand, is the illegal practice of not reporting all of one's income or assets to the tax authorities in order to evade paying taxes. Tax evasion involves intentionally misrepresenting or concealing information from the tax authorities to reduce or eliminate one's tax liability. Tax evasion is illegal and can result in criminal charges and penalties.

In summary, tax avoidance is legal and involves taking advantage of legal tax deductions and exemptions to minimise one's tax liability, while tax evasion is illegal and involves intentionally failing to report income or assets to evade paying taxes.

Tax does have to be taxing.

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Have Your Say: HMRC’s Performance Against Charter Standards

 

The ICAEW’s Tax Faculty is joining with other professional bodies to gather feedback on HMRC’s performance against standards in the HMRC Charter. Members are encouraged to complete a survey by the end of February.

The Charter Stakeholder Group has prepared a survey to obtain feedback on HMRC's performance against its Charter. 

The Charter standards are:

• getting things right;
• making things easy;
• being responsive;
• treating you fairly;
• being aware of your personal situation;
• recognising that someone can represent you; and
• keeping your data secure.

The survey results will form a key part of the group’s feedback on HMRC's performance against its Charter. This will be published in HMRC's Charter annual report. The survey should take no more than ten minutes to complete. Input is welcome from individuals, businesses and agents. The survey will run until the end of February.

A list of the Charter Stakeholder Group members and last year’s feedback is available here. ICAEW is represented by Caroline Miskin.

Tax does have to be taxing.

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Tax Investigation Insurance

 

Tax investigation insurance, also known as tax audit insurance or tax defence insurance, is a type of insurance policy that covers the costs associated with a tax audit or investigation by the tax authorities. The policy usually covers professional fees incurred in responding to a tax audit or investigation, such as accounting and legal fees, as well as other costs that may be associated with the audit, such as travel and accommodation expenses.

Tax investigation insurance is typically purchased by businesses or individuals who want to protect themselves against unexpected costs and financial losses associated with a tax audit or investigation. While the policy does not prevent a tax audit from occurring, it can help to mitigate the financial impact of an audit and provide peace of mind to the policyholder.

It's worth noting that tax investigation insurance policies may vary in terms of coverage and exclusions, so it's important to carefully review the terms and conditions of any policy before purchasing it. Additionally, some policies may have a waiting period before coverage begins, so it's important to purchase the policy well in advance of any potential tax audit or investigation.

Tax does have to be taxing.

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The Revolving Door of Failure

 

Sir Jon Thompson ex CEO of HMRC has been has been appointed to lead high-speed rail scheme HS2 - the seventh in the project's 14-year history.

Remember folks, if you want to reach the top of the civil service/state quangos etc you must be completely useless. 

Failure is rewarded!

Tax does have to be taxing.

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The Reason for The HMRC Shambles?

 

My thanks to a loyal reader for posting this comment, which may well be the main reason for the ongoing shambles in HMRC:

"And those 5500 from customer services left when they merged casework with call centres and trashed their terms and conditions in the last pay deal. These were people that knew how to work cases but we're shunted into the phones and paid just above min wage. 

There are now some tasks where no one knows how to work them as the people that did them previously have gone. You won't be told this when you ring (when the phone system works) but it is utter chaos and the bottom grades have just had enough none of this is their fault but they take the brunt every single day."

Tax does have to be taxing.

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ICAEW Calls For Emergency Taskforce To Tackle HMRC Backlog

 

Ministers must set up a taskforce to deal with the unacceptable delays at HMRC, which are holding back the UK’s economic growth, says ICAEW.

ICAEW is calling for the immediate creation of a cross-sector taskforce to address long-standing delays at HMRC, which it says have become a drag on the UK’s economic growth.

The emergency taskforce would be charged with identifying areas for support to end delays, as well as recommending improvements to HMRC’s service standards to enable business growth, ICAEW says.

Taxpayers and accountants are having to wait up to a year for HMRC to respond to queries over the phone or by post, ICAEW says, while callers report that they have waited for more than an hour before being cut off. Customer service staffing levels at HMRC have reduced from 25,500 to 19,500 people, causing long delays for both agents and taxpayers.

These delays were the biggest area of complaint made by ICAEW members in 2022, whether relating to financial or other resource constraints. 

VAT registration for a new or growing business or re-registration where an existing business incorporates should be expected to happen quickly, the Institute says. Such businesses are growing and their administrative workload will double while they wait for HMRC to act.

ICAEW is increasingly of the view that HMRC is now trapped by its backlog and delays are now an anchor on the UK’s economic growth. The government needs to urgently tackle this issue if it is serious about building the ‘pillar of enterprise’, it says.

“The delays at HMRC are unacceptable, need to be addressed promptly and are acting as a drag on the UK’s economic growth,” ICAEW Chief Executive Michael Izza says. 

“We’re calling on ministers to set up an emergency taskforce to identify steps to eliminate HMRC’s backlog and improve its service standards, so that in the future it supports, not inhibits, business growth and maximises the tax receipts needed to fund public services.”

The taskforce should include representatives from professional bodies and from business, who would be empowered to make recommendations to HMRC to improve its services and clear its backlog, ICAEW says.

“HMRC performs a vital function supporting businesses and growth, for example ensuring new businesses can register promptly for VAT, and its work is essential in collecting tax receipts to fund public services,” Izza continues. 

“Despite this vital role and the commitment from hardworking civil servants, HMRC is often overlooked and overstretched, leading to problems, and we would be pleased to work with it to tackle these issues.”

It is unclear whether these waiting times relate to financial or other resource constraints, but the time it takes for HMRC to respond is perceived by many chartered accountants to be the single biggest obstacle to growth and tops the list of complaints by members, ICAEW says. It is a problem regardless of the means of communication being used, where intervention or action cannot be undertaken automatically.

Spoiler alert: THIS WON'T HAPPEN!

Tax does have to be taxing.

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HMRC Tries It On, and Loses!

 

In Pavan Trading Ltd, HMRC tried it on and then doubled down at the review stage.

When a business exports goods, the sale can be zero rated, but the zero rate is on the basis that the business holds evidence of export.

The taxpayer had good records and was able to produce both official and commercial evidence.

There were some anomalies in the taxpayer’s paperwork, for example, not all payments from USA customers could be identified, deliveries were not made to customers’ main addresses and the values stated on the parcels were lower than the true value.

Crucially, the HMRC officer stated the main reason for assessment was the taxpayer had not supplied HMRC with the export evidence within three months. The officer told the tribunal that had the taxpayer given the main/supplementary evidence to HMRC within three months of each export, HMRC would have accepted the export evidence for zero rating purposes.

HMRC was saying the assessment was because the taxpayer had acceptable evidence of export but that the law required the taxpayer to physically give that paperwork to HMRC within three months of each and every export.

All very nice, except for the fact the law does NOT say that!

Tribunal concluded that HMRC made two errors in law. Firstly, the three-month period for obtaining evidence does not mean the taxpayer has to provide that evidence to HMRC within three months, it simply means the taxpayer must hold the evidence in their records within three months of the transaction.

The second error was that HMRC was of the view that all the evidence of export must be contained within the CP72, ignoring established case law and HMRC’s own guidance that a basket of evidence from a variety of sources is acceptable evidence.

The tribunal concluded “This error was started by Officer Bains, perpetuated by the nonsense written by the review officer, and then compounded by HMRC’s statement of case and skeleton argument. If there was ever a counsel of perfection for the provision of export documentation, then this appellant has achieved it and we have absolutely no hesitation in allowing this appeal.”

What is clear from this case is that HMRC cannot be trusted to get things right, or even apply the law correctly!

Tax does have to be taxing.

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• Appeal to the First-tier Tribunal or Upper Tribunal
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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"