HMRC Car Tax Update: Drivers Slammed with 400% Hike in Costs as Thousands Face 'Unaffordable' Charges

In a move that's sparking outrage across the UK, HMRC's latest car tax update has hit drivers hard, with some facing a staggering 400% increase in costs. Implemented in April 2025, this change targets double-cab pick-up trucks, reclassifying them from commercial vehicles to cars for tax purposes. The result? Thousands of motorists, including farmers, tradespeople, and everyday drivers, are now burdened with "unaffordable" charges that could add hundreds or even thousands of pounds to their annual bills. If you're searching for details on the HMRC car tax hike 2025 or VED road tax increases, read on to uncover why this policy is being labelled as a brutal attack on working Brits.

What Exactly is the HMRC Car Tax Update Causing This 400% Hike?

The controversy stems from HMRC's decision to eliminate a long-standing tax loophole for double-cab pick-up trucks. Previously, these versatile vehicles—think models like the Ford Ranger or Toyota Hilux—were treated as light goods vehicles, qualifying for a flat-rate Benefit-in-Kind (BiK) tax of around £3,960 per year for company car users. But as of April 2025, HMRC has reclassified them as cars, subjecting them to BiK rates based on CO2 emissions and list price.

This shift means drivers could see their tax bills skyrocket by up to 400%, with some facing annual charges exceeding £15,000. For higher-rate taxpayers, the effective cost could be even more punishing. HMRC claims the change closes a "tax advantage" exploited by non-commercial users, but critics argue it's a stealth tax grab that ignores the practical needs of those who rely on these vehicles for work.

Adding insult to injury, this isn't an isolated tweak. The 2025/26 Vehicle Excise Duty (VED) rates have seen broad increases across the board. First-year road tax for high-emission cars has doubled in some bands, and even electric vehicle (EV) owners are now paying VED for the first time, ending their zero-tax exemption. Luxury cars over £40,000 face an additional £410 surcharge, a threshold that's increasingly catching mid-range models as prices rise.

How the 400% Car Tax Hike is Hammering Thousands of UK Drivers

Imagine you're a self-employed builder or a rural farmer who depends on a double-cab pick-up for hauling tools and equipment. Under the old rules, your tax was manageable—a fixed amount that didn't fluctuate wildly. Now, with the HMRC car tax update, you're lumped in with luxury sedan owners, paying BiK based on emissions that these rugged trucks naturally produce in higher amounts.

- Cost Breakdown: For a typical double-cab like the Ford Ranger (emitting around 200g/km CO2), the BiK rate jumps to 37% of the vehicle's value. At a £40,000 list price, that's a taxable benefit of £14,800—over 370% more than before. For 40% taxpayers, this translates to an extra £5,920 in income tax annually.  

- Who’s Hit Hardest?: Tradespeople, agricultural workers, and small business owners make up the bulk of affected drivers. Estimates suggest thousands are impacted, with many calling the charges "unaffordable" amid rising fuel costs and inflation.

- Broader Ripple Effects: Even non-company car users face higher VED rates. Standard rates for petrol and diesel cars rose to £190 in April 2025, while plug-in hybrids (PHEVs) see company car tax perks eroded starting this year.

This isn't just about numbers—it's about livelihoods. Online forums are ablaze with frustration, with Reddit users decrying the changes as "anti-motorist" and questioning how families can afford to keep their vehicles on the road.

Why HMRC Deserves to Be Eviscerated for This Disastrous Policy

Let's not mince words: HMRC's car tax update is a tone-deaf, revenue-hungry assault on ordinary drivers. While the government touts it as "fairness," it's anything but. By reclassifying double-cab pick-ups without adequate transition periods or exemptions for genuine commercial use, HMRC is punishing those who need these vehicles most. It's a classic case of bureaucratic overreach, ignoring real-world realities in favour of filling Treasury coffers—expected to rake in an extra £400 million from VED hikes alone.

Critics, including motoring experts and driver advocacy groups, have slammed the move as shortsighted. "This 400% hike is unaffordable for thousands," echoes the sentiment from recent reports, highlighting how it exacerbates the cost-of-living crisis. And let's not forget the hypocrisy: As the UK pushes for net-zero, taxing EVs and hybrids more heavily sends mixed messages, deterring the shift to greener transport.

HMRC's track record isn't helping. From delayed refunds to confusing guidance on the new rules, drivers are left navigating a minefield of paperwork and penalties. If this is "simplifying" the tax system, as officials claim, then it's a failure on every level.

 The Bigger Picture: 2025 VED Road Tax Increases and What They Mean for You

This double-cab debacle is part of a wider wave of car tax changes in 2025:

| Vehicle Type | Key Change | Estimated Cost Increase | 

| Double-Cab Pick-Ups | Reclassified as cars for BiK | Up to 400% (e.g., £3,960 to £15,000+) | 

| High-Emission New Cars | First-year VED doubled | £2,000+ for >255g/km CO2 |

| Electric Vehicles | End of zero-tax exemption | £190 standard rate from year 2 |

| Luxury Cars (>£40k) | Surcharge extension to EVs | +£410 annually for 5 years |

| Plug-in Hybrids | Reduced BiK incentives | 2-5% rate increases phased in |

These hikes, effective from April 1, 2025, are indexed to inflation and CO2 bands, ensuring future pain for non-EV owners.

Time to Fight Back Against HMRC's Unfair Car Tax Hike

The HMRC car tax update isn't just a policy—it's a betrayal of drivers already squeezed by high fuel prices and insurance premiums. If you're affected by this 400% hike or the broader VED increases, don't stay silent. Contact your MP, join petitions, or explore tax-efficient alternatives like switching to compliant vans.

Tax does have to be taxing.



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HMRC's Woke Circus: How Taxpayer Cash Fuels a Festival of Futility While Services Collapse

In the labyrinthine halls of His Majesty's Revenue and Customs (HMRC), where one might expect diligent civil servants to be chasing down tax dodgers and ensuring the nation's coffers are filled, a far more insidious game is afoot. According to a Freedom of Information (FOI) request by the Taxpayers’ Alliance, unearthed by the ever-vigilant Guido Fawkes, no fewer than 119 HMRC staffers are permitted to fritter away 20% of their working hours on seven so-called "staff networks." These aren't networks dedicated to improving tax compliance or streamlining bureaucracy—no, they're a smorgasbord of identity politics playgroups: Carers, Disability, PRISM (LGBT+), Race, Religion or Belief, Sex and Gender, and Social Mobility. That's right, while the average Brit grapples with skyrocketing bills and a cost-of-living crisis, HMRC's pen-pushers are busy virtue-signalling their way through the workday.

Let's break down the absurdity. Each of these seven networks boasts a bloated hierarchy: one Network Chair, two Deputy Chairs, and a whopping 14 Regional Steering Group Members. Do the math—that's 17 leadership roles per network, multiplied by seven, equalling 119 cosseted positions. At 20% time allocation, this equates to 23.8 full-time equivalent (FTE) staff members doing anything but their actual jobs. And what are they up to? Recent events include gems like ‘Our Voices Matter’ (because apparently, the voices of overworked taxpayers don't), a ‘Multicultural Event in Portsmouth’ (sounds like a taxpayer-funded party), and ‘Dyslexia from a Cultural Perspective’ (as if dyslexia needed a DEI spin to be addressed). This isn't public service; it's a taxpayer-subsidised therapy session for the perpetually offended.

Now, let's talk money—because that's what HMRC is supposed to be good at handling, right? The median salary in the Civil Service, which includes HMRC staff, stands at £35,680 as of 2025. Crunch the numbers: 23.8 FTE multiplied by £35,680 comes to approximately £850,000 annually. That's nearly a million pounds of your hard-earned cash diverted from essential services to fund this ideological indulgence. And this is just the tip of the iceberg. Guido Fawkes also revealed that HMRC has ballooned its internal 'Equality and Diversity' team to 30 full-time staff, further bloating the bureaucracy with roles that seem designed to justify their own existence. Add in the untracked hours spent on these networks—HMRC admits it doesn't even bother monitoring them—and you're looking at a black hole of waste that could fund real priorities, like hiring more agents to process tax returns on time.

But the real scandal isn't just the squandered resources; it's the glaring hypocrisy. While HMRC staff lounge in these echo chambers of enlightenment, the agency's core performance is in freefall. In 2023–24, HMRC answered a pitiful 66.4% of customers' attempts to speak to an adviser, far below their 85% target, with average wait times exceeding 23 minutes. Complaints are piling up: In the first quarter of 2025, Tier 1 complaints saw a not-upheld rate hovering around 55%, while Tier 2 escalations revealed partial or full upholding in a significant chunk of cases. Taxpayers are left on hold, fuming, as their queries about self-assessments, VAT refunds, or child benefits go unanswered. Meanwhile, HMRC's latest performance update for April to June 2025 shows continued misses on key targets, with service levels dipping further amid what they euphemistically call "challenges." It's a damning indictment: As call queues stretch into oblivion and errors mount, these networks provide a convenient escape hatch for staff to avoid the drudgery of actual work.

This isn't an isolated folly; it's symptomatic of a deeper rot in Whitehall's woke obsession. Just last week, the Taxpayers’ Alliance highlighted HMRC's near-miss with an hour-long session titled 'The Guilt of Being British'—mercifully cancelled after public backlash, but emblematic of the self-flagellating nonsense infiltrating public institutions. How can an agency tasked with enforcing fiscal responsibility justify such frivolous distractions? In an era of record tax burdens—where the average worker toils until June just to pay off the government—HMRC's priorities are grotesquely misplaced. They're not collecting taxes; they're collecting grievances.

It's high time for a reckoning. Scrap these networks, redirect the staff back to their desks, and focus on what HMRC was created for: efficient tax administration, not endless navel-gazing. Taxpayers deserve better than to fund this circus of complacency. If HMRC won't clean house, perhaps the new government should—with an axe to the budget for such banalities. After all, the only "network" that matters is the one connecting hardworking Brits to a functional public service. Anything less is theft by another name.

Tax does have to be taxing.


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EDI Must DIE - HMRC's Diversity Delusions: Prioritising Pronouns Over Phone Lines

In a move that perfectly encapsulates the bloated, out-of-touch bureaucracy plaguing Britain's public sector, HM Revenue and Customs (HMRC) has quietly ballooned its Equity, Diversity, and Inclusion (EDI) team to 30 staff members. This expansion, revealed through successive Freedom of Information (FOI) requests, shows a steady climb from 21 employees on January 1, 2024, to 25 by June 1, 2024, and now 30 as of July 11, 2025. Meanwhile, taxpayers desperate for basic assistance are left rotting on hold, with average wait times exceeding 23 minutes and only two-thirds of calls even being answered. If this isn't a glaring case of misplaced priorities, what is?

HMRC's official line on this EDI empire-building is as predictably vague as it is unconvincing: “HMRC is committed to reflecting diverse communities and being an inclusive and respectful place to work, in line with Civil Service values. This supports our delivery of strategic objectives and helps us to provide the best service for customers.” One can't help but wonder: how exactly does a larger EDI team translate to better tax collection or customer support? Perhaps they're devising diverse ways to ignore phone calls, or inclusive strategies for hanging up on frustrated callers. The query cheekily leaves it "up to co-conspirators to guess how," but let's speculate: maybe EDI workshops teach staff to apologise in multiple languages before disconnecting, or ensure that hold music represents a rainbow of cultural tunes. Whatever the rationale, it's clear that HMRC's commitment to "diversity" doesn't extend to diverse taxpayer needs—like, say, actually getting through on the phone.

This EDI obsession comes at a time when HMRC's customer service has plummeted to depths that would embarrass a third-world call centre. In the first 11 months of 2023-24, the average wait time to speak to an advisor was nearly 23 minutes, up from just five minutes in 2018-19. Only 66.4% of call attempts were answered, falling woefully short of the 85% target. Taxpayers collectively wasted 798 years on hold in 2022-23—more than double the time from 2019-20. And in a particularly cruel twist, over 44,000 callers were abruptly cut off after waiting 70 minutes in 2023-24, a 535% spike from the previous year. As one exasperated X user put it, "HMRC must burn," recounting how agents simply hang up when queries get too complex. Another highlighted language barriers, with staff unable to communicate clearly in English—ironic for an agency serving a predominantly English-speaking nation.

The Public Accounts Committee (PAC) didn't mince words in its damning report, accusing HMRC of deliberately degrading phone services to force people online. PAC Chair Sir Geoffrey Clifton-Brown blasted the agency for eroding public trust, noting that digital alternatives aren't ready or suitable for everyone—seven million people can't even use them. HMRC's push to "digital-first" might sound modern, but it's a smokescreen for chronic underfunding and inefficiency. Years of Tory cuts left HMRC understaffed and demoralised, with inexperienced agents and outdated IT systems. Now, under Labour, the bloat continues: EDI teams grow while core functions atrophy. As Reform UK supporter Rupert Lowe demanded, the leadership should be sacked for showing "ZERO respect for the people paying their wages."

Let's not forget the bigger picture: HMRC's failures aren't just annoying—they're costly. Uncollected debts hit £46.8 billion in the 2023-24 tax gap, with £5 billion written off as unrecoverable. Fraud in schemes like R&D tax reliefs persists due to insufficient checks. Yet, resources are diverted to EDI navel-gazing, including seminars on the "guilt of being British"—held during office hours, no less. This isn't inclusion; it's indoctrination on the taxpayer's dime. As one X post fumed, "Bureaucrats taking our money & attacking our core values & nation."

HMRC claims recent improvements, like reducing wait times to 11 minutes and meeting some targets in late 2024. But scepticism abounds—complaints surged 65% last year, with £718,000 paid in compensation for delays. And with plans for a new contact platform in 2026-27 promising callbacks and wait estimates, why the foot-dragging? The National Audit Office (NAO) nailed it: HMRC's digital dreams haven't eased pressures, and service levels have been "far below" expectations for years.

It's time to eviscerate this nonsense. Slash the EDI bloat, hire competent staff who can answer phones in under an hour, and focus on collecting taxes rather than virtue-signalling. Taxpayers aren't "co-conspirators" in some woke agenda—they're the ones footing the bill for this farce. If HMRC can't pick up the phone, perhaps we should stop picking up the tab.

Tax does have to be taxing.



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 Anti-British Training Courses: A Betrayal of Public Trust

In a shocking display of ideological overreach, His Majesty’s Revenue and Customs (HMRC), the very institution tasked with upholding the financial backbone of the United Kingdom, has been caught peddling divisive and anti-British training courses to its staff. These courses, cloaked in the guise of progressive enlightenment, reportedly include sessions that promote feelings of “guilt” for being British and push narratives rooted in critical race theory and other controversial frameworks. This is not just a misstep—it’s a grotesque betrayal of the public’s trust and a dangerous precedent for a government body that should embody impartiality and national unity.

A Curriculum of Division

According to reports, including an exclusive by The Daily Mail, HMRC staff have been subjected to training that encourages them to grapple with the supposed “guilt of being British.” Such sessions allegedly delve into critical race theory, a framework that frames history and society through the lens of systemic oppression, often casting entire nations or ethnic groups as inherently culpable. For a taxpayer-funded institution like HMRC, whose role is to collect revenue and ensure compliance with tax law, to indulge in such ideological exercises is not only irrelevant but actively undermines its credibility.

Why is HMRC, an agency meant to focus on numbers, compliance, and economic efficiency, diverting resources to workshops that appear designed to shame employees for their national identity? The answer lies in a broader cultural malaise where public institutions are increasingly co-opted by activist agendas. These courses, far from fostering unity or improving workplace efficiency, sow division and resentment. They alienate employees who may feel targeted for their heritage while distracting from the core mission of tax collection—a mission that affects every citizen, regardless of their background.

The Public’s Money, Wasted

HMRC’s budget comes from the British taxpayer. Every pound spent on these training courses is a pound diverted from improving tax collection systems, combating fraud, or supporting public services like the NHS or schools. The irony is palpable: an agency responsible for fiscal responsibility is squandering resources on ideological indoctrination. Posts on X have highlighted public outrage at this misuse of funds, with sentiments echoing that HMRC should focus on its actual job rather than playing social engineer.

Consider the scale of HMRC’s operations. In 2022-23, the agency had only 397 specialists tackling profit shifting by multinational corporations, a critical issue costing the Treasury billions. Yet, instead of investing in more staff or better training to address complex financial crimes, HMRC is apparently prioritising sessions that lecture employees on “white privilege” or the supposed sins of British history. This is not just a misallocation of resources; it’s a deliberate choice to prioritise ideology over efficacy.

Undermining National Cohesion

The United Kingdom is a diverse nation, built on a shared sense of identity and purpose. For a government body to promote narratives that frame Britishness as something to be ashamed of is not only divisive but dangerous. It erodes the social contract that binds citizens to their institutions. When HMRC staff are taught to view their country through a lens of guilt, how can they be expected to serve its people with impartiality? The risk is that such training fosters a culture of self-loathing within the civil service, which could translate into biased decision-making or policies that unfairly target certain groups.

This is not an isolated incident. Similar concerns have been raised about other government departments, such as the Home Office, where critical race theory classes have reportedly been conducted. The pattern suggests a troubling trend: unelected bureaucrats are using their positions to push ideological agendas that have little to no public mandate. The British public did not vote for their tax agency to become a classroom for radical social theories—they expect it to collect taxes fairly and efficiently.

A Lack of Accountability

What makes this scandal even more egregious is the lack of transparency and accountability. HMRC has not publicly defended these courses or provided a clear rationale for their inclusion in staff training. The absence of open dialogue fuels suspicion that these programs are being implemented under the radar, shielded from public scrutiny. When whistleblowers and media outlets like The Daily Mail expose such practices, the response is often silence or deflection rather than an honest reckoning.

The government must hold HMRC to account. If these courses are deemed essential, then let them be debated openly in Parliament. Let the public see the curriculum, the costs, and the justification. If, as critics suspect, these sessions are little more than ideological posturing, then they should be scrapped immediately. The civil service is not a playground for activists—it exists to serve the public, not to lecture them on their supposed moral failings.

The Bigger Picture

HMRC’s flirtation with anti-British training is symptomatic of a broader cultural shift within public institutions. Across the Western world, government agencies are increasingly adopting frameworks that prioritise identity politics over merit, unity, and competence. In the UK, this trend is particularly jarring given the nation’s history of resilience and pragmatism. The British people have faced wars, economic hardship, and social change with a stoic commitment to fairness and common sense. They deserve a tax agency that reflects those values, not one that undermines them.

The public reaction on platforms like X underscores the growing frustration with this kind of institutional overreach. Users have called out the absurdity of spending taxpayer money on “woke” initiatives while core services struggle. The sentiment is clear: the British public wants their institutions to focus on delivering results, not preaching ideology.

A Call to Action

HMRC must immediately cease these anti-British training courses and conduct a full audit of its training programs. Every pound spent on ideological workshops should be redirected to hiring more tax specialists, improving digital infrastructure, or cracking down on tax evasion. The agency must also commit to transparency, publishing the content and cost of all training programs for public review.

The British people deserve better than a tax agency that uses their money to fund divisive, anti-national rhetoric. HMRC’s role is to serve the public, not to lecture its employees on the supposed evils of their country’s history. It’s time for HMRC to get back to basics: collect taxes, fight fraud, and leave the social engineering to others. Anything less is a betrayal of the trust placed in them by the British people. 

 

Tax does have to be taxing.


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Juniors Fucked Up IHT

 

REVEALED: Entire HMRC Inheritance Tax Analysis Team Is Fewer Than Five ‘Junior Officials' https://t.co/NHN8xYalue pic.twitter.com/Fj5uOb5NZQ

— Guido Fawkes (@GuidoFawkes) August 1, 2025

Tax does have to be taxing.



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Internal Expert of The Year

 

Tax does have to be taxing.



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The Living Brand"

HMRC’s Transformation Roadmap: Ambitious Promises Meet a Troubled Track Record

 

On July 21, 2025, HM Revenue and Customs (HMRC) released its Transformation Roadmap, a £7 billion-a-year plan to modernise the UK’s tax and customs system by 2030. Aimed at achieving 90% digital interactions, closing the 5.3% tax gap, and delivering £773 million in efficiencies by 2028-29, the roadmap promises a digital-first tax authority with AI-driven compliance and simplified processes.

 Championed by Exchequer Secretary James Murray MP, it includes over 50 IT projects, new online services, and 7,900 additional staff. However, HMRC’s long history of underperformance, from botched IT rollouts to poor customer service, casts a shadow over these lofty goals. Below, we analyse the roadmap’s strengths and weaknesses, grounding our assessment in HMRC’s well-documented failures to deliver on past promises.

The Good: Aspirations Amid Scepticism

1. Digital-First Vision

The roadmap’s goal of 90% digital interactions by 2030, anchored by a new online Pay As You Earn (PAYE) service for 35 million taxpayers, aims to streamline tax management via the HMRC app and Personal Tax Account. AI-driven nudges to prevent errors during tax submissions could reduce compliance burdens for honest taxpayers. If successful, this could align with global trends toward digital tax systems. However, HMRC’s track record—such as the troubled 2016 Making Tax Digital (MTD) rollout, plagued by delays and software glitches—suggests execution will be a challenge. The Low Incomes Tax Reform Group (LITRG) welcomes the digital focus but warns that digital exclusion risks leaving vulnerable taxpayers behind, a problem HMRC has repeatedly failed to address adequately in past digital initiatives.

2. Tackling the Tax Gap

The roadmap’s commitment to closing the 5.3% tax gap (2023-24) by hiring 5,500 compliance officers and 2,400 debt management staff, supported by AI tools, targets an additional £7.5 billion in annual revenue by 2029-30. Measures like cracking down on offshore evasion and increasing fraud charging decisions by 20% sound promising. Yet, HMRC’s history of ineffective enforcement—evidenced by the 2019 Loan Charge debacle, which misjudged contractor tax schemes and led to widespread hardship—raises doubts about its ability to implement sophisticated AI-driven compliance without errors or unfair outcomes. Past overzealous pursuits have often alienated taxpayers rather than recovered revenue.

3. Simplification and Stakeholder Engagement

Simplifying tax processes and integrating the Valuation Office Agency (VOA) into HMRC by April 2026 could streamline property tax administration. Collaborating with tax advisers and software providers, alongside requiring adviser registration, aims to raise standards. The roadmap’s use of operational sandboxes to test services is a nod to private-sector innovation. However, HMRC’s past attempts at simplification, like the 2010 Real Time Information (RTI) system, were marred by errors that frustrated employers and delayed compliance. Stakeholder engagement has often been superficial, with groups like the Bonded Warehousekeepers Association noting HMRC’s tendency to consult but ignore feedback.

4. Support for Vulnerable Taxpayers

The roadmap pledges to maintain phone and in-person support for digitally excluded or vulnerable taxpayers, a critical nod to inclusivity. But HMRC’s customer service record is abysmal—2023 saw average call wait times of 25 minutes, with 10% of callers hanging up before reaching an agent. Promises of accessible support ring hollow when HMRC has consistently failed to resource helplines adequately, leaving taxpayers stranded during peak filing periods.

The Bad: A Legacy of Failure Looms Large

1. Unrealistic Ambitions

The 90% digital interaction target by 2030 is ambitious but ignores HMRC’s history of overpromising and underdelivering. The 2005 merger of Inland Revenue and Customs Service promised modernisation but led to years of chaos, with lost records and delayed refunds. The roadmap’s reliance on over 50 IT projects is daunting, given HMRC’s track record of botched IT implementations—like the 2018 MTD for VAT rollout, which overwhelmed small businesses with compliance costs. X posts from users like @DavidMenziesCA highlight scepticism about HMRC’s capacity to deliver complex digital infrastructure on time or within budget.

2. Scrapping MTD for Corporation Tax

HMRC’s decision to abandon MTD for Corporation Tax (section 5.2) is a glaring misstep, signalling a retreat from digital modernisation. This move, noted on X by @TaxProUK, has left businesses uncertain about future compliance requirements. HMRC’s failure to propose a clear alternative echoes its mishandling of MTD’s phased rollout, which saw multiple delays and scope reductions since 2016. This decision undermines confidence in the roadmap’s digital vision and suggests HMRC is already backtracking on key commitments.

3. Over-Reliance on AI

The roadmap’s heavy bet on AI for compliance, nudges, and debt management assumes technological reliability that HMRC has rarely achieved. Past attempts at tech-driven solutions, like the 2014 Connect system for risk profiling, led to false positives and unfair penalties for compliant taxpayers. As @StuartMaggs on X notes, the roadmap’s AI focus, wrapped in vague jargon, risks oversimplifying complex tax issues. Without transparent safeguards, AI could amplify errors, especially given HMRC’s poor data management history, as seen in the 2007 loss of 25 million child benefit records.

4. Workforce and Cultural Inertia

Hiring 7,900 new staff sounds impressive, but HMRC’s chronic understaffing and high turnover—evidenced by a 15% vacancy rate in 2022—suggest challenges in recruitment and retention. The roadmap’s admission that it “will not always get everything right first time” is a candid but worrying acknowledgment, given HMRC’s pattern of prolonged disruptions, like the 2020 Self-Assessment portal outages that delayed filings. Cultural resistance to new systems, as seen in slow staff adoption of RTI, could further derail progress.

Reality Check: Can HMRC Break the Cycle?

HMRC’s *Transformation Roadmap* offers a compelling vision but is haunted by decades of mismanagement. From the 2007 data breach to the 2019 Loan Charge controversy and ongoing customer service failures, HMRC has consistently struggled to execute ambitious reforms. The roadmap’s goals—digital transformation, tax gap reduction, and simplification—are laudable but hinge on overcoming entrenched inefficiencies. The abandonment of MTD for Corporation Tax and vague AI plans suggest HMRC may already be setting itself up for failure. Stakeholders, including LITRG and X users like @TaxProUK, demand transparency and regular progress updates, but HMRC’s history of poor communication offers little reassurance.

To succeed, HMRC must break from its past by prioritising robust project management, genuine stakeholder input, and realistic timelines. Without these, the roadmap risks becoming another chapter in HMRC’s saga of unfulfilled promises, leaving taxpayers and businesses to bear the cost of delays and errors. For now, the roadmap is a high-stakes gamble—one that HMRC’s track record suggests it is ill-equipped to win. Taxpayers await proof that this time will be different.

Tax does have to be taxing.



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HMRC’s Slow March Toward AI: A Missed Opportunity for Transformation

The recent announcement that HM Revenue and Customs (HMRC) has established a “landing zone to safely exploit” generative artificial intelligence (AI) in its 2024/25 annual report sounds promising on the surface. It signals a step toward embracing cutting-edge technology to streamline operations and enhance public services. However, beneath the optimistic rhetoric lies a troubling reality: HMRC’s adoption of AI has been frustratingly slow, lagging behind both the private sector and the transformative potential of this technology. While the establishment of a dedicated AI framework is a welcome move, it’s hard to shake the sense that HMRC is playing catch-up in a race where others have already taken the lead.

A Decade of Hesitation

HMRC’s journey with AI is not new. As early as 2017, the organisation was exploring automation and machine learning, with initiatives like the Automation Delivery Centre aiming to automate 10 million processes by 2018. The Connect system, in use for over a decade, has been a cornerstone in combating tax evasion by aggregating data from diverse sources like the Land Registry and online marketplaces. Yet, despite these early forays, HMRC’s progress in leveraging more advanced AI, particularly generative AI, has been glacial. The private sector—think tech giants, financial institutions, and even mid-sized startups—has been harnessing AI for years to optimise processes, personalise customer experiences, and drive innovation. Meanwhile, HMRC’s efforts have felt like cautious tiptoeing rather than bold strides.

The Public Accounts Committee’s (PAC) recent warning underscores this lag, stating that HMRC is “not well-placed to take advantage of the opportunities offered by technology, such as the development of artificial intelligence.” This critique stings because it highlights a systemic issue: a lack of urgency and strategic vision. While HMRC touts its “landing zone” for generative AI, the reality is that this framework feels like a belated response to a technological revolution that’s already reshaping industries worldwide.

The Promise of AI for HMRC

The potential for AI to transform HMRC’s operations is immense. Generative AI, capable of producing text, summarising data, and even generating code, could revolutionise how HMRC interacts with taxpayers. Current use cases, such as summarising customer helpline calls or powering chatbots for online advice, are promising but limited in scope. Imagine a world where AI-driven analytics predict tax evasion with pinpoint accuracy, where chatbots provide real-time, personalised guidance to taxpayers, or where AI streamlines recruitment and compliance processes to save time and resources. HMRC’s own report highlights tools like “Skill Scribe,” which simplifies recruitment, and a regional insights tool for labour market analysis—proof that the technology can deliver when applied.

Yet, these initiatives are still in their infancy. The department’s participation in a cross-government AI chatbot pilot and its use of AI for enhanced compliance targeting and fraud detection are steps in the right direction, but they feel like pilot projects rather than a comprehensive strategy. The fact that only 7,225 staff members completed AI-focused training in 2024/25, while commendable, is a drop in the bucket for an organisation of HMRC’s size. Scaling up AI adoption requires not just training but a cultural shift—one that embraces risk-taking and innovation over bureaucratic caution.

The Risks of Moving Too Slowly

HMRC’s slow adoption of AI isn’t just a missed opportunity; it’s a risk to its mission. Tax evasion and fraud are evolving, with criminals leveraging AI to create sophisticated scams, from phishing to voice cloning. A 2025 government report on the safety and security risks of generative AI warns that criminals are adopting the technology at the same pace as the general population, amplifying threats like fraud and data harvesting. If HMRC doesn’t accelerate its AI capabilities, it risks being outmanoeuvred by those it seeks to regulate.

Moreover, the public expects more from government services in the digital age. Taxpayers, accustomed to seamless experiences from private-sector platforms, are frustrated by clunky processes and long wait times. AI could alleviate these pain points—scheduling appointments, personalising taxpayer support, or automating repetitive tasks to free up staff for complex cases. But every year HMRC delays, it erodes public trust and misses chances to improve service delivery.

Ethical Concerns and the Need for Speed

To its credit, HMRC is taking steps to address ethical concerns, with an AI Ethics Working Group overseeing mandatory processes and ensuring transparency. This cautious approach is necessary—AI misuse could lead to biased outcomes or privacy breaches, as highlighted by the Information Commissioner’s Office and the UK’s AI governance frameworks. However, caution shouldn’t mean paralysis. The private sector has shown it’s possible to balance innovation with ethical safeguards, and HMRC must learn to do the same.

The “landing zone” concept is a step toward safe AI adoption, but it’s telling that it’s framed as a starting point rather than a mature strategy. Other government bodies, like the Government Digital Service (GDS), have been experimenting with AI for years, with projects like the GOV.UK chatbot showing tangible results. HMRC’s delay in reaching this stage suggests a lack of agility, perhaps rooted in bureaucratic inertia or resource constraints.

A Call for Bold Action

HMRC’s “landing zone” is a sign of progress, but it’s not enough. To truly harness AI’s potential, HMRC must move beyond pilot projects and incremental training. It needs a comprehensive AI strategy that prioritises rapid deployment, workforce upskilling, and collaboration with private-sector innovators. The government’s broader AI Opportunities Action Plan, which aims to make the UK an “AI superpower,” sets an ambitious tone. HMRC must align with this vision, not trail behind it.

The UK has a proud history of technological leadership, from Alan Turing’s foundational work to modern AI pioneers like DeepMind. HMRC, as a critical public institution, has a responsibility to embody this legacy. The establishment of a “landing zone” is a start, but it’s time for HMRC to stop taxiing on the runway and take flight. The longer it delays, the further it falls behind in a world where AI is no longer the future—it’s the present. 

Tax does have to be taxing.


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Tax Dodger Honoured

 

Tax does have to be taxing.



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 £2 Million Blunder: A Scathing Indictment of Negligence and Incompetence

HM Revenue & Customs (HMRC) has once again proven itself to be a masterclass in bureaucratic ineptitude. According to a recent report by *The Telegraph*, HMRC employees have managed to lose or have stolen a staggering £2 million worth of taxpayer-funded laptops and mobile phones over the past five years. That’s right—£2 million of public money squandered on devices that have vanished into thin air, with roughly 10 mobile phones and two laptops disappearing every single week in the past year alone. This is not just a minor oversight; it’s a grotesque display of carelessness that demands accountability and exposes the rot at the heart of HMRC’s operations.

Let’s break this down. The replacement cost for these lost and stolen devices is estimated at £1.5 million, with an additional £386,000 spent on replacing stolen equipment. HMRC officials, in a feeble attempt to deflect blame, have suggested that these figures *might* be inflated because some equipment is “found at a later date.” Found where? Under a desk? In an employee’s living room? Or perhaps in the hands of someone exploiting sensitive taxpayer data? The vagueness of their excuse is as infuriating as it is unconvincing. Even if some devices miraculously reappear, the fact remains that thousands of gadgets—each potentially containing confidential information—have gone missing under HMRC’s watch. This isn’t just about money; it’s about the systemic failure to safeguard assets and data critical to the nation’s financial infrastructure.

The security implications are chilling. HMRC handles the personal and financial details of millions of UK taxpayers. A lost laptop or phone isn’t just a financial loss; it’s a potential gateway for cybercriminals to access sensitive information. The *Guardian* reported that across 18 Whitehall departments, including HMRC, over 2,000 devices worth £1.3 million annually have been lost or stolen, raising alarms about a “systemic risk” to cybersecurity. HMRC’s contribution to this debacle is particularly egregious, given its role as the steward of taxpayer data. How can an organisation tasked with collecting the funds that keep the UK running be so cavalier with equipment that could compromise national security? The answer, it seems, lies in a toxic cocktail of incompetence, understaffing, and a culture of indifference.

This scandal comes at a time when HMRC’s customer service is already in freefall. As *The Telegraph* noted, in 1995, HMRC answered 99% of calls within 15 minutes. Fast forward to 2024, and 63% of callers are left languishing for over 10 minutes before speaking to an advisor. This decline in service quality mirrors the agency’s apparent disregard for its own assets. Posts on X echo this sentiment, with former HMRC employees like @lizkenward lamenting the loss of resources, experienced staff, and local offices due to government cuts. @boblister_poole’s scathing remark that “most seem to work from home—who’s got them now, a relative?” captures the public’s growing suspicion that HMRC’s work-from-home policies may be exacerbating the problem. When devices are scattered across employees’ homes rather than secured in offices, the risk of loss or theft skyrockets.

But let’s not stop at the devices. HMRC’s track record is a litany of failures that compound this outrage. Just last year, the agency was defrauded of £47 million through phishing attacks that compromised 100,000 taxpayer accounts, as reported by *The Telegraph* and *BBC News*. HMRC insisted this wasn’t a “cyberattack” but rather “organised crime phishing,” as if that distinction absolves them of responsibility. Deputy Chief Executive Angela MacDonald called the loss “very unacceptable,” yet offered little in the way of concrete solutions. Meanwhile, @premnsikka on X has highlighted HMRC’s failure to collect between £500 billion and £1.4 trillion in taxes since 2010, alongside £38 billion in write-offs due to fraud and bad laws. The message is clear: HMRC is not just losing laptops; it’s losing control.

The root cause of this mess lies in a combination of chronic underfunding, poor management, and a lack of accountability. HMRC’s workforce has been gutted by years of government austerity, leaving it understaffed and undertrained, as @payling_trevor noted on X. The shift to remote work, while necessary during the pandemic, has exposed glaring weaknesses in asset management. Laptops and phones aren’t just handed out with a Post-it note saying “don’t lose me.” They require robust tracking systems, regular audits, and strict protocols—none of which HMRC seems capable of implementing. Instead, we’re left with a tax authority that treats taxpayer money like pocket change and sensitive data like an afterthought.

The public deserves better. HMRC must be held to account with immediate action: a comprehensive audit of all devices, mandatory encryption and remote-wipe capabilities for every piece of equipment, and severe penalties for employees who fail to secure assets. Heads should roll at the top—starting with those who allowed this culture of negligence to fester. The government, too, must answer for slashing HMRC’s resources to the bone while expecting it to function as a world-class institution. As @premnsikka rightly asked, why haven’t governments changed laws or improved enforcement to stem these losses? The silence is deafening.

In the end, HMRC’s £2 million device debacle is more than a financial misstep; it’s a symbol of an agency in disarray, stumbling from one scandal to the next while taxpayers foot the bill. The UK cannot afford to let this incompetence slide. It’s time for HMRC to stop losing laptops and start regaining the public’s trust. 

Tax does have to be taxing.



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 Secret Deals: A Scandalous Betrayal of Taxpayers and Justice

 

The recent revelation that HM Revenue and Customs (HMRC) quietly offered large corporations an 85% discount on tax liabilities tied to the notorious loan charge scandal, while ruthlessly pursuing individual contractors with life-ruining bills, is nothing short of a grotesque abuse of power. Documents uncovered through a Freedom of Information request, brought to light by Conservative MP Greg Smith during Treasury Questions, expose a deeply unequal and morally bankrupt approach by HMRC. This is not just bureaucratic incompetence—it’s a deliberate, systemic injustice that demands accountability and reform.

The Loan Charge Scandal: A Brief Recap

The loan charge, introduced in 2017, is a controversial tax policy targeting disguised remuneration schemes—arrangements where workers, often contractors, were paid via non-taxable loans instead of salaries. These schemes, dating back to the 1990s, were often marketed as HMRC-compliant by trusted tax advisers, luring approximately 50,000 self-employed workers into financial arrangements they believed were legitimate. HMRC, however, retroactively deemed these schemes tax avoidance, pursuing contractors for back taxes, interest, and penalties, often resulting in bills that dwarfed their earnings. Tragically, the policy has been linked to at least 10 suicides, with countless others driven to bankruptcy, depression, and despair.

The Smoking Gun: Secret Deals for the Powerful

The bombshell dropped via the FOI request reveals that in 2015, a year before the loan charge was introduced, HMRC struck clandestine settlement deals with multi-million-pound companies involved in these same payroll loan schemes. These corporations—often major players in banking and financial services—were allowed to settle their tax liabilities for a mere 15% of what was owed, effectively receiving an 85% discount. Meanwhile, individual contractors, many of whom were coerced or misled into these schemes, were offered no such leniency. Instead, they faced crushing demands for 100% of the alleged tax owed, plus interest and penalties, with some bills exceeding their total earnings from the period in question.

Ray McCann, a former HMRC assistant director and leader of the ongoing loan charge review, admitted in 2019 minutes with Lord Amyas Morse that these “generous” corporate settlements included “significant discounts” not extended to contractors. McCann himself called this disparity discriminatory, noting that “contractors weren’t offered these terms” and that “settlement opportunities have always had a discount, and contractor one is the only one that didn’t.” This admission is damning—a clear acknowledgment that HMRC knowingly treated small-scale contractors far more harshly than corporate giants.

A Tale of Two Taxpayers

The hypocrisy is staggering. Large companies, with armies of lawyers and accountants, were quietly let off the hook with sweetheart deals, while ordinary workers—IT consultants, nurses, teachers, and others—were hounded relentlessly. For example, one contractor earning £13,000 annually was slapped with a £250,000 tax bill, a sum so disproportionate it defies reason. Meanwhile, corporations that facilitated these schemes, reaping millions in profits, paid a fraction of their liability and walked away unscathed.

This double standard isn’t just unfair—it’s predatory. HMRC’s own rhetoric claims the loan charge is about “fairness for all taxpayers,” yet their actions tell a different story: one where the powerful are coddled, and the vulnerable are crushed. The Loan Charge Action Group’s Steve Packham put it bluntly: “Ten people have killed themselves as a direct result of HMRC’s ruthless persecution of people who the Chancellor herself has described as ‘victims of mis-selling’.” Yet, HMRC allowed corporate enablers to escape with a slap on the wrist.

HMRC’s Complicity and Inaction

HMRC’s defence—that it never approved these schemes and that settlements are based on “individual facts”—rings hollow. Many contractors entered these schemes in good faith, relying on assurances from tax advisers and promoters that they were compliant. HMRC failed to act on red flags, such as DOTAS (Disclosure of Tax Avoidance Schemes) registrations, allowing these arrangements to proliferate for years. When it finally moved, it targeted the easiest prey—individual contractors—while largely ignoring the promoters and employers who designed and profited from the schemes.

The 2019 Morse Review, which led to some reforms, including limiting the loan charge’s scope to post-2010 loans, was supposed to address these injustices. Yet, HMRC’s continued pursuit of pre-2010 cases through alternative mechanisms like s684 notices shows a refusal to let go, even when the law’s clarity at the time was questionable. This relentless hounding, coupled with the revelation of secret corporate deals, undermines any claim that HMRC operates with integrity or fairness.

A Call for Accountability

MPs and campaigners, including Sarah Olney of the Liberal Democrats and the Loan Charge and Taxpayer Fairness APPG, are rightly demanding answers. They’ve called for contractors to be offered the same 15% settlement terms as corporations and for a full, independent inquiry into HMRC’s conduct. The parallels with the Post Office Horizon scandal are undeniable: a government agency pursuing ordinary people with devastating consequences, while those truly responsible—promoters and corporate enablers—evade accountability.

HMRC’s actions are not just a failure of policy but a betrayal of public trust. The agency’s secrecy, its discriminatory treatment of taxpayers, and its refusal to pursue scheme promoters with the same zeal it applies to contractors reveal a rotten core. The government must act swiftly: offer contractors the same settlement terms as corporations, pause all loan charge enforcement pending the current review, and launch a root-and-branch investigation into HMRC’s practices. Anything less is complicity in a scandal that has already claimed lives and livelihoods.

Conclusion

The loan charge scandal is a stark reminder of what happens when power is wielded without accountability. HMRC’s secret deals with large companies, while punishing contractors with crippling bills, expose a tax system rigged to favor the powerful. The human cost—10 suicides, countless bankruptcies, and untold suffering—demands justice. It’s time for the government to stop hiding behind HMRC’s excuses and deliver fairness to the victims of this egregious miscarriage of justice. The call for an independent inquiry is not just warranted—it’s urgent.

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Tax does have to be taxing.


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"

Fujitsu’s £280m HMRC Contracts: A Disgraceful Betrayal of Taxpayers Amid Post Office Scandal

 

 

In a move that has sparked outrage among campaigners, victims, and taxpayers alike, HM Revenue & Customs (HMRC) has signed off on two contracts worth a staggering £280 million with Fujitsu, the Japanese IT giant at the heart of the Post Office Horizon scandal. These contracts, described as “bridging” arrangements to maintain datacentre operations and self-assessment system hosting while HMRC transitions away from Fujitsu’s infrastructure, represent a continued reliance on a company responsible for one of the UK’s most egregious miscarriages of justice. The decision to funnel hundreds of millions in taxpayer money to Fujitsu, despite its role in ruining countless lives, is nothing short of disgraceful and raises serious questions about accountability and government priorities.

The Post Office Scandal: A National Disgrace

The Post Office Horizon scandal, widely regarded as the biggest miscarriage of justice in modern British history, saw more than 900 sub-postmasters wrongfully prosecuted between 1999 and 2015 due to faults in Fujitsu’s Horizon accounting software. The defective system falsely reported financial shortfalls, leading to convictions for theft and fraud, ruined livelihoods, imprisonment, and even suicides among innocent sub-postmasters. The human toll was catastrophic, with families torn apart and communities shattered, while Fujitsu and Post Office management evaded accountability for years.

 

Public outrage intensified following the 2024 ITV drama Mr Bates vs The Post Office, which brought renewed attention to the scandal. Fujitsu, acknowledging its “corporate responsibility,” pledged to suspend bidding for new UK government contracts until the ongoing public inquiry into the scandal concluded. Yet, despite this promise, the company continues to secure lucrative deals, with HMRC’s latest £280 million contracts being a glaring example of business as usual.

HMRC’s £280m Deal: A Slap in the Face to Victims

HMRC’s decision to award Fujitsu two contracts—one for datacentre operations and project services, and another for hosting applications on a virtual platform—has been met with fierce criticism. Campaigners and former sub-postmasters, including one who was imprisoned while pregnant due to Horizon’s errors, have called the move “truly wrong” and “an insult to victims and the inquiry itself.” Kevin Hollinrake, the former postal affairs minister, condemned the government, stating, “The least Labour could do is secure the interim payment that we pushed for whilst in office before pressing on with these multi-hundred million contracts. Anything less would be another betrayal of postmasters and the British taxpayer.”

 

The contracts, signed off as HMRC plans to transition away from Fujitsu’s datacentres, are framed as a necessary stopgap. A government spokesperson emphasised that the deals are “contingency measures” to ensure continuity while HMRC migrates to a cloud-based system managed by a hyperscaler. However, the justification rings hollow when taxpayers are footing a £280 million bill for a company that has yet to contribute meaningfully to compensation for Horizon victims. The inquiry, expected to release its initial report soon, has already cost taxpayers dearly, and the entire financial burden of compensating victims—estimated at over £1 billion—has fallen on the public purse.

Fujitsu’s Unbroken Grip on Taxpayer Funds

Fujitsu’s deep entrenchment in government contracts is a troubling reality. Despite its role in the Horizon scandal, the company has raked in billions from the UK government over the years. In 2022 alone, Fujitsu secured £430 million in government contracts, and last year, HMRC paid the firm £310 million. Posts on X reflect public frustration, with users like

@premnsikka

noting that Fujitsu “makes millions from govt contracts” while facing no penalties for its role in the scandal. Another user,

@paullewismoney

, highlighted a £500 million HMRC deal in 2022, calling it a reward for complicity in the Post Office cover-up.

 

The government’s reliance on Fujitsu stems from the complexity and risk of replacing entrenched IT suppliers in major public sector systems. HMRC’s “bridging” contracts are a testament to this dependency, as the department admitted that only Fujitsu can fulfil these roles during the transition period. This raises a broader issue: why has the government allowed itself to become so reliant on a single provider, especially one with a track record of catastrophic failure?

A Failure of Accountability

The decision to extend Fujitsu’s contracts comes at a time when the public inquiry is still investigating the company’s role in the Horizon scandal. MPs and peers, including Lord Bellingham, have demanded clarity on Fujitsu’s continued involvement in public sector contracts, particularly as the company has not yet contributed to victim compensation. The police investigation, Operation Olympos, has identified seven suspects and over 45 persons of interest, including Fujitsu management, but no prosecutions have materialised. This lack of accountability fuels public distrust, as Fujitsu continues to profit handsomely while victims fight for redress.

The government’s response has been inconsistent at best. Initially, officials claimed the HMRC contracts were part of a broader effort to “quickly and securely remove” Fujitsu from government systems, only to retract that statement and clarify that the goal applies only to HMRC’s transition. This flip-flopping undermines confidence in the government’s commitment to holding Fujitsu accountable. Meanwhile, the Business Secretary’s March 2025 meeting with Fujitsu to discuss victim compensation has yet to yield tangible results, leaving taxpayers to shoulder the financial burden.

A Call for Justice and Reform

The HMRC-Fujitsu contracts are a stark reminder of the government’s failure to prioritise justice over corporate convenience. Awarding £280 million to a company responsible for devastating lives is not just a pragmatic necessity—it’s a moral failing. The government must act swiftly to:

1. Suspend Fujitsu Contracts: Halt all non-essential contracts with Fujitsu until the inquiry concludes and the company contributes significantly to victim compensation.
2. Accelerate Decoupling: Invest in expediting the transition away from Fujitsu’s systems to reduce long-term dependency.
3. Ensure Accountability: Support the police investigation and push for prosecutions of those responsible at Fujitsu and the Post Office.
4. Compensate Victims: Streamline the redress process, which MPs have criticised as “too slow,” to ensure sub-postmasters receive the payouts they deserve without delay.

   

Conclusion

HMRC’s £280 million contracts with Fujitsu are a disgraceful continuation of a system that rewards failure while taxpayers and Horizon victims pay the price. The Post Office scandal exposed Fujitsu’s role in a national tragedy, yet the company continues to suck at the teat of public funds with impunity. As the inquiry progresses and public anger grows, the government must stop treating Fujitsu as an indispensable partner and start treating it as a corporate culprit that must be held to account. The British taxpayer—and the sub-postmasters who suffered for decades—deserve nothing less.

Tax does have to be taxing.



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"