HMRC Data Breach - “They Are, at Present, Utterly Useless on Every Level on Every Tax.”

 

Last week, AccountingWEB user Cholmes first reported receiving five late penalty notices from HMRC – with only one of the five regarding their clients. The remaining notices were addressed to two other firms.

The AWEB community has been reporting these incidents for the past week, with many unsure of what to do with the notices received. Some were hesitant to forward the notices to the correct agents in fear of potential data breaches.

When Cholmes got through to HMRC after being put on hold for 40 minutes, the helpline operator seemed “disinterested” and surprised that this member had even called: 

“The only suggestion given was to return the penalty notices to HMRC.

When I asked why I had received them, I was told she didn't know and couldn't comment. No other suggestions offered nor any apologies offered.”

AccountingWEB member Blazefan also reportedly received six late filing penalty notices in a single envelope, only two of which were for their clients. The notices contained the name and address of the practices, the name of their clients, and the clients’ UTR.

Blazefan copied the incorrect notices and returned them to HMRC with a covering letter, and forwarded the copies to the correct accountancy practices: 

“I have not as yet received a response from HMRC, however the other practice has thanked me for forwarding them on.”

HMRC's agent forum has seen further complaints; Catherine Newman received a report from a member of the community who was sent six late filing penalty notices, five of which were sent in error.

HMRC’s response

AccountingWEB approached HMRC about the stories shared on Any Answers and the agent forum and was told: 

“HMRC takes its responsibilities under UK GDPR very seriously. The vast majority of privacy notices will be issued and received correctly, but if any agents receive notices or any correspondence for wrong clients, we would ask that they notify HMRC to enable us to investigate why it happened and take appropriate action.”

It was then highlighted to HMRC that many agents are unable to get through to them or are not getting a sufficient response. The spokesperson could offer no additional information but confirmed that HMRC is aware and would be looking to contact the agents.

VAT director Jason Croke summed HMRC up perfectly: 

“They are, at present, utterly useless on every level on every tax.”

Tax does have to be taxing.

Tax Investigation Insurance

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HMRC Challenged Over Data Sharing

An EU national is challenging HMRC over new rules that require tax authorities around the world to automatically exchange information on millions of their citizens who live abroad. In a complaint to the UK’s data protection regulator, the EU citizen said the common reporting standard — a key measure against tax evasion developed by international experts that is now being gradually introduced by more than 100 countries — made her personal information vulnerable to cyber hacking or an accidental leak.

In her complaint against the common reporting standard to the UK Information Commissioner’s Office, the EU citizen said the exchange of information required by the rules will expose her to “a disproportionate risk of data loss and potentially hacking”.

She is quoted by the FT:

“This risk has crystallised recently in light of incidents in which HMRC has lost data concerning UK taxpayers and recent data breaches concerning UK banks.” 

Her complaint cited how HMRC had lost the personal records of 25m taxpayers in 2007, as well as a media report in 2017 outlining how the tax authority’s website was vulnerable to cyber attacks. HMRC subsequently took action to fix the weaknesses.

HMRC declined to discuss the case but added:

“HMRC shares some personal data with overseas tax authorities to ensure that the right tax is being paid. HMRC only ever shares information when it’s entirely lawful to do so. This includes complying with applicable GDPR requirements.” 

The fact is data is vulnerable to hacking, even when the data is stored by "reputable/professional" organisations!

Tax does have to be taxing.

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HMRC's Snoopers' Charter

Under the The Investigatory Powers Bill (recently approved by the House of Lords) internet providers will be forced to keep a full record of every site that each one of its customers has visited.

Amongst the plethora of government departments that then will be able to snoop on our activities is HMRC.

Consumers’ internet connections records (ICRs) will be kept for 12 months and law enforcement agencies will be allowed to access them during that period, giving them the ability to check if a suspect has accessed illegal services online.

Doubtless any snooping by HMRC will be perfectly legitimate etc. However, the risk of hacking is high.

James Blessing, chairman of the Internet Service Providers' Association, is quoted in economia:

“It only takes one bad actor to go in there and get the entire database.

You can try every conceivable thing in the entire world to [protect it] but somebody will still outsmart you.”

Let's see how this all works out then!

Tax does have to be taxing.

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Datagate Returns - HMRC leaks Applicants' Details

Those of you with long memories will know that HMRC has form wrt breaches in data security (eg Datagate).

It should therefore come as no surprise to learn that there has been yet another data breach, this time affecting those who have applied for jobs within HMRC.

The Register reports that HMRC is spewing job applicants' email addresses to potential rivals in mass circular responses.

Apparently there has been "a technical glitch"!

A reader got in touch to report their email address had been circulated to all other applicants in three instances.

In an email seen by The Reg, the reader's address was included in a list which included nearly 500 other addresses.

Responding to the applicant's complaint, HMRC recruitment said:

"Please accept my sincere apologies for my previous email, sent today. Unfortunately, there was a technical glitch resulting in a confusing email.

This is not how we would have wished to communicate the outcome of the process and we will obviously like to rectify this moving forwards.

If you would like to discuss your application further, please do not hesitate to contact me."

An HMRC spokesman said:

“This email was sent out by a third party acting on our behalf. No other personal data was displayed and we have told the agency to ensure that the technical problems that they experienced do not recur."

Lame!

Please let me know if you know of other instances where HMRC data has been leaked.

Tax does have to be taxing.

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

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What is Solar Tax Investigation Insurance?

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HMRC Loses Tax Records

Those of you with long memories will recall datagate 2007, when HMRC lost data records of around 25 million people.

Stepping forward to 2015 and HMRC have managed to lose some more data (not of 25 million people, but data of one person). Unfortunately for HMRC the data they lost is that relating to David Savil who is an accountant and head of Bishop Fleming a business services firm.

Mr Savil (who has not moved home for 17 years) received a letter from HMRC telling him that HMRC was "unable to trace" his records.


He is quoted by Accountancy Age:

"Having paid considerable sums in tax every year for three decades, and not having moved home for 17 years, I could not believe that HMRC has managed to lose my tax record.

Despite the millions of tax assessments that they get wrong each year, HMRC has been seeking the power to grab funds from our bank accounts. I'm an accountant, so I've been ardent in providing HMRC with my tax submissions every year. But, somehow, they've managed to lose track of me on their radar screen.

If they can make so simple an error in my case, it underlines my belief that they should not be permitted to have their proposed power to grab money from the bank accounts of tax-payers that they decide have under-paid."

HMRC has been asked for comment.

Does anyone have any viable theories as to how long standing tax records can simply vanish like this?

Tax does have to be taxing.

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The Ongoing Clusterfuck

Loyal readers with good memories may recall that I have written a couple of times before about a loyal reader who dropped me a note concerning HMRC changing her address details (without her permission), and sending her ex husband her tax credit summary for 2012/2013.

The saga continues, and she has sent me a chronological summation of the last 6 months for publication:

"For 6 months I have been battling with HMRC/DWP - here is the chronology of everything that has happened.
----------------------------------
9^thFebruary – XXXX District Council notified me that they had suspended my Housing Benefit Claim as they were notified I no longer lived at my current address. After further investigation they informed me that they had my ex husbands address on file. They were given this information by DWP apparently. I had to 'prove' I still lived at my current address.

17^thMay – Ex husband received my tax credit annual review to his address. I phoned HMRC who were unable to explain to me how this had happened. I wrote a letter of complaint and also put in a Subject Access Request.

22^ndMay – I receive a response from HRMC, with regards to my subject access request and acknowledgement of receipt of my letter.

4^thJune – Ex husband received my NHS Exemption Card to his address

19^thJune – I received a voicemail from XXXX District Council notifying me that they wished to speak to me about my Housing Benefit Claim. When I managed to get hold of them it turns out that they had been notified of an address change again (it turned out to be my ex's new address as he had recently moved again).

23^rdJune – Still no response from HMRC to my original letter (sent on25^th May) so I send a further letter of complaint detailing the further issues.

4^thJuly – Phoned to notify HMRC that my ex husband had yet again received my documents. It turns out his new address was on my file. I updated the address details back to mine and also notified them that my son would remain in full time education from September (thus they would need to update my Tax Credit claim and need to issue a new award notice). I also informed them that I have not yet received a tax credit award for the year.

I took the opportunity to phone Child Benefit to see what address they had on record for me and it turns out that they too had my ex husbands address.

08^thJuly – My ex husband received two more letters from HMRC, addressed to me

10^thJuly – Received documents related to my 'Subject Access Request'

15^thJuly – Received 2 separate copies of the HMRC response to my complaint letter (letters originally dated 28^th June). Letter apologised, gave a brief & generic response to my complaint and informed me that I would receive £100 compensation plus £10 expenses within 21 days.

16^thJuly – Received another (third copy) of HMRC response to my complaint letter

22^ndJuly – 21 days since the date of issue on the response to my complaint letter and as of yet no compensation money has been received.

25^thJuly – 4pm phoned the number provided by HMRC, regarding my complaint response and lack of compensation payment – the phone is answered but hangs up. I phone again, the call is answered by a gentleman who tells me he will transfer me to the right person....'the right' person answers but can't hear me so hangs up. Eventually they then ring me back and apologise as there is a problem with their phone!!

I enquire as to whether there is any further details as to why the address changes keep happening. The lady informs that it is connected to CSA. Seeing as I get no child support from my ex (and NEVER have) this does not add up and I don't feel this makes sense?

The lady looked on my records and can't see why the compensation has not yet reached my account either, they also do not have an answer as to why I have not yet received my tax credit award. The lady could see an award dated 1^st July, but she also notes that on 4^thJuly I called to update the fact my son was continuing in further education and for some reason an updated award notice has not yet been issued.

The lady later phoned me back and informed me that she was having to put through the changes again, as for some reason they had got 'stuck' on the system and wouldn't issue an award.

A further phonecall from the same lady some 10 minutes later revealed that the reason an award notice wasn't issued, was because the information was about a future change, so that would not take effect until 1^st September – then a new award notice would go out!"

Have other loyal readers experienced similar problems, or is this just a one off cock up?

Tax does have to be taxing.

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

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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



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Personal Details

In May I wrote about a loyal reader who dropped me a note concerning HMRC changing her address details (without her permission), and sending her ex husband her tax credit summary for 2012/2013.

She has sent me an update wrt the situation, which she has given me permission to publish, quite shockingly HMRC have managed to do exactly the same thing again:

"My ex husband has moved address....and as a result, yet again HMRC have sent him my tax credits documents. 

When is this nightmare going to end? 

Totally at the end of my tether with it now.

I've still not even received a response to my first letter and on 23/06 I wrote to them again as my NHS Exemption card was sent to my ex, then on 19/06 I received contact from my local housing benefit department to enquire whether I had moved. 

It turns out that they had been notified by HMRC that I had moved out of the area. After a bit of further probing I was able to determine that for the second time, they had been given my ex husband's address again. 

 I'm not sure how much more of this I can take."

Views and comments, as always, are welcome!

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 Database Management

My thanks to a loyal reader who dropped me a note over the weekend concerning HMRC changing her address details (without her permission), and sending her ex husband her tax credit summary for 2012/2013.

She has given me permission to post her email, where she asks for advice.

I have suggested that she writes to her MP and considers contacting the mainstream media.

Please feel free to offer advice, or offer suggestions as to how this could have happened.

"I am absolutely livid with HMRC's incompetent service. Today I received notification from my ex husband that he had received my Tax Credit award summary for April 2012 - April 2013. I separated/divorced him nearly 7 years ago. Up until this point in time I have always received the tax credit awards (and related documents) to my home address. The address at which my ex husband now lives is not one I have ever been associated with. Likewise my ex husband has never been associated with my current address either.

I phoned the HRMC to find an explanation for the clear administration error. The ironic thing is, that in order to speak to someone I had to go through a series of security checks, which included providing 'my' address - however I failed this part of the checks because somehow it now had my ex husbands address! Thankfully the call centre operator changed the address back to mine. She spoke to a manager but neither of them have been able to provide me with an explanation as to why or when the address change was made. They cannot see any record of the change ever being made. Also, why was I not notified of an address change?

I do not want my ex husband knowing what I get paid and how much tax credit I get as it's none of his business. I'm mortified No amount of apology can undo this breech of confidentiality and the fact that he now has that information. 

I'm writing a letter of complaint to HMRC but is there any more I can do? 

Anyone else I can go to?"

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"

Out of The Box - HMRC's 7,000 Tablets

As HMRC moves towards its paperless dream, it will hand out 7,000 tablets and laptops to employees in an effort to improve their mobility.

CIO Mark Hall wants the workforce to be more mobile.

Hall told Computer Weekly that HMRC wants to introduce "out of the box" consumer devices.

"The ultimate number will be about 7,000 – but we don’t at the moment know how many of that will be iPads, laptops etc.

We are doing a piece with HR at the moment about mobile working, and how we can make our VAT inspectors more mobile, for example.”

An initial iPad pilot is taking place with a dozen HMRC executives.

“Then we will pause and reflect and look at user cases for the next tranche. Once we are ready, we will move quite quickly.” 

Those of you who are worried about another Datagate occurring should sleep peacefully. Seemingly the devices will work on non-restricted information, classified at Impact Level 2 security levels and below. HMRC will also work closely with the government security arm CESG, to ensure that security will not be compromised.

No worries then!

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



Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

The Road To Privatisation?

I am aware that many loyal readers have regularly posted comments on this site expressing their views that the government intends to privatise HMRC.

Up until now I have been of the view that privatisation was unlikely:

1 The issue of confidentiality of taxpayer's tax affairs would be very difficult to entrust to a third party (although, as loyal readers will point out, to some extent their parties do have some access to this eg the datagate fiasco was blame on a third party).

2 The political cost of privatising HMRC would be too high, ie there is insufficient support for such a move.

However, based on a recent announcement about a pilot for the outsourcing of text credits debt, it may be that I am wrong and that there is a "plan" (albeit a very "woolly" one) for step by step outsourcing.

The Low Incomes Tax Reform Group (LITRG) issued a press release last week noting that people with tax credit overpayments may in future be dealing with third party debt collectors:

"The Government announced yesterday that they are to conduct a payment-by-results pilot on outsourcing the collection of tax credits debt. This could mean that people with overpayments of tax credits will be dealing not with HMRC directly, but with debt collectors who will be paid by results, and who may therefore be tempted to be less than scrupulous in the methods they use.

Robin Williamson, Technical Director of the Low Incomes Tax Reform Group, commented:
“Tax credits overpayments are not due to claimant error and fraud alone. They arise also from official error, and a certain amount of claimant error is generated by wrong information from government sources.

“Also, because tax credits are a system in which payment is made on a provisional basis while entitlement is decided at the end of the year and adjustments then made, overpayments and underpayments often arise naturally as an integral part of the system. They are an inevitable feature of the design of tax credits. We must seriously question whether dealing with tax credit overpayments just like any other debt, by outsourcing recovery to commercial debt collectors, is an appropriate or proportionate response to the problem.

“If HMRC persist in this course of action, they must take great care to impose the same standards and safeguards as they would themselves when recovering these highly sensitive and untypical debts. The debt recovery arm of HMRC has published specific guidance on tax credits debt which has been developed over the last couple of years. It ensures that people’s circumstances are taken into account in order to set realistic time-to-pay arrangements and that those without the means to pay are able to have their debts suspended or written off in accordance with their needs.”

Notes to editors

1. The Low Incomes Tax Reform Group (LITRG) is an initiative of the Chartered Institute of Taxation (CIOT) to give a voice to the unrepresented. Since 1998 LITRG has been working to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of those on low incomes."

Views and comments are always welcome, do you think that the government wants to privatise HMRC, if so will it be privatised?

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




Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Lost

My thanks to a loyal reader who sent me a copy of this missive that he received from HMRC, in which they admit that they took two months to lose his tax return.

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



Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Missing Data

My thanks to a loyal reader who recently sent me a copy of the response that she received from HMRC, regarding a Freedom of Information enquiry that she made concerning the number of vehicles HMRC seized that are then auctioned off.

Rather bizarrely, even though HMRC recommend that taxpayers keep good quality financial records, HMRC don't have the information to hand!

"Thank you for your e-mail of 7 September asking for the following information. 

Dear HM Revenue and Customs, you state that in the period 2008/9 that you seized 5618 vehicles.

You further state that the sale of seized vehicles for the period 2008/9 totalled £4,259K.

I therefore request under FOI the following. 

For the period 2008/9 - How many vehicles were sent to auction (l understand the auction company you use is Wilsons Auctions)? 

How many vehicles were scrapped and to which company(s)? 

How many vehicles were restored to their owners? 

I am answering under the terms of the Freedom of Information Act 2000 (FoIA). 

I can confirm that the company the Department uses is Wilsons Auctions and would advise you that, following a search of our records, I have established HMRC does not hold the remainder of the information you requested. 

If you are not happy with this reply you may request a review by writing to the HMRC FOI Team, Room 1C/25, 100 Parliament Street, London SWIA 2BQ or email [email address]"



Tax does have to be taxing.

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Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

The Robots Are Coming

The Guardian reports that HMRC are going to use robots (internet bots) to hunt down tax evaders.

The bots will scour the net to find people who are trading without telling HMRC that they are trading/earning an income.

Used in conjunction with HMRC's Connect IT system, HMRC will be able to identify anomalies between such elements as bank interest, property income and lifestyle indicators.

Apparently, before launching the bots, HMRC is seeking input from interested parties.

Well all of this sounds very "nice", if it works and is not used as an excuse to "stiff" people with overinflated tax bills on the pretext of an erroneous red flag from a bot.

My questions to those who work for HMRC;

- Will this actually work as it is claimed "on the tin"?

- What will HMRC do with all the data it collects on innocent people etc, that is not relevant to a specific tax evasion case?

Tax does have to be taxing.

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Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Lost!

It seems that even ex staff of HMRC cannot quite shake the HMRC curse.

A loyal reader (ex HMRC) informs me of the following problem that he is having wrt lost records:

"HMRC have made a total blunder with regards me applying for Voluntary Early Severance from my current government job.

My records have got lost in a proverbial black hole of Calcutta, caused by our friends at HMRC."

If HMRC lose internal records (relating to staff/ex staff), what do they do with records relating to external "customers" (taxpayers)?

Tax does have to be taxing.

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What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Lost

The Bournemouth Echo reports that HMRC are conducting an "urgent" inquiry after a parcel containing 42 private companies' tax returns was delivered to Michael Hodge, a former mayor of Christchurch and by happenstance ex HMRC fraud investigator.

The 42 firms are SMEs based based around Surrey, Kent and Essex. Seemingly the documents, despite the parcel being labelled for Mr Hodge, were destined for a storage centre.

The documents included annual accounts, tax returns and accountants' letters; dealt with by Croydon tax office.

According to the Echo Mr Hodge was not that impressed with the lack lustre "enthusiasm" from HMRC, for looking into this cock up, when he reported it to them.

HMRC only began to take an interest when Mr Hodge told them that he would contact the Echo.

Lisa Billard of HMRC is quoted:

"We take customer security very seriously and no data has been lost in this incident.

Our parcel was correctly addressed, but it would appear that a label from another package (not an HMRC package) had become attached to it within the postal system meaning that the courier company delivered it to the wrong address.

HMRC have collected the parcel and can confirm its contents are intact. We have raised the matter with the delivery company."

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

The Enemy of The People - The Blame Game

When an organisation or individual has a problem, until that organisation/person admits to themselves and others that they have a problem that problem will not be addressed.

Thus we should all feel rather depressed to read that according to The Parliamentary Ombudsman three government agencies (including, surprise surprise, HMRC) have not had the guts to own up to problems, and have instead played the old political game of passing the buck and blaming each other.

Parliamentary Ombudsman, Ann Abraham, has published a report "A Breach of Confidence" which noted that the 3 agencies (HMRC, Child Support Agency and the Department for Work and Pensions) collectively failed to deal with a data mistake (first reported in 2006), which led to a woman's personal and financial information being wrongfully disclosed to her former partner, and her child support payments being reduced without her knowledge.

In 2006 one of the agencies incorrectly updated her records to show her living at her former partner's address, although she had in fact never lived there.

Not unreasonably the woman was pissed off, and tried gain assurance that the mistake had been corrected.

As is the way with brain dead "jobsworth" government agencies, she was passed from pillar to post. No one was prepared to accept responsibility.

Polticians and government departments are incapable of admitting responsibility for mistakes, which is why their remit over our lives should be minimised.

The ombudsman's report concluded that, in effect, the agencies were useless and dishonest:

-The computer systems used by the 3 agencies could make changes to the woman's data without her knowledge or consent. However, for reasons that no one has yet explained, the networks cannot identify the source of any errors.

Does anyone seriously believe that master data changes cannot be traced to source?

- The 3 brain dead agencies blamed each other and, of course, "the system". Thus, they concluded, "nothing could be done".

As we know, IT systems are only as good as the data input and their underlying programing (ie cock ups happen because of the human element, not the machine element). The fact that the agencies concluded that "nothing could be done" speaks volumes about their attitude to the people who pay for their existence (ie the taxpayers).

Is it not ironic that the IT systems of the 3 agencies are able to communicate, yet the human "jobsworth" members of these organisations won't communicate with each other?

The good news is that this troika of uselessness have been instructed to apologise, and to pay £2K compensation.

The enemy of the people has become the state, it has manifestly failed in its duty of care, efficiency and probity and needs to be cut back root and branch!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Datagate III - An Ongoing HMRC Farce

HMRC seems to be developing an addiction to sharing people's private financial details with the wider world.

Not content with the Datagate fiasco of 2007, when a database containing 25 million child benefit records went missing, HMRC have sent by the post the private financial details of up to 50,000 people who claim tax credits to other claimants.

Claimants were sent their annual tax credit award notice, coupled with personal details of other claimants (eg earnings, bank sort codes and the last four digits of the bank account number of other claimants).

HMRC claim that this was a printing error.

By "printing error" do they actually mean IT error?

HMRC also claim that the details mistakenly sent out cannot be used to commit id theft.

This of course is bollocks, any extra details about a person's bank or financial status can make a fraudster's task just a little bit easier.

It seems that, despite numerous warnings and cock ups, HMRC still don't "get" the concept of data security.

I guarantee that the HMRC "investigation" into this will finger some junior member of staff as the official scapegoat.

Does anyone actually trust HMRC anymore with their private data?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Spies 'R Us

Public Service reports that the Secret Intelligence Service (SIS) and GCHQ are working on a new network to collaborate with other agencies.

It seems that a recent initiative (SCOPE phase two), which was designed to deliver intelligence to law enforcement, government departments and agencies, has failed.

However, the government is never afraid to have another go at improving its spying capabilities. As such a new initiative has been launched.

Collaboration in the Intelligence Community (CLiC) is intended to be a "low-risk, inexpensive approach".

Former chief of SIS, Sir John Scarlett, is quoted:

"CLiC is designed to shore up... some of the capability that SCOPE 2 would have given us... We are doing really quite well on this more modest CLiC programme, which is not being run out of the Cabinet Office, it is being run out of SIS and GCHQ... and it will be of community-wide value when it is delivered."

What has this got to do with HMRC? I hear you ask.

Well, guess which agency will be the first to benefit from CLiC?

Yes, that's right, HMRC!

On the assumption that all things go according to plan, HMRC will be able to receive Top Secret intelligence and communicate securely via email.

Seemingly the improbably named secure messaging system STRAP3A (do a Google of images for this, and you come up with some quite unusual pictures) will let GCHQ, SIS, MI5, the Ministry of Defence, the Foreign Office (FCO), the Cabinet Office, the Home Office et al exchange Top Secret information by April.

Needless to say, this being secret, the costs and contractor involved are all "hush hush". However, it seems that HMRC are footing part of the bill.

Let us trust that the information shared is better handled than other information that government agencies are prone to lose.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Handling Stolen Data

Here's an interesting "little" story about some stolen data files, no not the "datagate" files of 25 million British citizens, but some stolen data files from HSBC Switzerland.

HSBC stated yesterday that a former IT employee had stolen information concerning 24,000 clients and former customers.

The Times reports that the French authorities have now acquired the data, and are examining data on the 3,000 French account holders on the list.

The question hanging in the air is whether HMRC will seek to acquire this ill gotten data (or at least the portion that covers British citizens who may, or may not, have been evading tax).

Switzerland has categorically stated that it will not co-operate with any attempt by foreign tax authorities to use the data. HSBC have also stated:

"We will not support any authorities seeking to use stolen data in pursuit of tax inquiries."

However, HMRC have "form" in this area as they acquired stolen data relating to Liechtenstein bank accounts three years ago.

Whilst the Swiss may not offer up any details, the French authorities who now have the data may well be less fussy.

Tax evasion is illegal.

However, should a government organ be using illegally acquired data to pursue suspected tax evaders?

Do two wrongs really make a right in this case?

In some countries, evidence acquired without due process (eg a warrant) is deemed inadmissible.

Doubtless there may be many who argue that tax evaders (remember it has to be proven first that they are evaders) don't deserve the protection of the law. Cut down one law and others will be exposed to an overzealous state seeking to prosecute those that it deems to have acted "illegally".

Would you be happy with state organs, eg the police, bursting into your homes without due process having been followed?

Will HMRC start to pay people to commit theft on its behalf?

That is where this may well lead.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Training Matters

Following the datagate scandal in 2007, when HMRC lost the personal details of around 25 million people, HMRC have launched an extensive retraining exercise for its 85,000 employees in order to avoid future such incidents.

Jeff Brooker, HMRC's man in charge of security and business continuity issues, announced details of the retraining last week at the Human Factors in Information Security Conference.

Security will now be placed at the heart of HMRC's business strategy, and in the performance objectives of every employee, via "12 golden rules".

In addition, a data security rulebook has been introduced by HRMC and workshops will be provided for staff.

Progress indeed!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"