Dedicated to the taxpayers of Britain, and the employees of His Majesty's Revenue and Customs (HMRC), who have to endure the monumental shambles that is HMRC.
Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.
You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.
Tax Investigation Insurance is an insurance policy that will fully
reimburse your accountants (your tax return agent) fees up to £100,000
if you are subject to enquiry by or dispute with HMRC.
A Solar Protect policy will enable your Accountant (your tax return agent) to:
Deal with any correspondence from HMRC
Attend any meeting with HMRC
Appeal to the First-tier Tribunal or Upper Tribunal
Having the security of knowing that fees will be met in full will
enable your Accountant (your tax return agent) to defend your position
robustly
Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.
You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.
Tax Investigation Insurance is an insurance policy that will fully
reimburse your accountants (your tax return agent) fees up to £100,000
if you are subject to enquiry by or dispute with HMRC.
A Solar Protect policy will enable your Accountant (your tax return agent) to:
Deal with any correspondence from HMRC
Attend any meeting with HMRC
Appeal to the First-tier Tribunal or Upper Tribunal
Having the security of knowing that fees will be met in full will
enable your Accountant (your tax return agent) to defend your position
robustly
Premiums are Annual Premiums.
Premiums are inclusive of 12% IPT.
Premiums and IPT are due in full in advance / at commencement of scheme.
The FT reports that the cost of tax relief on employees’ out-of-pocket expenses increased by a quarter to £800m in the five years to 2014-15.
Unsurprisingly HMRC is not at all happy about this, and said that it wanted to understand it better. It has asked for input from employers and others “to ensure the relief is being used in the way it was intended”.
Although HMRC claims it does not want to end the relief, you can be assured that something is coming!
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.
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.
My thanks to a loyal reader who dropped me a note yesterday about HMRC DMB Field Force collectors and their claims for lunch, tea and coffee:
"You might care to speculate why every single one of HMRC DMB Field Force collectors was recently told that they would no longer be able to claim for tea, coffee and lunch taken while out on the road (max £8.25 per day).
According to management lizards, they should never have been entitled to claim at all.
Interestingly, when they protested, they were told in no uncertain terms to back off, otherwise an exercise to recover the last 5 YEARS in claims was on the cards.
I wonder:
a) If this money was improperly paid in the first place
b) If it was, why is it not being recovered (taxpayers should be lucky!), or
c) If they are nasty bullying shits trying to score points with excom by making up the rules as they go along.....??"
Views and comments 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.
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.
HMRC will be hosting a webinar this afternoon (14:30-15:30) on Business Expenses For The Self Employed. It aims to:
"- show you what Business Expenses are
- give you a quick guide as to what commonly is & isn't allowable
- give you help on how to easily work out your motoring costs
- and much more!
There will also be the opportunity to ask the presenter questions.
"
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.
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.
I am gemused to see that our "respected" and "morally erect" MPs (the group of people who like to lecture the rest of us on the immorality of tax avoidance) have got themselves into hot water with HMRC.
It seems that, quite correctly, HMRC are a tad worried that MPs are claiming accountancy fees on expenses;
these claims for fees might amount to taxable benefits, as opposed to work related costs.
MPs, being the "morally erect" citizens that they are, have countered the allegation via the expenses watchdog (the Independent Parliamentary Standards Authority - Ipsa) asserting that they are business expenses.
FYI the costs being claimed are up to £5K per annum per MP.
The Guardian reports that HMRC have repeatedly told Ipsa that other employees are not allowed to claim
back professional fees or the tax, and MPs should not be given special
dispensation.
Ipsa insists that MPs are more akin to small businesses, which can reclaim such
costs.
Funny that, I didn't know that public service was in fact a "business"!
Anyhoo, there is now a "Colombian standoff" between Ipsa and HMRC; it will be interesting to see who blinks first.
Now what was it Cameron, Gauke et al were saying about tax avoidance???
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
HMRC are hosting a live webinar today at 13:30-14:30 on PAYE Expenses & Benefits for Employers.
If you're interested in attending, this webinar is aimed at employers and covers: -
- What is an expense and what is a benefit.
- Non-taxable expenses and benefits.
- Dispensations, what they are and how to apply for one.
- Record keeping
- Taxable Expenses and benefits
- Where to get further help and guidance.
You will need to register here if you wish to participate.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
Despite the cutbacks at HMRC it is gratifying toe read that Dave Hartnett, permanent secretary for tax at HMRC, (the self proclaimed scourge of tax avoiders) wins the title of Whitehall's most wined and dined civil servant.
The Telegraph reports that Hartnett has treated to corporate hospitality on 107 occasions over the past three years, mostly at breakfasts, lunches and dinners, by some of the UK's biggest banks, law firms and accountancy firms.
It should of course not escape your notice that these firms are paid by people and companies to help them (perfectly legitimately) avoid tax.
The good news is of course that HMRC, I assume, hasn't directly paid for these meals. Indirectly, I dare say, the firms who shelled out for them have charged the costs to their clients (so in the end the British public have ended up paying for this dining fest).
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
EMW Picton Howell have warned that those who have managed to return from abroad, after the recent volcanic disturbance, may face a tax bill if their repatriation costs were covered by their employer.
Picton Howell have warned that HMRC will demand tax and NI payments on any expenses claimed by employees during the last six days, including transport costs to get them back to work.
The rational being that unless the employer has expressly agreed to cover the repatriation costs, there is a tax liability.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
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.
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.
I was heartened and amused when I first read the headline about HMRC taking trips, I naively thought that there exists an element within HMRC that is a little bit rebellious and free spirited.
However, I was brought back to earth speedily with a bump when I realised that this story was in fact about travel expenses.
Ho hum!
Anyhoo, it seems that HMRC managed to run up a bill last year (at our expense) of more than £1.7M on trips abroad.
£1,751,257 was spent on flights, accommodation, and meals for overseas visits during the 2007/08 financial year. However, the actual spend will be significantly higher because HMRC (and this bit is the real killer) claims that it could not supply details of hotel bills for the first three months.
Funny how the humble taxpayer, when asked to justify expense write offs etc, is expected to have every single invoice and bill to hand though isn't it?
Treasury Minister Jane Kennedy also said that facts on where officials travelled could not be disclosed, for "policy and operational reasons".
Bullshit!
Similar details have been released previously.
One rule for HMRC, another for the taxpayer!
Covert footage of HMRC on a recent trip to Amsterdam
In his book "Animal Farm", Orwell wrote about how the pigs, once they had come to power, changed the rules of the game and introduced a new policy wrt equality:
"All animals are created equal, but some animals are more equal than others".
Clearly those in charge of HMRC are fans of Orwell, and have used the example set by the pigs in formulating their rules wrt expense receipts for taxpayers and HMRC staff (who are also taxpayers).
HMRC staff (all 83,000 of them) do not have to submit receipts to cover claims ranging from meals to hotel accommodation and travel, and are entitled to expenses without actually paying out any money.
They can claim £100 for an overnight stay in London, and £20 for an evening meal while working out of their office without handing in receipts.
When out of their offices for more than five hours, they are entitled to a £6.50 meal allowance and a two-meal allowance of £14 when away for more than 10 hours.
Night work or sleeping in offices on call or standby after a day's work is worth £7.60 a night, while sleeping in the office after working late provides £10.90 a night.
Drivers can claim 5p a mile for each passenger they carry, while passengers themselves are entitled to a similar 5p allowance even if they do not pay anything for the privilege.
Staff can also choose to stay with friends or relatives, rather than at a hotel when working away and can claim £25.
There is nothing wrong in principle with any of the above, it is perfectly correct that staff should be reimbursed for out of pocket costs. It is also perfectly reasonable, given the difficulty of obtaining receipts for some cost items, not to expect a full/auditable record of every penny spent to be maintained.
Fair enough!
Except that there is one small fly in HMRC's ointment.
Can you guess guess what that is?
Yes, that's right, the rules that apply to HMRC do not apply to the rest of us.
We are expected to provide receipts for all expenses claimed against taxable income.
Doesn't that strike you as being a little bit unfair?
The other rather interesting aspect of this matter is that HMRC have been trying to hide its expense policy from the taxpayers. It required UHY Hacker Young to use the Freedom of Information Act to discover details of the expenses regime.
Clive Gawthorpe, a UHY Hacker Young partner, is quoted in The Telegraph:
"Accountants who frequently face challenges over expenses for as little as £10 will find it ironic that HMRC runs such a liberal 'no questions asked' system for its own employees."
HMRC, according to Mr Gawthorpe, is also desperate to try to keep this policy secret from the rest of us and was urging its employees not to publicise rates and allowances.
Is this unfair?
In the eyes of HMRC it is perfectly fair, they believe that:
"All taxpayers are created equal, but some taxpayers are more equal than others."
In the grey depressing days of early February, how the cockles of my heart were truly warmed to learn that HMRC staff have had almost 1,400 overseas trips at taxpayers' expense over the course of five months.
HM Revenue & Customs staff have visited over 60 countries, including Jamaica, Japan and Malaysia.
The trips, between November 2006 and March 2007, cost us the taxpayers nearly £2M.
HMRC staff made 335 trips to Belgium, 403 trips to France, 90 to the Netherlands, 61 to Ireland, and 31 to Spain.
Other countries on the world tour list included; Vietnam, Uzbekistan, Kazakhstan, Venezuela, New Zealand and the south Pacific island nation of Vanuatu.
HMRC said:
"We make essential trips abroad to enable us to carry out our roles investigating and combating global issues such as drug trade, fraud, organised crime and counterfeit goods.
We also play a leading role in promoting best practice within the international tax community."
Best practice should include not wasting taxpayers' money on jolly foreign junkets!
I would also venture to suggest that HMRC time and effort would be better spent in the UK, sorting out the shambles that is our tax and benefit system.
HMRC likes to claim that it is very keen to "consult" with the hapless taxpayer and finance professional over new proposals. Unfortunately, the reality and practicality of interaction in this "consultation" process leaves something to be desired.
Links to two new consultation documents have not appeared in HMRC's "What's New" page in recent weeks. One of the consultations does not even appear on HMRC's "consultation" page, only making a guest appearance on the Treasury website.
The consultation entitled "Benefits in kind and expense payments in the payroll - a fresh approach" was published in December by HMRC, together with an impact assessment of "Including Benefits in Kind and Expense payments in the payroll."
HMRC's "What's New" showed details of the impact assessment, but no details of or links to the actual consultation.
HMRC's Stamp Taxes:Technical Newsletter - issue 6, appeared on the website on 16 January. It claimed that there has been a consultation document "Stamp duty land tax: ensuring fairness for all" in circulation for the last month.
HMRC claimed that:
"On 17 December 2007 the Government published a consultation document seeking views on its proposals. More details about this consultation can be found on the HM Treasury website".
This was not up on the HMRC site in December/early January, yet the closing date for consultation is 8th February.
Why is that then?
Are HMRC trying to cut down on the amount of interaction that they have with the taxpayer and finance professionals?
The government claims in its "consultations code" that consultation should last for a minimum of 12 weeks, yet HMRC does not follow that guidance.
As for all the heavily indebted taxpayers of Britain, the New Year has brought the dear old HMRC something of a debt hangover.
Last year's extravagance, namely mounting the largest and most costly police investigation ever for lost property has now come back to haunt the HMRC.
Scotland Yard is demanding that HM Revenue & Customs foots this record bill for the police force's hunt for the missing data discs, containing 25 million child-benefit records.
The Metropolitan Police stated that it will seek full costs from HMRC.
The investigation has cost tens of thousands of pounds, and has used more resources than would be used in a major murder investigation.
The HMRC had previously guaranteed to cover the "incremental" costs of the police investigation, such as overtime, accommodation and travel expenses.
At one point the police had 47 detectives from the Specialist and Economic Crime Command on the job.
They searched NAO offices, two HMRC premises and other government buildings, the Royal Mail depot in Belfast, four TNT depots and a rubbish tip in Kent.
