MT Global Fined £23.8M for Money Laundering Non-Compliance

Accounting Web reports that MT Global Ltd has been issued with the largest ever fine (23.8M) for money laundering non-compliance by HMRC.

HMRC found the money transfer business had breached seven regulations between July 2017 and December 2019 including failures in risk assessments and associated record-keeping, policies, controls and procedures and fundamental customer due diligence measures.

Tax does have to be taxing.

Tax Investigation Insurance

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

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Possible Way To Avoid £100 Late Filing Fine?

You can write that if people miss the deadline then they can claim that they were still unsure about the impact of the LC announcements and whether the LC applies to them. They submitted after learning that it does not. HMRC have said that they will apply no penalty or interest.

— HMRC Victim #STOPtheLoanCharge #SaveLives! #IR35 (@HMRCVictim) January 29, 2020

I have no idea if this excuse, if you do file late, will work.

It would save time, and stress if you file before the deadline!

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 Issues Late Filing Penalty Two Weeks Early

HMRC has been accused of "gross incompetence" having incorrectly fined a Norfolk business for late tax returns - despite the deadline being in a fortnight.

Eastern Daily Press reports that Debit and Credit Accountancy, a family run business based in Wroxham, spotted the taxman's blunder when a client was slapped with the £100 fine.

Following a complaint, HMRC has revoked the fine.

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 Is Ridiculous

 

The Telegraph reports that Judge Nicholas Aleksander has told HMRC its behaviour was "ridiculous" and "a scandal" after HMRC attempted to fine a homeless man £1,600 for filing his tax return late. 

The man, who had been a self-employed electrician, briefly returned to his native Poland in around April 2014 where he said his drink had been spiked with drugs causing him to lose his job and exhaust his savings when he returned to Britain.

He said he was evicted from the house in east London where he had been living and all his belongings were lost or stolen, including important documents.

He said he had been forced to sleep on the streets until moving into a hostel in January 2017, which led to him finding a job and permanent accommodation in April of that year.

HMRC issued penalties of £1,600, saying it had sent reminders to his previous address.

Judge Nicholas Aleksander found against HMRC.

The judgement reads:

“HMRC's decision to pursue this man for penalties in the circumstances of this appeal is a scandal. For HMRC to expect a homeless person to keep HMRC up-to-date with their address is ridiculous – and just needs to be stated to show its absurdity.”

HMRC is ridiculous!

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?

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Tribunal Quashes HMRC Fine

My thanks to a loyal reader for passing on this recent tribunal case, in which HMRC's £300 fine is quashed and HMRC come out of it looking like idiots.

FERGUS ANSTOCK Appellant 

- and - 

THE COMMISSIONERS FOR HER MAJESTY’S REVENUE & CUSTOMS Respondents

"The Notice relied upon by the respondents is so poorly thought through and so inadequately drafted that it fails the requirement of certainty and precision, which is a fundamental requirement ( as explained above ) .

In this context it is also worth pointing out that the requirements made of the recipient of a Notice must be discernible from within the four corners of the Notice itself unless some other document is specifically incorporated by reference.

It will not do for it to be argued, as it was argued before us, that some of the details about requested information might have been gleaned by looking at the earlier correspondence. That might be so; it might not be so. However, that is not a legitimate way to proceed because the Notice must be self - contained and must be construed to establish precisely what information and/or documents it properly requires the recipient to provide.

A taxpayer cannot be in breach of a Notice unless it is a valid notice. By “valid” we mean one which meets the requirements of certainty and precision, which we have discussed above.

For the two separate reasons that we have set out above , this appeal is allowed and the £300 penalty quashed."

'Nuff said!

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.

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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.

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The Queen's Bank Hit With £75M Tax Evasion Fine

As per Citywire Coutts has been fined £75 million wrt two separate tax evasion probes relating to its former Swiss private banking business.

The largest of the two penalties (£56 million) was paid to US prosecutors after it admitted assisting US clients to conceal assets in offshore accounts, which subsequently helped them evade tax.

In a separate investigation, Coutts paid £18.8 million to German prosecutors after a tax evasion probe covering a 10-year period to 2014.


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.

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Fines 'R Us

Got a £100 fine for not turning in my tax return on time… for a company I shut down! #HMRC

— Lloyd Humphreys (@Lloyd) March 9, 2016

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



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HMRC Is Infallible

As loyal readers know, HMRC considers itself to be much like the Pope - infallible.

This self belief in infallibility can best be demonstrated by the following example, as published in the Telegraph, concerning the estate of Sara Hancock's late grandfather and HMRC's refusal to admit that they had lost a final tax return submitted by the family's accountant.

The result being letters sent from HMRC demanding ever increasing automatic fines.

Now that the media are involved, HMRC has "graciously" waived the fines "as a gesture of goodwill". However, it still claims that it has not received the tax return.

Given that HMRC is infallible it is clearly, once again, the fault of the hapless taxpayer!

Here is the article in full:

When Sarah Hancock’s grandfather died after suffering from dementia, she thought she would help her grieving family get his affairs in order by calling HMRC’s "Tell Us Once" service, and telling them about his death. 

Little did she know that one phone call would lead to a nightmare year of letters demanding ever-increasing fines, which kept coming even when both Miss Hancock and her late grandfather's accountant wrote to the taxman explaining that he did not owe any tax. 

Frank Hancock died in December 2014, after an illness which had left him in hospital for over a year. He and his wife Joyce each took half the proceeds of a small delivery business, but Mr Hancock’s half was so low it was covered by the personal allowance and married couple’s allowance. 

His accountant, Thomas Shreeve, had continued to file returns on his behalf, and HMRC’s own tax calculations showed that he was actually due a small rebate. 

When he died, Miss Hancock called HMRC, and an automatic letter was sent out asking her to file a return for Mr Hancock’s outstanding tax. This had already been done, so the couple’s accountant returned the forms alongside a letter explaining that the return had already been filed, so the form was superfluous. 

Nevertheless, the form was sent again by HMRC in June – a full four months later – with a standard letter saying that it had not been filled in correctly. 

A month later Miss Hancock received another letter with a bill for £100, the first late filing penalty. By November, almost a year after her grandfather’s death, the penalty demands, sent in "daily penalty reminder" letters, had increased to over £300. 

By mid-December the penalty had doubled to £600, and in mid-January a demand for £1,200 was sent. This final letter was also the first time the family had been given an option to challenge the fine.
Miss Hancock said: “It’s been a complete nightmare for the last 12 months. I made one phone call and got put down as the point of contact, which is fine, but I don’t want to be dealing with all these fines.” 

An accountant and former HMRC inspector of taxes, Mr Shreeve, who is 96, said he had filed all the returns on time and helped the family pay several years of backdated tax on the business before Mr Hancock's illness. 

He said: “Everything was in order with the estate, but they have ignored every single letter that was sent to them.” 

At one point the family were told to pay the fine up-front and then appeal it retrospectively - something they did not want to do as they did not trust HMRC to listen to their appeals. 

When contacted by Telegraph Money HMRC said it would cancel all the penalties on Mr Hancock's estate as a gesture of goodwill - but insisted it had not received his return. However, a spokesman admitted the series of demands sent to the Hancocks did not deal with the situation appropriately.
The spokesman said: "We apologise to Miss Hancock. We have cancelled the penalty as a goodwill gesture and can confirm that Miss Hancock will not have to submit tax returns in future." 

Last year the taxman was given new powers to demand payments within 90 days from those suspected of abusing tax loopholes, and to compel them to pay upfront and appeal the decisions later.
Robin Williamson, technical director of the Low Incomes Tax Reform Group, which is trying to make the tax system simpler for people with low incomes, said the Hancocks' problems stemmed from a change in HMRC's approach to fines. 

"The automatic penalty regime was introduced in 2010. At the same time they separated the penalties for returns and the returns for late payment, so even if you owed no tax, you still got penalties for not submitting your return whereas previously if you had paid your tax or did not owe any that would be in your favour. 

"It was a deterrent but it also had the unwanted side-effect of bringing in a lot of often vulnerable people, elderly people, taxpayers who couldn't get to an adviser or didn't know how to handle the forms they were getting. When the right way to deal with it would have been some form of personal contact, what they get into is this maelstrom of letters. 


"It also results in a lot of uncollected penalties which just have to be written off at the end of the day. So it's a big problem and it doesn't solve the problem of people who are trying to avoid filing their returns. 

"It's expensive, and useless, because it doesn't solve the problem of the missing return," he said.

In a consultation document published last year HMRC said it would consider removing penalties where people don't actually owe any tax, as part of changes to the system of fines. These would not be implemented until the Finance Bill 2017, at the very earliest. 

Chartered accountant Peter Hollis, a senior member of accounting trade body the Institute of Chartered Accountants, who has expressed concerns about similar cases where lost returns have resulted in large fines for taxpayers, criticised HMRC for its hastiness to issue fines after technical glitches or mix-ups. 

He said: "This is the sort of thing that keeps happening. The Revenue would like to think that they deal with things quickly and compassionately and pick out mistakes, but they don't. It never ceases to amaze me the lack of compassion within the revenue and how hard they can be in dealing with people." 

He also warned that cases like this could get worse in future as HMRC is given powers to go into people's bank accounts to extract funds.

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.

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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



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"

Reasonable Excuses For Late Tax Return

Those of you who have missed the 31 January deadline for submitting their tax returns online, may be able to avoid a penalty if they have a "reasonable excuse".

HMRC lists the types of excuses that it deems to be "reasonable":

"You can appeal against some penalties if you have a reasonable excuse, eg for your return or payment being late.

What may count as a reasonable excuse

A reasonable excuse is normally something unexpected or outside your control that stopped you meeting a tax obligation, eg:

• your partner or another close relative died shortly before the tax return or payment deadline
• you had an unexpected stay in hospital that prevented you from dealing with your tax affairs
• you had a serious or life-threatening illness
• your computer or software failed just before or while you were preparing your online return
• service issues with HM Revenue and Customs (HMRC) online services
• a fire, flood or theft prevented you from completing your tax return
• postal delays that you couldn’t have predicted

You must try to send your return or payment as soon as possible after your reasonable excuse is resolved.

What won’t count as a reasonable excuse

The following won’t be accepted as a reasonable excuse:

• you relied on someone else to send your return and they didn’t
• your cheque bounced or payment failed because you didn’t have enough money
• you found the HMRC online system too difficult to use
• you didn’t get a reminder from HMRC

If you have a disability

If you have a disability and claim to have a reasonable excuse that prevented you from meeting a deadline, HMRC will consider whether you made a reasonable effort to meet your obligation on time."

You will observe that the dog eating your tax records is not deemed to be "reasonable".

Good luck to those who were tardy!

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"

Halloween Deadline

#TaxReturn #fine scare at Halloween https://t.co/2piJp5uiqF via @WhichUK pic.twitter.com/G2sFr0APGl

— Intouch Accounting (@IntouchAcc) October 26, 2015

Over 10m people submit a self-assessment tax return to HMRC each year. If you choose to do this by filling out a paper form (SA100) the deadline is 31 October.

Miss this and you'll receive an automatic £100 fine.

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"

Offshore Tax Evasion - A Question of Proof!

The Chartered Institute of Taxation says that the proposed £5K statutory minimum threshold of tax evaded, wrt offshore evasion, is not high enough to protect people in the more complex cases.

The threshold, set by HMRC, is meant to ensure that people who make errors over relatively small sums of tax do not receive a prison sentence of up to six months.

However, CIOT want the threshold to be raised to £25,000.

John Cullinane of CIOT is quoted by Contractor UK:

“We are pleased to note that there will be a statutory defence of reasonable care.

This will be vital in limiting the scope of the offence.
But it would be a stronger safeguard for the taxpayer if the burden of proof was on HMRC to prove that reasonable care had not been taken, rather than being on the taxpayer to prove they took reasonable care.

We are also concerned that this proposal could be counterproductive for HMRC because the fear of prosecution, with no need to prove intention on HMRC’s part, could discourage taxpayers from coming forward voluntarily.”

As ever with HMRC, the concept of innocent until proven guilty doesn't apply!

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"

Ker Farking Ching! - HMRC Charge For DMB Visits

Under powers introduced last year, HMRC can levy a charge of 7.5% on outstanding tax debts above £1,500, and can also act to recover those debts by seizing taxpayers’ belongings and selling them at auction.

As if this was not bad enough, the FT reports that HMRC are now also charging for home visits made by Debt Management Field Force staff.

One taxpayer who fell behind on repaying tax debts of roughly £1.5m, received a six-figure bill last week from an HMRC officer who visited his home while he was away in August, although no assets were taken.

In the letter from the Debt Management Field Force, HMRC wrote that the visit had incurred a fee of £235 and that another charge of 7.5 per cent of the outstanding tax had been added to his debts.

If the combined debt was not settled, the letter made clear that goods would be seized and sold at auction — incurring another fee of £110 — and another 7.5 per cent fee would be levied on the amount owed over £1,500, in line with rules set out by the Ministry of Justice.

Ker Farking Ching!

“Pay late and you will pay more”

Michael Avient, personal tax partner at UHY Hacker Young, said that despite handling many cases involving “distraint”, this was the first instance he had seen where a fee had effectively been applied for a debtor visit.

 “This is something that has gone under the wire,”

A spokesperson for HMRC said it preferred taxpayers to talk to the authority rather than incur additional fees such as these, and that debtors received multiple calls and letters asking for payment before these powers could be used.

“We support customers with genuine short-term difficulties through allowing time to pay whilst taking firm but proportionate action against those who do not engage with us.”

Nonetheless, it's a nice little earner for HMRC!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

Erroneous Fines

A loyal reader recently asked me if anyone else had issues with HMRC erroneously fining people for late filing:

"A recurring theme for me is clients being fined erroneously for late filing, and for new clients not receiving UTR numbers even though HMRC has a record of them being sent out. 

Fines build up, I ring HMRC who say you are right we will put it right, then they don't and fines continue.

If debt is passed to private contractor then you are stuffed, nobody gives a damn they only want to collect your money. 

What a shambles !!!!! 

Do others have this problem ?"

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.

What is Solar Tax Investigation Insurance?

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

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



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

HMRC's Box Ticking Unlawful

It seems that the requirement by HMRC for people to tick the terms and conditions box of the government gateway, before submitting tax returns, is unlawful.

As per an appeal against a fine levied by HMRC, as summarised by BAILII:

Neil Garrod, the appellant, is a barrister in practice.  He is required to submit VAT returns.  He failed to submit an electronic VAT return by the due date for the VAT quarter 06/12, but did submit it by paper.  This led to correspondence with HMRC but he continued to refuse to make online returns making paper returns instead.  Ultimately HMRC imposed a penalty of £100 on him 16 July 2013 for failure to make an online return in the period 03/13.

Mr Garrod requested a review of the penalty; one was carried out but upheld the issue of the penalty. This appeal is against that review decision dated 6 January 2014.

Mr Garrod is prepared to use the internet to submit his returns online; what he would not do was to submit his return online because he was unable to do so without signing up to the ‘Government Gateway’ which required him (electronically) to tick a box stating that he had read HMRC’s terms and conditions for online filing.

He objected to any terms and conditions being imposed.  He also objected to the quantity of them:  he said they would be burdensome to read.

The appeal was allowed.

For why?

HMRC "seeking to impose the tick the box pre-condition was in these circumstances unlawful.  As the failure to tick the box was the cause of Mr Garrod’s failure to file online, it seems to me that under Winder, Boddington etc, the penalty was not lawfully imposed and must be discharged".

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"

Spurious HMRC Fine

A loyal reader has written to me about a problem that she is having with HMRC, wrt her tax return and a seemingly spurious fine of £600.

She has given me permission to post her letter on this site:

"Hi, I thought it appropriate to let you know about my experience, as it may be happening to many others.

I completed my tax return late - on 1st May. Granted although I didn't earn enough to pay any tax, I copped for the 100 penalty. However, I did submit my tax return and got a long receipt number, which I wrote down manually.

I was very concerned when I got a letter a few week later to say that my tax return had still not been received. I have been unable to get through on their telephone system as I was kept hanging on for age, with no indication how long it would take to get through. I therefore wrote to HMRC to state that I had indeed submitted my return, the time and date and I provided them with my receipt number. I asked them to explain why my return was not on their system and to advise me what to do, as I would prefer not to complete it again.

Several weeks later they have not acknowledged my letter and are now trying to charge me £600! If they had responded to my letter and advised that my return could not be found on their system I could at least have re-done my return at a much earlier stage. Now I am panicking, as I don\'t have that kind of money and this penalty is not warranted by any means.

I would be interested to know if there are many other people facing this predicament."

Has anyone else experienced a similar problem this year?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

HMRC's Unrefined £1M Fine

HMRC seems to have got rather carried away with itself over calculating what an errant scaffolder (Matthew Hodges) owed it in fines and tax for undeclared VAT.

Hodges failed to declare (ie evaded) £11,000 in tax. However, HMRC accused him of evading £529,536 in VAT due on the scaffolding projects he carried out since 2006. On top of the unpaid tax, HMRC demanded £399,734 as a penalty for non-payment.

The onus of proof is of course is on the taxpayer to disprove whatever HMRC says it is owed, thus Hodges was in rather a bind.

The tax tribunal said he actually owed £11,153, based on estimates of the reasonable number of jobs he could have completed in the five-year period.

Andrew Hubbard of Baker Tilly, is quoted by the Telegraph:

"It looks to be little more than a simple back-of-the-envelope calculation with no thought being given to the reality of how one person could have achieved a turnover of that level.

These figures have stretched credulity to such a point that a court has to intervene and say that the tax officer hasn't used their best judgement."

Nichola Ross Martin, of Ross Martin Tax Consultancy, Mr Hodges' representative at the tribunal said:

This was "wholly unrealistic for such a one-man operation,"

There would not be sufficient days in the year to erect and dismantle enough scaffolding to achieve such a return."

Judge John Brooks, of the tax tribunal, agreed.

He said:

"For Mr Hodges to have generated such additional turnover he would either have had double the amount charged to his customers or increased his work force."

HMRC later admitted its own calculations of more than £500,000 in unpaid VAT were "unrefined".

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

HMRC Waives £100 Late Filing Penalty

HMRC has confirmed that, when a reasonable excuse has been provided, taxpayers who have filed late tax returns have been let off paying a £100 fine for missing the deadline.

HMRC wants to focus more resources "on investigating major tax avoidance and evasion".

The "forgiveness" of those with a reasonable excuse is not just down to HMRC trying to be "fair", but also down to the fact that it is facing a backlog of almost a million letters and staff have been taken off call centre duties to work through the mail.

As one loyal reader noted, the mail backlog is the size of Everest!

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"

When Is a Request Not a Request?

My thanks to a loyal reader who advised me about an enquiry she received from the Valuation Office Agency VOA (which is "sponsored" by HMRC - what the fark does that mean?) the other day, wrt the rental details of a small studio she rents.

The VOA sent her a VO 6003 form (used the asses the rateable value of a non domestic property), requesting that it be filled in within 56 days.

As it's only a "request" for information, does she have to?

Yes, apparently, for if she misses the 56 day deadline she will be fined £100.

Ker Fucking Ching!

I would suggest that the VOA rewords its covering letter and changes the word "request" to "demand", given that it slaps a fine on people for non compliance!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

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

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

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

What is Solar Tax Investigation Insurance?

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

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



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

HMRC's Oppressive Fines

The FT reports that the Low Incomes Tax Refrom Group (LITRG) has described HMRC's automatic £100 fine for late tax returns as “nothing short of oppressive”, and has urged HMRC to overhaul the penalties imposed on nearly 1m people a year.

LITRG correctly notes that taxpayers, who cannot afford professional advisers, face being fined had missed the deadline because of ignorance, ill health or bereavement.

Additionally, around 200,000 people last year missed the deadline because they failed to press the “submit” button when they filed online.

HMRC announced plans in February to consider “whether we could better differentiate between deliberate and persistent non-compliers and those who might make an occasional error for whom alternative interventions are more appropriate”.

There is a world of difference between a taxpayer who misses a deadline by a day or two and someone who has made no attempt to comply at all.

 

Automatic fines should not be used as an easy means of generating extra revenue.

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 Trebles Fines For "Deliberate" Errors

Baker Tilly has identified that HMRC has trebled the number of penalties issued for ‘deliberate’ as opposed to ‘careless’ mistakes on self-assessment returns.

The number of penalties imposed for ‘deliberate’ rather than ‘careless’ inaccuracies in tax returns has risen to 14,401 (up from 5,162 in 2012-13).

Mike Down, Baker Tilly’s head of tax investigations, is quoted by Contractor UK:

"The taxman is getting much tougher on people who are under-declaring their income in their tax returns.”

Thus creating a nice little earner for the government.

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"