Showing posts with label ian barlow. Show all posts
Showing posts with label ian barlow. Show all posts

Thursday, 6 April 2017

Rats Leave The Sinking Ship


Jennie Granger, HMRC’s director general for customer compliance, is to leave HMRC to rebalance her life. As per CCH Daily:
"Now that the customer compliance group is firmly established it feels like the right moment to hand over to a new leader. It’s also time for a little bit of rebalancing for me personally."
This bodes badly for MTD:

Oh and by the way, it seems that Ian Barlow (chair of HMRC and lover of candy) has also gone!

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"

Thursday, 11 September 2014

HMRC's Digital Revolution


Ian Barlow (NED of HMRC) has written a guest column for City A.M. in which he talks about HMRC's digital revolution. The article is an abridged version of a piece he has written for Reform.

Here is his article as published on City A.M.:
"JUST like innovative private sector organisations, the government, as a provider of services to the nation’s citizens, needs to reflect and respond to the changing demands of those it serves.

This is especially relevant to Her Majesty’s Revenue and Customs (HMRC), which must provide effective, efficient and impartial services to its 41m individual and 5m business customers, and keep pace with both consumer expectations of good service and government expectations of efficiency in revenue collection.

For much of the nine years since the merger that created HMRC, the Department has focused relentlessly on maximising tax revenues and sustainably reducing its costs. Last year, for the first time, it collected more than £500bn in tax revenues – including £23.9bn in additional compliance revenues – while reducing its costs by £235m. It has also shrunk its workforce and estate from 97,000 full-time equivalent (FTE) employees in 560 offices in 2005 to fewer than 60,000 FTE employees in 190 offices today.

The results have been encouraging. Customer service during this period focused on performance targets for answering phone calls and turning around post. Last year, HMRC delivered its best-ever results on these measures, answering 79 per cent of all calls and dealing with 83 per cent of post within 15 working days.

These productivity, revenue and service gains have been achieved largely through continuous improvement. But incremental gains only take you so far: transformation involves making step-changes at important times. HMRC is making one of these step-changes now – and its reform ambitions have relevance across government.

There are three key enablers of the HMRC step-change: enhancing digital services and making digital the channel of choice for customers; harnessing the potential of data; and developing HMRC’s workforce with the new skills the Department needs for this digital and data future.

By making better use of the data it holds, HMRC’s ambition is to personalise its services according to customer behaviours and needs, so they feel like HMRC really knows them. HMRC will also bring everything together in one place, so that customers, whether individuals or businesses and other organisations, can interact with it once and be done, rather than multiple times with multiple people.
Ultimately, every taxpayer will have their own personal account, where they can transact securely with HMRC, having the freedom and taking the responsibility for filing, making amendments as their circumstances change and, of course, paying their taxes.

There will still be a multi-channel approach, with telephone back-up for those who can’t interact online, and personal contact, even home visits, for those who need extra help. But the vast majority will prefer to transact online, saving money and time for both taxpayer and HMRC.

Effective use of data will not only ensure easier transactions by compliant taxpayers. It will also improve voluntary compliance, such as by automating and checking calculations to prevent inadvertent error. This will free up HMRC’s tax compliance professionals to focus their energies on the small minority who are really trying to cheat the system.

What will it take to achieve these ambitions? None of this will be achieved without investment by HMRC in its people and the changing skills they will need in the future. This will be a smaller, but more nimble and professionalised organisation, with far fewer manual, paper-based processes, and a need for more judgement in dealing with customers’ needs.

It can be readily seen how much of HMRC’s agenda is relevant across government, and how working together with other departments, particularly with those that deal directly with individuals and businesses, could drive further efficiency gains and improve ease of access for citizens. Data sharing is another area for further examination, although, from HMRC’s perspective, its commitment to the confidentiality of taxpayer details is crucial to its effectiveness as the nation’s tax collector.

The focus of Civil Service reform, in the end, is on the citizen, because that is who the government and Civil Service ultimately exist to serve – in the most efficient and effective way they can. The transformation that HMRC is undertaking is clear evidence that the Civil Service does have the right focus, the right vision, and the right leadership and capability to reinvent itself to apply the principles it has established over centuries to the expectations and needs of the modern age."
I find it truly depressing that, for example, a 79% call answering rate seems to be something that he (as a director of HMRC) is proud of:
"Last year, HMRC delivered its best-ever results on these measures, answering 79 per cent of all calls and dealing with 83 per cent of post within 15 working days."
Like it or not, taxpayers will be pushed down the digital route when it comes to interacting with HMRC.

Whilst the vision of the digital future is very positive, the reality will be dependent on the quality of the systems developed and implemented in HMRC.

The question stands: is HMRC capable of implementing a successful digital revolution?

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"

Thursday, 27 September 2012

Ian Barlow, HMRC and PA Consulting

In July I wrote about Ian Barlow's appointment to HMRC as the replacement to Mike Clasper, and listed the companies of which he is a board member. Amongst them is PA Consulting Group Ltd.

My thanks to a loyal reader who pointed out a couple of things about HMRC's relationship with PA Consulting.

PA Consulting has had a commercial relationship with HMRC, eg between April 2003 and June 2005 HMRC paid PA Consulting over £20M.

PA Consulting Group have been involved in a tax avoidance litigation case with HMRC for many years, which is now on its way to Supreme Court. Contractor Calculator quotes James Abbott, tax partner at contractor accountant Abbott Moore:
"In the 1990s, management consulting firm PA Consulting decided that it would pay its employees bonuses using dividends, so they could deliberately avoid Pay As You Earn (PAYE) income tax and National Insurance Contributions (NICs).

The firm set up an elaborate tax structure, allowing it to route bonus payments through a separate offshore company with multiple share classes and pay dividends to the employees, instead of bonuses as part of their PAYE pay packet.”
HMRC challenged the scheme via the tax commissioners, and then the courts, contending that the payments to PA Consulting’s employees were ‘earnings’ and should be taxed accordingly.

The case continues.

"Curiouser and curiouser!" said Alice.

Comments and views always 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 Taxwise.

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 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"

Thursday, 9 August 2012

Homer's Noble Purpose



My thanks to a loyal reader who dropped me a note about a recent hot seat question and answer session, in which Lin Homer was asked about tax avoidance.

The exchange, according to my loyal reader, went as follows:
"Q: Ian Barlow (the new lead HMRC non -executive director) has been reported in the press as saying: 

'There is no meaningful distinction to be drawn between acceptable tax planning and unacceptable tax avoidance.'

 Do you agree with this statement? 

If not can you explain why a person holding such views has been appointed to a senior position in HMRC? 

Edward Troup (the new Tax Assurance Commissioner) has written that: 

'Taxation is legalised extortion'

In the same article he said that the judgement about whether to engage in tax avoidance or not was 'not immoral'. 

Do you agree with these sentiments? 

If not would you again explain why such a person could be appointed to a senior position in HMRC? 

Lin Homer responded: The views that Ian Barlow expressed in the article were several years old, and in fact he was making the point that legally there is no distinction between acceptable tax planning and unacceptable tax avoidance. 

In that sense, he was correct in what he wrote. 

Since that time Ian has worked very closely and successfully with Dave Hartnett to bring tax as an issue to be discussed in the Boardrooms of major companies, making responsible tax policy a Board-level subject for debate and oversight. Edward Troup’s comments were also made in an old article. 

The debate about the morality of tax avoidance is a live issue today, and I would prefer to regard paying all due taxes on time in terms of a noble purpose, rather than in terms of morality. 

I think morality is an issue for theologians and politicians, rather than for civil servants. 

The reason both Ian and Edward have been appointed to their new positions is because of the vast experience they bring in both tax and business, and this will be invaluable to HMRC."
Egad!

Paying all taxes is a "noble purpose"!

I would agree with her that the issue of "morality" is not for the civil service, but is instead an issue for theologians. However, I would most certainly not agree with her that morality is an issue for politicians.

I refer Homer to my article in June, in which I said:
"A politician lecturing us on morality is as natural as a cat walking on its hind legs."
May I make a suggestion that at future hot seat Q&A sessions, if appropriate, loyal readers from HMRC start quoting from this site and/or suggesting that Excom start to read this site (just to see what the reaction is).

You never know, they may learn something!

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"

Tuesday, 10 July 2012

The Secrets of The Taxman II - #Taxman



Those of you who missed the Channel 4 Dispatches documentary about HMRC's tax avoidance hypocrisy can watch it via this link "The Secrets of The Taxman".

Antony Barnett, the reporter who featured in the programme, has written an article to accompany it. I reproduce it in full below (you will see a few familiar names mentioned):

"It's a perfectly legal activity. Frowned upon by some and actively encouraged by others. Tax avoidance is now a subject that has taken centre stage of the political debate. The Chancellor has described some tax avoidance as 'morally repugnant' and The Prime Minister has called it 'morally unacceptable'.

Nobody likes paying taxes but with nation's finances in such a desperate state the job of collecting tax revenue has become vital to fund public services. And that jobs falls to Her Majesty's Revenue and Customs.

Recently HMRC has been criticised for doing 'sweetheart' deals with companies like Goldman Sachs and appearing not to care enough about avoidance schemes like the one used by comedian Jimmy Carr to avoid paying income tax. To some, it has appeared that when it comes to paying tax there is one rule for the rich and big business and another for everybody else.

We at Dispatches decided to take a closer look at those who are running The Revenue. At the top, is a board with non-executive directors who have the job of holding the HMRC to account. These directors are appointed to ensure the highest standards of governance and advise on the Revenue's strategy.

The first board director we looked at was Phil Hodkinson, a former finance director at banking group HBOS plc. Hodkinson has a very important role at the Revenue as he is the chair of the HMRC's ethics and responsibilities committee. 

On the HMRC website it states that as well as being a trustee of the BBC's Children in Need he was a director of a FTSE 100 company called Resolution Ltd, where he earns more than £125,000 a year for a few days work a year. Following a few inquiries about this company, it quickly emerged that Resolution Ltd was not structured like a typical FTSE 100 company.

Resolution Ltd is in the business of buying - and within a few years - selling life insurance firms for a large profit. Although its main operating business, like Friends Provident, are all in the UK, the listed firm is actually incorporated in Guernsey for tax purposes. This means the company's board, of which Hodkinson is part of, has to fly to Guernsey to make key strategic decisions.

Why would a company go to this length? Resolution Ltd and Mr Hodkinson insists the company is not in Guernsey for tax purposes but other financial reasons. Yet that appeared to contradict a statement in Resolution Ltd's own company documents. Tax experts we spoke to explained that one tax Resolution Ltd will not have to worry about is a tax on any capital gain they make from selling a life insurance firm.

If they were resident in the UK for tax purposes, then they might potentially face a large tax bill when they dispose of parts of their business. There are some exemptions that might apply but the taxation of life assurance funds is very complex and being offshore in Guernsey means Resolution Ltd does not have to worry about any future corporate taxes on the sale of UK businesses.

Mr Hodkinson told us that as a board member of HMRC it was important to him that tax avoidance wasn't a motivation for being in Guernsey and that the Revenue was aware of his role with Resolution Ltd.

Dispatches also examined the outside interests of other board directors. Until a few days ago, John Spence chaired the HMRC's audit and risk committee. Mr Spence is also non-executive chairman of SpicerHaart - an estate agent and financial services group.

One of the most controversial areas of tax avoidance is schemes to enable the wealthy to avoid paying stamp duy when they buy a property. We were surprised to discover a manager at one of SpicerHaart's branches advertising that he could help buyers avoid up to 50% stamp duty, which he confirmed through a series of emails and a phone call.

We decided to ring a few more branches up to see how widespread this was. We called a number of branches of Fine, SpicerHaart's top-end agency, and one of their associate directors said he'd be able to help us avoid stamp duty using a perfectly legal scheme. As a prospective buyer, we arranged to view a £2.6m property he was selling and when we met him the SpicerHaart employee claimed if we used the scheme we could avoid paying more than £50,000 in stamp duty.

He told us he'd already helped tycoons from China and India avoid large stamp duty bills.
Mr Spence told us that SpicerHaart does not condone any schemes that avoid stamp duty and the two managers Dispatches had spoken to had broken company rules.

During the course of our investigation we also discovered that the outgoing chairman of HMRC, Mike Clasper, was a director of subsidiary company of Which? Ltd, which uses the offshore tax haven of Mauritius to invest in its publishing venture in India. Tax campaigners claim companies use Mauritius in this way to avoid paying certain taxes in India.

Clasper told us the company was not avoiding taxes either in India or the UK.

The man who will be replacing Clasper is Ian Barlow, who was a senior partner of accountancy firm KPMG. When we looked at his track record we discovered that during the time he headed up KPMG's tax department the firm was involved in a number of controversial tax avoidance schemes that ended up in court. One was aimed at helping a corporate client avoid some £4m in VAT.

The HMRC told us they were aware of Barlow's past and had hired him for his extensive knowledge of tax.

In its attempts to bring in more tax revenue, the HMRC has recently awarded contracts to a number of debt collecting agencies to chase upto £1.5bn in unpaid taxes. As part of our investigation, Dispatches decided to look at some of these firm. One company that won a contract to collect £100m in unpaid taxes was Apex Credit Management Ltd, which is based in Stratford-upon-Avon.

But once again, inquiries quickly began to reveal it was not as simple as that. A corporate ownership structure emerged that revealed Apex Credit Management Ltd was ultimately controlled by a firm based offshore in Guernsey. While this is all perfectly legal, tax campaigners might ask if it's appropriate for HMRC to award a contract to collect UK takes to company whose main corporate owner is located in a tax haven. 

HMRC told us that Apex was registered in the UK and won its contract through a proper tender process. It added there was no legal reasons to exclude them."

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"

Wednesday, 4 July 2012

HMRC's New Laid Back Approach II



Some more background on the appointment of Troup and Barlow from Accountancy Age.

They even mention this site.

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"

Tuesday, 3 July 2012

HMRC's New Laid Back Approach - Welcome Edward Troup



HMRC have announced the appointment of Edward Troup as the new Tax Assurance Commissioner (to take over from Dave Hartnett), and Ian Barlow as the Lead Non-Executive Director to succeed Mike Clasper.

The official statement from HMRC is as follows:
"HM Revenue & Customs (HMRC) has announced the appointment of a Tax Assurance Commissioner and a Lead Non-Executive Director, as part of its new governance arrangements.
Edward Troup, currently HM Treasury’s Director General for Tax and Welfare, has been appointed Tax Assurance Commissioner and second Permanent Secretary at HMRC. He will be responsible for shaping tax policy and strategy, tax professionalism, and will oversee and provide assurance of large tax settlements. Reporting directly to Chief Executive Lin Homer, Mr Troup will succeed Dave Hartnett, who is retiring on 31 July, and will sit on HMRC’s Executive Committee. Mr Troup will take up his post in August.

Ian Barlow, currently Chair of WSP Group plc, has also been appointed as the Lead Non-Executive Director, in succession to Mike Clasper, whose contract is coming to an end.

Exchequer Secretary to the Treasury, David Gauke MP, said: "I am delighted to welcome Edward and Ian to these appointments. They both bring specialist tax knowledge and an understanding of how HMRC operates. Their wide experience will add depth and breadth to HMRC’s leadership at both Executive and Board level."

Chief Executive Lin Homer said: “I am delighted to announce the appointment of Edward Troup to this substantial and challenging role. HMRC will greatly benefit from his considerable tax knowledge and legal expertise, and he will play a critical role in providing rigour and challenge within HMRC, in order to ensure the transparency and integrity of the UK tax system.”

She added: “I am also very pleased that Ian Barlow has accepted the role of Lead Non-Executive Director at HMRC. This is an important governance role, chairing the Board and providing supportive challenge to the Executive Committee in developing and delivering HMRC’s vision and strategy, and ensuring HMRC delivers its performance and customer service objectives.”

Edward Troup said: “HMRC is an organisation with a great tradition. I look forward to joining Lin Homer’s senior management team and continuing with the department’s transformation into a modern and professional tax administration.

”I want to ensure that HMRC’s well-deserved pride in its achievements and its high standards are properly reflected in public confidence that all taxpayers, large or small, are being treated fairly.“

Ian Barlow said: “I am looking forward to building on the strategic vision developed by HMRC and Mike Clasper, and to supporting HMRC to meet its multiple objectives, including its obligations to its customers and stakeholders. The role of the Non-Executives is to be critical friends, both advising and encouraging HMRC’s Executive in its delivery and holding it to account for its actions.”

Notes to editors1. Edward Troup began his career as a tax lawyer, working with law firm Simmons & Simmons, until joining HM Treasury as a special adviser on tax, between 1995 and 1997. Edward returned to Simmons & Simmons in 1997, before rejoining the Treasury in 2004 as Director of Business and Indirect Tax.

2. Ian Barlow has held a wide range of appointments in the public, not-for-profit and private sectors. He is currently Chair of WSP Group plc and Director at Smith and Nephew and at the Brunner Investment Trust. He was recently appointed a Non-Executive Director at HMRC.

3. The Lead Non-Executive Director replaces the role of the Chairman, in accordance with the Code of Good Practice introduced by the Government in 2011.

4. The Tax Assurance Commissioner was appointed using Civil Service Commissioner Recruitment Principles and the Lead Non-Executive was appointed following a full Public Appointments Process."
I cannot but help making a wee smile to myself when reading Lin Homer's fulsome praise of Troup, given her somewhat rocky relationship with Margaret Hodge and PAC.

For why?

Only last November Hodge accused Troup of being "laid back", as per the BBC:
"MPs on the Public Accounts Committee clashed with top civil servants over the value-for-money of increasing the amount of benefits that are means-tested.

The hearing on 2 November 2011 followed the publication of a report by the National Audit Office that said that the government needed to have a greater understanding of the impact of means-testing.

Committee chair Margaret Hodge accused Edward Troup from the Treasury of having a "laid back" approach to his department's role in the distribution of benefit, a stance denied by Mr Troup."
Barlow also seems to be an interesting appointment he is, amongst others, Chairman of WSP a global design engineering and management consultancy specialising in Property, Transport & Infrastructure, Industry and Environment projects. 

However, Barlow has many other strings to his bow, as per LinkedIn he is also:

Non Executive Director
Public Company; 5001-10,000 employees; SNN; Medical Devices industry
March 2010Present (2 years 5 months) Strand, London
European based medical devices group
November 2009Present (2 years 9 months) City of London
Global growth investment trust
July 2009Present (3 years 1 month) Ascot racecourse
The trade body for Britain's racecourses
August 2008Present (4 years) Victoria, London
NDPD that administers Horserace betting levy
Nonprofit; 501-1000 employees; Museums and Institutions industry
July 2008Present (4 years 1 month) Hampton Court Palace,
Charity that looks after the five unoccupied Royal Palaces in London
July 2008Present (4 years 1 month) Victoria, London
Helps British companies do business in and with China.
June 2008Present (4 years 2 months) Victoria, London
Non executive director, Chairman, Audit Committee

Gosh, with so many hats to wear I wonder how he will find the time to work for HMRC?

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"