HMRC's Bulging Sack

Much like Santa Claus, HMRC seems to be suffering from a bulging sack.

John Battle MP (Leeds) recently claimed that a six week backlog of mail has built up at HMRC's offices in Lisbon Street. Mr Battle discovered the backlog after phoning up HMRC on behalf of a firm in his constituency.

The call took a somewhat circuitous route, first to Cardiff then to Wrexham.

Mr Battle is quoted in the Yorkshire Evening Post:

"People's papers seem to be scattered around the country with no serious tracking mechanism.

People really do want a more satisfactory service, not least because it could mean a serious risk to jobs at a time when there is a squeeze.

I am tabling questions to ask whether the Treasury can address the responsiveness of the Leeds tax office.

If they need more staff, get a few more staff to cope with the pressure and help stop businesses from going under."

HMRC have denied that there was a six week backlog in unopened post.

Tax does have to be taxing.

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Bankrupting For Britain

Official figures reveal that the number of personal bankruptcies triggered by HM Revenue and Customs is expected to be almost 33,000 this year. In 2006-07, before the economic turmoil, the tax authorities bankrupted just 12,134 people.

Source The Telegraph.

Way to go HMRC!

Tax does have to be taxing.

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Madness!

The BBC reports that thousands of parents are paying claims management firms to reclaim a now defunct tax-allowance, even though they could do it themselves by contacting HMRC directly.

Back-dated claims for the old Children's Tax Credit must be made by 31 January 2009.

Is it not time that our creaking, massively over complex and confusing tax system was given a thorough overhaul and simplified from top to bottom?

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"

Tis The Season - An Appeal

At this time of year, when many are overindulging in the annual Christmas booze/gluttony fest, it is only decent that we spare a thought for people less fortunate than ourselves who cannot partake of such merriment due to their particular circumstances.

In particular I would like to highlight the plight of tax agents at this time of year, who are toiling all hours to make complete their clients' tax returns in time for the tax year end.

I received a missive from one such agent the other day who noted, with a degree of exasperation, that yet again (as per previous years) HMRC have employed a market research company to garner "customers'" views on the performance of HMRC.

Whilst the survey (estimated to take around 15 minutes or so) may well be of benefit to both the "customers" and HMRC itself, the timing of the survey (at the busiest time of the year for tax agents) could not be worse.

This year's appeal is to HMRC, to ask them to reschedule the survey to a time of year when their "customers" have time to go through the survey and submit more considered and useful responses.

Come on HMRC, spare a thought for those who are toiling away trying to meet the year end deadline.

Tax does have to be taxing.

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SAYE Bonus Rates Reduced

Bonus rates for the Save As You Earn (SAYE) Sharesave scheme, administered by HMRC, have been reduced as a result of the cut in interest rates.

The FT notes that:

"On a three-year contract, the bonus rate is now 1.5 times the value of an employee's monthly payments, down from 2.4 times. This lowers the effective interest rate to 2.67%, down from 4.23%".

When will the rate charged by HMRC on overdue tax be cut in line with interest rates?

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"

MP Thrown Out of HMRC Office - Update

Sources close to Edward Timpson MP have advised me that the morning that HMRC announced the closure of HMRC Crewe, Mr Timpson travelled straight up to the office from London to meet his constituents and the campaign team that he had worked with over the last 6 months.

Local managers were told in advance, and Mr Timpson had met with the Financial Secretary to the Treasury (FST) twice in the preceding two days.

However, because Mr Timpson hadn't specifically requested permission from the FST and Workforce Change that morning, a regional manager in another office ordered his ejection.

Mr Timpson lodged a protest with the FST, and his staff were told that the FST would apologise in the lobby.

HMRC seemed to have forgotten to tell the press that bit.

Tax does have to be taxing.

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