LOL!

"19. Can an authorised officer self-authorise his or her own use of powers?

In legislation yes but in practice the decision has been made not to allow this for the immediate future."

Source HMRC

How long is the "immediate future"?

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"

Powers of Entry

The Telegraph notes that, as from 1 April, new HMRC powers mean that income and corporation tax inspectors will have the same powers of entry as those used by Customs officials investigating unpaid VAT.

Sue Holmes, head of national tax investigations at Smith & Williamson, is quoted:

"The many thousands of business people and sole traders who claim expenses for 'use of home as an office' should recognise that from next month, HMRC has the right to enter their home without prior warning to inspect business records.

Inspections can be approved by a senior official in a local tax office, Ms Holmes added."

HMRC downplay the likelihood of the abuse of the powers:

"HMRC does sometimes need to access premises connected with businesses to see such things as goods and assets where it is reasonable to do so, to ensure the right tax is being paid. Although HMRC is extending these powers, it is also extending safeguards.

In particular, unannounced visits can only be made with the approval of specially authorised officers."

That would be all well and good, if the authorising officers were outwith HMRC. However, they are part of HMRC therefore an independent check/balance does not exist.

The question is will the temptation to abuse these powers be too much for HMRC?

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"

Myners - The Irony

I am amused to see that Lord Myners, in an earlier life, had no qualms about helping to set up Aspen Insurance Holdings in Bermuda. Aspen being an offshore company (of which he became part time chairman) that, owing to its structure, avoided over £100M a year in tax.

His five year term as chairman of both the UK and Bermuda arms of Aspen ended in May 2007, he then became a minister in October 2008.

As we all know, tax avoidance is perfectly legal.

Isn't it therefore ironic that Myners is now the minister charged with clamping down on tax avoidance and tax havens?

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"

A Lesson In Failure

Gordon Brown's much derided Tax Credit system, mismanaged by HMRC, is still the subject of scorn and dismay.

The Public Accounts Committee has stated that overpayments (which were £7.3BN between 2003 and 2007) are still running at a staggering £1BN per annum. Needless to say the hapless recipients of the overpayments are then asked to repay them.

Edward Leigh MP, Chairman of the Public Accounts Committee told the BBC:

"It is distressing that many of the families that have to make repayments to the department, on average £770 for a single year, are highly vulnerable and struggling in the economic downturn."

Adding:

"The department has not given claimants the support they need in making claims and reporting changes in circumstances, and it has assumed too much on the part of claimants in their understanding the tax credits system."

The Committee also noted that the PAYE income tax system had a backlog of 16M cases, as at March 2008, which need manual checks to ensure they are accurate.

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 Service Levels

Albeit a little late in the day, the ICAEW are conducting a survey into HMRC service levels for submission to the Treasury Select Committee.

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"

Data Security

Jill Brown, a widow of three years, claims that she is still receiving mail from HMRC for her deceased husband (who used to be a tax consultant).

There appears to be a glitch in the HMRC computer system, which means that each month people's personal tax details are sent to Mrs Brown's address in the name of her late husband.

Mrs Brown claims that she has repeatedly told HMRC about this problem, and returned letters to HMRC's office in Merrywalks Stroud, but the letters keep coming.

I believe there is a specific form that the Post Office can supply, that can stop mail to the deceased. This may be a speedier and more effective solution than waiting for HMRC to sort this mess out.

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"