RTI Fudge

It seems that there has been a wee glitch with RTI, CityAM reports that up to 40,000 people have had their income tax payment "fudged" by Real Time Information (RTI).

Apparently a number of individual employees, mainly from SME's, have been allocated an incorrect tax code resulting in them overpaying their tax.

A spokesman from HMRC is quoted:

“We are aware of a problem affecting a very small number of employers and a small proportion of their employees.

We are urgently working with the employers to solve this.” 

I welcome thoughts and comments as to the possible causes of this error.

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 Recruits for GAAR Panel

HMRC is now recruiting members for a permanent General Anti-Abuse Rule advisory panel.

There are eight voluntary positions, which are intended to initially be for 3 years.

The panel will meet 6 times a year, and it is expected appointments will be made shortly after the interview process is completed in the week beginning 17 June.

Here is the full text of the advert:

"Applications are invited from suitably qualified and experienced individuals to be a member of the General Anti-Abuse Rule (GAAR) Advisory Panel.

The functions of the Advisory Panel are to:

• Approve HMRC’s guidance on the GAAR
• By way of specifically arranged sub-Panels, give opinions to HMRC and taxpayers about the application of the GAAR to individual cases referred to the Panel

The work of the Advisory Panel, including this recruitment process, is led by the Chair, Patrick Mears, who was appointed with effect from 15th April 2013.

This is a voluntary position (necessarily incurred expenses will be paid) that offers a unique opportunity to play a central role in the implementation of a major new development in UK tax legislation. Initial appointments will be for 3 years, but some flexibility is possible and can be discussed with individuals.

Each Panel Member will be expected to have knowledge and expertise in relation to one or more of the taxes covered by the GAAR, and be committed to making the GAAR legislation as enacted work efficiently and effectively. The aim is for the Panel to be a broad based, balanced and cohesive; the number of Panel Members is flexible in order to meet these objectives, but the expectation is for a maximum number of 8 initial appointments.

The time commitment for the approval of guidance function will be around 6 Panel meetings a year and preparatory reading. Further workload will depend on the number of cases referred. When a sub-Panel is arranged for a referred case, discussion will take place in advance over any additional time commitment.

For an application pack please click on the Apply button.  Applications, to be made by 5pm on 10 June 2013.

It is anticipated that interviews will be held during the week of 17th June 2013 (please indicate in your application any time in this week when you would be unavailable for interview). Appointments will be made as soon as possible after the interviews, subject to necessary formalities.

Job Reference: GAAR"

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"

Hanging On The Telephone

Courtesy of John Andrews:

"After 12 mins 35 secs a human from @HMRCgovuk answered the phone...today's average is something over 18 mins...yesterday just got cut off."

Would other loyal readers care to comment if this is a record?

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"

Happy Tax Freedom Day!

This year tax freedom day falls on 30^th May. That is, for 150 days of the year every penny earned by the average UK resident will be taken by the government in tax.

Source The Adam Smith Institute.

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"

Mama Flo's £1BN Tax Bill

Commiserations to Florence Coke, owner of Mama Flo’s in Gorton, who was on the receiving end of an erroneous (humongously erroneous) VAT bill in March this year to the tune of £979M.

She is quoted by the Manchester Evening News:

“It frightened the hell out of me. This is my first time in business and I am naïve, I didn’t know where to turn. It really shook me up.”

The letter from HMRC contained the standard warning:

“If you do not pay or contact us, we can visit your premises in order to arrange for your assets to be sold by public auction.”

Ms Coke immediately called HMRC, which said that it would investigate the matter.

When she had returned from Jamaica after the death of her mother there was some good news, a letter from HMRC apologising for the mistake which also noted that she in fact owed £17K.

Bob Gaiger, HMRC spokesman, said:

“We are very sorry to hear of the problems our customer has had.

We cannot comment on individual cases but when mistakes do happen our aim is to always put them right as soon as we can and apologise for any inconvenience caused.”

Fair enough, mistakes happen and HMRC put this right without an unseemly fuss or delay.

However, I wonder how it is that such a large mistake occurred without anyone thinking that it might be an error; given that Mrs Coke runs a relatively modest local business, as opposed to a multi national?

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"

Hartnett Joins Deloitte

I see that Dave Hartnett has been given permission to join Deloitte (albeit on a part time basis). I seem to recall that Hartnett has in the past criticised Deloitte for tax related issues.

Here is a link to the letter giving permission.

Deloitte New Appointment announced May 2013 Mr Hartnett sought permission to accept a part-time role with Deloitte, which will involve providing advice to overseas tax administrations and governments. When considering the application the Committee noted that Mr Hartnett’s appointment with Deloitte would involve supporting the development of tax administrations in other countries. It was also noted that whilst working in Government, Mr Hartnett did have official dealings with Deloitte, and that he also dealt with a wide range of major accountancy and law firms during his time in HMRC and the Inland Revenue before that. The Prime Minister has accepted the Committee’s recommendation that the application be approved subject to the conditions that he: - should not draw on any privileged information available to him whilst in Crown service; - has no involvement in either a representative or advisory capacity for any taxpayer that he has been involved with whilst at HMRC; - is not involved whilst engaged by Deloitte in any work considering how UK taxation, for any of their clients, can be mitigated or avoided; - has no involvement in negotiation or management of contracts with HMRC; - has no involvement in discussions with other fiscal authorities of UK’s confidential tax policy where he has been involved in that area of work in HMRC; and - does not become personally involved in lobbying Government on behalf of his new employer for two years from his last day of service.

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"