HMRC Heads For The Clouds

As part of HMRC's strive to reduce its overheads, it will transfer its print and servers to a centralised storage solution provided by Skyscape and head for the "clouds".

Andrew Bull, director of delivery and operations in information services at HMRC, speaking at the Cloud World Forum held in London Olympia is quoted by Computing:

"We've got a lot of physical offices in the UK and each one of those has a print or file server, providing local print services. A lot of the time printers start acquiring other services as well - like being used for distribution purposes and file sharing. The file and printer servers were last refreshed in 2006 and they are now coming to the end of life, and the back-ups are becoming more problematic as the hardware fails."  

The issue of lost office hours due to file and print server failures also had a bearing on HMRC's decision to head for the clouds:

"We could see [the amount of failures] going up, even in proportion to other areas such as network connectivity.

One surprise was the amount of power consumed in local communications rooms, largely because of file and print servers. The tape drives overheating meant that we needed air conditioning, which is inefficient and costs a lot to run." 

HMRC is moving the servers to a centralised storage solution. It has put in a local infrastructure server but it is no longer mission critical, as if it fails, HMRC can still access the printers as it is connected directly to the Public Services Network (PSN).

In theory the savings in energy consumption alone will come to £750K per annum, plus there will be no need to transport back-up tapes offsite, enabling HMRC to save costs on a secure courier service and eliminating the risk of another datagate.

Well then, this all appears to be under control and is being well managed and implemented.

However, as per this quote from Barry Murphy technology partner at PwC, that I referred to in September 2012:

“Getting the technology in place is just the first leg of the process.  The biggest challenge is the behavioural change that needs to follow.

Too often the failure of new systems is blamed on the technology when more often it’s because people haven’t adapted to them.”

We shall see!

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"

The Chancellor Talks Bollocks

Chancellor George Osborne delivered his spending review yesterday, and cut HMRC's budget by 5% for financial year 2015/16.

He is quoted by AccountancyAge:

"Despite the fact that this department will see a 5% reduction in its resource budget, we are committed to extra resources to tackle tax evasion.

The result is that we expect to raise over £1bn more in tax revenues from those who try and avoid paying their fair share."

I have to say I am a tad "confused" by the Chancellor's statement.

There is an overall cut of 5%, but a commitment to increase resources on tackling tax evasion, I presume this "increase" will be at the expense of other areas of HMRC's work?

On the subject of tax evasion, as I noted yesterday, serious tax evasion is actually declining; therefore is this "increase" in resource cost effective?

The Chancellor then seems to confuse evasion with avoidance, and claims that the cut/increase in resource (take your pick) will increase tax take from avoidance by around £1BN.

Anyone care to explain that to me?

I guarantee one thing, the cut in resource coupled with the ongoing pressure to increase tax take will lead to an increase in the administrative burden and costs on businesses and individual taxpayers as the government seeks to pass the cost of tax collection onto them.

Frankly it sounds like a load of bollocks to me.


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 September 2014 Recruitment

HMRC looking for 120 graduates and 20 interns for September 2014.

If you’re thinking of applying for these programmes join HMRC on this HMRC Facebook page for a Q&A. 

Leave your question on their wall, and they will answer them on 2 July between 1600 – 1700 BST.

Applications will be open from 23 September 2013 until 29 November 2013.

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"

Serious Tax Evasion Declines

It seems that despite the media and political narrative that tax evasion is rife, the number of cases of serious tax evasion (evasion in excess of £50K, or evasion that is worthy of prosecution) are at their lowest level in five years.

Those are the findings of a report commissioned by Pinsent Masons.

Between 1 April 2012 and 31 March 2013, local HMRC offices referred 2,888 suspected 'serious' cases to the central Evasion Referral Team, according to the figures. This was a substantial drop on the 3,456 cases identified the previous year, and the 4,506 cases identified in tax year 2010/11.
Phil Berwick, a partner at Pinsent Masons said:

"This decline in suspected tax evasion doesn't tally with the rhetoric from some quarters that the British economy is being undermined by a chronic under-collection of tax revenues.

HMRC has plenty of tools at its disposal to catch tax evaders which serves as a huge deterrent to those considering tax evasion.

International co-operation has been stepped up significantly as HMRC has striven to curb tax evasion.

Tax evaders are now realising that HMRC has a much greater ability to tackle evasion, even if individuals conceal their assets abroad.

Five years ago some individuals and businesses perhaps felt that evading tax was relatively easy. Now they can see that HMRC is much more proactive and better informed than in the past, increasingly they are deciding that tax evasion just isn't worth the risk."

Meanwhile the tax evasion hotline is booming.


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"

Homer Marriage Broker?

PAC, or rather a member of PAC, managed to get under Lin Homer's skin during yesterday's PAC meeting about tobacco smuggling.

Homer denied that Dave Hartnett's new firm (Deloitte) had played any significant role in major tax deals struck with private companies.

Margaret Hodge said there was a suggestion that Deloitte had been the "preferred facilitator" when deals were struck.

Homer (as per The Herald) said:

"Not to my knowledge and I don't see any evidence to suggest that they were playing either a preferred or significant role in our large disputes." 

The Conservative MP Richard Bacon tweaked Homer's nose by saying:

"What's really of interest is those occasions when you were buying advice from a firm such as Deloitte and the same firm was also selling its advice to a large taxpayer such as, to take one example, Vodafone.

If you were turning out to be the marriage broker who introduced the adviser to the company..."

To which Homer swiftly rebutted:

"That is an assertion that I do not accept, Mr Bacon."

A classic example of a problem arising from not just what is done, but what is seen/seems to be done (ie form over substance).

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"

Starbucks Wars - Tax Is Voluntary

In an "interesting" move, designed to assuage its customers and mollify its critics, Starbucks has decreed that tax is in fact voluntary and has decided to pay some (£5M now and £5M later this year).

As per the BBC, a Starbucks spokesman said:

"We listened to our customers in December and so decided to forgo certain deductions which would make us liable to pay £10m in corporation tax this year and a further £10m in 2014."

Margaret Hodge has reportedly welcomed the initial payment.

Meanwhile, in other news, Starbucks will be closing unprofitable stores.

Presumably the increased tax revenue received by the Treasury from Starbucks will be used to pay for the job seekers' allowances of those made redundant by Starbucks?

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"