Mark Dearnley Lives In The Past

Mark Dearnley, CIO of HMRC, recently gave an interview to CIO which was rather revealing.

He joined from Vodafone (there's irony for you) in 2013, and described his role as "nothing short of transforming a centuries-old organisation into a digital, modern, real time business".

Errmmm, HMRC is not centuries old; it was formed by Broon in 2005!

Anyhoo, that little snafu aside, Dearnley acknowledges the challenge presented by legacy systems, a long-standing issue for HMRC IT chiefs. He says he would like to consolidate tax systems from over 100 to "one or two".

Yet he regards the platforms used by HMRC as being fine, and rejects the idea they are somehow "bad platforms".

"This nation has survived and brought in trillions of pounds worth of tax on these platforms."

Yes, but just because something once worked it may no longer be fit for purpose now; given that people's working patterns have changed (eg multiple sources of income).

In fact he appears to be enamoured with batch processing:

"Is real-time brilliant and batch terrible? 

That's the wrong question. 

There are things for which batch is fine. 

There are other things where you need real-time updates."

He intends to cobble together old and new:

"Some of that will use things that are new. Some of that will take advantage of some of the great things that have been developed over the years.

There's no 'oh it's not new so it must be bad' - there's actually 'if it's ideal for the role let's build on it'.

He is also of the view that he has more than other Whitehall departments:

"Most people underestimate how much talent we have within HMRC.

It would appear we actually have more than some other parts of government. 

I have thousands of civil servants. We already run all of the platforms that collect 40% of the UK's tax. And I've managed to create what I think is quite a fantastic leadership team."

He waxed lyrical about the new team in Newcastle, which has moved tax credits renewals online in just eight weeks in start to finish Dearnley claims.

"We set up a Scrum team and said: 'Go and see what you can do, you've got eight weeks'. They built a complete tax credits renewals service in eight weeks from start to finish, and we integrated it in real time to all the back-end systems.

That went live in eight weeks. We thought if it went really well, maybe 80,000 people would use it during renewals – 410,000 people used it. I think we had about a 94% customer satisfaction rate, which is absolutely phenomenal."

Hmm, what say you loyal readers?

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"

In Like Flint - PAC's Chat With HSBC and HMRC

PAC had a busy day yesterday, having a wee chat with the "great and the good" of both HSBC and HMRC.

HSBC chief executive Stuart Gulliver apologised to MPs for "unacceptable" practices at HSBC's Swiss subsidiary. Alongside Gulliver was HSBC chairman Douglas Flint.

Gulliver also defended his personal decision to be paid by the bank via a Panamanian company with an account in the Swiss private bank, insisting that the arrangement was not designed to avoid tax, but to protect his privacy against other members of staff who were able to view employees' accounts via the company computer system.

Gulliver is quoted by the Telegraph:

"There was no tax advantage or purpose whatsoever.

I would like to put on the record an apology from both myself and Douglas for the unacceptable events that took place at our private bank in Switzerland in the mid-2000s. It is an apology we would like to make to you, our customers, our shareholders and the public at large. 

It clearly was unacceptable. We very much regret this, and it has damaged HSBC's reputation."

Asked precisely what he was apologising for, Gulliver said:

"The lack of controls and practices which now - judged with the benefit of hindsight - we would not be at all comfortable with if they were happening today, and which have clearly resulted in damage to trust and confidence in HSBC and created further reputational damage to our firm and have therefore hurt clients, customers, shareholders, our staff and people at large." 

Flint told the Treasury select committee that he blamed the failings at the Swiss unit on its management, and said secrecy surrounding banking in the country made it difficult for him to have a direct line of sight of what has happening at the bank (funny way to run a bank!). Chairman of the bank since the end of 2010, Flint was finance director at the time the Swiss subsidiary was purchased by HSBC.

Homer, for her part, admitted that she is concerned by the perception that HMRC is soft on the rich and tough on the poor. The fact is that low hanging fruit, unprotected by lawyers and tax professionals, are an easy target for HMRC.

John Mann asked her:

"What would you do if you discovered any parliamentarians were dodging tax?"

Lin Homer replied that she’d have to check “whether I had an obligation, or an ability, to refer” them to the parliamentary authorities.

She went on to assure PAC that where there are people in positions of responsibility, HMRC does act.

Homer repeated that HMRC doesn’t expect a ‘waterfall’ of new prosecutions, even though it can now share the Swiss data with other agencies.

Homer denied that Hartnett has any inside information on HSBC’s Swiss bank, or HMRC’s systems etc etc.

Here is the transcript.

So everything is basically fine, nothing to see here move along please!

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"

Tax Evasion The Luvvie Way!

Emma Thompson 'won't pay a penny of tax' says her husband http://t.co/Xcn1KPZIcp via @mcdonnellandco // the moral hazard created by #HSBC

— Rita de la Feria (@delaFeriaR) February 25, 2015

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"

Beaker's Tax Matters

A loyal reader opined the following yesterday, about Beaker:

"wonder if our mate Danny will be caught preaching one thing and doing another like his Two friends today reported to be selling their time!

Hundreds of old has beens, fiddling bastards, and corrupt liars and we're paying their wages..... sorry 'part' of their wages, oh, and only the bit they have to declare.

HMRC Don't ever chase me for my tax, not until you get off your arses, put your own house in order and are seen to be treating everyone consistently and fairly."

Ironically I came across this article in the Telegraph from 2010, which noted:

"Mr Alexander, who was appointed on Saturday after the resignation of fellow Liberal Democrat David Laws, designated the property as his second home for the purpose of claiming parliamentary expenses but described it to HM Revenue and Customs as his main home."

All perfectly legal, as indeed was the fact he took advice from a tax professional to avoid CGT on the sale of the taxpayer funded house at the time.

However, I find it "tedious" that the very same people who use tax professionals to minimise their tax bill, then lecture everyone else about the "morality" of paying their "fair share" of tax (whatever that really means?) and the "immorality" of tax avoidance.

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"

Advice To Beaker

Danny Alexander calls for corporate tax evasion crackdown http://t.co/yHuwV5ewsl /5 years at Treasury, never heard of Money Laundering Regs?
— Jon Stow (@JonStow) February 22, 2015

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 Shortlisted For Awards

Congratulations to HMRC for being shortlisted for two awards at the 2015 Opportunity Now Excellence in Practice Awards:

- for advancing women, and
- for directing diverse talent

Hoozah!

The Advancing Women Award
This award is for a particular initiative/intervention which aids the recruitment, retention, development and/or progression of women and can encompass women at all levels – from non-managerial to the board room. For example: a training initiative or career development/leadership programme or a recruitment/progression strategy or initiative.

The Directing Diverse Talent Award
This award is a collaboration between Opportunity Now and the CIPD to acknowledge the significant role that HR has to play in progressing the gender/diversity agenda. It recognises an exceptional HR director, manager or practitioner who has demonstrated a real commitment to inclusive management of talent. It acknowledges a game-changer who has shown a passion and dedication to developing women/diverse talent.

The ceremony will be held at the Park Lane Hilton on the evening of 21 April.

Tables for ten people are a mere £3K plus VAT.

By happenstance two other organisations that HMRC will be rubbing shoulders with on that evening are:

-HSBC (in the news recently)
-PwC (advisors on tax avoidance schemes and donors to the Labour party)

Plenty to talk about there then!

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"