UK Tax System Obstructs Economic Vitality

 

Katharine Arthur, head of private client at haysmacintyre, has noted that the appeals from the Treasury Committee to scrutinise the UK Government’s tax system are “long overdue”.

The UK’s tax system is an obstruction to economic vitality, creating compliance burdens, confusion, and disincentives to work or grow a business, as stated by the cross-party Committee of MPs in a recent report.

The Committee’s conclusion is that the Chancellor’s choice to dissolve the Office of Tax Simplification (OTS), an independent body that provides counsel on tax simplification, runs the risk of conveying that it is not a priority for the Government.

Harriett Baldwin, MP and chair of the Treasury Committee, said: 

“Disbanding the office established to champion tax simplification risks signalling the Government is not serious about the task at hand.

Action needs to be taken, and public scrutiny of Government efforts is vital. That’s why we’re calling for the Government to report to our committee each year on the success of the Treasury’s tax simplification efforts.”

Arthur concurs, and states that closing the OTS looks like another “ill-conceived decision”.

“Leaving aside the revolving door of disastrous tax changes last year, the Government has made seemingly little progress towards simplifying the system.

Now it’s time to see whether the Government is ready to act.

If the last year in tax has taught us anything, it is that confusion does not breed confidence and that we are at a point where the system is buckling under its own weight, reform is nigh,”

Well said!

Tax does have to be taxing.

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MTD is Out of Control!

 

A damning report issued by the National Audit Office (NAO) on HMRC's Making Tax Digital (MTD) scheme suggested it is expected to cost around five times its original 2016 budget and excluded upfront costs of £1.5bn from its business cases.

Accounting bodies such as the Chartered Institute of Taxation have labelled the project “out of control” and called for HMRC to “pause and take stock”, backing the NAO’s call for a separate business case for MTD for income tax self assessment.

As per the report:

"HMRC’s initial timeframe for MTD was unrealistic. It did not allow sufficient time for HMRC to explore the full range of options that would achieve the programme’s aims and select one that it could implement.

Each announcement has set an ambitious timeframe for delivery, with several aspects of the MTD programme to be delivered in parallel. The repeated delays and rephasing of MTD has undermined its credibility and increased its costs. There is a risk that delivery partners and taxpayers disengage from a programme that can only succeed if those groups significantly change their behaviour. Higher costs were not inevitable, had HMRC taken more time to plan and consider the realism of the options.

HMRC has not demonstrated the programme offers the best value for money for digitalising the tax system, with later business cases significantly underplaying the total cost to customers of making the change. The programme should now develop a robust business case which includes a comprehensive and up-to-date assessment of the costs to customers of implementing MTD. Planning has been too high-level and the risk remains that further delays will add costs and defer benefits. HMRC is reviewing how MTD will work for businesses and landlords with lower Self Assessment income. It should take this opportunity to assess how far the programme is improving services, reducing burdens, and making the tax system easier to comply with and use lessons from this review to ensure the wider programme is finally on track to secure the benefits it has long promised."

Both HMRC and MTD need to be scrapped, neither are fit for purpose!

Tax does have to be taxing.

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• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
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HMRC Doesn't Know Its Arse From Its Elbow

 

Helplines for VAT have not been closed. The changes from today affect Self Assessment enquiries only and, mindful that the SA deadline is not until 31 Jan 2024, are designed to free up hundreds of advisors to deal with more urgent enquiries.

Details here: https://t.co/7DO0uOI7BF

— HMRC Press Office (@HMRCpressoffice) June 12, 2023

With respect are you not aware of this?https://t.co/i9jjExdLtR

— CheapAccounting.co.uk (@cheapaccounting) June 12, 2023

Tax does have to be taxing.

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A Solar Protect policy will enable your accountant (your tax return agent) to:

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• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

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HMRC To Close Self Assessment Helpline for 3 Months

 

HMRC has announced that it will close its self assessment helpline and be trialling a seasonal model for the self assessment helpline, where queries will be redirected to digital services – such as online guidance, digital assistant and webchat – from 12 June until 4 September. 

The sudden closure decision was taken with no prior consultation and gives taxpayers only four days’ warning. 

The tax department explained that the “seasonal model” will free up 350 full-time equivalent HMRC advisers to answer calls and taxpayer correspondence in other areas, and this will enable the advisers to answer 6,600 calls each day.

Lying Twats!

Tax does have to be taxing.

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• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

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Trust in HMRC "Hammered"

 

The Chartered Institute of Taxation (CIOT) has warned that poor service levels at HM Revenue and Customs (HMRC) are "hammering away" at trust in the tax system.

In his inaugural speech, new CIOT president, Gary Ashford, said that HMRC has 6,000 fewer customer service staff than it did five years ago. He argued that this has led to "unacceptable" delays in processing tax returns and dealing with queries.

Ashford said that poor service levels are not just a "pain" for taxpayers and advisers, but they also "harm tax compliance, hinder business activity and hammer away at trust in the tax system".

He called on the government to provide HMRC with the resources it needs to improve its service levels.

The CIOT's warning comes as HMRC is facing increasing pressure to collect more tax revenue to fund the government's spending plans.

However, Ashford said that HMRC's focus on collecting more tax should not come at the expense of providing good service to taxpayers.

He said that "a strong economy needs an effective tax system" and that "trust is essential for an effective tax system".

What does this mean for taxpayers?

The CIOT's warning is a reminder that taxpayers have a right to expect a good level of service from HMRC.

If you are experiencing problems with HMRC, you should contact them directly to raise your concerns.

You can also contact the CIOT for advice.

What can be done to improve HMRC's service levels?

The CIOT has made a number of recommendations to improve HMRC's service levels. These include:

• Increasing the number of customer service staff
• Investing in new technology to improve efficiency
• Making it easier for taxpayers to contact HMRC
• Providing more information and guidance to taxpayers

The government has said that it is committed to improving HMRC's service levels. However, it remains to be seen whether these measures will be enough to address the concerns raised by the CIOT.

Tax does have to be taxing.

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A Solar Protect policy will enable your accountant (your tax return agent) to:

• Deal with any correspondence from HMRC
• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

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HMRC Continues To Be Shite

How the hell can I do my job if I phone HMRC and there is a message which says "We're very busy right now. Please call back later." and then disconnects the call? Succcessive Governments have turned us into a third world country. BTW HMRC have imposed a time limit for my reply!

— Stuart Jones (@StuartJones) June 2, 2023

Tax does have to be taxing.

Tax Investigation Insurance

Market leading tax fee protection insurance for businesses, sole traders and individuals. Protect yourself from accountancy fees in the event of an HMRC enquiry.

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountant's (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your accountant (your tax return agent) to:

• Deal with any correspondence from HMRC
• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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"