HMRC Chases Low Hanging £89 Debts

Well, folks, it seems the halls of HMRC are filled with more than just festive cheer this year. No, nestled amongst the spreadsheets and tax codes sits a Grinch disguised as a bean counter – the esteemed Jim Harra, Chief Executive of the taxman himself. 

Recent news has revealed Jim's jolly penchant for chasing taxpayers down for debts as measly as a tenner short of a hundred quid. That's right, folks, if your granny forgot to declare a pack of Werther's Originals on her biscuit tax, Jim's hounds will be baying for your blood (or at least your loose change).

Now, I'm not saying everyone deserves a free pass for a cheeky tenner here or there. 

But seriously, Jim? 

Chasing down folks for less than the price of a decent Christmas pie? 

It's Scrooge-like, bordering on downright miserly. You'd think a man in charge of collecting the nation's dosh would have a bit more perspective. It's not like these folks are dodging Lamborghinis and caviar, are they? They're probably struggling to afford the sprouts this year, let alone a tax debt the size of a gnat's sneeze.

But Jim, in his infinite bean-counting wisdom, claims it's all about "risk-based debt management." Apparently, even a tenner-sized debt can snowball into a mountain of paperwork and wasted resources. Right. Because sending letters and making calls for an eighty-nine quid debt is definitely the best use of HMRC's time and money.

Here's the thing, Jim. When you chase people down for piddling sums, it doesn't make you look efficient, it makes you look petty. It sends a message that you're more interested in squeezing every last penny out of folks than actually making the tax system fair and manageable. And that, my friends, is a recipe for resentment.

So, Jim, if you're reading this, take a tip from an old hand. Lighten up a bit. Show some Christmas spirit. Let the ten-pound debts slide and focus on the real tax dodgers – the ones with offshore accounts and fancy lawyers. That way, you might actually earn some goodwill and maybe, just maybe, make the taxman a bit less Grinch-like in the eyes of the public.

Now, if you'll excuse me, I have a date with a mince pie and a healthy dose of cynicism about the state of our fiscal affairs. Merry Christmas, everyone. And remember, if Old Man Harra comes calling for your fiver, tell him Ken sent you.

Yours in fiscal disbelief,

Ken

Tax does have to be taxing.

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HMRC Taking The Piss and Restricting Access To Helplines

 

Starting December 11 (until 31 January), HMRC will be implementing a new screening process for calls to its self-assessment helpline and Agent Dedicated Line. Only calls deemed "priority" will be answered directly, while others will be directed to online resources or left on hold for an unspecified period. This decision has raised eyebrows and prompted worries about accessibility and customer service.

Proponents of the new approach argue that it aims to streamline the support process, ensuring that only those with pressing concerns receive immediate attention. They claim that this will free up agents to focus on more complex issues, improving overall efficiency.

However, critics of the move cite accessibility concerns. They argue that many taxpayers, particularly those with limited digital literacy or those facing time constraints, may not be able to effectively navigate online resources. Additionally, lengthy hold times could lead to frustration, anxiety, and potential compliance issues.

The temporary closure of the self-assessment phone line this summer further heightened concerns. While HMRC attributed this closure to resource limitations, it reinforced the notion that taxpayers may face barriers in accessing the support they need.

The move to restrict HMRC's helplines raises a critical question: are we moving towards a more efficient and streamlined service, or are we creating a system that alienates and disadvantages taxpayers?

Needless to say this action is not in the best interests of the taxpayers!

Tax does have to be taxing.

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Who Pays Most Tax?

The top 100 taxpayers in the UK collectively paid a staggering £4.6 billion of income and capital gains tax in 2021/22, the equivalent of £46m each

33.3m pay income & Capital gain tax in UK out of a population of 67.33 million - so that's about 50% of the population https://t.co/EFeRq45acP

— CheapAccounting.co.uk (@cheapaccounting) December 4, 2023

Tax does have to be taxing.

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Making Tax Difficult - PAC Lambasts HMRC #MTD

 

HMRC has lost sight of needing to put customers at the heart of changes to the tax system. In a report published today, the Public Accounts Committee (PAC) warns that with the Making Tax Digital (MTD) programme, aiming to make it easier for people to get their tax right, HMRC is increasing the burdens imposed on some taxpayers. The report also finds that, in seeking further investment in MTD, HMRC has not been open enough about the substantial costs that will be imposed on many taxpayers.

The report finds that the design of MTD has not taken sufficient account of the realities facing business taxpayers and agents. While MTD will substantially benefit HMRC by improving its systems, taxpayers will be asked to spend more and do more to comply. Burdens will be increased with Self Assessment taxpayers asked to pay for third party software and file tax returns quarterly. Many stakeholders, including tax experts and software developers, report that up until 2023 HMRC had ignored their advice on MTD.

The report finds that HMRC excluded a total of over £2bn in upfront transitional costs for customers from its 2022 and ’23 business cases for MTD. Business taxpayers could have to pay more than £1.9bn to comply with new arrangements over the first five years, and HMRC has not said how many and which customers will face the highest transitional costs. The PAC is concerned about how much MTD could cost customers, and calls for full transparency on costs and benefits to the public purse and customers in future.

Unacceptably, with £640m of taxpayer’s money spent on MTD as a whole, many questions remain about how it will work for Self Assessment. HMRC has yet to figure out how to make MTD work for important elements such as how the system will support taxpayers with multiple agents, and how it will work for people who share ownership of property.

Widespread and repeated failures in HMRC’s planning, design and delivery of MTD have led to increased costs and several delays to the programme. HMRC expects introducing MTD for VAT and Self Assessment will now cost £1.3bn, a 400% increase in real terms compared to its original estimate of £222 million in 2016 for all three taxes in the programme. HMRC’s poor track record of repeated delays to MTD, and its lack of conviction in its latest timetable, gives the PAC little confidence that it will deliver the rest of MTD on time.

Chair's comments

Dame Meg Hillier MP, Chair of the Public Accounts Committee, said:

“When reporting on proposals for digitalising the tax system, our Committee should not have to be recommending that HMRC start with what taxpayers need – in an ideal world, one would hope this would simply go without saying. But seven years and £640 million into the Making Tax Digital programme, we are concerned HMRC is also succeeding in making tax difficult.

Imposing significant additional burdens on customers in the middle of a cost of living crisis could not be less welcome. HMRC must now look up from what it is doing and research what services customers would actually find most helpful. We are also concerned at the substantial costs to be imposed on many taxpayers. HMRC’s exclusion of billions of pounds of projected costs when seeking investment for the programme is utterly extraordinary, and future transparency on costs and benefits must be non-negotiable.”

Tax does have to be taxing.

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Hunt Promises Resources For HMRC - No Figure Given!

 

Hunt is budgeting for additional £5bn of tax from giving HMRC enough resource to ensure that "everyone pays the tax they owe"

— Robert Peston (@Peston) November 22, 2023

Tax does have to be taxing.

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Furskin Hell!

If you've time to kill whilst waiting for the Autumn Statement, I present the furskin flowchart - HMRC's handy guide to whether clothing with fur has 20% VAT or 0% VAT.

Have fun. pic.twitter.com/AHjcuc6dgY

— Dan Neidle (@DanNeidle) November 22, 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

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"