HMRC Is Shite

HMRC Is Shite
Dedicated to the taxpayers of Britain, and the employees of Her Majesty's Revenue and Customs (HMRC), who have to endure the monumental shambles that is HMRC.

Monday, 21 May 2018

HMRC Going After NHS Staff


As per The Times social and health workers and IT contractors who face five-figure penalties for tax avoidance have submitted a petition to parliament demanding that the taxman halt action against them.

HMRC is seeking money owed by almost 100,000 contractors who used “disguised remuneration” and similar schemes going back to 1999 that involved avoiding national insurance or income tax. Some face bills of up to £900,000.

The contractors, most of whom work in IT or healthcare, claim that they were duped into believing that the schemes, which typically involve employers making payments to a trust that makes an interest-free “loan” to the contractor, were within the law.

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"

Friday, 18 May 2018

HMRC Launches Off-payroll Working in the Private Sector Consultation

Summary

We are seeking views on the best way to tackle non-compliance with the off-payroll working rules (IR35) in the private sector.
This consultation closes at

Consultation description

In 2000, the government introduced the off-payroll working rules known as IR35. These rules ensure that people working through a personal service company (PSC) who would have been employees if they had been engaged directly, pay broadly the same Income Tax and National Insurance contributions (NICs) as if they were employed.

We have estimated that only 10% of individuals working in this way apply the rules properly, costing the Exchequer hundreds of millions of pounds in lost tax revenues every year.

In April 2017, the government reformed these rules for engagements in the public sector, and early indications are that this has resulted in an increase in public sector compliance.

In the Autumn Budget 2017, the government announced it would consult on how to tackle non-compliance with the off-payroll working rules in the private sector, and we are asking for comments on the best way to do this.

Before you send your response, we recommend that you read the independent research into the early stages of the public sector reform, HM Treasury’s press release, and the factsheet that accompanies the consultation document below.

Documents

Off-payroll working in the private sector - consultation document

This file may not be suitable for users of assistive technology. Request an accessible format.

Consultation on off-payroll working in the private sector - factsheet

This file may not be suitable for users of assistive technology. Request an accessible format.

Ways to respond

Email to:

offpayrollworking.intheprivatesectorconsultation@hmrc.gsi.gov.uk

Write to:

IPD Employment Status and Intermediaries Policy,
Room 3/46, 100 Parliament Street,
London SW1A 2BQ

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"

Thursday, 17 May 2018

HMRC and Private Debt Collectors



The Guardian reports that the amount HMRC pays to private-sector debt collectors has risen to £39.1m in 2017, which is 62% higher than the £24.1m that HMRC spent on these services in 2016.

The figure has increased annually for several years: it stood at £6.2m in 2014, then rose to £12.5m in 2015.
UHY Hacker Young said that HMRC had little day-to-day control over these firms, whose attitude towards debt collecting “could be seen as more aggressive than that of HMRC”.

HMRC deny that there are any problems:
They operate under strict codes of conduct to pursue debt and we expect them to uphold those codes at all times.

Where someone thinks they will have problems paying the amount due, they should get in touch straight away. All requests for further time to pay an amount due are considered individually based on the facts of the case.
Nothing to see here, move along!

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"

Wednesday, 16 May 2018

FOI Re Counter Avoidance



Dear HM Revenue and Customs,
Please advise:
1) How much tax yield has been allocated to the activities of the Counter Avoidance Group since its inception?
2) How many cases previously worked in local compliance offices had been successfully progressed to conclusion with non-zero yield?
3) How many cases had been closed with zero yield by Counter Avoidance?
4) How many cases had been closed because the inquiry window has been passed since the cases were initially brought for inquiry?
Thank you
Yours faithfully,
Ken Frost

Track its progress here.

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"

Tuesday, 15 May 2018

HMRC's Immoral Retrospective Taxation



Stephen Lloyd, the Liberal Democrat MP for Eastbourne, is taking aim at HMRC for “retrospectively taxing” thousands of contractors who used so-called "avoidance" schemes in the past 20 years.

The arrangements, usually involving loans and offshore trusts, were widely accepted as legal in the early Noughties and even briefly promoted by respected accountancy firms. However, since the introduction of a series of tough anti-avoidance measures, HMRC has cracked down on the users.

Many now face six-figure tax bills and a charge on any loans outstanding in April 2019. The scheme users, many of whom could be locum doctors or nurses, or IT contractors, say they were led into the arrangements by accountants they trusted.

Lloyd said it was “immoral” that HMRC is pursuing the ordinary people involved, while those who promoted schemes can continue to operate. He has introduced a motion calling on Parliament not to apply the loan charge to those who entered schemes before the recent rule changes.

Lloyd is quoted by the Telegraph:
Not only do I think HMRC should be going after the promoters but I think it’s immoral that they aren’t. I find it astonishing.”
His motion calls on the house to agree that “retrospectively taxing something that was technically allowed at the time, is unfair”. It states that the loan charge should not apply to those who entered into schemes before the Finance Bill gained royal assent last year.

HMRC, ignoring the point, said:
These schemes are tax avoidance and simply do not work. Don’t be seduced. If it sounds too good to be true, that’s because it is. HMRC will challenge them and you will be much worse off in the long run. We are cracking down hard on the promoters of avoidance schemes.”
There is nothing "moral" about tax, it is a charge/series of charges levied by the state the size and targets of which are dependent on what the state thinks it can get away with.

However, up until now, the state has shied away from retrospective taxation knowing full well that would be the straw that breaks the camel's back. In this particular case, the state once it knows it can't get away with this, will blame HMRC for "over zealously misinterpreting" the legislation.

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"

Friday, 11 May 2018

SLC Were Warned About Lamey


As loyal readers know, Steve Lamey (ex CIO of HMRC) has featured a few times on this site.

Anyhoo, he is back in the news again following his less than happy time at the infamous Student Loans Company.

The FT reports that civil servants had in fact warned ministers against appointing Lamey as chief executive of the Student Loans Company (he was suspended over misconduct allegations after just over a year in the role).

Lamey was appointed to the SLC in June 2016, when the company was supervised by the business department. Monitoring passed in July 2016 to the Department for Education. He was suspended in July 2017 over a series of allegations, including some brought to the company’s attention by whistleblowers,.

The claims included allegations of:

- bullying behaviour (a prerequisite for management in HMRC, according to many staff who comment on this site),

-the taking out of a lease on a new building without proper approval,

-and unauthorised changes to the SLC’s governance.

Lamey, who denies any wrongdoing, was dismissed in November 2017.

It seems that, according to an NAO report (Investigation into oversight of the Student Loans Company’s governance, and management of its former chief executive) published today, Lamey’s references from HMRC “raised questions about Mr Lamey’s ability to build the right relationships, trust and rapport”.

Business department officials said it would be “too risky” to appoint him and recommended re-running the process. However, an unnamed special adviser at the business department pointed out that Lamey’s 2011-12 performance review at HMRC called him a “top performer”.

The adviser also questioned the fairness of the HMRC references, and raised concerns about the cost of starting a new recruitment process.

Hence warnings about him were ignored!

He was eventually dismissed for gross misconduct in public office over a series of allegations, including breaches of the Nolan principles on standards in public life, guidance on the management of public money and the company’s code of conduct.

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"