HMRC Places Itself Above The Law II

ICAS (The Institute of Chartered Accountants of Scotland) aren't particularly impressed with HMRC's "Code of Practice on Taxation of Banks" either:

"It has always been the case that banks, and other businesses, have applied strict interpretations of the tax law in determining their tax liabilities. This certainty is a key principle for any effective fiscal system. However, the code seeks to persuade the banking sector to encourage compliance with the spirit, as well as the letter of the law.

This relies on the banks' ability to fully understand both the law and the intention of parliament in introducing new tax laws. Understanding the intention of parliament is something which, as recent high profile tax cases have shown, even HMRC are unable to achieve. The code also specifically targets UK banks, leaving other lenders such as overseas banks outside its scope – an approach which is potentially discriminatory."

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Power Corrupts - Hartnett's Global Ambitions

Business IFC reports that Dave Hartnett has aspirations for powers for national tax authorities to access data directly on their taxpayers' assets in other jurisdictions.

"I see automatic exchange of information as the benchmark. That is the position which I would like to reach as standard."

Doubtless the "if you are innocent, you have nothing to hide" retort will be used by some.

However, granting governments and their bureaucrats the right to such unlimited access to people's private lives gives these governments (and their bureaucrats) quite some considerable power over the individual.

Are we really able to trust these governments and their bureaucrats not to misuse this power?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 Places Itself Above The Law

The Chartered Institute of Taxation (CIOT) is less than impressed with HMRC's consultation document on Code of Practice On Taxation of Banks.

"We are deeply concerned about any move that seems to erode what is one of the cornerstones of the UK's tax system: that taxpayers should be taxed according to the letter of the law.

Case law and documents going back to Magna Carta recognise this. In recent years, case law has developed its way of looking at the statute, towards a purposive interpretation of the transactions under consideration.

This has been a significant evolution, and one with which taxpayers and HMRC are managing to deal; it seems to deliver a good deal of what HMRC presumably hope to achieve with the current document.

However, any move to tax by the 'spirit' of the law is a major further step. HMRC need to recognise and justify the significance of the change."

Slowly but surely HMRC are attempting to put themselves above statute and parliament, and take on the role of judge, jury and executioner wrt taxation and the interpretation of tax law.

This is an "evolution" that must be stopped.

The bedrock of dictatorship is an overempowered, arrogant, unaccountable, unelected bureaucracy populated by "little men" who believe that they are working for a "greater cause".

Issues wrt "faulty" tax legislation are for the elected members parliament to address, not the unelected bureaucrats of HMRC.

Tax does have to be taxing.

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What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Lessons In Morality From Nu Labour

I see that Stephen Timms is making it very clear in all orifices of the media that in his, and the government's view, tax avoidance is immoral.

Using emotive words such as "rob" and "cheat" to describe tax avoiders, thus implying that tax avoidance is illegal, he signalled that Labour will now be going on the offensive over this issue.

Here are a few thoughts on the matter:

1 It is perfectly reasonable, sensible, moral and pragmatic to do your utmost to reduce your tax liability legally. Tax avoidance is a legal way to reduce tax liabilities (whether it be a complex scheme devised by lawyers/accountants, or simply using an ISA).

2 Tax avoidance is not an issue of morality.

3 During the years of plenty, Labour chose not to close the so called tax avoidance "loopholes" that they are now screaming about. Why did they sit on their hands then, if this is such an important issue?

3 This is merely a way for Labour to pass the blame, and take the heat off their own economic mismanagement, onto others for the fact that the country is now bankrupt.

During the years "of plenty" Brown had the chance to build up some reserves that could have eased the pain now. He chose instead to "spend, spend, spend", leaving nothing for the "rainy day". To try to blame tax avoiders for this failure in economic management is hypocritical.

4 MPs are not in a position to lecture the rest of the population on the subject of "morality", given their own "shortcomings" in this area (eg house flipping -Darling has flipped his four times in four years to make the most of his allowances, tax evasion, claiming the full cost of mortgage payments etc).

5 Labour is happy to consort and cavort with tax avoiders, eg it gave tax exile Philip Green a knighthood, surely he is an "immoral" person by their definition?

6 Many of the tax havens that Labour are so angst ridden over are actually still part of the rump of empire, as such we do have more than a little influence over them. Shouldn't they have tackled this issue many years ago, if it really is of such importance?

7 Tax avoiders have not bankrupted Britain. Brown's bankrupt Britain is entirely of his own making. No matter what extra tax Labour think they will be able to derive from their new found "moral crusade", it will be a drop in the ocean wrt balancing the books.

8 Lloyds the government funded bank offers tax avoidance advice to its clients.

Lessons in morality should not be delivered by hypocrites.

Tax does have to be taxing.

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What is TAXWISE?

TAXWISE 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.

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Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 Avoidance vs Tax Evasion

Lloyds finds itself the centre of some unwelcome media and HMRC attention this week, following a Panorama report that showed the bank was helping people avoid paying tax.

The fact that tax avoidance is perfectly legal seems to have passed the media by, yet again.

However, of greater concern is Hartnett's reaction to the fact that Lloyds "brainstorms" to "get round taxes".

"Brainstorming in the context you've just used suggests to me some complex arrangement for tax avoidance. Or, worse still, potentially facilitating tax evasion … We simply cannot tolerate that sort of behaviour."

Tax evasion is illegal, and Hartnett is quite correct to state that HMRC should not tolerate it. However, to lump avoidance in with evasion is misleading, and Hartnett knows that.

Tax does have to be taxing.

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What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Interest Rate Hike

I see that the furore over HMRC raising interest rates on overdue tax to 3% won't die down.

Both the Independent and Guardian have published pieces about it in the last few days.

Clive Gawthorpe, a partner at UHY Hacker Young, said:

"This is simply about HMRC clawing more money from taxpayers because of the desperate state of the public finances.

The rate charged by HMRC on late payment will be six times higher than the Bank of England base rate for most taxes.

Banks found it difficult to justify this kind of behaviour and have faced accusations of usury from the Government itself.

Why not harmonise the rate at 1.5 per cent charged for some corporation tax?

That would seem reasonable in view of the current base rate."

Doubtless our very bankrupt government will listen...LOL!

Tax does have to be taxing.

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What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Lap Dancing Relief

Congratulations to Harriet Harperson for:

1 Yet again demonstrating to the world that she is nothing more than a grandstanding, publicity seeking opportunist with little regard for "facts".

2 Demonstrating that the tax system is so complex that even an educated, "intelligent" minister of the Crown doesn't understand it.

Why are my taxes paying this woman's salary?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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 Survey

HMRC is carrying out research into two publications, aimed at tax agents, in order to establish what format is the most useful and appropriate.

The questionnaire compares the format of recent issues of Working Together publication and Agent Update.

To take part, please click this link HMRC Survey.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Simple Interest

The Times has reported the result of the first adjudication issued by the new Upper Tribunal for Tax Matters.

Companies waiting to receive refunds from HM Revenue and Customs for VAT they overpaid because of errors made by HMRC will only receive simple interest on the debt in the first instance, instead of the compound ineterst that they have demanded.

The Upper Tribunal for tax matters said that although the businesses had the right to compound interest on their reclaims under EU law, UK statute did not oblige HMRC to pay it.

Instead, the businesses will receive simple interest from HMRC and have to bring a further claim in the High Court for that to be topped up to compound rates.

Thus wasting further time and money, as the companies will quite correctly claim something that is their right and will of course receive it.

Tax does have to be taxing.

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What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Hackers Steal £1M From HMRC

In August I noted the following:

"Be warned there is a nasty fraud going on whereby agents' online details are being highjacked, and tax refunds diverted.

'There is no reason to believe that the users' security details that have been used fraudulently were obtained from HMRC.'

As per an HMRC statement quoted on Accounting Web

Given the security risks, is compulsory online filing such a good idea?"

Last weekend This Is Money reported that £1M has been stolen from HMRC by hackers.

"The thieves filed returns online using the passwords of genuine self assessment taxpayers - then diverted the money to bogus accounts.

The sting prompted concern yesterday that the fraudsters may have obtained the passwords from one of the many Whitehall laptops stolen over the past few years."

I wonder if this is in anyway part of the same fraud I warned about in August, that HMRC tried to blame the tax agents' "poor" poor in house security for?

Somewhat of a coincidence is it not?

Tax does have to be taxing.

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What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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's Dump Account

My thanks to a loyal reader who has drawn my attention to a rather large backlog of unmatched P14 Forms (dealing with PAYE etc). held in HMRC's the Residual File (more commonly known as a "dump account").

The "dump account" contains unmatched details of salary, tax and NI Contributions which are not attributed to any individual.

The tax and NI Contributions have been deducted by employers and paid into the Treasury. However, the fact that these "unmatched" income details exist means that HMRC have not been able to determine the true tax liability for these individuals.

This means that some taxpayers may be liable to pay more tax, and others may be due a tax refund.

Surely only a few taxpayers are in this position though?

Ermmm..no!

My correspondent also copied me the results of a Freedom of Information (FoI) request relating to the matter. Seemingly, as at 5th April 2007, the number of forms P14 within the Residual File, was as follows:

- where the Pay figure was between £20K-£29,999K 365,091
- where the Pay figure was between £30K-£39,999K 148,570
- where the Pay figure was £40K or more 365,091

A grand total of 878,752 unmatched P14's.

However, the problem doesn't just stop there with the unmatched P14's. I draw your attention to The National Audit Office Report for 2007/2008 (Summary - Item 12).

"At the end of the tax year, the Department's computer system may identify discrepancies in taxpayer records or be unable to match a return to a record and so it will establish an 'open case' for manual checking.

Delays in clearing 'open cases' can mean that taxpayers are not notified on a timely basis of additional tax payable or refunds due.

At the end of March 2008 the Department had 16.2 million open cases, which exceeded its target of 12.5 million, because computer system developments did not deliver the reduction in cases expected, staff were released to other work and there was lower than anticipated overtime.

The Department plans to reach a steady state position by 2010 where open cases for each tax year are cleared within a year and there are no backlogs for 2006-07 and earlier years. The number of cases that will require manual intervention following the implementation of the computer changes cannot be predicted with absolute certainty, so the Department needs to consider the processing resources necessary to clear the backlog of 'open cases', should this exceed its current estimate."

The figure of 16.2 million represents approximately 50% of all PAYE records dealt with by HMRC, in other words 50% of the PAYE population have not had their PAYE liability reviewed.

This figure of unreviewed PAYE Tax liability has been growing substantially over the past few years. Computer Weekly provides a rather alarming set of statistics:

HMRC open cases

-1998: 2.5 million
-1999: 4.8 million
-2001: 8.5 million (1,250 extra staff were hired to reduce the backlog)
-2007: 11.5 million
-2008: 16 million
-2009: 20 million

The backlog means that HMRC, if they wish to resolve the matter, will have to divert money and resources into resolving the discrepancies.

One might question as to what the £8.5BN being paid to IT consultants is really being used for?

Tax does have to be taxing.

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What is TAXWISE?

TAXWISE 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.

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Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Size Matters!

Congratulations to our "respected" Labour administration, they have laboured hard over the last 12 years to create a tax system that is truly record breaking.

Something to be proud of!

LexisNexis report that the 2009 edition of its tax guide, Tolley's Yellow Tax Handbook, contains a stonking 11,520 pages; twelve years ago it was a "mere" 4,998 pages.

It doesn't take a genius, or even a politician, to work out that despite claims by some in the Treasury and HMRC that strives are being made to simplify the tax system, the reality is quite simply the reverse.

The UK now has the longest tax code in the world.

Well done Brown and Darling!

As I have noted many times before, Brown doesn't do "simple". Until he and his party are kicked out of orifice, things will only become ever more complex and unwieldy.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Switzerland Bans Fishing

"Contracting States are not at liberty to engage in 'fishing expeditions' or to request information that is unlikely to be relevant to the tax affairs of a given taxpayer."

Source HMRC

Tax does have to be taxing.

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What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

An "Exaggeration"

The BBC report that the Chancellor is expecting a windfall of £1BN in tax, being monies that should have been paid by those who have tried to evade tax by holdings secreted in Liechtenstein.

HMRC struck an agreement last month with Liechtenstein to exchange information.

The theory is that up to 5,000 British investors are thought to have funds in secret accounts in the country, this could mean an average pay-back of £200,000.

All very well, but the agreement between HMRC and Liechtenstein states:

"TIEA (Tax Information Exchange Agreement) goals and protections: The TIEA provides a number of protections designed to assure that exchange of information does not compromise the considerable privacy rights accorded to persons making use of the Liechtenstein financial centre.

Protection of existing clients:

The Liechtenstein Government has the right to decline a TIEA request for information for clients who have Liechtenstein accounts or Liechtenstein company or fiduciary structures as of 11 August 2009 (the date of signing of the TIEA).

o Purpose: This protection is designed to permit existing clients who are persons
connected to the UK for tax purposes to take the time necessary in order

(a) to consider carefully their particular factual situation and the substantial attractions of the unique and favourable disclosure facility negotiated between the Liechtenstein Government and HMRC and

(b) to obtain proper advice on the best approach for the specific client to addressing any tax irregularities.

o Criminal exception: This protection will not apply in cases that relate to a criminal tax matter in respect of which the requesting party has formally commenced a criminal investigation (as defined in the TIEA).

o Exit requirement: For those existing clients who decide to close their
Liechtenstein accounts and transfer out, liquidate or terminate their Liechtenstein
companies or fiduciary structures before April 2015, this possibility of protection
by the Liechtenstein Government of their information continues indefinitely in the
future....

Protection against retroactive application: Where neither of the protections above
applies, the information exchange is still limited to taxable periods that begin in 2010 in respect of criminal tax matters or after March 2010 for all other matters."

This means, to my reading anyway, that a determined tax evader can close his/her account and move it to another tax haven safe in the knowldege that the agreement with Liechtenstein guarantees confidentiality.

What about the fact that tax evasion is a criminal act?

HMRC will have to have commenced a criminal investigation:

"Criminal exception: This protection will not apply in cases that relate to a criminal tax matter in respect of which the requesting party has “formally commenced a criminal investigation” (as defined in the TIEA)."

Does HMRC really have the resources to start criminal investigations into the alleged 5,000 tax evaders sitting in Liechtenstein?

I doubt it.

The £1BN is most assuredly an "exaggeration" designed to grab the headlines.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Trust and Understanding

I couldn't have out this better myself:

"The Inland Revenue is on the hunt. Britain's 5000 richest people have received a welcoming letter from HMRC introducing them to the new high net-worth unit, the new department tasked with extracting more tax from the super-rich.

The promise of improving 'trust and understanding', with each person having his or her own customer relations manager, is a noble one, but there is a suspicion that the main purpose of the unit is to go through the details of the wealthy with a fine tooth comb looking at every nook and cranny for evidence of tax evasion.

It is the duty of every law-abiding citizen to pay his taxes, equally it is not the duty of the state to treat the wealthy as guilty until proven innocent."

Source FT.

"Customer relations manager"!!!???

Snort!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Short Sighted

Grant Thornton believe that HMRC may change its interpretation of the rules which allow "tax super-deductions" on costs incurred for R&D.

HMRC may prohibit claims for any R&D costs which relate to products and services that are sold for use rather than scrapped.

Samantha Vanags, technology and R&D tax partner at Grant Thornton, claims in Computer Weekly that HMRC is increasing the number and toughness of challenges to these claims.

"Clamping down in this area goes directly against the original purpose of the relief, which was to stimulate R&D activity in the UK."

She is of the view that such a move is "short-sighted".

Tax does have to be taxing.

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What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Reasonable Care

Further to my earlier piece about the Treasury taking pro active measures against the possibility of a major VAT fraud occurring, wrt trading in carbon credits (it is estimated that carbon credit fraud has cost HMRC at least £38M), by zero rating carbon credits.

Sandy Nicholson of KPMG warns in The Times that innocent traders who have traded "suspect" credits may face a problem with HMRC:

"The law gives HMRC the right to audit any businesses that have purchased carbon credits and block their ability to recover Vat if they cannot prove that they took 'reasonable care' in ensuring they made the purchase from a credible company.

The law means that any business could be treated as guilty until proven innocent."

Exactly what constitutes "reasonable care" in a trading system that is relatively new, remains to be clarified.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE 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 Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"