Friday 28 February 2014

HMRC - The Movie


My thanks to a loyal reader who advises me that Lin Homer has proudly announced that there will be a three part documentary on TV next year about HMRC.

This is interesting given that HMRC does not discuss individual tax cases, and that staff are bound by OSA and various civil service guidelines concerning confidentiality etc.

The fact that Excom have approved such a documentary leads me to suspect that Excom believe that they can "manage" the impression given and the final result.

We shall see!

Documentary makers (especially "reality" TV shows) are very skilled at making fools of those who appear in them eg; The Hotel Inspector, The Call Centre, Come Dine With Me, Permission Impossible etc.

I would be grateful to hear more details about the documentary, and which company etc is making it.

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 27 February 2014

Putting Things Right - Where Is The Justice?


My thanks to a loyal reader who gave me permission to publish a letter that she sent to:

- Dan Rogerson
- David Cameron
- Nick Clegg
- Ed Miliband
- Margaret Hodge
- David Gauke
- Lin Homer (e-mail)
- The Adjudicator
- Parliamentary and Health Service Ombudsman

She won a tribunal against HMRC regarding child benefits and tax credits. However, she is still waiting for HMRC to "put things right" and 13 months after raising the matter with the Adjudicator is still waiting for a result; as the Adjudicator's Office is overwhelmed with casework.

To add insult to injury, having emailed Cameron two weeks ago about the situation, her email was answered by HMRC telling her to raise the matter with the Adjudicator.

Here is the text of her letter, with locations edited out in order to protect her identity.

"Just over 3 years ago my daughter and I fled the controlling clutches of her Police Sergeant father in **** to the edge of *******.

Together with HMRC, he had made life so difficult for us we had no choice other to leave our family home and start a new life hundreds of miles away where the only person I knew was my father.  3 years later and with my daughter now 6 years old life is very pleasant and the battles between her father and me have been resolved, but not without years of heartache, distress, solicitors and tribunals caused by my daughter’s father and the actions of HMRC.

I am writing this letter because, despite having unfinished business with HMRC in waiting for their apology, it has become clear that I am not the only person to have part of my life destroyed.  Because HMRC is attempting to cost cut and in doing so is destroying families and driving them to despair, with their decisions made wholly to save money.

The 250 mile move has led me to another mother suffering the same at the hands of her controlling police officer ex partner in ****.  HMRC’s award of Child Benefit and Tax credits to the high earning officer, over the part time minimum wage mother, is confirmation of my suspicions that this is a cost saving exercise for HMRC.  I battled HMRC for over 2 years to prove they were wrong in their decision, which they made on this basis.

A tribunal took 5 minutes to agree with me WHILST THE HRMC REPRESENTATIVE AGREED WITH THE JUDGE MUMBLING ‘I’M NOT SURE WHY WE’RE HERE!!!!!’  Hell and my life destroyed, leaving our friends and family, the village I grew up in, our home (previously MY grandparents), filling each day with letters and evidence gathering day after day for 2 years whilst struggling as a single mother, ink, paper, postage, photocopying, telephone calls mounting on my credit card bill, overdraft, interest, frustrated telephone calls to a call centre, being misinformed by HMRC staff, constantly being told that my call couldn’t be escalated to any senior person, hours trying to entertain my 3 year old daughter whilst dealing with paperwork and making phone calls, time and money lost in travelling to tribunals, my daughter’s first trick or treating missed, the list goes on………to hear those sorry words from HRMC ‘I’m not sure why we’re here’.  I want to scream as I write this remembering the torture and pain I was going through.

The 13 months which have passed since my complaint was initiated with the adjudicator has given me nothing other than telephone calls with the adjudicator telling me that they are so inundated with complaints they have no idea when mine can be investigated.  This needs to be resolved and is a matter of public concern.  The adjudicator cannot cope with the volume of complaints.

Nearly two 2 years later, and having won my tribunal against HMRC, they should have put things right as they advocate in their ‘Putting Things Right’ leaflet.  Seeing my whole situation playing out in the new town I have moved to, with another set of parents shows I am not a ‘one off’.  HMRC have learnt nothing and continue to make things wrong, far from putting things right.  Somebody needs to take control of this situation.

My e-mail to 10 Downing Street 2 weeks ago, highlighting the waiting time for the adjudicator, was UNBELIEVABLY responded to by HMRC telling me that I needed to direct my enquiry to the adjudicator.  What an ABSOLUTE joke and a course of action which I am utterly disgusted with.  Mr Cameron you have let me down and there are many more people suffering too whist this is being ignored.

Can somebody please help us?"

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 26 February 2014

Complain To Your MP


The ICAEW Tax Faculty has urged people not to be afraid to complain to HMRC about problems, and goes on to advise that people should also raise issues concerning HMRC with their MP as well.

I fully concur, and have been advising loyal readers who write to me with their problems to raise them with their MPs; as it is the politicians who are ultimately responsible for the complexity of this country's tax system and the disaster that is HMRC.

Specifically the Faculty states that it has had reports from its volunteers and members that incorrect liabilities on HMRC employer PAYE accounts are an increasingly common problem, and many of these cannot be solved by software suppliers.

Some of these have arisen because:
  • RTI returns or other notifications or payments to HMRC have not been processed correctly, or indeed at all 
  • Employee records have been duplicated 
  •  Amounts have been reallocated without reference to employer or agent.

There are also difficulties interpreting what is shown on HMRC’s Business Tax Dashboard (alias Liabilities and Payments Viewer – available only to employers, not their agents). Hours have been wasted on the phone to HMRC trying to sort things out or even negotiate with bailiffs collecting apparent PAYE debts that are not due.

The Faculty states that if you recognise any of this, you will be aware that this takes time, and time is money. Interestingly, and ironically in the light of events, the impact assessment published alongside Budget 2012, which has not been updated, estimated that RTI was supposed to save employers more than £300M per year.

"ICAEW and other representatives of employers, pension payers, payroll agents, bureaux and software developers and HMRC are working hard to try to resolve PAYE RTI difficulties by way of a joint task force. HMRC is publicising updates on its What’s New webpage.

Given the current problems surrounding RTI, it seems timely to remind employers and their agents at the coal-face about how to complain to HMRC and seek financial redress.

Please see the Tax Faculty’s TAXTools 4 - Making complaints to HMRC for more details and help on how to make a complaint.

When reclaiming additional professional fees, the employer/client should supply HMRC with a receipted fee note. To help clients’ cash flow, we suggest that agents bill separately for such additional costs and the client pays by cheque, which is then banked by the agent once the employer/client receives reimbursement from HMRC.

For PAYE RTI problems, write to HMRC at the following address:

Customer Operations Employer Office
BP4102 
Chillingham House 
Benton Park View 
Newcastle Upon Tyne 
NE98 1ZZ

Complaining to HMRC does not stop you writing also to your MP, should you wish. Your MP can draw the fact that all is not well with RTI to the attention of the relevant Minister.

As a general point, agents can register with an HMRC Agent Account Manager (AAM) to pass through comments and get a helping hand. For details of what AAMs can do and how to register see HMRC’s guidance Agent Account Managers (AAMs) in HM Revenue & Customs. 

However, while AAMs will work with agents to resolve client-specific problems, the Agents' Issue Resolution Service does not replace HMRC’s process for formal complaints, which agents should use first." 

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 25 February 2014

Professional Conduct in Relation to Taxation



The UK's leading professional tax bodies have issued updated guidance (Professional Conduct in Relation to Taxation) on ethics and how tax advisers should act in difficult situations.

The five cornerstones of the guidance being:

- Integrity
- Objectivity
- Professional competence and due care
- Professional behaviour

"The leading UK professional bodies involved in taxation have issued updated guidance on how tax advisers should act in difficult situations.

The guidance appears in the publication 'Professional Conduct in Relation to Taxation' (PCRT): the latest edition has been issued by the bodies today. PCRT sets out the high ethical standards which should govern the tripartite relationship between tax adviser, client and HMRC. It supports the key role members play in helping clients comply with their tax obligations. This guidance is followed by members of the listed professional bodies, but many other bodies and professional firms also adopt it as best practice. 

It is based on five fundamental principles:
  • Integrity
  • Objectivity
  • Professional competence and due care
  • Confidentiality
  • Professional behaviour
and provides guidance on applying these principles to practical situations, for example, if there is an irregularity in a client’s tax affairs and the client is reluctant to correct it.

The document makes clear the obligation of tax advisers to advise their clients accurately and thoroughly of the risks and implications of their actions including reputational and practical aspects.

Rosalind Upton, chair of the working party which produced the guidance, and Council member of the Chartered Institute of Taxation, said:
"The updated ‘Professional Conduct in Relation to Taxation’ gives clear, concise and practical guidance which will help tax advisers when dealing with difficult situations such as what to do when a client refuses to make a full disclosure to HMRC or receives an excessive repayment. It expands the existing guidance on areas including tax avoidance and the new General Anti-Abuse Rule." 

PCRT has been reviewed by Counsel, Ximena Montes Manzano of Atlas Chambers. 

HMRC has been consulted and ‘acknowledges that this guidance is an acceptable basis for dealings between members and HMRC’. ‘HMRC welcomes the publication of the new edition of this guidance for tax agents as a positive step. We recognise the role they play and the responsibilities they bear in ensuring taxpayers understand and comply with their tax obligations’.

Notes for editors
1. The key changes in this update include:
  • An enhanced chapter on ‘Tax planning, tax avoidance and tax evasion’ which includes guidance on the new General Anti-Abuse Rule.
  • Points to consider when HMRC wants to visit the member to discuss practice matters eg as part of Agent and Client Statistics
  • Professional standards relating to participating in consultations or secondments with HMRC
  • Advising clients who wish to rectify past irregularities
  • A brief section on electronic filing
2. The guidance can be read at http://tinyurl.com/pcrt2014
 
3. The professional bodies who were members of the working party and who have endorsed the guidance are:
  • The Chartered Institute of Taxation,
  • The Association of Taxation Technicians,
  • The Association of Chartered Certified Accountants,
  • The Institute of Chartered Accountants in England and Wales,
  • The Institute of Chartered Accountants of Scotland, and
  • Society of Trust and Estate Practitioners
This guidance was last updated in 2011."

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"

Monday 24 February 2014

Coding Errors and HMRC's Resistance To ESC A19


The Telegraph has highlighted the ongoing attempts by HMRC to resist claims by taxpayers for application of the ESC A19 concession. The concession allows tax arrears to be written off if three conditions are met:

1 HMRC failed to make “proper and timely” use of information provided to it.

2 The taxpayer “could reasonably have believed their tax affairs were in order”.

3 No notification was sent to the taxpayer within 12 months of the end of the tax year in question.

Unsurprisingly, given the regular coding errors, many taxpayers (pensioners are particularly prone to erroneous coding notices if they have more than one pension source) find themselves in a position of owing or being owed tax.

As per a letter to the Telegraph:
"I read with great interest your account of the case of RD, South of England. My case covers unpaid tax to the tune of £10,457 for the tax years 2002-03 to 2007-08 as advised to me in an HMRC letter dated July 3, 2008. Even though this was received with shock and concern this sum was paid in full to HMRC because I was informed by them in reality that I had no option but to pay up. 

However, in October 2011 I became aware, through reading your column, of the A19 concession and wrote to HMRC seeking it to apply it to my case retrospectively. Eventually I was told that it would not apply. However, my case seems so similar to that described in your column recently it once more raised my concern about the way HMRC has dealt with mine. It had all the necessary information."
Only after the Telegraph intervened did HMRC back down, apply the concession and pay back the tax.

HMRC said:
We apologise for the way that we have handled matters for Mr P. This is not the level of service we aim to provide. We are sorry for any worry and distress that he has experienced. We are sending a payment for £150 to him to apologise for our poor handling.” 
Elaine Clark, director of the accountants Cheap Accounting, is quoted by the Telegraph:
Taxpayers who suffer errors are being forced to be more tenacious.

In our experience HMRC has toughened its stance. It’s almost as if officials don’t read the case file, they just send out a letter demanding payment even if the taxpayer would have legitimately qualified for ESC A19.”
In some cases, she said, taxpayers were left totally unaware of their rights. Others were frightened to take on the authorities.

Theoretically, RTI will eliminate these coding errors.

Time will tell!

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 21 February 2014

The Valentine's Day Strike


One week ago (Valentine's Day), apparently, Association of Revenue and Customs (ARC) members went on strike for a day in protest against HMRC's new performance management system demanding fixed quotas (wherein 10% of staff fall in the bottom rating regardless of their performance).

May I ask if anyone (staff or non staff) noticed any effects of the strike?

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 20 February 2014

The Bugger's Muddle of Complexity


It is self evident that the tax and benefits system in the UK is a "bugger's muddle" of complex rules and regulations, that confuse all who try to understand them.

An example of the confusion and misery that the rules cause is that of Lee Owen, whose family business (Jubilee Engineering) closed down in January.

Mr Owen, who was a partner in the firm with his father, has subsequently tried to claim jobseeker's allowance. Unfortunately, because he paid class 1 and class 2 national insurance (as opposed to class 1) for the last 3 years, he has been told by the Department for Work and Pensions (DWP) that he is not eligible for the allowance.

Mr Owen claims that HMRC told him to pay class 2 and 3 national insurance and not class 1.
It should be noted that from the age of 16 until 3 years ago Mr Owen did pay class 1 national insurance.

He is quoted by the Gloucestershire Echo:
I haven’t been able to claim a penny from the state.
After all the tears and upset of losing the business and then this with the benefit claim, the two things sent me over the edge.

I just think it’s appalling - I paid my national insurance since I left school at 16.
I just think the whole system is totally mixed up. I’ve worked in this country all my life and yet I can’t claim anything.” 

Jobseeker's allowance is administered by the DWP, and because the civil service does not do "joined up" thinking one department will naturally pass the buck to another. Hence Lisa Billard, for HMRC, said:
The payment of Jobseeker’s Allowance is a matter for the DWP. HMRC is unable to comment on the tax affairs of individual people, however I have referred this to the appropriate team who handle national insurance matters.

Further information about national insurance can be found at hmrc.gov.uk/NI.” 
It is interesting to note from the comment above that despite passing the buck to DWP, HMRC still appears to be reviewing the issue in house.

Meanwhile Steve Milne, for the DWP, said:
Eligibility for contribution-based Jobseeker’s Allowance (JSA) is only for those paying class 1 national insurance.

People who were self-employed may still be eligible for income-based JSA but that depends on their household income and savings.”
This of course is all very well for those who like to tick boxes, but Mr Owen and his family need practical help now not in the medium/long term when the issue has been passed around various in house teams and administrators.

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 19 February 2014

The Tuesday Dial In - Homer Loses Her Voice


Yesterday was the great HMRC dial in, where HMRC staff had the opportunity to talk to the "great and the good" of HMRC management about issues that concern them (eg the closure of the enquiry centres).

How did it go?

Well, by the sound of it, not too well.

A loyal reader has commented that Lin Homer had apparently lost her voice (politicians are prone to illnesses such as this when facing questions about subjects they don't want discuss).

As per the loyal reader:
"It was completely embarrassing Lin had lost her voice so they some other Excom took over Edward Troupe, who all the way through kept making unfunny comments such as "I am not Lin, I am doing an impression of her"etc, the usually cock ups with callers forgetting to unmute their phones etc.

It was so engrossing I cannot remember anything that was asked.
"
Please feel free to post your views/experiences of yesterday's dial in.

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"

Monday 17 February 2014

Lloyds £1BN Whopper!


I see that Lloyds Banking Group (32.7% owned by the taxpayer) faces a £1BN tax demand from HMRC. The bill relates to billions of pounds of loss taken in Ireland by Lloyds as it wound down its defunct Irish subsidiary.

Lloyds was warned in the second half of last year that HMRC were not happy with its treatment of Irish losses to offset its tax bill, prompting a legal dispute between Lloyds and HMRC.
If the case is decided in HMRC’s favour, Lloyds claims that its tax bill will increase by £1BN. It is quoted by the Telegraph:
The group does not agree with HMRC’s position and, having taken appropriate advice, does not consider that this is a case where additional tax will ultimately fall due.”
I dare say the lawyers will do well out of this dispute!

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 14 February 2014

The Tuesday Dial In


As several readers have already commented, next Tuesday is the HMRC dial in. This presents staff with an opportunity to raise issues that concern them with the "great and the good" of HMRC management.

My advice to those of you concerned about the closure of the enquiry centres is not to let this opportunity go to waste, and ensure that relevant searching questions are raised.

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 13 February 2014

Enquiry Centres To Close


In January I wrote that the decision on the fate of HMRC's enquiry centres would be released on Wednesday 12 February at 1pm.

Yesterday HMRC did indeed announce their decision, all the 281 enquiry centres (employing 1,300 people) will close on 30 June 2013. As from then taxpayers will have to call HMRC to make an appointment to see a member of HMRC staff, in theory at a location that is convenient to the taxpayer (eg their own home).

There are, according to Lin Homer, three options for those who work in the centres:
"We have given our people three broad options to consider for their future.

One is to apply for one of the 450 jobs in the new service. Face-to-face staff have priority for these vacancies, which will be live at 3pm this afternoon on the Personal Tax intranet site.

They can also apply for a voluntary exit to leave HMRC on the best financial terms available.

Or, they can join the redeployment pool to maximise their chances of getting a new job within HMRC or in another government department."

PCS claims that there has been no consultation or negotiation wrt the decision. The union is considering balloting members regarding industrial action, all very well but that is rather akin to shutting the stable door after the horse has bolted.

The full text of Lin Homer's statement to staff about the decision is reproduced below (provided courtesy of a loyal reader):
"Messages: Message from Lin Homer: the future of our Enquiry Centres

12 February 2014

As you may remember, I wrote to you last March about our proposals to pilot a new service in north east England offering targeted support to customers who need extra help to get their taxes and entitlements right.

I explained last year that, if the pilot was successful, it was likely this service would replace our Enquiry Centre network.

Our Enquiry Centres offer a fantastic service, to those who can reach them. But they are spread unevenly across the UK, the number of people using them continues to fall, and our research shows that the majority of customers who do use them don’t actually need to.

We know there are customers who really need extra help from us because of temporary or permanent difficulties they face. We want our service to them to be as accessible and effective as possible, as well as being affordable both for them and HMRC.

The service that we piloted last year is based on giving these customers specialist, more in-depth help over the phone, offering face-to-face appointments if needed. These appointments are carried out at a location that is convenient for them, even at their home if necessary. It is absolutely not about withdrawing from offering a local face-to-face service for those who need it.

As well as running and evaluating this pilot, we also carried out a public consultation on our plans for the new service, and gathered a huge amount of feedback from our customers, partners in the voluntary and community sector and our staff.

On the back of all of this, we have decided to roll out the new service nationally. The new service will launch on 31 May and, as a result, our network of Enquiry Centres will close to the public on 30 June this year.

Our people who currently work in face-to-face were told about this earlier today. I know that many will be upset and disappointed by this decision. I want to emphasise that this decision is about providing a more tailored service for customers who need extra help: it is no reflection on the work, passion and commitment of our face-to-face staff.

Our Enquiry Centre staff were told this news in face-to-face meetings with managers earlier today. They are being given all of the information and support we are able to provide, to help them to understand the implications of the announcement and the options that they now need to consider.

We have given our people three broad options to consider for their future. One is to apply for one of the 450 jobs in the new service. Face-to-face staff have priority for these vacancies, which will be live at 3pm this afternoon on the Personal Tax intranet site.

They can also apply for a voluntary exit to leave HMRC on the best financial terms available. Or, they can join the redeployment pool to maximise their chances of getting a new job within HMRC or in another government department.

You may remember that last year I wrote to you about how we were beginning to transform and reshape our Department. This saw us launch two voluntary exit schemes – one for people in 21 offices across the UK which did not feature in the medium to long-term plans of some, or all, of the lines of business based there, and one for Debt Management and Banking staff, including a number of our people at AA grade.

The closing date for people to accept or decline their voluntary exit offers was 31 January. Around half of those we offered exits to have accepted, and 1,040 people will be leaving us on 30 April. We are still working through the implications of what this means for the teams and offices involved. I appreciate this is a worrying time for those involved, and I will come back to you with a full update when this work is complete.

In the meantime, we have continued talking to our lines of business about what the changing nature of our work means for our staff – in particular, for those at AA-grade.

The AA-grade is a valuable one in HMRC, and we have no intention of removing it entirely from the organisation. But as our thinking on the way we deliver our services, including far greater digitisation, has developed, it has become clear that far less clerical work is available for people at this grade.

That’s why, since July 2012, we have promoted 1,883 AA people to AO grade, where needed to meet our Spending Review commitments, with another 1,000 still in the promotion pool.

Despite this, we still have too many AAs for the work currently available, and for the work we will be doing in the future.

We have now launched a second voluntary exit scheme for around 500 AAs. Most are based in Enforcement and Compliance, with small numbers in other lines of business, and, again, they have already been given this news in face-to-face briefings.

Both of these exit schemes are entirely voluntary: we are not making people redundant or forcing anyone to leave HMRC. We are giving people the opportunity to leave us on 31 July on the best financial terms available, if they want to.

We have published comprehensive Q&As about both our Enquiry Centre decision and the voluntary exit scheme for AAs today.

Affected people are also invited to join a series of dial-ins starting on Friday and with follow up dial-ins on specific options next week. You are more than welcome to raise questions at these dial-ins.

I know there’s a lot to take in, and I know that lots of you out there this afternoon will be feeling very uncertain. We are absolutely committed to giving you all you need to make an informed decision, and will support you whatever that decision is.

Thank you.

Lin Homer Chief Executive"
Views and comments welcome, I understand that HMRC's internal forum has some 52 pages of comments on the subject.

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.

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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 12 February 2014

Fines For 710,000


According to HMRC (via the BBC) there are an estimated 710,000 tax returns outstanding, last year the figure was 730,000.

Given that the £100 penalty system is automated, the tardy 710,000 can expect fines to be landing on their doormats in due course. However, those who offer a reasonable excuse for failing to file on time (eg flooding) may see the penalty waived or refunded.

Three months after the deadline additional daily penalties of £10 a day apply, up to a maximum of £900 if no forms have been returned. After six months, there is a further penalty of 5% of the tax due or £300, whichever is greater. After 12 months, there is an additional 5% or £300 charge.

Therefore if you filed late, but have a reasonable excuse, make sure you contact HMRC as soon as possible.

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 11 February 2014

Beware Scam "Rebate" Emails



HMRC is warning people who complete self-assessment tax returns not to open emails offering a tax rebate from HMRC.

The emails, the number of which are on the increase, are phishing attempts to persuade people to provide details such as date of birth, bank account numbers and passwords. The FT reports that in the three months to the January 31 filing deadline for tax returns, HMRC received more than 23,000 complaints about phishing emails, an increase of 50% compared with the previous year.

HMRC never emails taxpayers with details of a refund or asks them to send information in this way, such communications would only ever be by letter.

Those who receiving phishing emails should not open them; forward them instead to phishing@hmrc.gsi.gov.uk and then delete them.

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"

Monday 10 February 2014

Virus Risk


HMRC has 85,784 PCs, of which 85,268 are moving off Windows XP and 58,631 are ditching Internet Explorer 6.
 
As from 8th April this will present a security weakness, as Microsoft will stop offering free support for XP and will no longer provide any protection to block malicious codes and potential hacks that steal users' data. As from then Microsoft will charge an outlandish £122 per desktop for year one, £244 for year two and £490 for year three.

Suffice to say HMRC will not be paying for this service.

However, not to worry, an HMRC spokesperson is quoted by the Guardian:
"HMRC takes security extremely seriously and has many controls in place to guard against online threats. HMRC is already upgrading our IT software and our systems will remain secure whilst this is happening.
No problem then, except for the fact that the upgarde from XP and Windows 6 won't be completed by April!

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 7 February 2014

Copycat Site Shuts


In January I wrote about the dangers of paying fees to websites that claim to check and file your return with HMRC, aka copycat websites.

One such site (taxreturngateway.com) that charged people £500 to file tax returns online with HMRC, a process that is free if done directly with HMRC, has temporarily been suspended.
It seems that, according to the Telegraph, some people are claiming to have been "misled" into believing the site was a "genuine" government tax portal by its design.
A statement on company’s website said:
Due to overwhelming customer demand for our service and the close proximity to the January 31st Self-Assessment deadline, we have taken the decision to suspend our Self-Assessment Tax Return Submission service to new clients at this time. This decision has been made to ensure that we deliver the highest level and quality of service to our existing clients.

Strictly speaking the site did not break the law, but in effect duped the gullible into spending money on a process that is in fact free.

A spokesman for Trading Standards said:
In principle, a practice such as this is not illegal. Many businesses provide a service that consumers could carry out themselves relatively easily. We have looked at this particular trader's website site, and they do state that they are not connected to or affiliated with HMRC, DWP or any other official government body so there is very little that Trading Standards can do in this instance.”
A spokesman for HMRC said:
Whilst people are entirely free to employ a tax return agent, HMRC does not sanction or in any way approve such sites, and we will take firm action against any websites that suggest otherwise. HMRC provides comprehensive help and guidance through our website and contact centres entirely free of charge."
Who4 owns Taxreturngateway.com, by happenstance it runs a number of copycat websites; where customers are charged £172 for passports that would normally cost £72.50 and £29 for Ehic cards, which are issued free by the NHS.


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 6 February 2014

Valentine's Day Strike


The Association of Revenue and Customs (ARC) has informed HMRC that its members will take strike action on Valentine's Day.

The union represents senior managers and professionals in HMRC, its members are displeased with the new performance management system demanding fixed quotas wherein 10% of staff fall in the bottom rating regardless of their performance.

From April 2013 HMRC introduced a new three tier performance management system. For 2013/14 HMRC says it has set a guided distribution of 20% “Exceeded”, 70% “Achieved” and 10% “Must Improve”.

This is not a new concept, many "successful" private sector companies have used this technique (or variations thereon) eg Enron and Arthur Andersen (the failed accountancy firm that audited Enron). Seemingly the fear of "failure" is meant to be "motivational".

The ballot approving the strike had a turnout of 48%, of which nearly 60% voted in favour (ie 29% of ARC member voted in favour of strike action).

ARC president Gareth Hills is quoted by economia:
ARC members have been asked to strike not for money, but in pursuit of some basic principles: reducing bureaucracy so we can do our jobs, a fair performance appraisal, rewarding, not penalising, promotions; and a fair deal for professionals.

Our members are not faceless bureaucrats, but real people striving every day to serve the Government and the public. The work they do builds schools, hospitals, libraries and playgrounds. It’s work that funds the social fabric of the UK and delivers for the nation. They deserve a fair performance system, one which allows them to do their job free from the tangle of bureaucracy.
An HMRC spokesperson said:
We are determined to improve our service delivery under the wider Civil Service Reform package. Assessing the performance of staff through a fair and reasonable performance appraisal system is a key part of these reforms.

We remain committed to resolving disputes through dialogue and we will do everything possible to ensure services to the public are not affected by industrial action by a small minority of our workforce.
Comments and views are always welcome .

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 5 February 2014

Flood Relief


HMRC will grant extensions to the recent 31 January online filing deadline to those affected by the ongoing flooding in Somerset.

Claims for extensions will be judged on a case by case basis, and extensions could be granted for months.
An HMRC spokesman is quoted by the Telegraph:
We know that some individuals and businesses may find it difficult to meet their obligations to HMRC as a result of the current extreme weather. We will do all we can to help."
Those wishing to claim an extension should call the Payment Support Service. The helpline number is 0300 200 3835, and is open from 8.00 am to 8.00 pm, Monday to Friday and 8.00 am to 4.00 pm, Saturday and Sunday.

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 4 February 2014

Record Breaking Tax Returns


It seems that HMRC has received a record breaking number of tax returns up to the deadline of 31 January. As at the deadline HMRC received 10.03M returns (the previous year the figure stood at 9.61M), 8.48M of which were filed online.

On the final day (31 January) HMRC, as per Accountacylive, received 569,847 returns.

However, there are a number of laggards who have failed to meet the deadline; approximately 710,000 in fact who may face the £100 fine.


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"

Monday 3 February 2014

Citibank Payment Problems


I see that some taxpayers, who left it to the last minute to settle their tax bills on 31 January, may have experienced some difficulty paying into HMRC's Citibank account.

The Telegraph reported that Citibank was experiencing some form of technical problem that prevented payments being made into and out of Citibank accounts.

The Payments Council, the body overseeing the Faster Payment System is quoted by the Telegraph:
"The Faster Payment Scheme is operating normally today. However, Citibank have let us know they are experiencing very high volumes of incoming Faster Payments, due to the HMRC tax deadline, and are asking for patience when submitting a payment."
Citibank restored the system, a spokesman said:
We apologise that there were some issues making payments at certain peak times today.

Citi's systems are now operating normally and the bank is currently processing all payments without issue. We have been coordinating through the Faster Payments scheme to ensure taxpayers have received the appropriate advice."
Did anyone experience any problems filing or paying at the last minute?


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"