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.

Friday, 24 April 2015

HMRC Debt Collection Spend Halves

Insolvency News reports that HMRC has halved its spend on debt collection agencies (DCAs) during the past year, with £6.8m spent on them in 2014 compared to £14.8m in 2013.

Does this mean that there are less debts to chase, or that HMRC are taking some of the debt collection work back in house?

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, 23 April 2015

Tax System Approaching Chaos


Chaos is now the operative word for our dysfunctional tax system.


The Institute for Fiscal Studies has looked at the system, and notes that there are certain areas where a person can theoretically pay 60%, 70% or even 100% tax.


Paul Johnson, who undertook the research, quoted in the Telegraph argues that our tax regime lacks coherence to a degree “approaching chaos”.

How do these huge marginal rates of tax arise?

It’s because special tax benefits and allowances have been introduced over the years. And then they have been withdrawn again under subsequent means-testing.

Jason Piper of the Association of Chartered Certified Accountants, explained the phenomenon in relation to child benefit.
The child benefit you get is entirely 'taxed away’ if you earn over £60,000, but all yours if you earn under £50,000. Between those two levels of income you suffer a charge equal to 100pc of your child benefit.
What ever happened to simplification?


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, 22 April 2015

VAT MOSS Chaos


As I noted the other day, Monday was VAT MOSS Day.

Unsurprisingly, such an occasion could not occur without there being a degree of chaos.

Economia reports that Enterprise Nation has noted that HMRC vastly underestimated the number of small businesses affected by new EU rules on VAT.

This has caused “chaos” and could lead to a hike in costs for digital services.

HMRC estimated that there were just 5,000 non-VAT registered firms that would be likely to be affected by the new VAT MOSS rules, which concern the trading of digital products in the EU. The new rules, require all companies, including those exempt from UK VAT, to charge VAT on all digital products such as ebooks, at the rate charged in the customer’s country.

The Department for Business, Innovation and Skills however estimated that there were 350,000 working within the affected space.

Oddly though, HMRC is standing by its initial estimate.

Emma Jones, Enterprise Nation’s founder said:
The EU VAT regulations caused havoc in the digital small business community. If details of the new charges and reporting responsibilities had been communicated earlier, we’re sure there could not only have been more opportunity to make amendments to the bill, but that an entrepreneurial solution to the problem could have been developed. 

As it was, not even the marketplaces themselves had prepared new software or worked out the finances."
None of this should come as any surprise, I warned in December that VAT MOSS would lead to massive confusion.

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, 21 April 2015

Happy 10th Birthday HMRC!


My thanks to a loyal reader who sent me this message from Lin Homer to HMRC staff about HMRC's 10th birthday:
"Dear Colleague

On Saturday, HMRC turned 10 years old.

I’m proud to lead this great organisation, proud of what we’ve achieved over the last decade and proud of the journey on which we’ve embarked with Building our Future.

I’m also very aware of the thousand years of history that underpins HMRC today, and of the great contributions made by our predecessor organisations.

Since HMRC was formed, we’ve achieved a great deal together – thank you. We’re on track to bring in a record £510 billion revenues this year, we’ve continued to improve service to our customers and we’ve delivered some major projects, such as real time information, that have really improved the UK’s tax system. This has paved the way for the creation of digital tax accounts that will transform the way that people manage and pay their taxes.

But there’s much still to do – we know we’re not consistently providing the right levels of customer service and after the General Election the demands on us will increase further. We’ll need to be even more radical to meet the changing and increasing expectations of customers, Government, the media and other stakeholders. Building our Future explains how we’re going to do this.

Of course, the history of tax over the last thousand years, and in the last ten, has been one of continual change and evolution; our 10th birthday gives us a chance to recognise our past achievements as well as looking to the future.

So, happy birthday HMRC! I meant what I said at the Public Accounts Committee, that there are no better people than the folk in HMRC. Whether it’s helping customers, colleagues or the communities we serve, it’s your contribution that makes the difference. Thank you to you and to all the great people working here who make me feel so privileged to lead such a strong team.

Best wishes

Lin Homer"
A belated happy birthday HMRC!

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, 20 April 2015

Happy #VATMOSS Day!





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, 16 April 2015

HMRC Phone Lines Swamped


Unsurprisingly the recent changes in pension rules and the possibility of an HMRC emergency levy on withdrawals has caused a stampede to HMRC's phone lines.

As many as one million people are believed to have called HMRC last Wednesday week, leaving the lines engaged throughout the day.

The Telegraph reports that people who telephoned were forced to spend 10 minutes navigating the options menus before being cut off because the waiting time was deemed "too long".

Instead a recorded voice advised savers who were worried about the tax implications of withdrawing their pensions to call Pension Wise, the Government's new general information service.That is fair enough, if the calls were about pension advice. However, if the calls related to the tax implications of a pension withdrawal then that is another matter.

That being said, HMRC were of the view the calls were simply down to the new tax year. A spokesman for HMRC said its phone lines were "very busy" because it was the start of a new tax year.


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"