Friday 30 January 2009

IT Issues

It Issues
The House of Commons Treasury Select Committee has noted that the number of "open" tax cases was "5.7 million in excess of the HMRC's own target of 10.5 million by the end of 2007–08."

It noted that HMRC has 16.2 million tax cases open, because HMRC's IT systems are unable to cope and clerical intervention is required.

Given this appalling IT situation, how is everyone getting along filing their online tax returns (deadline tomorrow)?

HMRC says it is "very confident" the system will not collapse before the midnight deadline.

No worries!

Tax does have to be taxing.

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 29 January 2009

It's Official - HMRC Is Shite II

Shite
Nice to see that this story is not buried:)

Odd that HMRC have not responded to the report.

Tax does have to be taxing.

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 28 January 2009

It's Official - HMRC Is Shite

WTF
The Treasury - First Report

Administration and expenditure of the Chancellor's departments, 2007-08

Published January 2009

Indicates that Parliament also believes that HMRC is shite:

"We are disappointed that HRMC took 12 months to replace its Chief Executive, thereby deepening the uncertainty felt by staff members already part way through a far reaching review of HMRC's operations. We recommend that the Government ensure a full permanent senior management team is in place in HMRC as soon as possible..

We believe that having a 'Permanent Secretary for Tax' alongside the Chief Executive and Chairman of HMRC may obscure clear lines of accountability. We recommend that HMRC publish and widely circulate clear information on the respective responsibilities of its senior management team, including responsibility for data management...

It is our view that HMRC's explanation of the basis for the payment to Stuart Cruickshank is wholly inadequate. We are further unconvinced that the £88,125 received by Stuart Cruickshank represents good value for the taxpayer. We recommend that the Government ensure that all departments are adhering to best practice regarding ex-gratia payments...

We note the National Audit Office's assertion that, in order to maximise the benefits of its Transformation Programme, HMRC must convince staff of its benefits. The low levels of morale within the Department are startling with profound potential impacts on both the Transformation Programme and core service delivery. We will continue to monitor the efforts made by senior management to improve matters. We seek an explanation of how Ministers will monitor and report progress...

We are concerned that individuals without access to the internet, notably less well off or elderly taxpayers, may face increased levels of non-filing penalty charges following the revision to the paper filing deadline. We recommend that the Government should publish any analysis available to it of the demographic profile of those facing non-filing fees following the 31 October paper filing deadline. If such evidence is not available to the Government then it should be commissioned as a matter of urgency...

We recommend that HMRC disclose information regarding the financial case for individual office closures in order to allow better public scrutiny of these decisions...

We ask the Government to update the latest progress made by HMRC against Kieran Poynter's recommendations regarding information security...

We are extremely concerned by the level of fraud within HMRC. We will continue to monitor the steps taken to improve controls...

We recommend that the Government ensure the performance against agreed targets by PFI contractors is published within Departmental Annual Reports in order to enable clearer scrutiny of these recipients of public funds...

We recommend that HMRC reviews the contracts with its IT provider in the light of the very serious errors which have recently occurred and seeks financial compensation where appropriate. We regard it as wholly unsatisfactory that people entitled to Child Trust Fund payments should not have received them owing to the poor performance of an IT contractor. We seek assurances that the contracts drawn up with the PFI companies adequately allow for appropriate compensation to the taxpayer in the event of serious performance shortcomings...

We note that the introduction of HMRC's new IT system has been delayed by a year. We accept that postponing the 'go live' date until testing is complete is prudent. HMRC should publish the performance targets for the new system in terms of reduced open cases and other measures so that we may better monitor its effectiveness.
"

Tax does have to be taxing.

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 27 January 2009

One Rule For HMRC

One Rule For HMRC
I am pleased to see that HMRC have finally decided to cut their interest rates, in response to the ongoing cuts in UK base rates.

The rate that HMRC charges tardy taxpayers has been reduced from 4.5% to 3.5%.

Unfortunately, as with many matters related to HMRC, there is one small fly in their oinkment. Up until now, where tax had been overpaid, HMRC paid 0.75% on the overpaid amount.

Can you guess what they will pay now?

Yes, that's right:

ZILCH!

One rule for HMRC, another for the taxpayer.

Tax does have to be taxing.

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 26 January 2009

Another Software Glitch II

Another Software Glitch II
This certainly seems to be the time of the year when all of the glitches in HMRC's online filing system are being uncovered.

One hapless online filer wrote to me to tell me of the difficulties he has experienced wrt entering losses from previous years.

Seemingly, if you wish to enter losses carried forward from previous years which are greater than your profits this year, the system does not allow you to do so and gives you and error message.

On calling the technical help desk my correspondent was told that it was impossible to put the losses from previous years into any box on-line, because the system had a bug.

The losses need to be entered into a "Further Information" box.

What is the point of an on-line system if it does not process the entries automatically, and takes longer complete than the manual forms system?

Tax does have to be taxing.

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 23 January 2009

Still Broken

Still Broken
HM Revenue & Customs (HMRC) is still trying to fix a problem with its online tax filing system, three days after first becoming aware of it.

HMRC, several days ago, admitted that the system for self-assessed taxpayers was still inviting users to pay their tax via a change to next year's tax code.

The BBC note that a senior management meeting will be held by HMRC to try to fix it.

Surely there is a suitably qualified IT specialist within HMRC who can simply alter the coding?

Tax does have to be taxing.

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 21 January 2009

Another Software Glitch

Another Software Glitch
Oh dear, it seems that there is a glitch in the HMRC online filing system.

The system allows taxpayers ask for any tax owed for 2007-08 to be paid via their new PAYE tax code for 2009-10.

However this option, for tax of up to £2K, ceased to exist from 30 December 2008.

HMRC told the BBC:

"This option should be unavailable but it is presently available."

The glitch does not seem to appear on commercial tax filing software.

How is it that the commercial software providers managed to get it right, but HMRC couldn't?

Tax does have to be taxing.

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 20 January 2009

Secret Address - Follow Up

Secret Address
Last October I wrote about the problems that the post office were having recognising HMRC's new postcode (BX5 5AT) used for VAT returns.

Accountancy have followed this up, in their January edition, and note that that HMRC postcodes are not on the "postal address file because they are non geographic postcodes".

HMRC then went on to tell Accountancy that this is not a problem, and even if it was a problem "the responsibility lies with the post office".

So that's alright then!

Hopefully no one has been classified as "filing late", because of delays caused by this non geographic postcode.

Tax does have to be taxing.

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 19 January 2009

Tax Credit Deadline

Tax Credit Deadline
Parents or guardians who failed to claim Children's Tax Credit relief in 2002-03 have until 31 January to make a claim or lose the relief.

Do not waste money on using a "collection agent" (who will charge commission), but make the claim direct to HMRC.

Tax does have to be taxing.

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 16 January 2009

Reckless Disregard

Reckless DisregardAn ombudsman has ruled that HM Revenue and Customs showed "reckless disregard" for an Aberdeen businessman who claimed he was wrongly declared bankrupt.

Source BBC.

Ms Abraham, the Parliamentary and Health Service Ombudsman, declared:

"It appears that HMRC's actions were motivated more by a desire to defend their position than by any recognition of the serious injustice suffered by Mr Fowler.

HMRC pursued Mr Fowler with a reckless disregard for his rights and the consequences of their actions – consequences Mr Fowler has had to live with for five years.

Post sequestration, HMRC's actions could legitimately be described as self serving and mean spirited. In their desire to defend their own position, HMRC completely lost sight of the devastating impact that their mistake had had on Mr Fowler.

They neither apologised to him, nor gave any thought to remedying the situation. That is not the standard of behaviour I would expect to see from a government department
."

The report continues:

"Any competent check of HMRC's computer system would have identified that the debt had been paid, yet no action appears to have been taken.

These were very serious failings. It is entirely unacceptable HMRC set the process in train and then, in effect, absented themselves.

Given the gravity of the situation, the almost total lack of care exhibited by HMRC is indefensible and this fact needs to be recognised by them. It appears that HMRC's actions were motivated more by a desire to defend their position than by any recognition of the serious injustice suffered by Mr Fowler
."

Source The Scotsman.

How wise is it to grant HMRC more powers?

Tax does have to be taxing.

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 15 January 2009

New CIO Sought

CIO Sought
HMRC is advertising for a new Chief Information Officer (CIO), at £180,000 per annum.

The CIO will be responsible for 1,400 staff, and a budget of £1BN. The successful applicant will oversee the overhaul of HMRC's IT systems and security, and rationalise HMRC's 650 computer systems that cover Paye, National Insurance, child benefit and tax credits etc.

The CIO will also oversee the £2.8BN Aspire (Acquiring Strategic Partners for the Inland Revenue) IT services contract with Capgemini.

Good luck to whoever wins the role.

Is £180K enough for such a Herculean task?

Tax does have to be taxing.

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 14 January 2009

Postal Backlog

Postal Backlog
It would seem that, if this letter published in today's Telegraph is correct, there is a massive backlog of letters at HMRC:

"I therefore telephoned (on a premium-rate number) on December 19 and was informed that, due to a large workload, letters dated October had not yet been dealt with and there was no guarantee that I should receive a reply before the end of January...."

I wonder if the restructuring (ie job cuts) has been properly thought through?

Clearly it benefits no one if there are insufficient staff and resources to handle the basics (such as correspondence).

Tax does have to be taxing.

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 13 January 2009

Deadline Looming

Deadline Looming
Those of you who have yet to file your tax return (paper ones needed to be in by October 31 2008) will need to do so online by 31 January (or face a £100 fine).

However, be warned, if this is the first time that you have filed online you will need a password to do so.

Here is the subtle problem with obtaining a password, they can take up to a week to obtain.

You have been warned!

Tax does have to be taxing.

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 12 January 2009

HMRC Reported To ASA

Porkies
Peter Clare, an ex tax inspector, has lodged an official complaint to the Advertising Standards Authority about HMRC's TV advert featuring Moira Stuart and the Jan 31st Self Assessment deadline.

He is quoted:

"We are told in deadpan tone to complete our tax return AND pay our tax by this date or we will get a £100 fine. This is absolutely not true.

The £100 fine is for not sending in a tax return when requested, and even then this should be rescinded if there is no tax to pay.

It has nothing to do with the tax due, although of course, this has to be paid
."

Tax does have to be taxing.

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 9 January 2009

The Joys of Filing Online



Tax does have to be taxing.

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 7 January 2009

Gone Phishing

Gone Phishing
Those of you who file your tax returns online, or who have received emails from an organisation claiming to be "HMRC", need to be aware that there is in fact a fake HMRC website in cyberspace that has been set up to "phish" bank details from the unwary.

The fake site uses the same graphics, fonts and styling as HMRC's site and gathers web users' names, addresses and credit card details.

The fake then redirects people to the real HMRC website.

The "phishing" emails claim that HMRC has conducted a review of the person's tax affairs, and has found that they are due a rebate of £70.

Under no circumstances reply to these emails, or click on the link.

HMRC will never send emails telling you that you have a rebate inviting you to verify your bank details on line.

Tax does have to be taxing.

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"

The Death of Ambition?

The Death of Ambition?
I would very much appreciate having some more background on the possible "sad" demise of "Ambition" within HMRC, and the creation of "Vision":

"HMRC's Ambition (like that of many of its staff disillusioned with the never ending stream of distracting initiatives - Pacesetter being public enemy number one) is no more.

We now have the HMRC Vision which was conceived (allegedly) for a mere six figure sum. I presume this is due to it having two fewer letters
!"

In the event that "Ambition" has died, I would guess that few taxpayers may be asking why £1.5M was spent on coming up with the word less than two years ago.

Tax does have to be taxing.

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 6 January 2009

Board Appointments

BoardThe announcement by HMRC yesterday of the appointment four new non executive directors brings a wealth of experience to the board.

Colin Cobain was Chief Information Officer of Tesco and had been voted CIO of the Year.

Philippa Hird was, until recently, Group Human Resources Director of ITV.

Dame Sue Street played a vital part in winning the 2012 London Olympics bid.

The Cabinet Secretary, Sir Gus O'Donnell, said:

"Sue Street has steered the DCMS through some very challenging times, positioning the department at the heart of Government, maximising links with the creative economy and culminating in the Olympic bid last year.

That success, and her leadership since, has seen Britain get off to a flying start as the host nation for the Olympics in 2012
."

Factoid - the budget for the Olympics was originally under £3BN, it now stands at £12BN (including £2BN running costs).

Phil Hodkinson was group Finance Director of HBOS, until he retired at 50 in 2008. HBOS was bailed out by the government last year.

HBOS, according to The Times, could be "hollowed out" by its takeover partner Lloyds TSB.

I note that HMRC state the following:

"As Non-Executive Directors for HMRC they are bound by the rules on avoiding conflicts of interest as set out in HMRC guidance. This means they have to take all possible steps to protect themselves and the Department from allegations or perceptions of impropriety.

As chairman of HMRC, Mike Clasper will work with the Non-Executive Directors to help them avoid conflicts of interest, and he will take steps to ensure that they will not be involved in issues affecting an individual tax payer or groups of tax payers
."

I also note that:

"Phil Hodkinson is currently an external adviser to the HMRC Senior Management Team and the Audit Committee. He has supported the department in the wake of the data loss and implementation of the Capability Review..."

Do my eyes deceive me, or is that not a conflict of interest that kind of involves issues affecting tax payers?

How will Clasper square that one then?

HMRC don't really get this Corporate Governance malarkey do they?

Tax does have to be taxing.

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 5 January 2009

Wobbly Framework

Wobbly Framework
It seems that there are errors within the government's "frameworks" database. This is used by departments such as the Treasury and HMRC to provide basic details about individuals eg name, address, date of birth and NI number.

Around 3.5M errors have been identified within the database, after Justine Greening MP raised concerns from one of her constituents about erroneous changes to her records on the database. HMRC incorrectly changed the constituent's registered address without her authorisation, and illegally sent out her PAYE information to a third party.

Greening states that the Treasury, when the matter was raised, was somewhat vague about the process for changing records.

The "good" news is that Labour are in love with databases and wish to set up an id card scheme, ie they wish to create ever more complex and unwieldy databases, giving them ample opportunity to multiply the number of errors.

Garbage in - garbage out.

Tax does have to be taxing.

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"