Friday 22 March 2024

HMRC Announces 60% Office Attendance


 

 

HMRC has recently confirmed a significant change in office attendance for its employees. Starting from 2nd April 2024, all grades within the organisation will be required to attend the office at least 60% of their working time. This move comes as part of the government's efforts to transition back to a more traditional office-based work environment.

You would have thought that they should already be in the office on a daily basis!

The 'Office Attendance Tool'

To facilitate this transition, HMRC is introducing the Office Attendance Tool. Here are some key points about how it works:

1. Automatic Data Gathering: The tool automatically collects data from various sources to determine where an employee is working. If an employee docks their computer at an office desk, it registers as a day of office attendance. Connecting via Government Wi-Fi does not create a report, but swiping into an office with a swipe card system also counts as attending the office.

2. Manager Access: Managers do not have access to specific timings for swiping in or docking computers. The system simply registers office days without providing detailed information on arrival or departure times.

Outstanding Concerns

Despite the implementation date being set for 2nd April, there are several outstanding concerns raised by employees and the Public and Commercial Services Union (PCS):

1. Office Capacity: Employees are worried about office capacity and whether there will be enough space to accommodate the increased attendance.

2. Travel Costs: Some employees may face additional travel costs due to increased office attendance.

3. Training: Concerns exist regarding the level of training provided to staff and managers on how the tool functions.

4. Functionality: The functionality of the Attendance Tool itself has been questioned, especially after access issues were reported during the initial rollout.

As I said, it rather beggars belief that staff are not already in the office 60% of the time!
Tax does have to be taxing.

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Wednesday 20 March 2024

HMRC's Helpline Debacle U Turn - Useless Wankers!


 

HMRC has recently been in the spotlight for all the wrong reasons. In a move that can only be described as a spectacular display of poor judgement, HMRC announced plans to make permanent cuts to its helplines, only to retract the proposal less than 24 hours later. This incident not only exposes a worrying lack of foresight within the organization but also raises serious concerns about its commitment to serving taxpayers.

A Reckless Proposal

The initial decision to cut helplines was nothing short of reckless. It demonstrated a complete disregard for the needs of taxpayers, particularly those who are less tech-savvy or grappling with complex tax issues. The backlash was immediate and intense, and rightly so. Yet, the speed at which HMRC backtracked on its decision suggests that they were woefully unprepared for the consequences of their actions.

A Damning U-Turn

The swift U-turn, while necessary, is a damning indictment of HMRC's decision-making process. It paints a picture of an organisation that is out of touch with the needs of its constituents and incapable of strategic planning. This incident has done significant damage to HMRC's credibility and has left many taxpayers questioning whether they can trust the organisation to make sound decisions in the future.

A Missed Opportunity

Instead of using this incident as an opportunity to reassess its approach and improve its services, HMRC has chosen to simply revert to the status quo. This is a missed opportunity. HMRC should be investing in its helplines, improving the quality of support provided, and ensuring that all taxpayers have access to the help they need.

Conclusion

HMRC's helpline cuts debacle is a stark reminder of the importance of effective decision-making within public organisations. It's clear that HMRC needs to do better. It needs to demonstrate that it understands the needs of taxpayers and is committed to providing them with the support they require. Anything less is simply unacceptable.

HMRC is being run by useless wankers!

Tax does have to be taxing.

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  • Appeal to the First-tier Tribunal or Upper Tribunal
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Tuesday 19 March 2024

HMRC Doesn't Give a Flying Fuck - Closes Helplines


 

HMRC has announced permanent cuts to its helpline services. While the department claims these changes are part of modernisation efforts, they raise significant concerns for taxpayers and professionals alike.

1. Self Assessment Phoneline Closure
The decision to permanently close the self assessment phoneline between April and September is a perplexing one. During these crucial months, taxpayers often seek assistance with complex queries related to their self assessment. By directing them solely to online services, HMRC risks leaving many in the lurch. Not everyone is comfortable navigating digital platforms, and the closure of the phoneline may exacerbate confusion and frustration.

2. VAT and PAYE Helpline Cuts
The permanent closure of the VAT helpline is particularly troubling. Businesses rely on this service for timely advice on VAT registration, compliance, and other critical matters. The abruptness of the closure—only five days' notice—shows a lack of consideration for taxpayers and agents. Furthermore, limiting the helpline to just five days a month adds unnecessary pressure during peak filing periods.

Similarly, the PAYE helpline's refusal to handle refund-related calls is baffling. Refunds are a fundamental aspect of tax administration, and taxpayers should be able to seek clarification without hurdles. Redirecting them to online resources may not always suffice, especially when specific scenarios require personalized assistance.

3. Lack of Transparency
HMRC's decision-making process lacks transparency. The inconclusive evaluation of the trial closure of the self assessment helpline during the summer months raises questions. Why make permanent changes without a thorough assessment of their impact? 

Taxpayers deserve clarity on how these decisions were reached and what evidence supports them.

 4. Impact on Accessibility
While HMRC emphasises self-service through online channels, it must recognise that not everyone has equal access. Some taxpayers lack reliable internet connectivity or struggle with digital literacy. The closure of helplines disproportionately affects vulnerable groups, including the elderly and those with limited technological resources.

5. Professional Concerns
Tax professionals, including the ICAEW Senior Technical Manager Caroline Miskin and CIOT President Gary Ashford, have expressed reservations. The VAT helpline closure may lead to high demand, long waiting times, and potential errors. HMRC's ability to provide adequate support is now in question.

Caroline Miskin:

“While HMRC has evaluated the trial to close the self assessment helpline during the summer months, it doesn’t plan to formally review it any further, even though the impact of this move on the accuracy of returns won’t be clear for some time.

Since restricting the self assessment helpline, HMRC has been quick to promote the fact that a record number of taxpayers met the self assessment deadline. However, more people also missed the deadline and some online services require significant improvement.”

CIOT president Gary Ashford: 

“We are deeply dismayed that, so soon after the criticisms levelled at them by the Public Accounts Committee, and in the light of an inconclusive evaluation, HMRC have decided to make these big, permanent cuts to the help they provide to taxpayers. If last year’s announcement of the summer closure of the Self-Assessment helpline was a ‘flashing indicator’ that HMRC can’t cope, today’s announcements are a blinding light.

HMRC’s own evaluation of both the closure of the helpline in summer 2023, and the helpline restrictions during the 2024 self-assessment peak, concluded that it is too early to say if there has been a long-term shift from phone contact to online self-service. Yet HMRC have decided to go ahead anyway."


Conclusion
HMRC's helpline cuts risk alienating taxpayers and undermining the department's core mission—to serve the public effectively. While modernisation is essential, it should not come at the expense of accessibility and quality service. Taxpayers deserve better, and HMRC must reevaluate its approach to helpline services.


Tax does have to be taxing.

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A Solar Protect policy will enable your accountant (your tax return agent) to:

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  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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Friday 15 March 2024

HMRC 's Missing Million - A Deep Dive into The Crisis


 

In recent news, it has been reported that nearly a million calls to His Majesty's Revenue and Customs (HMRC) were left unanswered in January. This alarming figure, worhty of some form of Rotten Tomato Award, has raised serious concerns about the efficiency and effectiveness of the tax authority's customer service.

The Current Situation

HMRC, responsible for the collection of taxes and the implementation of other regulatory regimes in the UK, has been under fire for its poor customer service. In January alone, 841,945 calls were not handled, leaving taxpayers struggling to get the help they needed. This issue was particularly problematic as January is the deadline for self-assessment tax returns.

The average wait time to speak to a tax adviser exceeded 25 minutes for the first time ever, with some waiting much longer. This has led to a significant number of taxpayers hanging up before their call is answered.

The Impact on Taxpayers

The implications of this situation are far-reaching. Taxpayers are battling to speak with advisers, and the record-high wait times are causing significant stress and inconvenience.

Moreover, the inability to get through to HMRC could potentially lead to mistakes on tax returns, which could result in fines or investigations. This is particularly concerning for individuals and small businesses who may not have ready access to tax advisers.

Looking Forward

HMRC has acknowledged the issue and has taken steps to improve its service. However, these efforts need to be ramped up to ensure that taxpayers can access the help they need in a timely manner.

It is crucial for HMRC to invest in its customer service capabilities, not only to improve wait times but also to ensure that the advisers at the other end are competent and can provide accurate information.

It is essential for the tax authority to address this issue promptly and effectively to maintain public trust and ensure the smooth functioning of the tax system.


Tax does have to be taxing.

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A Solar Protect policy will enable your accountant (your tax return agent) to:

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  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

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Thursday 29 February 2024

Will HMRC Look Into Rayner's Tax Affairs?


 

Genuine question, what do you think will HMRC look into her tax affairs?

Private Residence Relief

You do not pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:

  • you have one home and you’ve lived in it as your main home for all the time you’ve owned it
  • you have not let part of it out - this does not include having a lodger
  • you have not used a part of your home exclusively for business purposes (using a room as a temporary or occasional office does not count as exclusive business use)
  • the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total
  • you did not buy it just to make a gain

If all these apply you will automatically get a tax relief called Private Residence Relief and will have no tax to pay. If any of them apply, you may have some tax to pay.

Find out if you’re eligible for Private Residence Relief.

Married couples and civil partners can only count one property as their main home at any one time.

The rules are different if you sell property that’s not your home or if you live abroad.



Tax does have to be taxing.

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Tax Investigation Insurance is an insurance policy that will fully reimburse your accountant's (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your accountant (your tax return agent) to:

  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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Wednesday 28 February 2024

HMRC Customer Service Hits All-Time Low



In a disheartening revelation, the Public Accounts Committee (PAC) has sounded the alarm bells over the dismal state of customer service at His Majesty's Revenue & Customs (HMRC). The tax authority's service levels have persistently declined over the past five years, leaving taxpayers frustrated and exasperated.
 

A Five-Year Downward Spiral

The PAC's latest report, published today, paints a grim picture. Despite record-high tax revenues reaching £814.0 billion in 2022-23, HMRC's performance has fallen short. Here are the key findings:

1. Service Levels Plummet: Customer service levels at HMRC have hit an all-time low. Callers faced agonizing wait times, with 62.7% waiting more than 10 minutes to speak to an adviser in 2022-23, up from 46.3% the previous year.

2. Resource Crunch: HMRC claims it lacks the resources to meet rising demand for phone and post services. Instead, it directs callers to digital channels, insisting they are of good quality. However, taxpayers and their agents have vehemently disagreed, citing frustrating experiences.

3. Tax Complexity: With the taxpayer population growing and tax affairs becoming increasingly complex, HMRC appears to be struggling to cope. The twin challenges of managing more taxpayers and intricate tax matters have stretched the organization thin.

4. Compliance Gap: HMRC fell £2 billion short of its £36 billion target for compliance yield (additional revenue saved due to HMRC's intervention) in 2022-23. This shortfall is concerning, especially given the record tax revenues.

5. Criminal Prosecutions Decline: The number of criminal prosecutions by HMRC has significantly dropped—from 691 in 2019-20 to a mere 240 in 2022-23. While HMRC claims selectivity in using its criminal investigation powers, the PAC worries that fewer prosecutions send the wrong message.

6. IR35 Rules Under Scrutiny: The PAC also examined HMRC's approach to the IR35 rules on off-payroll working. Concerns were raised that this approach might discourage legitimate economic activity and deter companies from using contractors.

Chair's Comment

Dame Meg Hillier MP, Chair of the Committee, expressed her disappointment: 

"Almost eight years have passed since our Committee challenged HMRC over its telephone lines' holding message being one of the most streamed pieces of music in the country. Our latest report into its performance sadly illustrates a continued tale of decline in its services."


As taxpayers continue to grapple with HMRC's service woes, urgent action is needed to restore confidence and efficiency. The PAC's recommendations aim to bridge the gap and ensure that taxpayers receive the service they deserve. 


Read the full report here .

Tax does have to be taxing.

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Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountant's (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your accountant (your tax return agent) to:

  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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"