HMRC need to get their house in order
I thought the most frustrating thing about the Panorama programme this week was HMRC's refusal to appear and my take on this is that they just do not care.
Last year I wrote to David Gauke and George expressing my frustration with HMRC and the fact that it was a false economy getting rid of trained staff and replacing them with call centre staff who know very little about tax (not their fault). I provided them with many (no named) examples of situations where taxpayers had submitted employment expenses claims for exam fees, courses, new computer etc etc. These claims had merely been processed and incorrect refunds issued to the taxpayer. I made the point that in the few examples I had given, the refunds amounted to several £000's and they could no doubt multiply this by however many. The point being that they need to get their own house in order and collect the right amount of tax.
I eventually got a reply saying thanks for my letter and HMRC will aim to do better - 1 paragraph!! In order words we do not care.
Over the last few months I have also encountered several occassions when clients have historical earnings over £150k and have been given the tax-free personal allowance in their 12/13 PAYE coding notices. This is despite the PA not being in the 11/12 codes and the 10/11 tax returns showing income >£150k. When I expressed my concerns as to how this could possibly arise - oh it must be a computer error!! Also there are not coding notices on the agent gateway half the time so there are clearly computer issues.
Whilst the tax will be paid by via the 12/13 tax return, my point is this will not be until Jan 14 so UK Plc cash flow is suffering and we are borrowing the money to fund this. Also what about when taxpayers leave the UK in this situation. The tax will never been seen again.
My view of HMRC is that they do not care a jot. From the points raised above to the billions of pounds written off following incorrect tax credit awards. They need to get their own house in order. they would not need all these headline grabbibg 'TASK FORCEs' if they got the basics right.
Yes a bit of a rant but maybe if we get the basics right the coffers might be a little fuller.
- Cash in Hand 20 1
- Buy to let and capitak gain 121 4
- Busines software 110 5
- Goods Purchased for Rental 174 6
- Converting a barn for business use 179 2
- Sale of house with planning permission - tax free? 299 4
- Flat rate Vat Scheme & Vat on wholesale production of Cakes and other deserts 302 12
- HMRC overreaching its powers -again against a small surveying firm? 461 10
- are receipts needed? 595 16
- Going to need a tax, insolvency and legal specialist I think 272 3
- Bookkeping software 709 7
- Clogged Losses 277 5
- Letting relief on property transferred to a spouse 256 9
- ideas for a bonus scheme for accountants 649 10
- Charge for use of credit card - permitted 308 7
- New Built in oven - allowable as repair? 258 4
- Accounting for Bank Loyalty Rewards? 119 1
- General tax book with planning 256 5
- Anybody heard of Geniac, the new De Lorean? 194 3
- tax on apprenticeship income 200 1
- Nil Rate Band Trust - index linked debt by way of charge over property 906
- International interest certificate 519
- NOVA 370
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 317
- Management expenses for investment company 272
- Bonus Bonds 264
- Entertainer withholding tax in Australia 180
- P11D benefit received by widow 158
- EXACT ONLINE 153
- Insolvency and whistle blowing 150