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9am Lowdown
AccountingWEB

9am Lowdown: HMRC sends out ‘threatening’ texts

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15th Sep 2016
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Good morning and welcome to today’s lowdown which features HMRC text messages, Hinckley Point and the latest in our Meet The Client video series.

 

HMRC sends out ‘threatening’ texts

HMRC has started sending out “threatening” SMS text message warnings to taxpayers warning that they are being “monitored” to ensure they pay on time.

According to a report in The Telegraph more than 13,000 taxpayers in self assessment have taken part in trials which has seen them sent messages to remind them to pay tax on time.

The Behavioural Insights Team, or ‘nudge’ unit which is 30% owned by the government, has sent out three types of message for taxpayers who had previously been contacted by HMRC about their debt.

The team said the standard SMS message alerted the recipient to the debt and told them how to pay, while the monitoring message pointed out that the Revenue would be monitoring whether the debt was paid in the following week. The final penalties message included the phrase: “Most people pay on time to avoid penalties.”

The standard message increased payment by 2.3 percentage points while the monitoring message raised payment rates by 3.8 percentage points, and the penalties message by 7 percentage points.

Anita Monteith, senior tax policy adviser at the ICAEW said ordinary taxpayers could become needlessly alarmed by the messages: “People are always scared when they receive a message from HMRC – even the nice ones. Certainly anything threatening would not be acceptable.”

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Go-ahead for ‘revised’ Hinkley Point plant

The government has given the go-ahead for the proposed £18bn nuclear power station at Hinkley Point following a revised agreement with EDF.

A new legal framework will be introduced following approval for Europe’s biggest energy project, reports the FT.

PM Theresa May put the project on hold back in July to assess concerns over cost, technology and investors.

May has now concluded that Hinkley is crucial to keeping the lights on and reducing carbon emissions as old power stations are phased out.

Under the new framework, the UK will take a special share in all future nuclear new build projects, which the government said will ensure significant stakes cannot be sold without its consent.

* * *

Meet the client: McArthur Davies Marketing

As part of a project with Receipt Bank and its customers, AccountingWEB is delving into the activities and issues faced by a trio of small UK businesses over the summer.

This second report in the series presents the business aspirations and challenges of McArthur Davies Marketing in Bristol.

As with the previous edition on Deluxe Hospitality Group, each introductory article is accompanied by a short video profile, and a companion article setting out the compliance and tax issues in more detail.

A further case study is in the pipeline with a construction business.

Here’s the video

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Replies (3)

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By rememberscarborough
15th Sep 2016 12:46

Given that HMRC have just sent out another "nowty" generic email about our CIS return when they know it's their IT mistake I'll take any communication from HMRC with an exceptionally large pinch of salt....

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By taxbakbristol
15th Sep 2016 13:57

Will Behavioural Misfits design a text for me please to warn HMRC that my letters are 1 month , 2 months , 3 months overdue please.

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By gordo
15th Sep 2016 14:03

Why does the article mention that Behavioural Insights Limited is 30% owned by the Government but doesn't mention who owns the other 70%? Why does the article not mention that it is part owned by an EBT!!

This company, Behavioural Insights Ltd, managed £4.8 million Turnover in it's first year of trading and £1.8 million profits. Not bad for a start-up. Who were it's customers, me and you in the guise of government departments and quangos including HMRC. Who benefits from the £1.8 million in profits (from it's first year of trading)? What does it do? It helps you and I to make better decisions for ourselves because apparently we are not very good at that, so we need 'choice architects' to 'nudge' us in the direction that they (the government) want us to think and act. Big Brother has arrived. I think I will change my moniker to Winston Smith.

This is all about the money. The Government is desperate and bankrupt. Do you think it is any coincidence that HMRC recently changed it's stated objectives from collecting the right amount of tax, to "maximising revenues" https://www.gov.uk/government/organisations/hm-revenue-customs/about#pri...

If you and I set our objectives as maximising revenues, how would that have a bearing on our behaviour?
If HMRC has objectives to maximise revenues, how then can they be trusted to be fair and reasonable with taxpayers (whom they call customers)?

Are the Behavioural Insights team involved in 100% fines for tax advisers and sending threatening letters and texts to taxpayers (customers)? You bet they are. Accountants would only get in the road by standing up for their clients rights.

Time to go back and re-read 1984 to figure out what else they are up to.

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