Lets be honest. For years many organisations have utilised the services of "self employed" contractors working on a week by week basis. In many cases the only customer the contractor has is the aforementioned organisation. Because the contractor issues a daily/weekly/monthly invoice, no employer NI arises. Net result the organisations labour costs are reduced by 10% or more and all the protections under PAYE are avoided. The reality of the situation is the contractor is effectively an employee and should be dealt with on this basis. Its a long term scam HMRC are aware of and trying to resolve in their usual clumsy and complicated manner. Simple solution, the contractor has employer NI deducted at source by the customer unless they contractor satisfy HMRC they are an independent provider of goods or services. That done, the contractor is registered as such and provides evidence to their customer thus avoiding the deduction of employer NI at source. I wonder how many of our current MP`s non parliamentary earnings would attract employer NI if the system was simplified[?]
HMRC & digital disclosure
As we all know, as and when HMRC introduce DDS it won`t be user friendly to the non professional, it will probably result in more errors by HMRC and eventually we accountants will be called upon to undertake the follow up appeals and corrections.
If HMRC are really trying to help the SME reduce accountancy costs why not increase the competency and number of staff on the helplines.
No doubt some bespoke software company will make a fortune selling this DDS package to HMRC.
It seems we have a consensus. HMRC appoints employees and applies strategies which appear to ignore the operationl needs of SME`s and the self employed.
With over 30 years experience managing the financial affairs of the "small business", If the new appointee wants to make contact with me I am more than happy to tell him what really goes on in the SME world and the inept performance of HMRC, both recent and historic
Yet another member of the "civil servant" fraternity appointed to a senior position.
when will govt realize that in order to resolve the issues with HMRC [i.e difficulty of contact and speed of communication] you need somebody who has not spent his time in the " ivory towers" of Whitehall.
with regard to the recent PAC comments on HMRC`s performance, hopefully the new appointee`s background will result in better deals being stuck with the likes of Google than his predecessor.
sorry, I am not that optimistic anything will change until individuals from a commercial background, preferable SME`s, are appointed to these positions of control. At least these individuals have practical experience of where to look for the tax fiddles and avoiders.
Lilke most civil servants, her performance in the commercial world of small enterprises would have resulted in dismissal some time ago.
Whichever way you dress it up, its all about cost saving.
Basic inputting tasks may be OK to outsource and supervise from the UK. Any thing more involved and you run the risk of disappointing your clients
HMTC telephone performance
They set a target of 8 of 10 calls being answered? They actually achieved 6 of 10
In a commercial world customer service at 80% or less would result in the CEO`s replacement and or the company going out of business.
Its not just the instability of the RTI portal. The whole HMRC system of dealing with taxpayers is a joke
You have a problem and you want to have an intelligent and resolving conversation with someone named, including their telephone number, on a HMRC notice or communication.
Dial the number, listen to the normal flowery rubbish, and the ensure you have plenty of time for a long, long long...........wait. 30 mins plus and still no contact.
I have even written and followed up after three months because of the absence of any acknowledgement or reply.
I am honest and want to ensure any taxes I owe are properly accounted for and paid on due date. Heavens knows how much we are losing out from the more dishonest taxpayers.
The whole system needs to be reviewed and replaced by something that promotes direct communication,
I would be happy to offer my services to HMRC for free. I would resolve the problem within 3 months for a % of the tax recovered No recovery no fee.
HMRC debtor management
Based on my experience of communication with HMRC on other taxation matters, I am not surprised by their lack of success in collecting debt.
Successful debt collection is all about "verbal" communication, preferably face to face.
In my experience, verbal communication with HMRC is "difficult" to say the least. Continuous redirection to "helpline" numbers or the "website", is both frustrating and irritating. Most of the time you end up dealing with a"helpline" which cannot answer your specific enquiry.
I have been operating as an independent bookkeeper/accountant for over 20 years to the SME market. in my experience most SME owners need financial information in a format they can understand. Many accountants are primarily concerned with meeting the needs of HMRC or statutory accounting requirements. This defeats the primary objective of giving information to the management team which will assist them in identifying the strengths and weaknesses of the business.They can apply their skills and experience to improving business performance.The problem is often compounded by the purchase of "accounting software packages" which are set up without the guidance of an experienced bookkeeper or accountant. Many of theses software programs are databases with an accounting function bolted on the end. as with any profession, the role of the bookkeeper will change as new technologies become avaialable, but the fundamental skill provision of providing reliable, accurate and up to date financial information remains constant.