Member Since: 16th Mar 2008
15th Oct 2021
In fairness, Costley-Wood was given 15 years exclusion from ICAEW and a ban on practising in insolvency for the same period.
24th May 2021
The system has also been released half baked. I've had non resident clients who had to use a paper return as they didn't have any of the requisites to set up online (e.g. UK mobile phone, UK bank account, UK address, UK passport etc). I've had UK clients have to do paper returns, including one of a husband and wife where the same taxpayer successfully registered for one of the couple but spent hours trying the other one, including on the phone to HMRC, in vain, and was eventually told to do it on paper. I've had a person dealt with by Cardiff (non online filer) who i called and who had never heard of it, then called me back and told me to write them a letter and they'd manually assess the tax. And of course, it is not possible for executors to appoint agents to file online, so whenever we do one for an estate that also needs to be sent on paper. And now there are reports of calculation errors if taxpayers file returns in successive years and of overpayments not being able to be offset against income tax payable for the same year. Perhaps most frustrating, though, is why the filing can't be done via API rather than a web service. I'm sure that a few years ago HMRC adopted a policy of API services. We'd then have the gains pre-populated in our tax software instead of making an online real time report then transcribing it into tax software for year end returns. All rather frustrating.
9th Dec 2020
I agree. For 'breathtaking incompetence' read surprisingly modest level of human error.
16th Sep 2020
The headache I've found is that when you want to do this on behalf of a client they need to register their PTA and then register for 30 day CGT, enduring Neil's experience. Then give us the reference number, and we then send them a link to click (which itself is perverse - IT security which starts with an e mailed link which you click on and then enter your credentials) so as to authorise us. I reckon about 50% the cost of one of these returns is talking the client through that process and getting the authority in place. As Neil says, the interface once you're in is surprisingly workable.
What is really called for is an API alternative so we can file through our existing tax return software, pre-populating the following year's tax return as we go.
Seems HMRC's policy of agents able to do whatever taxpayers can do as a matter of course continues to be an ambition and not a reality.
Still better than the TRS update service though. . .
19th Jun 2020
Well said Imprudent Accountant. If you're not challenging this behaviour, you're condoning it. And whether you like it or not that makes you part of the problem.
29th Jan 2020
This is the problem with HMRC taxing by concession rather than in accordance with the strict application of the legislation. Entrepreneurs Relief following a s.135 style reconstruction is a case in point - they infer in their guidance that they'll treat the old and new companies as one and the same, but if a belligerent inspector decides to take the point, that's not what the legislation says and the taxpayers ends up trying to argue in front of the Tribunal based on legitimate expectation or similar. It's why the ESCs were supposed to be being either enacted or scrapped. That process started many years ago, but there seem still to be many in place.
9th Dec 2019
"The Respondents asserted that the Appellant’s lifestyle could not be supported by this employment income alone. The officer asserted that the Appellant had part-funded the purchase of a house in the Caribbean in 2006 for $770,000, held in the name of his partner, and that historically he had regularly paid large credit card bills which exceeded his apparent income".
The write up also names his employer, which is a pub company which he owned half the shares in until shortly before this began and in which he was a director until the same time. At around the time HMRC started looking into his affairs he transferred his 50% to the other shareholder (his "partner"?) and resigned as a director.
A director of his own company taking an £8k salary - sounds about right. Director shareholder not filing a tax return for 15 years?
So whilst HMRC haven't got any concrete evidence of missing tax, they do seem to be exploring the right kind of avenues on a risk assessed basis.
2nd Dec 2019
"We found Mr Quarm to be a deeply unsatisfactory witness who was willing to say whatever he thought would assist the Appellant’s case regardless of whether it was true or not"
Yep, hard not to conclude that he entirely fabricated that lot.
21st Oct 2019
Is operating a cricket ground a business? err, yeah. Obviously. Just imagine the number of HMRC inspectors and solicitors this must have passed through before being put in front of a barrister and taken to tribunal. The taxpayer would have a decent shout at going either for an unusual FTT cost award or else pursuing recompense from HMRC on the basis they were not operating in line with their LSS by taking such an unreasonable argument.
28th Aug 2018
Anyone else find it odd why he created the false invoices and then admitted it?
At phase 1, you just file 9 VAT figures - no need for invoices
At phase 2 (enquiry), you provide some backup to the figures - no invoices needed
At phase 3 (enquiry ask for supporting papers) you need the invoices. Yet as soon as he got to the point of needing the invoices, he quickly admitted they were falsified. He could have got to the same point with no invoices and then just admitted there were no invoices.
Seems odd to go to the trouble of the 'deliberate' and the 'concealment' (to use HMRC parlance), and then to fold.