Those of you who "enjoy" paying tax should make an effort to watch this programme tonight:
The Secrets of The Taxman
The Secrets of The Taxman
Showing posts with label HMRC. Show all posts
Showing posts with label HMRC. Show all posts
Monday, July 9, 2012
Friday, December 11, 2009
The Pre Budget Report III
As predicted, Brown's and Darling's plans for a bankers' bonus tax (levied to divert attention from the 1% rise in National Insurance) is rapidly falling apart.
Both HMRC and the Treasury have been forced to admit that that the draft legislation on bank bonuses is poorly written, and will have to be revised in the New Year.
It seems, as ever with Labour's shoddy legislative drafting, that the net for this tax could be drawn very wide indeed (eg more than just "bankers").
HMRC are stressing that asset management firms (including those owned by banks), hedge funds, investment advisers, private equity and family offices would not be hit by the tax.
However, no one believes them!
Both HMRC and the Treasury have been forced to admit that that the draft legislation on bank bonuses is poorly written, and will have to be revised in the New Year.
It seems, as ever with Labour's shoddy legislative drafting, that the net for this tax could be drawn very wide indeed (eg more than just "bankers").
HMRC are stressing that asset management firms (including those owned by banks), hedge funds, investment advisers, private equity and family offices would not be hit by the tax.
However, no one believes them!
Friday, November 20, 2009
Life Is Taxing
The Times reports that small businesses spent longer doing their taxes in 2008 than in 2007, despite Labour's promise to reduce red tape.
Small and medium-sized businesses in Britain spent on average an extra five hours working on their taxes, mainly because of the temporary cut in VAT in December last year. The total number of hours spent filling in tax returns rose to a record average of 110, up from 105 in September, according to a report by the World Bank and PricewaterhouseCoopers.
Britain slipped from 24th to 25th in the rankings of 183 countries for the least number of hours spent on taxes.
Will the government ease the administrative and tax burden?
No!
The increase in the PSBR means that the government will in fact increase taxes. Unfortunately, given that we are in the middle of a recession, this increase will only make matters worse.
Small and medium-sized businesses in Britain spent on average an extra five hours working on their taxes, mainly because of the temporary cut in VAT in December last year. The total number of hours spent filling in tax returns rose to a record average of 110, up from 105 in September, according to a report by the World Bank and PricewaterhouseCoopers.
Britain slipped from 24th to 25th in the rankings of 183 countries for the least number of hours spent on taxes.
Will the government ease the administrative and tax burden?
No!
The increase in the PSBR means that the government will in fact increase taxes. Unfortunately, given that we are in the middle of a recession, this increase will only make matters worse.
Wednesday, July 8, 2009
Tax Investigation Insurance - Taxwise
Professional Cover Against the Threat of Costly TAX & VAT Investigations
What is TAXWISE?
TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute. The Policy has been designed to combat the costs and inequities of undergoing the ever-increasing number of HM Revenue & Customs random investigations.
Taxwise Coverage
The standard cover provides representation costs by registered accounting practices on your behalf, for up to £75,000 in any one claim, arising from:
-Income Tax Self Assessment full enquiries
-Income Tax Self Assessment aspect enquiries (if this option is selected)
-Corporation Tax Self Assessment full enquiries
-Corporation Tax Self Assessment aspect enquiries (if this option is selected)
-H M Revenue & Customs VAT disputes
-Employer compliance disputes PAYE/ P11D/ NIC
-IR35 disputes
-Now covers business's with an annual turnover of up to £10 million
To find out more, please use this link Taxwise
What is TAXWISE?
TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute. The Policy has been designed to combat the costs and inequities of undergoing the ever-increasing number of HM Revenue & Customs random investigations.
Taxwise Coverage
The standard cover provides representation costs by registered accounting practices on your behalf, for up to £75,000 in any one claim, arising from:
-Income Tax Self Assessment full enquiries
-Income Tax Self Assessment aspect enquiries (if this option is selected)
-Corporation Tax Self Assessment full enquiries
-Corporation Tax Self Assessment aspect enquiries (if this option is selected)
-H M Revenue & Customs VAT disputes
-Employer compliance disputes PAYE/ P11D/ NIC
-IR35 disputes
-Now covers business's with an annual turnover of up to £10 million
To find out more, please use this link Taxwise
Tuesday, June 9, 2009
Tax Investigation for Dummies
Tax Investigation for Dummies provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.
Click the link to find out more: Tax Investigation for Dummies
Wednesday, April 22, 2009
Budget Day
Today is Budget Day, Alastair Darling's big opportunity to show the country that he can steer us through the self inflicted recession despite the fact that Gordon Brown left him with precious little in the store cupboard.
The danger with all budgets is that they rely on out of date statistics and flawed forecasts. This point is best illustrated by the news reported in The Times that the IMF has screwed up:
"The International Monetary Fund (IMF) was facing a potentially huge embarrassment last night after it was forced to withdraw a claim that Britain faces a bill for almost £200 billion for the bank bailout.
The IMF retracted the figure correcting it to the original estimate of £130 billion."
There may be some comfort for Darling as he prepares to face parliament and the taxpayers, as HMRC report that the number of homes sold in the UK jumped by 40% in March from the previous month.
There were 60,000 property sales worth at least £40,000 each, compared with 43,000 in February.
As to whether this represents an ongoing trend or a one off blip, it remains to be seen.
Expect higher taxes, broken promises, flawed statistics, fanciful forecasts and "bigging up" rhetoric from Darling and Brown today.
Despite the fact large segment so the budget have already been leaked to a compliant media, the devil will of course be in the detail; which will only become apparent once the professionals have gone through the reams and reams of documents, relating to the budget, produced by the Treasury.
The danger with all budgets is that they rely on out of date statistics and flawed forecasts. This point is best illustrated by the news reported in The Times that the IMF has screwed up:
"The International Monetary Fund (IMF) was facing a potentially huge embarrassment last night after it was forced to withdraw a claim that Britain faces a bill for almost £200 billion for the bank bailout.
The IMF retracted the figure correcting it to the original estimate of £130 billion."
There may be some comfort for Darling as he prepares to face parliament and the taxpayers, as HMRC report that the number of homes sold in the UK jumped by 40% in March from the previous month.
There were 60,000 property sales worth at least £40,000 each, compared with 43,000 in February.
As to whether this represents an ongoing trend or a one off blip, it remains to be seen.
Expect higher taxes, broken promises, flawed statistics, fanciful forecasts and "bigging up" rhetoric from Darling and Brown today.
Despite the fact large segment so the budget have already been leaked to a compliant media, the devil will of course be in the detail; which will only become apparent once the professionals have gone through the reams and reams of documents, relating to the budget, produced by the Treasury.
Monday, December 10, 2007
HMRC Is Shite
I am proud to announce the birth of new website.
HMRC Is Shite
Anyone with any stories about HMRC, or who know people with stories about HMRC, please send them in.
Thanks.
Ken
HMRC Is Shite
Anyone with any stories about HMRC, or who know people with stories about HMRC, please send them in.
Thanks.
Ken
Thursday, November 22, 2007
HMRC's Staggering Incompetence II
It seems that our Prime Minister and Chancellor are not only guilty of setting up and running an incompetent organisation, but are also guilty of trying to blame a junior for the worse breach in security ever when in fact it was senior civil servants who were responsible.
Any government with such a cavalier attitude to security and the truth most certainly should not be entrusted with running the country.
The full story from The Independent is reproduced below:
The head of the National Audit Office, Sir John Bourn, locked horns with Her Majesty's Revenue and Customs and the Chancellor last night when he said the decision to post two computer discs containing the bank details of 7 million families was taken by senior HMRC officials and not, as Alistair Darling claimed, by a junior employee.
A public row broke out between the HMRC and the NAO over who was to blame for the blunder after Sir John launched a scathing attack on the former, saying high-ranking civil servants at the HMRC ordered the data – which the NAO had not requested – to be sent to his department. His comments contradicted Mr Darling's explanation to MPs on Tuesday.
The entire child benefit database was sent via internal mail by a junior official from HMRC in Washington, Tyne and Wear, to the NAO in London via courier TNT on 18 October.
Mr Darling said the civil servant broke the rules by downloading the data to computer disc and sending it by unrecorded delivery.
Edward Leigh, the Tory chairman of the Commons public accounts committee, said the NAO had asked only for basic details about child benefit recipients, without information on personal bank accounts, but was told by "high level" at the HMRC that it would be "too burdensome" to separate this data. He said he had been given a copy of a briefing note written by Sir John for the Chancellor, which suggested that senior HMRC officials authorised the release of the sensitive information.
The note says that the NAO requested data on child benefit claimants in a "desensitised" form, with bank accounts and other personal data removed, in March but an email from a senior business manager at HMRC stated that the data would not be desensitised.
Mr Leigh said the reason given for turning down the NAO's request was that desensitising information would require an extra payment to the HMRC data services provider EDS.
The disclosures will add weight to Tory claims that systemic failures at HMRC led to the worst loss of data in British history and cast doubts on the assurances by both Mr Darling and the Prime Minister that government bodies can be trusted to keep records safe.
It also raises suspicions that an office junior at the HMRC is being made a scapegoat for failures by more senior managers. That worker, who remains unnamed, was in hiding last night as the police search for the missing discs continued and the HMRC confirmed he was facing the sack. The man, who is understood to work in the IT department of the Child Benefit Agency, has been put up in a hotel with a minder to protect his identity as the clamour for his name to be published intensifies.
A spokeswoman for HMRC said: "His future is part of the investigation that is taking place. When that is completed disciplinary proceedings will follow. One of the outcomes of those proceedings is dismissal."
Senior civil servants are concerned that there should be no repeat of the public scrutiny and humiliation faced by Dr David Kelly, the government scientist who took his own life after he was exposed as a BBC journalist's source in the row over the "dodgy dossier" produced in the run-up to the Iraq war.
Mr Leigh's committee is launching an investigation into the lax data handling systems at the HMRC. It will summon Paul Gray, the department's former chairman who quit over the scandal on Tuesday, to answer MPs' questions.
Scotland Yard said officers from its specialist economic crime unit were helping to co-ordinate the investigation on Tyneside.A spokesman said: "Our inquiries will continue for the rest of the week."
It emerged yesterday that an almost identical breach rules governing the transfer of sensitive data took place in March. The NAO received discs from the Child Benefit Agency containing its full set of data on three occasions – yet none of its officials queried the decision to send out the data in an unfiltered form.
Any government with such a cavalier attitude to security and the truth most certainly should not be entrusted with running the country.
The full story from The Independent is reproduced below:
The head of the National Audit Office, Sir John Bourn, locked horns with Her Majesty's Revenue and Customs and the Chancellor last night when he said the decision to post two computer discs containing the bank details of 7 million families was taken by senior HMRC officials and not, as Alistair Darling claimed, by a junior employee.
A public row broke out between the HMRC and the NAO over who was to blame for the blunder after Sir John launched a scathing attack on the former, saying high-ranking civil servants at the HMRC ordered the data – which the NAO had not requested – to be sent to his department. His comments contradicted Mr Darling's explanation to MPs on Tuesday.
The entire child benefit database was sent via internal mail by a junior official from HMRC in Washington, Tyne and Wear, to the NAO in London via courier TNT on 18 October.
Mr Darling said the civil servant broke the rules by downloading the data to computer disc and sending it by unrecorded delivery.
Edward Leigh, the Tory chairman of the Commons public accounts committee, said the NAO had asked only for basic details about child benefit recipients, without information on personal bank accounts, but was told by "high level" at the HMRC that it would be "too burdensome" to separate this data. He said he had been given a copy of a briefing note written by Sir John for the Chancellor, which suggested that senior HMRC officials authorised the release of the sensitive information.
The note says that the NAO requested data on child benefit claimants in a "desensitised" form, with bank accounts and other personal data removed, in March but an email from a senior business manager at HMRC stated that the data would not be desensitised.
Mr Leigh said the reason given for turning down the NAO's request was that desensitising information would require an extra payment to the HMRC data services provider EDS.
The disclosures will add weight to Tory claims that systemic failures at HMRC led to the worst loss of data in British history and cast doubts on the assurances by both Mr Darling and the Prime Minister that government bodies can be trusted to keep records safe.
It also raises suspicions that an office junior at the HMRC is being made a scapegoat for failures by more senior managers. That worker, who remains unnamed, was in hiding last night as the police search for the missing discs continued and the HMRC confirmed he was facing the sack. The man, who is understood to work in the IT department of the Child Benefit Agency, has been put up in a hotel with a minder to protect his identity as the clamour for his name to be published intensifies.
A spokeswoman for HMRC said: "His future is part of the investigation that is taking place. When that is completed disciplinary proceedings will follow. One of the outcomes of those proceedings is dismissal."
Senior civil servants are concerned that there should be no repeat of the public scrutiny and humiliation faced by Dr David Kelly, the government scientist who took his own life after he was exposed as a BBC journalist's source in the row over the "dodgy dossier" produced in the run-up to the Iraq war.
Mr Leigh's committee is launching an investigation into the lax data handling systems at the HMRC. It will summon Paul Gray, the department's former chairman who quit over the scandal on Tuesday, to answer MPs' questions.
Scotland Yard said officers from its specialist economic crime unit were helping to co-ordinate the investigation on Tyneside.A spokesman said: "Our inquiries will continue for the rest of the week."
It emerged yesterday that an almost identical breach rules governing the transfer of sensitive data took place in March. The NAO received discs from the Child Benefit Agency containing its full set of data on three occasions – yet none of its officials queried the decision to send out the data in an unfiltered form.
Wednesday, November 21, 2007
HMRC's Staggering Incompetence
The HMRC and Treasury finds itself further in the mire today, as more details emerge about the colossal failures of security in respect of the loss of child benefit data.
Yesterday I wrote that 15 million people were affected, in fact the figure is a mind numbing 25 million.
The discs seemingly were only password protected, they should in fact have been encrypted. This means that the data will be very easy to access, and it is reasonable to assume that the underworld is now looking for these discs.
Security experts have lambasted HMRC for its incompetence.
Tom de Jongh, product manager at SafeBoot, said:
"Basic policies were ignored. It appears that the fundamental policies upon which the National Audit Office and HMRC operate are flawed and it is no wonder that this breach has occurred.
The Chancellor freely admits that NAO and HMRC broke clear procedures, but that will not reassure the millions of families that are praying their financial details don’t get into the wrong hands."
Brian Spector, general manager for content protection group at Workshare, said:
"It is staggering that an organisation responsible for the data of over 25 million child benefit claimants is still copying data onto CDs and not ensuring its full protection through encryption techniques.
It has never been acceptable for businesses or government departments to lose data, but in today’s information society, the flagrant disregard for the protection and security of this type of data is not acceptable.
The money invested in IT by the UK government must now be prioritised on security to ensure that the data of those the government serve – the public - is secure and protected."
Jamie Cowper, director of European marketing at PGP Corporation, said:
"These discs should never have been transported in the first place – information of this type should only be transmitted using the strongest security protocols available such as encrypted batch transfer – but more to the point, these details should not have been stored in this medium.
Discs are easy to lose, but difficult to protect. This type of information should only be stored on formats where the data can be encrypted transparently, so that it remains protected wherever it resides, and whether at rest or in motion."
An ex member of the HMRC spoke anonymously to the BBC:
"I wasn't surprised in the least when I heard the news. The problems with Child Benefit are only the tip of the iceberg.
Morale is non-existent. Mistakes happen continuously. Rooms full of unopened post are not uncommon.
Arbitrary individual hourly targets meant that people cut corners. It doesn't matter if you make mistakes because you won't be held accountable.
There is no trust between management and staff.
You are like a number. It is utterly demoralising.
I've spoken to some of my former colleagues about the Child Benefit blunder, and they are utterly apathetic. It's just one thing on top of another.
People hate it, but after 20 years or whatever they feel they can't get a job in the private sector.
Something like this was going to happen sooner or later."
The above is not only a damning indictment of HMRC but also an indictment that applies equally well to all other bodies in the public sector, and exposes the consequences of ten years of Brown's rule at the Treasury.
The damage he will do to the country as Prime Minister, were he to remain in office for that long, is mind boggling.
Yesterday I wrote that 15 million people were affected, in fact the figure is a mind numbing 25 million.
The discs seemingly were only password protected, they should in fact have been encrypted. This means that the data will be very easy to access, and it is reasonable to assume that the underworld is now looking for these discs.
Security experts have lambasted HMRC for its incompetence.
Tom de Jongh, product manager at SafeBoot, said:
"Basic policies were ignored. It appears that the fundamental policies upon which the National Audit Office and HMRC operate are flawed and it is no wonder that this breach has occurred.
The Chancellor freely admits that NAO and HMRC broke clear procedures, but that will not reassure the millions of families that are praying their financial details don’t get into the wrong hands."
Brian Spector, general manager for content protection group at Workshare, said:
"It is staggering that an organisation responsible for the data of over 25 million child benefit claimants is still copying data onto CDs and not ensuring its full protection through encryption techniques.
It has never been acceptable for businesses or government departments to lose data, but in today’s information society, the flagrant disregard for the protection and security of this type of data is not acceptable.
The money invested in IT by the UK government must now be prioritised on security to ensure that the data of those the government serve – the public - is secure and protected."
Jamie Cowper, director of European marketing at PGP Corporation, said:
"These discs should never have been transported in the first place – information of this type should only be transmitted using the strongest security protocols available such as encrypted batch transfer – but more to the point, these details should not have been stored in this medium.
Discs are easy to lose, but difficult to protect. This type of information should only be stored on formats where the data can be encrypted transparently, so that it remains protected wherever it resides, and whether at rest or in motion."
An ex member of the HMRC spoke anonymously to the BBC:
"I wasn't surprised in the least when I heard the news. The problems with Child Benefit are only the tip of the iceberg.
Morale is non-existent. Mistakes happen continuously. Rooms full of unopened post are not uncommon.
Arbitrary individual hourly targets meant that people cut corners. It doesn't matter if you make mistakes because you won't be held accountable.
There is no trust between management and staff.
You are like a number. It is utterly demoralising.
I've spoken to some of my former colleagues about the Child Benefit blunder, and they are utterly apathetic. It's just one thing on top of another.
People hate it, but after 20 years or whatever they feel they can't get a job in the private sector.
Something like this was going to happen sooner or later."
The above is not only a damning indictment of HMRC but also an indictment that applies equally well to all other bodies in the public sector, and exposes the consequences of ten years of Brown's rule at the Treasury.
The damage he will do to the country as Prime Minister, were he to remain in office for that long, is mind boggling.
Tuesday, November 20, 2007
HMRC Lose Data
Congratulations to HMRC who have succeeded in losing data relating to the child benefit records of 15 million people.
That's quite an achievement, even by HMRC standards of incompetence.
Chancellor Alistair Darling, who is having less than a pleasant week (what with the Northern Rock debacle etc), is making a statement to MPs.
The confidential details were contained on a computer disc, and is understood to have been lost in transit.
HMRC's chairman, Paul Gray, has resigned.
Seemingly the Treasury and government have known of this for the past ten days. One might ask why it is only now that they have chosen to share this knowledge with the rest of us.
The answer is simple, the news leaked.
Revenue and Customs claims that it does not think that the records (names, addresses, date of birth and bank accounts) have fallen into the wrong hands.
This statement is of course complete nonsense, given that they don't know where the records are. Quite why they assume that the public are so naive and gullible as to believe their reassurances is beyond me, and adds insult to injury.
The Metropolitan Police have confirmed they are "making inquiries" into the discs.
This is the same government that would have you believe that data stored on their beloved id cards would be safe in their hands!
That's quite an achievement, even by HMRC standards of incompetence.
Chancellor Alistair Darling, who is having less than a pleasant week (what with the Northern Rock debacle etc), is making a statement to MPs.
The confidential details were contained on a computer disc, and is understood to have been lost in transit.
HMRC's chairman, Paul Gray, has resigned.
Seemingly the Treasury and government have known of this for the past ten days. One might ask why it is only now that they have chosen to share this knowledge with the rest of us.
The answer is simple, the news leaked.
Revenue and Customs claims that it does not think that the records (names, addresses, date of birth and bank accounts) have fallen into the wrong hands.
This statement is of course complete nonsense, given that they don't know where the records are. Quite why they assume that the public are so naive and gullible as to believe their reassurances is beyond me, and adds insult to injury.
The Metropolitan Police have confirmed they are "making inquiries" into the discs.
This is the same government that would have you believe that data stored on their beloved id cards would be safe in their hands!
Tuesday, October 30, 2007
Taxpayers Can Sue HMRC
The court of appeal ruling in favour of Neil Martin a builder who lost £500K, as a result of errors made by HMRC when it processed his company's Construction Industry Scheme (CIS) application in 1999, leaves HMRC open to being sued by taxpayers for errors.
The ruling means that HMRC has a duty of care to taxpayers, and taxpayers may now sue HMRC for damages in certain circumstances.
This is particularly relevant in cases where the HMRC help taxpayers with their returns.
The result will of course mean that HMRC will no longer offer taxpayers help in completing their returns, as such the process of submitting a return will become even more tortuous and difficult to complete.
The ruling means that HMRC has a duty of care to taxpayers, and taxpayers may now sue HMRC for damages in certain circumstances.
This is particularly relevant in cases where the HMRC help taxpayers with their returns.
The result will of course mean that HMRC will no longer offer taxpayers help in completing their returns, as such the process of submitting a return will become even more tortuous and difficult to complete.
Thursday, April 5, 2007
What Goes Around, Comes Around II
In case you are worried that Gordon Brown's raid on pensions ten years ago, which effectively destroyed one of the most successful pensions industry in the world, will have adversely affected his pension...please worry no more.
The Liberal Democrat pensions spokesman, Lord Matthew Oakeshott, said that the chancellor would have a pension pot worth more than £3.5M if he became prime minister.
How does this come about?
Simple, MPs' pensions have been unaffected because they have successively voted to make up the shortfall with taxpayers' funds.
Brown will pay dearly for this.
The Liberal Democrat pensions spokesman, Lord Matthew Oakeshott, said that the chancellor would have a pension pot worth more than £3.5M if he became prime minister.
How does this come about?
Simple, MPs' pensions have been unaffected because they have successively voted to make up the shortfall with taxpayers' funds.
Brown will pay dearly for this.
Tuesday, April 3, 2007
What Goes Around, Comes Around
Those of you with reasonably long memories may recall the heady days of 1997 when Gordon Brown, the newly appointed Chancellor, performed his smash and grab raid on the British pension industry.
His sleight of hand, where he raided dividend tax credits, netted him a £5BN a year.
Whilst there were protests at the time, over the dangers that this posed to the pension industry, Brown did what he does best and ignored them
However, as the old saying goes:
"What goes around, comes around"
In the 10 years since Brown's smash and grab raid, the pensions industry in Britain has effectively fallen apart; helped on its way to an unseemly end, in no uncertain terms, by Brown's dividend credit heist.
Those of us, still lucky enough to have a defined benefit company pension are in a fortunate and ever dwindling group. Defined benefit schemes have been closed by many companies, as people have been asked to move to defined contribution schemes.
Those who work for the state, are still enjoying the benefits of the defined benefit scheme. Unfortunately, thanks to Brown, these have become increasingly expensive. The result being that council tax throughout Britain has been raised annually, in order to pay for these pensions.
It is somewhat ironic that only now, after a two year battle using the Freedom of Information Act, that it has come to light that Brown was warned by his advisers of the chaos and damage that his pension smash and grab raid would wreak upon the pensions industry in Britain.
Seemingly, Brown has been fighting to keep this information secret.
Why?
He stands accused of destroying the pension industry, at the very time he seeks to stand for leadership of the Labour Party.
As one cab driver eloquently put it to his Labour party passenger:
"You bastards stole my pension".
Brown will pay a heavy price for this action, he may win leadership of the party but he most assuredly will lose the leadership of the country.
His sleight of hand, where he raided dividend tax credits, netted him a £5BN a year.
Whilst there were protests at the time, over the dangers that this posed to the pension industry, Brown did what he does best and ignored them
However, as the old saying goes:
"What goes around, comes around"
In the 10 years since Brown's smash and grab raid, the pensions industry in Britain has effectively fallen apart; helped on its way to an unseemly end, in no uncertain terms, by Brown's dividend credit heist.
Those of us, still lucky enough to have a defined benefit company pension are in a fortunate and ever dwindling group. Defined benefit schemes have been closed by many companies, as people have been asked to move to defined contribution schemes.
Those who work for the state, are still enjoying the benefits of the defined benefit scheme. Unfortunately, thanks to Brown, these have become increasingly expensive. The result being that council tax throughout Britain has been raised annually, in order to pay for these pensions.
It is somewhat ironic that only now, after a two year battle using the Freedom of Information Act, that it has come to light that Brown was warned by his advisers of the chaos and damage that his pension smash and grab raid would wreak upon the pensions industry in Britain.
Seemingly, Brown has been fighting to keep this information secret.
Why?
He stands accused of destroying the pension industry, at the very time he seeks to stand for leadership of the Labour Party.
As one cab driver eloquently put it to his Labour party passenger:
"You bastards stole my pension".
Brown will pay a heavy price for this action, he may win leadership of the party but he most assuredly will lose the leadership of the country.
Friday, March 23, 2007
The VAT Implications of Lap Dancing
Never let it be said that HMRC does not truly understand the "human condition"; HMRC knows full well that we are mortal, and that humans take their pleasures in many forms.
It goes without saying, that all of these pleasures must be taxed.
Today a dispute between Spearmint Rhino (a chain of lap dancing clubs) and HMRC, over VAT, has finally been settled. HMRC had attempted to levy VAT on Spearmint Rhino for the earnings of its dancers.
However, Spearmint Rhino has won its High Court appeal against that ruling.
This means that the lap dancers themselves, must pay the VAT.
David Milne QC, who represented Spearmint Rhino, argued that the club should not pay because it was the dancer and not the club that provided the services.
Self-employed dancers pay to use its facilities and are paid by the clients.
A statement from HM Revenue and Customs said:
"HMRC will consider the High Court's decision carefully before deciding what further action to take, including whether to appeal."
Court of Appeal judge, Lord Justice Ward, described the club's aim in an earlier case as "to tease and not to satisfy".
Quite how the HMRC intend to quantify each dancer's earnings, is of course another story.
Suggestions welcome!
It goes without saying, that all of these pleasures must be taxed.
Today a dispute between Spearmint Rhino (a chain of lap dancing clubs) and HMRC, over VAT, has finally been settled. HMRC had attempted to levy VAT on Spearmint Rhino for the earnings of its dancers.
However, Spearmint Rhino has won its High Court appeal against that ruling.
This means that the lap dancers themselves, must pay the VAT.
David Milne QC, who represented Spearmint Rhino, argued that the club should not pay because it was the dancer and not the club that provided the services.
Self-employed dancers pay to use its facilities and are paid by the clients.
A statement from HM Revenue and Customs said:
"HMRC will consider the High Court's decision carefully before deciding what further action to take, including whether to appeal."
Court of Appeal judge, Lord Justice Ward, described the club's aim in an earlier case as "to tease and not to satisfy".
Quite how the HMRC intend to quantify each dancer's earnings, is of course another story.
Suggestions welcome!
Thursday, March 15, 2007
HMRC Porposals Not Fit For Purpose
The Institute of Chartered Accountants of Scotland (ICAS) have put the boot into HMRC proposals on tax penalties.
ICAS describe the proposals as "not fit for purpose".
In a press release issued today, ICAS say:
"The single penalty regime for non-payment or underpayment of taxes proposed by HM Revenue & Customs is not fit for purpose, according to The Institute of Chartered Accountants of Scotland (ICAS). Responding to HMRC’s consultation document, ICAS spells out two main problems with the proposals.
The legislation would introduce new concepts about what behaviour is reasonable, whilst failing to define what is expected of the taxpayer. This means that the ultimate arbiter in any dispute would be the tax inspector."
The question is, will HMRC listen?
ICAS describe the proposals as "not fit for purpose".
In a press release issued today, ICAS say:
"The single penalty regime for non-payment or underpayment of taxes proposed by HM Revenue & Customs is not fit for purpose, according to The Institute of Chartered Accountants of Scotland (ICAS). Responding to HMRC’s consultation document, ICAS spells out two main problems with the proposals.
The legislation would introduce new concepts about what behaviour is reasonable, whilst failing to define what is expected of the taxpayer. This means that the ultimate arbiter in any dispute would be the tax inspector."
The question is, will HMRC listen?
