What improvements would you like to see from HMRC

dori2o

Savvy_Sue wrote: »

Voluntary payments? :rotfl:

In terms of income tax there is only 2 formal ways of collecting tax, that is via 1) a Self Assessment tax calculation, and 2 A Revenue Calculation.

The P800 that is issued from the PAYE system is an Informal calculation. From these calculations HMRC can only request that customers voluntarily pay the balances owed. There is no way to legally chase a payment due from a P800 calculation.

Instead what HMRC do is they cancel the informal tax calculation and send the customer a correctly issued Tax Return, giving the customer the necessary timeframes in which to complete the forms and return them. Once the return is submitted HMRC can then issue an SA302 tax calculation, either online or by post following receipt of a paper tax return.

SA debts are legally enforceable. HMRC can add charges/penalties and interest to the balances and they can enforce collection of these amounts, including by legal means i.e. Court.

So, the term voluntary in the case of non-SA calculations is entirely correct.

WannaBLoaded

blondebubbles wrote: »

That won't happen. If anything more money will go to compliance (technically don't get inspectors anymore).

What, money into compliance? You mean laws?

When you say no tax inspectors, you mean that they are less likely to knock your door and say 'i want to see your accounts?'

WannaBLoaded

dori2o wrote: »

In terms of income tax there is only 2 formal ways of collecting tax, that is via 1) a Self Assessment tax calculation, and 2 A Revenue Calculation.

Yes, but the revenues calculation will be bigger than the real figure so this is where people have to employ a legal bod so that hmrc don't steal money from you.

SA debts are legally enforceable. HMRC can add charges/penalties and interest to the balances and they can enforce collection of these amounts, including by legal means i.e. Court.

So, the term voluntary in the case of non-SA calculations is entirely correct.

I would agree self assessment debt is enforceable, they may eventually be able to get a charging order on your house etc so probably best to pay up if hmrc know you owe them something.

As for the fines, i'm not sure how enforceable they are because i have myself, and known a lot of other people, who stuck two fingers up to hmrc and the fines were voided. I think there is a question in the legality of such fines and to my knowledge still being discussed in court.

They seem to hope people pay the fines but the difficult people get let off.

jem16

patanne wrote: »

Is the new system going to be able to tie up tax due on state pension with tax paid on interest on savings (some of which will be refundable I believe) ?

From April 2016 all interest will be paid gross. You will have a Savings Allowance of £1000 for a basic rate taxpayer and £500 for higher rate tax. Anything above that may then attract tax.

patanne

I'm just never going to get out of SA as in the future I'll be earning more than that in interest. Oh well I suppose I should just be grateful that I have that much income!

dori2o

patanne wrote: »

I'm just never going to get out of SA as in the future I'll be earning more than that in interest. Oh well I suppose I should just be grateful that I have that much income!

As I have said, it is possible that you will be removed from SA unless you specifically request to be kept in, and you will be dealt with by way of an informal calculation from which you will have 30 days to make the payment.

The only thing you will need to do is inform HMRC of how much interest you have received. If however it remains basically constant year to year then it's not so much of a problem as HMRC will carry forward the same figure from the previous year and use that in the calculation. If it differs you will be able to notify HMRC either by phone, in writing, or via the Personal Tax Account once it is up and running.

WHA

dori2o wrote: »

SA is going to go through a massive change in the coming years. Effectively for large numvbers of those who currently do SA the Tax Return is going to be abolished. They will be expected to file their income/expenditure etc via the new online tax accounts on a more regular basis than is currently the case where they have 9 months following the end of the tax year to file their tax return AND pay their taxes.

I wouldn't waste too much of your time thinking/planning re this for business accounts. It won't happen. They tried it with tax credits, but had to abandon it. They tried it with Universal Credit but had to abandon it. The idea keeps cropping up because people don't understand small business accounts. Regardless of it being impossible, practically, to prepare accounts every month, they'd be completely meaningless and would create all kinds of anomalies. It "may" be possible for the smallest/simplest of businesses (ie dog walkers or gardeners) based on the new simplified cash basis, which is basically simply money in/money out, but even with that it's causing all kinds of complications both for HMRC and all other interested parties (HMRC aren't the only ones who use accounts and "cash basis" accounts are pretty useless and meaningless for anyone). All but the smallest/simplest one man businesses will continue to prepare accounts annually and submit SA returns. Anyone who thinks otherwise simply doesn't understand small business accounts. SA returns (or equivalent) will continue for sole traders and partnerships.

WHA

Spidernick wrote: »

I agree with all those who are arguing for more e-mail correspondence.

I agree too. Most of the ideas on this thread seem to point towards MORE telephone contract, whereas in reality, the only improvements will come with LESS phone contact. The future is via secure e-messaging, either via a portal, an online account, or similar. Telephone contact is fatally flawed because there's no accurate record of the call, i.e. when it was made, who said what, etc. This conveniently lets HMRC off the hook when they deny a call was made or deny the advice they gave by phone.

With letters (and the modern equivalent the e-message), there's a written record which is essential, especially when HMRC have a propensity for denying what has been said and done by them. There've been a fair few times when HMRC have denied something regarding my clients only to have to back peddle when presented with evidence to the contrary, usually consisting of paper letters from my files!

I refuse, on principal, to phone HMRC re my clients and refuse to take phone calls from them. However, I'm now regularly using their structured email system whenever possible and constantly look forward to new additions. PAYE code adjustments in particular are far more accurate these days by using the online structured email facility for example.

E-communication is the future, pointless to gear the changes around the phone only - it needs to be that you can do it either way, phone or internet.

gt94sss2

dori2o wrote: »

Just to advise regarding telephone contact. We have a company assisting us who has looked at various call statistics across the contact centre network, and it is their view that just over 30% of the calls we get daily are related to progress chasing/following up on previous calls/correspondence.

Could I suggest upgrading and promoting the 'Track my Reply' service might be helpful with the above.

I came across it a few weeks ago - but it needs to be more intelligent in giving replies- i.e. at the moment if you ask it when you can expect to hear about a SA return you put in the post - all it does is add just over 3 months to the date you say it was posted - regardless of if that would have been a busy/quiet time for HMRC.

It also leads to stupid dates - if you say you posted the SA return in late October 15, it returns a date in Feb 16, despite the 31 Jan payment deadline and the HMRC commitment to calculate your tax for you..

(or as mentioned by someone else - something like a text message saying 'Thank you. We have received your tax return and plan to reply by xxxx. HMRC' on receipt of the form)

Regards
Sunil

Savvy_Sue

dori2o wrote: »

The only thing to question is the bit in bold. They will not run a dual system forever and so there will come a point after which the current system will end.

Obviously 'new' entrants to the system won't get the choice, and some 'current' users of the system will want to switch, and there will be increasing pressure on those using the 'old' system to change, but in reality, I'd expect a natural rate of attrition among that last group ...

I don't know if it's still possible for benefits (pensions, child benefit etc) to be collected in cash from the Post Office if that's what you've always done, but I imagine that there's been a fair bit of natural wastage among the pensioners who hung onto their weekly trip ...