Trouble at HMRC and the U-Turn
In case no one has mentioned it yet this week is a four-day week, with it being Good Friday (hot cross buns). The bonus is that next week is also a four-day week due to Easter Monday. The only downside in part is the changing of the clocks over the Easter weekend, however, at least summer is on the way and lighter evenings are ahead.
Trouble at HMRC
You may have heard that HMRC got themselves in a bit of a twist last week with their announcement to close the self-assessment and PAYE helpline from April through to September going forward along with only opening the VAT helpline for the five days before the monthly submission date.
Within 24 hours of the announcement, HMRC made a U-Turn and agreed to reverse their decision following mounting pressure from both the public and professional bodies. Gary Ashford from the CIOT had said they were “deeply dismayed” at the original announcement on Tuesday.
Although no closures were announced regarding agent lines, the planned closure would have put agents under mounted pressure to resolve issues that clients were struggling to discuss with HMRC.
HMRC believed that the online tools available were sufficient to assist with many taxpayer queries including the online chat service. However, this does not take into account the issue that many taxpayers still struggle with IT. For many speaking with HMRC it is surrounded by much anxiety and navigating the HMRC website can only increase this further.
Most taxpayers want to pay the right tax at the right time, and it is believed that closing the lines will create a barrier to achieving this goal.
On Wednesday HMRC chief executive Jim Hara said that while “making best use of online services allows HMRC to help more taxpayers and get the most out of every pound of taxpayers’ money by boosting productivity”. Unfortunately, many believe that there is a long way to go both with the online tools and taxpayers' confidence in using them.
I expect that the announcement to not close the helplines is welcome news for many and that one day online tools will replace the simplest of enquiries with HMRC. That said I`m sure many agree talking an issue through not only resolves the said problem but also puts your mind at rest.
Have you used the online chat with HMRC or any of their online tools? Did you get the answer you desired, or were you left confused or even worse felt misguided? Please let me know how you got on.
Getting a divorce.
It's always sad to hear that a couple has chosen this path when they call me to discuss the additional and often unexpected discovery that they may also have Capital Gains Tax issues following the transfer of assets between themselves.
The gossip publications were speculating on a royal divorce last week, ahead of the breaking news that Kate was undergoing cancer treatment (my thoughts are with her and William as I appreciate the devastating impact this disease has had on so many of us).
In a tongue-in-cheek article, I put together the CGT considerations for them if such a thing was on the cards. I expect many people will find this article relevant and useful if they find themselves in this position.
I hope you have enjoyed this edition of my newsletter, and found it both enjoyable and informative, if you have any suggestions or comments then please let me know it is always good to hear from you. In addition to the newsletter, I am also updating the website, so please take a look from time to time to see what is happening.
If I or the Tax Matters team can be of any assistance to you, your family or your friends then please do not hesitate to contact me at 01442 828006 or jreeves@taxmatters.tax