HMRC cost-cutting measures could backfire
HM Revenue and Customs has this week announced plans to save an estimated £1.25 million per annum by ending the practice of sending copy tax correspondence and tax notices to individuals and their financial advisors. However, there are now serious concerns that this particular cost-cutting measure could backfire dramatically if, as expected, individuals fail to pass on correspondence from the revenue to their tax advisor.
When you consider that in the year to April 2009 an enormous £42 billion of tax went uncollected, compared to the £38 billion uncollected in the previous 12 months, perhaps there is greater scope for efficiency and an increase in income if further focus was placed upon this particular area. Starving advisors of vital information regarding their clients would seem to be a very short-sighted and potentially dangerous strategy to implement, especially in the current environment of mistrust and disdain towards HM Revenue and Customs.
Each time we hear problems regarding taxation, tax codes and the collection of tax this further strengthens the UK coalition government's plans to overhaul the UK tax system which has grown too large and too cumbersome. However, an overhaul of the system will cost potentially millions of pounds and take many years to complete.
Share this..
Related stories
Tax planning is not an option, it is a necessity!
Over the last few years we have seen a significant increase in tax charges across the UK, both direct and indirect taxes. As a consequence, over the last 10 years there has been a large increase in the total tax take for the UK government per person in the UK which has ultimately increased the requirement for future tax planning.
Despite the fact that many people believe that tax pl...
UK government announces sweeping job cuts at Land Registry
Is it a coincidence that the government yesterday confirmed 1500 job losses at the Land Registry, which is an official government department, with five regional offices set to close?
This comes at a time when the UK government admitted a £92 million five-year programme to reduce the cost of this particular department and also earmarked the Land Registry for disposal as part of a £...
Will inheritance tax make or break the next election?
The Conservative party has come out fighting with regards to inheritance tax with a suggestion that 4 million people in the UK will be pulled into the so-called "death tax" phenomenon. It is believed that the average inheritance tax bill would be around £60,000 and would bring in a significant number of the so-called "middle England" area of the UK. This is an area of the UK population which was...
Read MoreIs the reduction in VAT a waste of time and money?
Despite the fact that the UK government claims the reduction in VAT from 17.5% to 15% has injected a further 1% of gross domestic product back into the system, a report by PricewaterhouseCoopers suggests that the move has been both costly and a complete waste of time. A survey of 2000 people showed that 88% were unmoved by the VAT reduction and it never even crossed their minds when considering th...
Read MoreHMRC blunder could cost you up to £1,300 a year
It has been revealed that HM Revenue and Customs has been the victim of a computer blunder which has seen hundreds of thousands of workers in the UK receiving up to 3 different tax codes which in some instances have all been incorrect. As a consequence it is believed that hundreds of thousands of workers in the UK could end up paying £1,300 a year more in tax than they are liable for. The new tax...
Read More