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Digitalisation
I have written before expressing my concerns about the making tax digital project. It was interesting reading the ‘small print’ extracts that Andrew Hubbard highlighted in his article ‘Boring under the surface’ (Taxation, 23 March 2023), which only go to prove that, irrespective of the result of consultations, the Treasury and HMRC are intent to proceed as fast as possible with the digitalisation of the tax system.
As before, my objections to this effort are twofold. The first is the cost to businesses and taxpayers. The subtle dropping of the free HMRC software going forward is revealing, even if most reports are that the programme was difficult to navigate for the computer illiterate. Bearing in mind proposals for having to make four quarterly returns and a final fifth one, surely this is likely to be more expensive than one single annual return?
Secondly, many people will have realised that there has been an apparent revolt among older motorists about having to pay for parking by way of apps. Since over a lifetime, prudent persons tend to accumulate assets, these are the taxpayers and they will need computer skills. The problem is that although HMRC seems to understand concerns particularly for older unrepresented taxpayers, they do not realise the problems that it is creating by the closure of offices and its inability to deal with the public in person, by telephone and even correspondence.
How are unrepresented taxpayers going to cope?
Robin Summers.
How do they manage?
As an accountant who retired some years ago, I sympathise with those who still have dealings with HMRC. Whatever difficulties they face, clients are expected to comply with the law and practice but they and their advisers clearly cannot expect corresponding treatment from HMRC.
My minor grandsons were born and raised in Australia and are entitled to the UK personal allowance. Thus, as beneficiaries of a UK family will trust and as the distributions are not large, the tax suffered is repayable in full on submitting the claim. I have completed annual claim forms for my daughter (as trustee) and the administration required of HMRC is minimal.
In the past, before Covid, the repayment claims were filed soon after 5 April and the repayments were made into their UK bank accounts, as authorised and requested on the form, relatively promptly.
The 2019-20 claims were filed on 15 April 2020 and after much pressing, the repayments were made in January 2021.
The claims for 2020-21 were filed on 27 May 2021. After chasing by letter and telephone, the repayments were made in December 2021. The authorisation and requests to pay to a UK bank were overlooked and the cheques were posted to Australia.
The claims for 2021-22 were filed on 22 April 2022. In the covering letter, I noted the repayments for the previous year had been sent to Australia ignoring or overlooking the authorisation and request to pay them to a UK bank. Unbeknown to me, the repayment for one grandson was issued in June 2022 and sent to him (rather than to his mother who had completed the claim as trustee) and not to the bank. The cheque therefore did not come to light until I visited Australia by which time it was out of date. The cheque to the other grandson was paid in September, and was also posted to Australia rather than to the bank.
I sent letters requesting the cheque be reissued and making a formal complaint about delays and not complying with instructions to send cheques to the bank on 3 February 2023. In the absence of even an acknowledgement, I wrote again on 7 March 2023 and 21 April 2023. I still haven’t heard anything. Via a circuitous route, I gather this case has been referred to Tier 2 complaints but I have not been favoured with any direct communication or contact.
If the tax office cannot deal with simple matters efficiently and if its courtesies do not extend to even acknowledging complaints, how can this be regarded as satisfactory and how on earth do my fellow accountants who still have to deal with HMRC possibly manage?
Tim Friedman FCA
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