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Where Taxpayers and Advisers Meet
An (HMRC) Inspector Calls
24/07/2011, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax Articles - General
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HM Revenue & Customs (HMRC) is piloting telephone 'education' for owners of new businesses. This involves calling the 'customer' and offering "...to talk them through some of the main things they need to know as a new business and to signpost them to the available help online".

The calls will not involve discussions of the individual's tax affairs. HMRC advisers making the calls will be using a call list, rather than using 'live' systems.

It is difficult to be critical of an initiative which is supposedly designed to support business taxpayers in complying with their tax obligations. I just wonder if this is the most efficient use of HMRC resources.

The owners of new businesses will invariably be frantically busy trying to make their new enterprises a success, or at least earn them a living. An unannounced call (I am assuming that calls will not be arranged in advance) from HMRC is hardly likely to be a welcome diversion in most cases. The business person will probably not be in the ideal state of mind be 'educated' by HMRC in this way, so the efficacy of the approach must be called into question.

In addition, as I have mentioned in previous editorials, many taxpayers have a certain fear and trepidation about HMRC contact. Some may even be suspicious about HMRC's motives, and wonder if they are being targeted for HMRC scrutiny.

If HMRC wants to use the telephone as a medium to contacting taxpayers, why not open a helpline, available out of business hours and at weekends, and to publicise this facility as a free and convenient resource for new business owners?

Perhaps it is two cheers for this new HMRC initiative, instead of the usual three cheers.

About The Author

Mark McLaughlin is a Fellow of the Chartered Institute of Taxation, a Fellow of the Association of Taxation Technicians, and a member of the Society of Trust and Estate Practitioners. From January 1998 until December 2018, Mark was a consultant in his own tax practice, Mark McLaughlin Associates, which provided tax consultancy and support services to professional firms throughout the UK.

He is a member of the Chartered Institute of Taxation’s Capital Gains Tax & Investment Income and Succession Taxes Sub-Committees.

Mark is editor and a co-author of HMRC Investigations Handbook (Bloomsbury Professional).

Mark is Chief Contributor to McLaughlin’s Tax Case Review, a monthly journal published by Tax Insider.

Mark is the Editor of the Core Tax Annuals (Bloomsbury Professional), and is a co-author of the ‘Inheritance Tax’ Annuals (Bloomsbury Professional).

Mark is Editor and a co-author of ‘Tax Planning’ (Bloomsbury Professional).

He is a co-author of ‘Ray & McLaughlin’s Practical IHT Planning’ (Bloomsbury Professional)

Mark is a Consultant Editor with Bloomsbury Professional, and co-author of ‘Incorporating and Disincorporating a Business’.

Mark has also written numerous articles for professional publications, including ‘Taxation’, ‘Tax Adviser’, ‘Tolley’s Practical Tax Newsletter’ and ‘Tax Journal’.

Mark is a Director of Tax Insider, and Editor of Tax Insider, Property Tax Insider and Business Tax Insider, which are monthly publications aimed at providing tax tips and tax saving ideas for taxpayers and professional advisers. He is also Editor of Tax Insider Professional, a monthly publication for professional practitioners.

Mark is also a tax lecturer, and has featured in online tax lectures for Tolley Seminars Online.

Mark co-founded TaxationWeb (www.taxationweb.co.uk) in 2002.

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