When writing a tax blog on Bonfire night one has to consider the history of the day.

Guy Falkes was hung (and his co-conspiritors beheaded) for his (their) part in the gunpowder plot of 1605, treason. The 1605 plot was to blow up the House of Lords. What struck me as a bit ironic when taking a brief look at the history of this today was that after failing to tunnel their way into the basement of the House of Lords they actually rented a room in the basement to do this! No doubt it was a relief to the House of Lords at the time that he was caught. Sadly, it seems the world has not moved on that much since 1605. Today people are still trying to blow people up to get their point across .   

House of Lords... appropriate today when reviewing the Sempra Metals compound interest case reported in July 2007 as had to quote their Lordships today in my latest reply to HMRC in a compound interest claim I am involved with for a client.  Also ironically some of the cases referred to in Sempra Metals go back to 1760 and the early 1800's closer to 1605 anf Guy Falkes than today. Dear old HMRC don't seem to think Sempra Metals applies to VAT compound interest cases and possibly only ACT cases, presumably they would love to win that argument as ACT has been abolised so the problem would largely go away after HMRC were defeated at the House of Lords. Bit strange when ACT was introduced 1973 (same as VAT conincidentally for the VAT claim) and was abolished in 1999 (sadly not so for VAT) yet the interest cases referred to in the judgment go back before either VAT or ACT were introduced (only by a few hundred years or so)? Still presumably HMRC will be happy to compensate my client (as well as pay compound interest) in line with the Neil Martin case if they are wrong and just causing the taxpayer unnecessary delay and difficulties, as indeed they have throughout the three year battle?

Fortunately in the UK I can air my views of HM Revenue & Customs policy and tax issues without the fear of trail for treason (hopefully ).

My post for today is a plea to HM Revenue & Customs to be honest with taxpayers and realistic in their advertising and broadcasts.

Listening to a spot of Magic FM on the radio in the car this morning I could not help by notice HM Revenue & Customs latest advertising spree.

It was along the lines of "Self Employed... let HM Revenue & Customs know within three months of starting your business" followed by " .. and we will do everything we can to help you land on your feet" or something close to this? The ad leaves you with the distinct message that HMRC want to help with the business?. I can honestly say in 20 years in practice as a tax adviser that I cannot think of an occasion when HMRC has "helped" a business but I can think immediately of endless examples where HMRC has hindered many businesses. In fact my first thought was "more like bring your business to it's knees...."

What was even more strange with this softly softly advert was the "we want to help" type message without a single mention of a £100 fine for failing to call HMRC or notify them of starting your business within three months,  yes that's it business people three months or around 90 days or around 12 weeks.... It propably took you at least a week just to open your business bank account (if you were lucky). Source products, setting up "shop", advertising, marketing, and other initial activities will proably take you longer than this but HMRC will give you just three months? It's not that they are trying to catch you out or anything like than of course ...  they probably just felt that not mentioning the £100 was ... umm sorry scratching my head here a minute... it will come to me... there is a reason for not mentioning the £100 fine... hold on ... ummm maybe it will come to me by the end of this blog entry...

On the one hand credit to HMRC. It has always shocked me that HMRC will readily fine a person who starts in business £100 for failure to notify within three months and yet what member of the public actually knows this (unless they have an accountant or tax adviser - which they might not have even thought of in the first three months !) Trying to launch a new business takes commitment and long hours. So credit HMRC for advertising the fact.

However, to not mention the £100 fine for failing to notify commencing self employment in the advert? Why? Sorry can I ask why again please .. WHY? Do we take it from the clear lack of mentioning it, that the fine for late notification is now to be dropped? Is this advert clear about the "product" and "company" it is advertising? I think not. In fact is this a good example to the rest of industry about integrity in advertising...? I think not... Does the advertising authority believe this is a truthful clear advert including the material facts about the "product" or issue in the advert?

Come on Mr Taxman. The stream of adverts "Tax does not have to be taxing?". The Thesaurus defines "taxing" as "demanding", "tough", "difficult", "strenous" "challenging" "wearing" "tiring" "exhausting" and "draining". So tax is simple then.. it's official... the Taxman is clearly advertising this fact?  However, ask any taxpayer (or any trained tax adviser) in the UK if tax isn't any of the above, i.e. none of the above! Can the man (or woman) or the street understand tax? Do most employees even understand even their tax code a basic bit of tax documentation? Or is this actually the Taxman kidding himself and/or trying to kid the public along the way that tax is simple and easy and he (or she) would love to help you build your business? Ummm. Personally I think by definition the adverts are misleading to say the least and at worst have no truth in them at all. Does the advertising standards authority agree? 

Perhaps a few more honest adverts are in order for a change as that might actually get HM Revenue & Customs some integrity back. Perhaps the one today could be re-issued?

Something along the lines of "Starting a business.. You must tell us (HMRC) now. We will fine you £100 if you don't tell us about your new business within three months of you starting the business, call it our starting in business welcome guesture (they could leave the welcoming bit out)". "And there is more.... we would like to help your business with... If you are starting the business with employees you must submit your P11Ds and Payroll end of year returns very soon after 5 April next year or we will also fine you over £400 for late PAYE returns... and there's your personal tax return to remember, VAT registration and returns... If you are a "builder"  (get advice and the definition of "builder" is somewhat complex) you must submit monthly CIS returns by the 19th of each month or face a £100 for each late return (more of you have more than 50 subcontractors)" "And thats not all! We would love to help in fact the list of fines grows by year. If you are late or wrong with almost any form or return we will add a fine or penalty. Don't forget we are here to help you get on your feet... just ask... and we would love to help. Please remember that at busy times many of our 0845 number might be engaged all day long to don't give up just keep trying..." Other Government Departments, Health & Safety (smoking ban spot fines to name a recent addition) would also issue some adverts along similar lines just to keep everyone up to date. Remember we live in a Slap A Fine On culture.

To my mind that would be a more honest advert from HMRC.

Hopefully I won't get locked up for expressing my opinion .  

p.s. I finally thought of the reason HMRC didn't mention the £100 fine in the radio advert today! Of course it's simple (like tax) it's Christmas and they didn't want to spoil it ... I knew there was a reason