Well it is Monday morning and was hoping to start this week with a positive post.

Sadly that is not to be the case.

On the radio this morning amazement and dismay that the Lord Lords can claim expenses of up to £300 a day for attending the House of Lords but that they are not required to have receipts for their expenses due to a "loop hole" in the law.

So when Mark Prisk MP made the following comment in Parliament about the disgrace of HM Revenue & Customs not having kept records of their costs and expenses relating to the Arctic Systems case which they lost in July as follows:

“While hundreds of thousands of small family businesses struggle under the weight of red tape imposed by the tax man, the very same organisation appears to be incapable of the most basic record keeping."

"One can’t help but wonder if this case and its associated costs starkly illustrate the gap between the Revenue and people who are trying to run businesses properly and efficiently.”

He forgot to mention the Law Lords expenses that they don't have to keep records for either.

Lets not get on to the subject of MP's expenses as otherwise this post will turn into a book...

It might sound like I am moaning and is the moan founded?

In todays post I have an HM Revenue & Customs enquiry letter into a client's case for a firm of Accountants I supply consultancy services too, as HMRC Enquiries is one of my specialities.

Suprise suprise HMRC ask in their letter for all bank statements, all receipts for expenditure incurred and all cheque stubbs together with full evidence of income.  Basically every single piece of paper for a full tax year. 

Dear old HMRC also ask why three property disposals are not on the tax return. Clearly the Inspector has looked as the return in detail as she mentions figures etc. Perhaps the lady Inspector concerned was partly asleep on the day she wrote the letter as the return clearly shows the client does not live in the UK and is non resident as stated on the Non Residence Pages to hins return. Therefore the taxpayer is not liable to capital gains tax on that basis does not need to show these disposals on his return. Some Inspectors (many Inspectors actually) just seem to like wasting taxpayers time and money with silly or petty questions. A bit more care and consideration would not go amiss?

This pleasant Inspector has also given this taxpayer a generous four weeks to get all the information to her despite the fact he is non resident, and from the date on her letter must have sent the letter late or third class post which has also eaten into the time allowed for my client to reply. She even mentions the fact the taxpayer lives abroad and refers to his address.

Simply amazing.

So I start my week in dismay at our wonderful, fair tax system here in the UK....