The mouse and the elephant – aka 3CA v HMRC

We all know the story about how an elephant is allegedly afraid of a mouse. Here’s a similar tale that should cheer up those who are feeling the strain of 31st January tax filing.

Almost from the start of this blog, Stuart Jones of 3CA has followed what I do, has a blog, experiments with new technology and helps others by answering general questions. He’s a sole practitioner with a sense of humour who works in one of the toughest parts of the UK where making a living anywhere is hard going for anyone. The other day he posted about the way in which HMRC sometimes doesn’t follow the law. In his view:

HM Revenue & Customs have been told to collect as much tax as possible by the Government. Businesses need, now more than ever, an accountant who will stand up to Revenue and fight for their client’s rights.

Will yours?

It’s a perfectly valid question. But if your blog only has a small following then you sometimes have to resort to bigger guns. He wrote to Taxation on the topic of deferred VAT payments, asking the question whether HMRC had changed the rules. They haven’t but in his case, the rules were being misapplied. Taxation is ‘old school’ using a paywall for its subscribers but courtesy of Stuart, you can see the story and HMRCs response (PDF download.) HMRC acknowledged there is an issue and welcomed Stuart’s feedback to ensure consistency in applying the rules. Score one to Stuart (plus anyone else who reads the story and is experiencing similar problems) and a recognition that just cuz we have new technology doesn’t always mean everyone else does. But we can still get the right result and then use new tech to tell others.

Just to add spice to the story, Mark Lee made the observation that:

As regards standing up to HMRC sadly (very sadly) I agree this is necessary as further evidenced by another item in this week’s Taxation (written by Colin D Lever).

The corollary of this however is that there are (also sadly) many so-called accountants who don’t understand the rules themselves and who promise naive clients that they will get HMRC to back down where this is not appropriate. Eventually the accountant has to back down and then complains about HMRC who have simply refused to give in to what is little more than bullying.

Indeed there are also plenty of accountants who will play the part of a bully. One might suggest that HMRC bring this on themselves by their own approach. I tend to think that some bullies however adopt that approach as it enables them to ‘win’ regardless of the rights or wrongs of their argument.

None of this however should detract from the positive outcomes that can be achieved by good accountants like yourself who themselves refuse to give in when faced with HMRC incompetence, bullying or inconsistencies.

Tagged as: 3CA, HM Revenue & Customs