VATman merges with Taxman
Ideal name. Last summer the FT asked its readers to come up with a name for the merging departments of the Inland Revenue and Customs & Excise. The winner was FCUK: Finance Collection UK, although the official new name will be the rather more dull: HM Revenue & Customs. How will this giant “Taxes R Us” department impact on your business?
Delays. The last takeover by the Taxman of the National Insurance department, then known as the Contributions Agency, was legally sanctioned in 1999 but the two computer systems are still not fully integrated. So nothing’s going to happen for a few years yet.
One visit. When the Taxman and the VATman do morph into the “Tax Enforcer”, you may get a single inspection of all your tax, PAYE and VAT records. Realistically it takes many years of training to master all the different taxes. So in the meantime, looking for more means they are likely to spot less; no inspector can be an expert in all fields, which could be good news for you. Generally the Taxman is more helpful than the VATman, which hopefully will rub off on the latter.
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