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Showing posts from December, 2015

Claus vs HMRC

A while back Taxation magazine published a spoof judgment of a first tier tax tribunal case imagined by Robert Maas.

I have taken the liberty of extracting some of the key elements from the reported judgment:
In this case HMRC were represented by Mr Scrooge.  The taxpayer did not appear and was not represented. Mr Scrooge explained to me that Mr Claus is reputedly very eccentric. He expects people to communicate with him by writing their message on a piece of paper, folding it and inserting it up a chimney. HMRC did this.

Mr Scrooge told me that HMRC’s letter certainly was not returned undelivered. I accordingly accept that Mr Claus was duly served with notice of this hearing and I decided to proceed with the case in his absence. HMRC told me that Mr Claus has some sort of facility overseas which either manufactures toys or stores toys procured from elsewhere (I am not clear which).

Mr Claus is known to visit the UK regularly and to distribute the aforementioned toys to children. For …

What is Santa's tax status?

A few year's back Taxation magazine published this enquiry from a reader:
On a visit to the UK last year I picked up a copy of your magazine and wonder if readers can advise me. I am non-domiciled and non-resident (I think) in the UK – no permanent home here – but each year I work temporarily in the UK for a short period.

The work is unpaid, but I do receive benefits in kind; glasses of port, mince pies and the like. I am rather concerned that I have not declared these to HMRC in the past. Should I have done so and is there an annual tax liability to be paid on these gifts or benefits? And if there is, how is the tax calculated under self assessment? The chosen pseudonym is "S. Claus".   I wonder........

A Christmas Carol for those with a PSC

Rudolph the red-nosed reindeer Hated paying NIC Went to a sharp adviser Paid the man a hefty fee
He told the other reindeer You should do the same as me Go and see my adviser Get yourself an PSC
Then one foggy Christmas eve, the taxman came to say: "Your idea was not so bright You owe tax, you're banged to rights"
So all the deer were bankrupt Didn't have a bean they said Now taxman's after Santa He'll be really in the red.
Written by Chris Williams and first published in Taxation magazine 20 December 2007

If Santa was an accountant

If Santa was an accountant... ...Christmas day would be referred to as "sign-off"...he should worry that Wikileaks would publish his list of presents...all of the kids clothes would be from "Baby GAAP"...his helpers would work in a small room cranking out toys during "present season" which gets longer every year. ...letters to Santa would be carried forward from prior year...He'd take advantage of the North Pole's tax haven status...He'd probably moan about all the red tape he has to deal with...his family still wouldn't have a clue what he does at work...he would think about the mileage deduction for his reindeer drawn sleigh! ...planning would be done after the gifts were delivered This is just a small selection of the suggestions volunteered by users of twitter in response to an invitation to use the hashtag: #ifsantawasanaccountant