Friday, March 23, 2018

What do taxi drivers know about tax?

Many years ago I travelled by train to Penrith in Cumbria, to present a talk to the local CIOT branch. In the cab I then took to reach the venue the driver asked me what I was doing in Penrith and I explained:
“I’m here to give a lecture to a group of tax advisers”.
For a moment I was thrown as he seemed very miffed. It then became clear from his reply that he had misheard me:
“It would be nice to have been invited. I’ve been a taxi driver here for over ten years!”
I was unable to keep a straight face!

I shared the story during my talk and at the tea-break one of the delegates came over to explain she’d had a similar problem recently.

When arranging her car insurance by phone, she was astonished by the premium quote. It was more than 8 times what she had paid the previous year. She queried the figure and was told this was due to her profession, and the risks inherent in this.
“What are the inherent risks of being a tax adviser?” she asked.
At which point it became apparent the insurer had thought she said she was a ‘taxi driver’.


Friday, March 16, 2018

Yes Prime Minister - How the Treasury work out how much tax to raise

In January 1986 the political comedy " Yes Prime Minister" featured an episode "The Smokescreen" in which The Prime Minister, Jim Hacker, favours abolishing smoking through heavy taxation but he runs into strong opposition from the tobacco lobby and the Treasury department.

The following exchange between the PM and his permanent secretary seemed especially worthy of inclusion on this blog:

Sir Humphrey: Taxation isn't about what you need.
Jim Hacker: Oh, what is it about?
Sir Humphrey: Prime Minister, the Treasury doesn't work out what they need to spend and then think how to raise the money.
Jim Hacker: What does it do?
Sir Humphrey: They pitch for as much as they think they can get away with and then think what to spend it on.

Here's the whole episode if you're interested. At the start Sir Humphrey explains his view as to how all new Prime Ministers want to cut either taxes or public expenditure.....

Friday, March 09, 2018

HOW strong is HMRC's case?

Years ago a senior official was talking about HMRC prosecution policy. He mentioned an occasion when he had lost a case and went back to his...