HMRC Wrongly Fines Taxpayers

Britain's tax office, the HMRC, have wrongly fined 20,000 taxpayers for late submission of their 2007-8 tax returns.

UK taxpayers are fined £100 for failing to submit their returns by midnight on 31st January. Due to complaints from professional accountants the HMRC have admitted they have made mistakes. Indeed I am one of the victims. The problem I suspect is that the HMRC's computer systems cannot cope with requirement for taxpayers to make their submission online.

In my own case I tried to submit my return on the evening of 3oth January only to find the system rejected the password the HMRC had supplied me with. The following day an HMRC helpdesk operative got me to try using various browsers and computers without success. As a result of the systems failure I was given an extension. It took more than a week - until 12th February - before the HMRC could confirm that my return had been received.

Shockingly, 3 weeks later I received a letter informing me of my fine for late submission. The HMRC letter was dated 2 weeks prior to my receipt of it. I wrote back next day but have today (12th March 2009) received another letter (dated 5th March 2009) charging me with interest.

My only hope is that the revelation that thousands of taxpayers have been wrongly fined will lead to some form of amnesty.

Marks and Spencer Still Cutting VAT

There's been some debate about the value of the temporary reduction in VAT. Recent reports in the newspapers have even pointed out that some retailers have quietly managed to forget it and have moved prices back to their pre-December levels.

One retailer, however, is still keeping honest. Marks and Spencer. Today, I was cutting through my local branch on the way to the Post Office when I noticed that polo shirts were back in stock. These were labelled at £5 each. I couldn't resist buying one. At the till I presented my £5, only to be given 11p in change. This is just a tad more than the 2.13% reduction the VAT change should have made. Good old Marks and Spencer.

Bank of England Cuts Interest Rates to 0.5%

The Bank of England today cut its minimum lending rate to 0.5%. Another record low, since its foundation in the 17th Century. Given that in that time we've had two Jacobite rebellions, fought two World Wars, seen off Napoleon and built and lost a global empire, the record low interest rate gives a measure of the current crisis. So much for Gordon Brown's claimed ending of the business cycle.

At the same time, the Bank will also pour £75 billion worth of extra currency into the nation's monetary supply. This represents 5.4% of GDP. Poor old Milton Friedman and Sir Alan Walters must be turning in their graves.

The implication for the financial services markets has yet to be assessed. You can still get 3 or 4% on your savings. And very few people are benefiting from super low mortgage rates. Interestingly at this precise time the FTSE is showing a fall of 3.0% against last night's close.

Sir Fred Has Little Prospect of Enjoying His Millions

Poor Sir Fred Goodwin. Sitting smugly up in Scotland contemplating the largesse of English tax payers. Sir Fred has got it all wrong. If he had any sense he would immediately return the £23 million he filched from the tax payer as part of his compromise deal for the greatest financial failure in corporate history. He is finished. He has as much chance of enjoying his retirement as Al Capone. For the rest of his life Fred will be as welcome as a leper. Al Capone made it to 48. Fred is already 50. The UK citizenry have paid him 40p each. They will want their pound of flesh. As the most despised person within the UK he has money but no personal credibility. Don't be surprised if Fred succumbs.