Tuesday, 9 February 2010
HMRC's Coding Enigma III
HMRC's coding problems continue apace.
It has emerged that, on top of the millions of incorrect tax codes that are being sent out by HMRC, HMRC are double taxing the value of benefits such as car and health insurance provided by employers.
Married couples and civil partners aged 76 or more might lose an allowance worth nearly £700.
Additionally over 500,000 people, who started claiming their state pension this tax year, could automatically have too much tax deducted from their income next tax year.
Went the day well at HMRC?
Tax does have to be taxing.
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Having read the article on the BBC news website I think it can safely be said that the testing was far from adequate.
ReplyDeleteFrom the BBC site:
"Annual coding was subjected to rigorous testing, with approximately 10,000 cases, covering in excess of 500-plus different scenarios.
"The data was tested as live and showed the system was working correctly.
"HMRC did not issue tax codes but checked the data and ensured that the correct code would have been issued to customers."
This is all well and good but if you do not test the whole cycle of data processing right down to the actual issuing of codes then the system has not been tested.
The first contributor is absolutely correct. On the face of it HMRC system tested only. This is far from adequate for such an important system affecting millions of taxpayers. If a full parallel run had been done prior to rolling out the system, the problems could have been noted and corrected. As always, HMRC chose the cheapest option. They simply do not care that they have caused so much confusion, after all it looks as though their tax take will increase, so they are undoubtedly happy about that. When is something going to be done about this unscrupulous, unaccountable, shambolic government department?
ReplyDeleteAccording to the HMRC the tax coding issue has now been resolved and all incorrect codings are manually being reviewed. The PAYE Service is working "as it should"
ReplyDeleteIf (as the last poster pointed out)the new system is working "as it should" can I ask why staff are having to "manually" review codes?
ReplyDeleteStrange one?
They have forced the tax payers to do nearly everything on line so they could get rid of so many of the staff, & then de-skilled those remaining, I would like to know where they can find the staff to manually review all these codes.
ReplyDeleteWith the amount of fire fighting HMRC is doing, when will they be merged with the fire service.
ReplyDelete10 February 2010 07:10 is a good point.
ReplyDeleteI think HMRC Vat-tax side will soon be a totally online web based department with maybe a couple of thousand of deskilled members of staff natiowide glued to their screens all day making sure the tax payer has done his homework online.
If anything goes bellyup, the manager concerned will drop the ball into the lap of a unsuspecting junior grade and then go and hide under his/her desk.
Just like they did when the discs went missing a few years ago. :(
A wee birdie tells me that all staff up to management level will be involved full time in manually reviewing the incorrect codes.......for the next 5 to 6 weeks..... and the new system is wroking "as it should". When the shit hits the fan, will the Chief Executive do the honourable thing and fall on her sword?
ReplyDeleteManually reviewing.... bollocks.... we're reviewing them as the taxpayers call.
ReplyDeleteso second last poster is talking bollocks???
ReplyDeleteAs far as I understand the manual review of records hasn't started yet but will involve at looking at four million accounts.
ReplyDelete