HMRC Is Shite

HMRC Is Shite
Dedicated to the taxpayers of Britain, and the employees of Her Majesty's Revenue and Customs (HMRC), who have to endure the monumental shambles that is HMRC.

Thursday, 25 November 2010

More Cock Ups?

BS

The Telegraph reports that there may be some more cock ups in the tax system, as a result of "issues" in HMRC.

The paper quotes Richard Mannion, a director of Smith & Williamson:

"The first problem concerns HMRC asking for tax repayments to be sent back and the second relates to online requests sent by taxpayers under the self assessment system which seem to have been lost by HMRC’s computer system.

In short, it appears that the tax authorities did not include the employee benefits as shown on forms P11D when working out if people had paid the correct amount of tax for 2009/10 and so under-estimated individuals' tax liabilities. Consequently thousands of people who got a refund just a short while ago could now get a tax demand to the tune of several hundred pounds or more.
"

With regard to the first issue, it is of course correct that if there has been an error wrt the repayment of tax then HMRC should reclaim it. However, human nature being what it is, it is highly likely that any monies paid back to taxpayers will have been spent.

HMRC, quite correctly, point out that this is the way the system works; ie where the benefit is new in 2009/10 the first HMRC knows about it is when the P11D is sent to them by the employer by July 2010. The issue should normally be "coded out" if less than £2K, and therefore no monies will be reclaimed in the form "hard cash".

However, the Telegraph (cynically?) notes that HMRC made similar statements, playing down the scale of its PAYE errors in August, before admitting to the massive scale of the problem.

These "reconciling" errors may well be more numerous than HMRC are admitting.

Mr Mannion then goes on to highlight another issue:

"The second issue concerns online requests for repayment or for the reduction of tax payments on account, sent by taxpayers to HMRC during the six weeks between October 1 and November 15 this year. It appears that any online requests for help of this type have been lost and not acted upon by HRMC.

Although the problem has now been fixed, anyone who falls into this category should get back in touch with HMRC and reissue their request. This applies even though you may have had a receipt from the tax authorities saying they got your request.

There could be thousands of people up and down the country who think they have successfully communicated their request to HMRC but in reality they will just have to do it again
."

HMRC are of the view that this only a affects a few people.

Time, for both of these issues, will tell!

Tax does have to be taxing.

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4 comments:

  1. I look forward to seeing the brown nosers on this site respond to this one.

    ReplyDelete
  2. We told the managers this would happen!

    ReplyDelete
  3. Anon @ 25 November 2010 13:47, I hope you passed this information to the treasury select committee that is about to sit.

    ReplyDelete
  4. 11:29,

    If you're referring to those who post on here in defence of aspects of HMRC, its policies and its staff (as I sometimes do myself, where I feel articles or comments seriously misrepresent issues with which I am familiar - notably the nature of tax avoidance and HMRC's response to it), has it escaped your notice that most, if not all, do so anonymously (as, indeed, do both of us!)?

    Could you please explain what object you feel those whom you believe are brown-nosing have in doing so, given that they (/we) choose to remain anonymous?

    ReplyDelete