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.

Tuesday, 20 January 2015

Coding Matters

It seems that the thorny issue of tax codes has raised its head again.

The Telegraph reports that up to three million people with more than one source of income face backdated tax bills of £2,000 per year, because of errors by HMRC.

Among those most likely to be affected are veterans who have taken a civilian job after leaving the Armed Forces, but who also draw a military pension. Pensioners with two pensions and those who have continued to work part-time after retirement are also more likely to be hit.

It seems part of the problem lies with a the fact that tax offices around Britain are failing to share information about taxpayers’ incomes on a central database.
    HMRC insists that the problem is not “systematic”, and says the vast majority of tax codes are correct. However, professional tax advisors are seeing a rise in cases where incorrect tax codes have been issued.

    Clive Stevens, the executive chairman of accountancy practice Reeves, who sits on the council of the Institute of Chartered Accountants in England and Wales, is quoted:
    Often when people have two sources of income, two tax codes are issued by separate HMRC offices, each acting on the basis of information given to them by an employer, pension provider or the taxpayer directly. 

    Clerical errors are made because the workforce, which has suffered sweeping redundancies, is demoralised and the required attention to detail and care is not there.

    In my experience, up to three out of five PAYE codes that we see in our office are incorrect when first issued. In the worst cases, it has taken 10 attempts to get a correct code from HMRC.”

    An HMRC spokesman said such problems should have ceased since the introduction of centralised record-keeping in 2009, adding:
    Over 98 per cent of tax codes are correct and the vast majority of people who pay their tax through the PAYE system on either earned income or pensions pay the right tax.”
    Alastair Rush, of financial advice firm Echelon Wealthcare, said the situation is worsening.
    HMRC seems to be imbued with the concept that it’s infallible.

    It prefers to pretend the system works just fine when we all know it doesn’t.

    It produces errors with almost casual disinterest which cause a huge mess for clients, families and their employers. I wish it would hold itself to the same measure of accountability that it attaches to its customers.

    When errors are identified, HMRC is demanding back payments even where, under concessions (ESCA19) aimed to protect taxpayers, it has no right to the money because it was at fault. However, HMRC is unmoved and insists that "due to improved processes", it would only now apply in “very unusual circumstances”.

    Views and comment from the frontline are, as always, very welcome!

    Tax does have to be taxing.

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    1. the system is broken beyond repair
      HMRC is the SYSTEM!!!!
      its f@cked, it needs a TOTAL overhaul and there is NO ONE internally up to the job.
      make more redundancies at high level and get this CLUSTER F@CK sorted once and for all.
      I predict OUR SERVANTS will not do it.

    2. I have posted more than once on here about their databases not communicating effectively with each other. It's simple, they can't.

      You think the situation is bad with British Transport Police having to go before the PAC? Wait till they discover the total cluster feck in hmrc!
      PNC not updated properly, records missing, limited database checks for other Law Enforcement 'partners'. The information held but unused on their databases could, if correctly matched with other information show how badly e.g. carers have been infiltrated by criminals or those connected to criminals. It's all there on their system, just have to match a few things with decent analytical application.
      No, it's not fishing, it's protecting people, assets and the tax base.
      Fecking imbeciles in charge, no account biliary. SNAFU.

    3. watch HMRC F@CK it all up on the Customs & Excise side, I estimate it'll be May of this Year when you hear reports of costs and legal fees being awarded against them for a botched no evidence case AGAIN!!!!!
      I'll guess at £100,000 plus, and the tax payer will be paying!!!!!

    4. Sadly some of us have to work where we have no access to IMPORTANT databases that hold crucial information. The reason why we do not have it? Because issuing a licence to those that need it (and not just merely want it) is too costly. Not as costly as losing a case in court due to disclosure issues. Not as costly as losing confidence in staff. Many who would have given their life for C&E now seek a way out of the shitpit of misery that HMRC has created. Worse still, disillusioned NCA and UKBF officers are all chasing the same outside jobs!

      1. Those SAP professional licenses do not come cheap

        Better ask the CDIO why HMRC have decided to store all their key accounting data in a software product which has one of the world most expensive licensing systems.

        Something PAC might like to ask in March when they have their next little chat with Homer and Co

    5. I left HMRC some time go. A lot of people on the ground couldn't give two fucks. After the merger an aggressive nasty type of management crept in, workload increase, people leavin not being replaced. HMRC couldn't care less so no one else could be bothered. That's one of the reasons I think these cock ups are starting appear again.

    6. My allegations were supported by evidence and my MP was sufficiently motivated to submit the case twice to Hodges office. The allegations of criminality against management were ignored, although 2 lesser allegations were added to ongoing PAC inquiries covering HMRC (plus other departments).
      What I find appalling is that a request for referral to the IPCC was not followed up by those concerned especially as the managers were all in the Criminal Justice side of HMRC and participating in RIPA related work and HMRC failed to investigate the allegations.
      As for disclosure for either defence use or other LEA, it's a mess, shredding has been endemic.
      The NHS whistle blowing scandal may yet provide the impetus for a wider view of Civil Service whistle blowing.