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View the article online at http://citywire.co.uk/money/article/a422280

HMRC collects £238m too much due to tax code errors

HM Revenue and Customs collected £238 million too much in tax as a result of taxpayers being given the wrong tax code, according to estimates from accountancy group UHY Hacker Young (UHY).

by Daniel Grote on Aug 16, 2010 at 07:54

HM Revenue and Customs collected £238 million too much in tax as a result of taxpayers being given the wrong tax code, according to estimates from accountancy group UHY Hacker Young (UHY).

UHY said that HMRC's new computer system had led to an increase in wrong PAYE codes issued to taxpayers, and said the overcharging was 'unacceptable', according to reports.

Member of HMRC's advisory board have criticised the implementation of the new IT system, The Mail on Sunday has reported. According to minutes of a meeting of the board, Andrew Hubbard of accountants RSM Tenon said it had been 'driven by the desire to save money, which resulted in too much focus on the Revenue's requirements at the expense of customer requirements.'

4 comments so far. Why not have your say?

ronald jones

Aug 16, 2010 at 09:43

It is no surprise to me that HMRC gets it wrong, you write letters to them to no avail, you cannot get the right person to deal with a problem, you write to yor tax poffice, they pass it onto a different office, you cannot contact them. I have lodged official complaints, taken it up with my MP, writing to the cheif Tax officer, and this has been ongoing for about 4 months. Clearly the HMRC are not providing a customer service at all, never mind about TCF "Treating Customers Fairly". It make a mockery of the system when you notify them officialy of a change in circumstances, only to find they get it wrong, you receive conflicting statements from different offices, unsigned, unamed threating letters, what an utter disgrace.

Clearly it pays to be a crook, because if you are honest, and tell them, you have to do battle with HMRC to sort out their mistakes.

I cannot beleive the professional incompetance being suffered, and I am one that reasonably understands the system. I feel sorry for those customers that do not have the accuman to really understand the overcomplcated sysytem, and are held to ransom by HMRC.

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colin overton

Aug 16, 2010 at 10:21

HMRC are shite. A call never returned, two letters over 6 weeks not replied to. Another couple of weeks and then a 3rd letter and a complaint

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Anonymous 1 needed this 'off the record'

Aug 16, 2010 at 13:02

HMRC used to have some properly trained and very able people working for them, but like most organisations these days, they have removed most of these and replaced them with barely qualified and cheaper employees who's main purpose seems to be operating the 'layer of obstruction' between the client and any remaining technically able people.

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Anonymous 2 needed this 'off the record'

Aug 26, 2010 at 13:11

The latest weapon in HMRC's book is to collect debt going back 4/5 years as the new computer system has made mess of all the tax collected.

There is no one responsible for the job,the debt collector says I just collect debt-I know nothing about any other tax problems you may have!!!

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