It doesn’t happen very often, but last month the Chairman of HMRC apologised to taxpayers for the way they have been treated over the last year or so. The apology came after Mike Clasper, HMRC Chairman faced criticism from a committee of MPs.

The inquiry found that HMRC’s service to UK taxpayers had dropped to unacceptable levels during the last tax year (April 2010 – March 2011). MPs said the inquiry’s findings were “disturbing”. The Treasury Select Committee stated that the public had lost confidence in the tax system.

When examining HMRC’s performance, the committee stated that “poor service standards have been … Continue Reading

With the 31st January tax return deadline looming ever closer, employees may be faced with an additional headache. According to the Chartered Institute of Taxation (CIoT), the taxman has issued 25 million incorrect PAYE tax codes for 2010/2011 – double that of the previous year.

Blamed on HMRC’s new computer system, the blunder could see individuals hundreds of pounds short, depending on the level of their earnings.

Andrew Hubbard, president of the CIoT, warned advisors and their business clients to check their new codes. “Most people on PAYE are used to assuming that what the taxman sends them is correct, (filing) away … Continue Reading