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15 Sep 2010
HMRC's top brass have been grilled by Treasury committee MPs in the wake of the PAYE blunder which affected six million taxpayers.
HMRC chief executive Dame Lesley Strathie, permanent secretary Dave Hartnett and personal tax chief Bernadette Kennedy faced tough questions from the Treasury committee.
MPs were concerned that in the wake of the problems, 2000 job cuts were in the pipeline for HMRC staff handling PAYE processing.
Dame Lesley rejected accusations that HMRC was "dysfunctional", vowing the department would be able to cope in the future as job cuts continue and the government clamps down on spending.
After the PAYE coding errors, the taxman is to waive bills of £300 or less.
The concession will mean 900,000 taxpayers will be spared paying any money back, at a cost of £160m to the Exchequer.
However the taxman is still looking to collect £2bn after the PAYE errors which saw 6 million people pay the wrong amount of tax.
At the Treasury meeting, HMRC also confirmed that those who need extra time to pay back-tax of more than £2,000 will not be charged interest.
Strathie added that taxpayers in financial hardship may be able to stagger repayments over a two to three-year period.
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HMRC
'Private Eye' told us years ago that HMRC has a not fit for purpose IT (computer) system.
They also questioned free meals and "jollies" enjoyed by HMRC 'functionaries' at the expense of iT companies.
Legal action should be taken against the Eye. Unless..................................
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Posted by: iain, 15 Sep 2010 | 00:00
comment
Any tax collection and enforcement arm of government that has the quite outrageous arrogance and insensitivity to continue to insist on calling taxpayers ?customers? is misunderstanding its role and purpose. Therefore, HMRC is by definition dysfunctional.
Anyone on the management team of such an organisation and, further, who seems to be unaware or unwilling to admit its current difficulties has risen far beyond the level of their own incompetence. If we act quickly and clear her out of HMRC now, Lesley Strathie might just be able to pick up the odd position in a small seaside town somewhere as a Dame in the Christmas pantomime season. On all available evidence that?s about the appropriate level.
Posted by: roger, 16 Sep 2010 | 00:00