Revenue to pay for causing stress
The Inland Revenue has today revealed it will pay out compensation for causing taxpayers 'worry, distress or botheration'.
It has said it will make payments for worry or distress in instances where the taxpayer is elderly or ill, or if personal information is divulged to a third party.
Additionally, the Revenue offers compensation when it delays dealing with a taxpayer’s affairs or when it gets things seriously or persistently wrong.
Most of the Revenue’s compensation payouts fall into the £50 to £2,000 range, and it is known to have coughed up £50,000 to cover professional fees unnecessarily incurred by a company subjected to a tax investigation.
A spokeswoman for the Revenue confirmed it paid out £1.7m for failing to achieve the high quality standards it set itself to the year ending March 2000, and received 42,000 complaints.