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HMRC is in the doghouse, again!

HMRC is in the doghouse, again!

HMRC has got it wrong yet again! 12,000 taxpayers have received penalty letters demanding the immediate payment of overdue tax even though the department had already reached an agreement with those concerned that there was no need for them to fill in a self-assessment form.

The letters tell the recipients that they will be charged a daily penalty if they don’t settle up immediately.

A spokesperson for the Revenue said the letters were issued in error and HMRC wants to apologise straight away for the mistake.

130,000 people were removed from self-assessment this year after HMRC encouraged taxpayers to confirm their status prior to filing out the form. However, this new stance backfired and 12,000 people received a penalty warning even though they had already spoken to HMRC officials.

HMRC has advised people to ignore the warning if they have spoken to the Revenue and it has agreed that they are not covered by the self-assessment system. HMRC will also be writing to all those concerned to apologise and assure them that they do not have an outstanding tax liability.

The spokesperson also went on to reassure customers that their names have been removed from the self-assessment database.

This is the latest in a series of foul-ups by the Revenue in the last couple of years and it bodes a very serious question; how can we trust the Real Time Information scheme to run smoothly when nothing else HMRC does seems to work properly?

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Image: In the dog house by laRuth

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