Feeds

Rev slammed for PAYE failure

Software problems, dirty data and overpaid senior staff

Beginner's guide to SSL certificates

Her Majesty's Revenue and Customs failed in its duty to provide a proper computer system to work out how much Pay As You Earn taxpayers should be paying.

In reality HMRC was unable to process PAYE in anything like real time and has now run out of time to collect tax owed from before April 2007.

The Public Accounts Committee said HMRC had failed to deliver an acceptable level of service. It knew in late 2009 that as many as seven million people had either overpaid or underpaid their tax bills – but did nothing about it until September 2010.

In January 2010 it began issuing 25 million tax codes for 2010-2011 without finding out why "the number of coding notices was massively in excess of its forecast".

The committee of MPs said the Rev had failed to understand the impact of dirty data. The PAC said it wanted to see evidence by the end of 2011 that this systemic failure had been rectified.

The MPs also said the Revenue should properly account for the cost of its failure.

MPs also questioned why HMRC re-employed its acting chief information officer Deepak Singh on a three-month contract on the equivalent of £600,000 a year. The committee noted: "This was after he had been unsuccessful in the competition for the permanent post." Singh was paid £150,000 to stay on for three months and he also received £19,200 in "outplacement services" to help him get another job.

MPs suggested the Revenue make more of an effort to replace senior staff, especially when their leaving dates are known well in advance.

No one knows how much tax has been lost as a result of the problems – estimates suggest £1.4bn had been underpaid and £3.0bn had been overpaid and will need to be refunded.

About 15 million people were given wrong tax claims even though implementation of the system was delayed twice.

There's more on HMRC's PAYE failure here. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.