The UK's top tax man has refused to apologise after taking the wrong amount of tax from six million people.

Revenue and Customs boss says he need not apologise
By Paul Lewis
Presenter, Money Box
11 September 2010 Last updated at 11:57 GMT


The UK's top tax man has refused to apologise after taking the wrong amount of tax from six million people.

Dave Hartnett, Permanent Secretary at Her Majesty's Revenue and Customs (HMRC), claimed media stories of blunders and IT failures were wrong.

And he warned those who owed £2,000 or more in back tax they would have just over three months to repay it in full.

Conservative MP Ian Liddell-Grainger accused HMRC of "built-in arrogance".

Speaking exclusively to Radio 4's Money Box programme, Mr Hartnett said: "I'm not sure I see a need to apologise."

He added: "I've read the papers, listened to the media and heard stories of HMRC blunders and IT failure - neither of those are true."

Mr Hartnett said the 5.7 million letters that he would be sending out to taxpayers before Christmas were the result of a normal process of matching the tax deducted from each taxpayer with their circumstances.

He confirmed that 1.4 million people would be told they had extra tax to pay.

And he revealed that those who owed the most tax would have the least time to pay.

"Those [who owe] more than £2,000… will be given an opportunity to pay based on a notice from us, or, failing that, they will be brought within self-assessment.

Tighter deadlines

"People who enter self-assessment are expected to pay within three months and a little bit more."

Those owing below £2,000 will have the money deducted from their pay or pension over 12 months, or three years in cases of hardship.

End Quote John Andrews, chairman of the Low Incomes Tax Reform Group

Mr Hartnett said that system would apply to "more than 80%" of those who owed money.

But he defended the tighter deadline for the biggest bills.

"I think owing the most may actually mean they're earning the most… I think it's very unlikely that a low earner will owe us more than £2,000 as a result of the process we're going through."

An HMRC spokesman added that help was available to all people ordered to pay back tax, including those owing more than £2,000.

But Mr Liddell-Grainger MP, chairman of the All Party Parliamentary Taxation Group, said of HMRC: "They're one of these organisations that's grown and grown. They aren't actually up to it.

"You get this built-in arrogance we're hearing, where 'I don't need to apologise because I've not done anything wrong'."

John Andrews, chairman of the Low Incomes Tax Reform Group, said: "The £2,000 procedure gives me concern.

"There are circumstances in which over a two year period, for example on a bereavement where a widow suddenly inherits part of her late husband's pension, it is quite easy to run up this amount.
HMRC coding notice Some taxpayers can expect more letters and tax returns from HMRC in the coming months

"I hope that HMRC would live up to the Your Charter expectations and look at individuals."

Mr Hartnett said that the main batches of letters to taxpayers would start going out in "early to mid October' and he still intended they would all arrive by Christmas.

Three quarters of those written to - 4.3 million people - will get a rebate averaging £400.

The rest, 1.4 million, will be told they have to pay the extra tax.

None will have to pay less than £300 and the average will be £1,428. Up to 250,000 could be asked for £2,000 or more.

BBC Radio 4's Money Box is broadcast on Saturdays at 1200 BST, and repeated on Sundays at 2100 BST.

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