It will probably come as no surprise to umbrella company contractors to learn that complaints against HMRC have increased dramatically over the last couple of years.
Last year, the Adjudicator’s Office wholly or substantially upheld 466 complaints against the Revenue. This was more than double 2009’s figure of 229, which itself was more than the 108 complaints upheld in 2008.
HMRC has made a series of high profile errors recently. The incorrect tax code fiasco led to the Revenue collecting £238 million excess tax in the year 2009-10, an increase of 148% on the previous year. That problem also led to an under-collection of tax of £132 million from other taxpayers.
UHY Hacker Young’s, Roy Maugham, said the level of customer service provided by the Revenue was now a major concern. It can now take months to get a response to a simple enquiry letter.
This poor level of service is also having a detrimental effect on the cashflow of small businesses. And the Revenue will be put under even more pressure due to the forthcoming public sector spending cuts. 10,000 jobs are due to go at HMRC and with the organisation already struggling, the result of these cuts could be catastrophic.
The Commons’ Treasury select committee had some harsh words to say about the situation the other day. Andrew Tyrie, the Tory MP for Chichester, told the Commons that one businessman had suffered a loss of £7 million challenging HMRC over a five year period for a case that eventually proved groundless. This is just one example of the many complaints that MPs now receive on a regular basis.
The Treasury Select committee has been listening to evidence on the Revenue’s performance and will report its findings shortly.
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Image: THESE AREN’T THE MINTS WE ARE LOOKING FOR by Neal.
