HMRC defends record on PAYE
16 Sep 10
Chief executive rejects “dysfunctional” label and vows to keep PAYE processing on track
Top officials from HMRC have mounted a spirited defence of their handling of the recent PAYE errors, during their much trailed appearance before the Treasury committee. HMRC chief executive Dame Lesley Strathie, permanent secretary Dave Hartnett and personal tax chief Bernadette Kennedy were called before the panel of MPs to explain the snafu which affected around six million UK taxpayers.
Strathie said she did not recognise the committee’s description of HMRC as "dysfunctional", and did her best to allay fears that the body’s PAYE processing function would be unable to cope with 2000 expected job losses.
In the face of fierce criticism in the media and elsewhere, HMRC appears to have made some concessions on its efforts to reclaim underpaid tax arising from the error. These include writing off underpayments of less than £300, an interest freeze for those owing more than £2000 and an option to stagger repayment over more than one tax year, for those in financial difficulty.