Tax & Accounting News

Performance-related bonuses for HMRC staff?

18/03/2008

It has been reported that senior HMRC staff continue to receive substantial bonuses, despite well-publicised failings in the running of the tax system, such as the chaos that surrounds tax credits, failures to achieve delivery targets and the shocking losses of vast amounts of confidential data.

MPs have criticised the bonus payments as “completely unjustified”, and taxpayers and their advisers cannot be expected to have any confidence in an organisation that is perceived as overlooking its own major shortcomings at the same time as severely penalising the slightest administrative oversight of any of its “customers”.

In particular, the rewarding of HMRC staff despite many acknowledged failures is in stark contrast to the current threats to the businesses of construction industry subcontractors over extremely minor administrative matters. This is another indication that HMRC appears to be losing touch with the reality in which their customers operate.

New tax-related penalties for incorrect tax returns will come into force next year, and we would urge those in charge of administering these and all other matters that affect taxpayers to apply them more proportionately and with more consideration than is quite evidently happening at present.

 

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