Tax Blunder Leads to Unnerving Experience for UK Citizen, £450 Monthly Loss
HM Revenue & Customs (HMRC) recently made headlines when it inadvertently associated another person's employment details with a citizen's national insurance number. The mix-up has led to the individual being taxed on twice their actual earnings and missing out on tax credits.
The issue began in November, when HMRC mistakenly linked the individual's NI number to someone else's records. This mismatch resulted in the individual receiving a tax bill for an amount that is significantly higher than what they actually earned during the same period. In addition, the agency incorrectly added a tax adjustment for the supposed unpaid tax of last year.
The situation has caused the individual significant financial hardship, with their monthly tax and NI contributions now standing at £450. What's even more concerning is the lack of urgency displayed by HMRC officials, with the citizen having to wait 90 minutes to speak with an adviser before being informed that the issue had not yet been resolved.
It appears that this case shares some similarities with a previous incident involving a reader who was incorrectly declared dead by HMRC after the agency mistakenly associated their NI number with that of a deceased person. This incident highlights the need for greater vigilance in data protection to prevent such blunders from occurring in the future.
In response to our queries, HMRC revealed that they have now disentangled the two individuals and will refund the overpaid tax in the next payslip. Additionally, the agency is paying £75 in compensation for their mistake.
When asked whether they had declared a data breach to the Information Commissioner's Office given the similarity between the individual's employment details and those of another person, HMRC replied that this was not necessary as the shared personal information did not include the woman's name, address, or date of birth.
HM Revenue & Customs (HMRC) recently made headlines when it inadvertently associated another person's employment details with a citizen's national insurance number. The mix-up has led to the individual being taxed on twice their actual earnings and missing out on tax credits.
The issue began in November, when HMRC mistakenly linked the individual's NI number to someone else's records. This mismatch resulted in the individual receiving a tax bill for an amount that is significantly higher than what they actually earned during the same period. In addition, the agency incorrectly added a tax adjustment for the supposed unpaid tax of last year.
The situation has caused the individual significant financial hardship, with their monthly tax and NI contributions now standing at £450. What's even more concerning is the lack of urgency displayed by HMRC officials, with the citizen having to wait 90 minutes to speak with an adviser before being informed that the issue had not yet been resolved.
It appears that this case shares some similarities with a previous incident involving a reader who was incorrectly declared dead by HMRC after the agency mistakenly associated their NI number with that of a deceased person. This incident highlights the need for greater vigilance in data protection to prevent such blunders from occurring in the future.
In response to our queries, HMRC revealed that they have now disentangled the two individuals and will refund the overpaid tax in the next payslip. Additionally, the agency is paying £75 in compensation for their mistake.
When asked whether they had declared a data breach to the Information Commissioner's Office given the similarity between the individual's employment details and those of another person, HMRC replied that this was not necessary as the shared personal information did not include the woman's name, address, or date of birth.