HMRC’s top six staff tax howlers

Author: Rachel Dalton
IFAonline | 17 Oct 2011 | 14:23

Categories: Tax Planning| Employee Benefits| Better Business

Topics: HMRC| Tax| employee benefits| employers

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Employers dread filling in paperwork for the taxman, especially those with a large staff turnover.

However, Her Majesty's Revenue and Customs (HMRC) has laid down the law and demanded employers fill their Pay As You Earn (PAYE) forms correctly as increasingly silly entries have plagued the tax office.

Are you guilty of any of these PAYE sins?

 

Mr and Mrs Other

HMRC said 500 people have returned PAYE forms for staff called "A N Other" in 2009/10. Surely it cannot be that common a name?

 

Dumbing Down

According to records, 128 staff are known in their workplace as Mr, Ms or Mrs "Dummy".

 

X Factor

HMRC reports 572 people are listed as Mr or Mrs X on their PAYE forms.

 

Defined by their work

The taxman said 75 people have simply been named "casual", 11 as "cleaner", nine as "worker" and six as "students".

 

Mystery Guests

The figures from the last tax year show 824 employees with forenames but the surname recorded as "unknown".

 

Adding Up

HMRC said 40 people on its books were apparently 200 years old or more, according to incorrect dates on birth on their paperwork.

Jim Harra, HMRC's director of customer operations, said: "Most employers get their PAYE returns right. The few who do not can cause problems for their employees, for example, incorrect deductions of tax.

"Around 80% of errors in employee data are due to an incorrect name, date of birth or national insurance number; straightforward information that can be collected and checked quite easily.

"So, whether you are employing 'Mr or Mrs J Smith' - or even 'Mr or Mrs A N Other', please use the full and official name on your PAYE paperwork. First names are very important, especially for common surnames.

For more information on getting your employer data right, click here.

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Comments

low error rate

Still a very low error rate when compared to the number of mistake HMRC make. HMRC often send out correspondence with no name or company name and expect the recipient to guess who it is. This is particulary common with PAYE which is often sent to previous addresses willy nilly.

Posted by: Spike

17 Oct 2011 | 17:22
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top six staff howlers

Low error rate?? - pity agents(accountants & payroll agents) dont have a low error rate - HMRC is Shite but they are not any worse than the private sector (unfortunately everyone has crap systems) How often do they not update address changes & believe they can palm off their errors as govt staff error - too many - we cant speak out direct to clients & they know it

Posted by: public sector worker

17 Oct 2011 | 22:00
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