A Taxing Mistake: HMRC Mixes Up Identity, Costs Individual £450 a Month
In a shocking case, HM Revenue & Customs has mistakenly associated someone else's job details with an individual's national insurance (NI) number. The error has resulted in the individual being taxed as if they have two jobs, earning twice as much as they actually do, and facing a hefty fine.
The mix-up occurred during a tax code review last year after the person had changed jobs. HMRC's system mistakenly matched the individual's employment data to that of another woman who shared some of their personal details, including their NI number. This was only discovered when the individual was contacted by HMRC to address discrepancies in their tax payments.
The consequences were severe: £450 a month in extra taxes and National Insurance (NI) contributions. The individual had to wait 90 minutes to speak with an adviser before being informed of the mistake.
HMRC has since rectified the situation, disentangling the two individuals and promising to refund overpaid tax through the next payslip. Additionally, they will pay £75 in compensation.
However, the incident raises questions about data security and compliance. When asked if HMRC had declared a data breach to the Information Commissioner's Office, officials stated that it was not necessary, citing the limited sharing of personal details between the two individuals.
The incident highlights the need for greater vigilance when dealing with sensitive information, such as NI numbers and employment data. With billions of pounds in taxes being paid every year, mistakes like this can have a significant impact on individuals' finances.
In a shocking case, HM Revenue & Customs has mistakenly associated someone else's job details with an individual's national insurance (NI) number. The error has resulted in the individual being taxed as if they have two jobs, earning twice as much as they actually do, and facing a hefty fine.
The mix-up occurred during a tax code review last year after the person had changed jobs. HMRC's system mistakenly matched the individual's employment data to that of another woman who shared some of their personal details, including their NI number. This was only discovered when the individual was contacted by HMRC to address discrepancies in their tax payments.
The consequences were severe: £450 a month in extra taxes and National Insurance (NI) contributions. The individual had to wait 90 minutes to speak with an adviser before being informed of the mistake.
HMRC has since rectified the situation, disentangling the two individuals and promising to refund overpaid tax through the next payslip. Additionally, they will pay £75 in compensation.
However, the incident raises questions about data security and compliance. When asked if HMRC had declared a data breach to the Information Commissioner's Office, officials stated that it was not necessary, citing the limited sharing of personal details between the two individuals.
The incident highlights the need for greater vigilance when dealing with sensitive information, such as NI numbers and employment data. With billions of pounds in taxes being paid every year, mistakes like this can have a significant impact on individuals' finances.