UK GOV taxing technology now affects some 15m people

Some 15,000,000 people are now reportedly on a wrong tax code caused by the introduction of a new computer system to which pensioners be among those worst hit. An HMRC  spokesman said "Our contact centres are able to quickly correct inaccuracies, when contacted by the taxpayer, in part because the new system has for the first time created a single taxpayer record which the contact centre operator can access and amend."
 In an October 2009 report the HMRC stated that they “had upgraded” their computer system in order to improve their Service to “Older taxpayers” but come February cracks began appearing as the Public are issued wrong codes while now also being told that a “New system” had been deployed combining National Insurance (NI) data with Pay As You Earn (PAYE), this being what is now meant by a single taxpayer record. In 2007 to a Paliamentary answer it was revealed that there were 76.7million NI numbers on the database, well in excess of Britain’s adult population of 49million. Only in March 2007 did the Gov recognise a need to record the Nationality of those receiving a NI number while in 2006 the DWP was reportedly to have issued at least 3,300 NI numbers to illegal immigrants.

 

What is indeed sad is that the initial change orchistrated by the HMRC was supposed to help pensioners whereas the reality is that they are the ones most affected negatively by it.

Please find some History below as to how the British Government treat their elderly citizens.

 

OLD NEWS

31 05 2008DATA PROTECTION ACT DENIES PENSIONER AID. Energy minister Malcolm Wicks told BBC Radio 4's Today programme "The problem has been that because of data protection laws we haven't always been able to say to the electricity or gas company 'This is the person that needs that help'."

01 08 2008Calls to end pensioner poverty. The National Pensioners Convention (NPC) says that <?xml:namespace prefix = st1 />1 in 4 retired people lived below the official poverty line of £151 a week the same number as when Labour first came to power in 1997.

10 02 2009£5bn pensioner benefits 'unclaimed'. Each year up to £1.51 billion in council tax benefit and £770 million in housing benefit goes unclaimed, with people also missing out on £2.81 billion of Pension Credit. A further 350,000 older people are also not claiming housing benefit.

17 06 2009Civil servants paid £26m in bonuses. Lord Oakeshott said: "Top civil servants get a very good salary averaging £1,500 a week and an excellent index-linked pension. Why do they need £200 a week extra just to get out of bed in the morning - more than many pensioners?"

04 07 2009Pensioner bankruptcy level soaring. A total of 2,595 people aged over 65 went bankrupt during 2008, up from only 983 in 2004, according to accountancy firm Wilkins Kennedy.

30 07 2009Pensioner poverty is 'unacceptable'. The House of Commons said it was "unacceptable" that two million pensioners remain in poverty, with 1.1 million of them surviving on less than half the average income. And the MPs called for the Personal Expenses Allowance (PEA) paid to around 250,000 pensioners in residential care to be nearly doubled to £40 from its current level of £21.90 a week, which the report found "does not allow pensioners to live in dignity".

06 08 2009Free OAP bus travel – proposal to scrap. The findings of economics consultancy Oxera in a report commissioned by town hall chiefs, appeared to urge the scrapping of free bus travel for all over-60s and a move to means-tested bus concessions.

06 10 2009Care Homes - Medicine errors. Campaigners have slammed the "shocking" treatment of elderly people living in care homes after research revealed 7 out of 10 had been given the wrong drugs or doses. Researchers from universities in Leeds, London and Surrey examined data from 256 residents in 55 care homes across England. Each resident was typically taking eight medicines each. In some cases the medication was mislabelled while in others patients were given the wrong doses or no dose at all. Researchers also carried out interviews with residential care home staff, doctors and pharmacists, finding evidence of doctors who were not accessible and did not know the residents.

21 10 2009OAP fuel payments 'unsustainable'. A local Government spending watchdog says the Government's £2.7 billion-a-year budget for winter fuel payments might be better spent on lagging, insulating, reglazing and modernising the homes of pensioners who cannot afford to heat them properly.

23 10 2009HMRC upgrades computer system to pay pensioners. This is because 1.5m pensioners 'pay too much tax'. An HMRC spokesman said "During the last few months we have significantly upgraded our computer systems to improve accuracy and deliver a better service to older taxpayers.”.

08 02 2010 Wrong tax codes sent to pensioners. HMRC warned that people who started to claim their state pension during the 2009/2010 tax year may have been given the wrong tax code for this April and it does not know how many people have been affected or by how much people may be overcharged by. The problem has been caused by the introduction of a new computer system, which combines information on people's National Insurance (NI) contributions and the Pay As You Earn (PAYE) scheme for the first time. An HMRC spokeswoman said: "We are continuing to improve the system and address any issues brought to our attention. [ 29 04 2007 National Insurance (NI) numbers lost. The Government has admitted that millions of NI numbers have been "lost" raising fears that they are being misused by fraudsters and/or illegal immigrants. An internal investigation has been launched The Sunday Telegraph has learnt. In a recent parliamentary answer there are now 76.7 million NI numbers on the database, well in excess of Britain's adult population of 49 million. It also emerged that the Gov only began recording the nationality of those issued an NI number on March 26 this year. The DWP was embroiled in controversy last year when a loophole allowed at least 3,300 NI numbers to be issued to illegal immigrants. A month later the rules were changed. ] ; [ 03 11 2007 NI database 'flaws will hit ID card scheme' - "There are in existence 76 million supposedly valid national insurance numbers - 29 million more than there are eligible British citizens in the United Kingdom.]
19 03 2010 Millions to lose out as Labour reneges on the pledge to top up pension payments. The Government will freeze vital top-ups to the basic State pension after quietly dropping a pledge to increase them in line with inflation every year.31 05 2010Tax blunder- officials admit 'up to 100,000' left out of pocket. A spokesman for HMRC - "We don't keep a central record of all the codes we revise, so we can't tell you the overall number of codes that have needed to be corrected.

16 07 2010Pensioners missing out on £5.4bn in benefits. Age UK estimates that 1.97 million older people who are eligible for council tax benefit are not claiming it, collectively missing out on £1.5 billion a year from this benefit alone - an average of £728 each.

16 07 2010Now wait five more years to get your bus pass.Millions of pensioners will have to wait an extra five years for a free bus pass under secret plans to cut their perks.

13 08 2010 15mpeople are on the wrong tax code. Although HMRC has never publicly disclosed how many taxpayers had been affected it has now emerged that the taxman collected £238m too much from taxpayers as a result of PAYE errors in the 2009-10 tax year – an increase of £96m on the previous tax year, according to National Audit Office data obtained by UHY Hacker Young, the accountancy group. The new system combines information on people's National Insurance (NI) contributions and the Pay As You Earn scheme for the first time. Despite HMRC reviewing more than 9,000,000 cases at risk, about 15 million people have yet to have their code reconciled. The phased release of the new [computer] service also meant that the functionality to support the automated reconciliation of individuals' PAYE records was not available to the department between July 2009 and April 2010.