HMRC apologises after getting sums wrong
HMRC has apologised after it incorrectly claimed that it had collected billions of pounds in extra tax.
In a report on HMRC's accounts for 2013-2014, the National Audit Office (NAO) found that HMRC has set the baseline to measure its performance £1.9bn too low in 2010.
Amyas Morse, head of the NAO said that although the Revenue has been "broadly successful" in collecting extra tax revenue he was concerned that "an error of as much as £1.9bn in HMRC’s baseline calculation led it to report the trend in its performance in a way that inadvertently exaggerated the improvement since 2010-11."
The NAO also found that:
- HMRC received total tax revenue of £506bn, £30bn (or 6.3%) more than in 2012-13.
- The taxes that contributed most of this increase were income tax and national insurance which increased by £16.2bn (6.4%), VAT by £7.2bn (7.1%) and stamp taxes which increased by £3.4bn (35.8%)
- The value of debt either written off or ‘remitted’ (not pursued by HMRC for reasons such as hardship or value for money) during the year was £5.1bn
- HMRC reported compliance yield (the additional revenue it generates through its compliance activities) of £23.9 billion in 2013-14 - its highest yield so far
The Revenue said in a statement...