HMRC bosses failed to identify almost a third of MSPs as being Scottish taxpayers.
Jim Harra, the deputy chief executive of HMRC, said 45 of Holyrood’s 129 members had been issued with an incorrect code for 2019-20.
He said he was “not pleased to learn that the mistake had been made”.
Harra addressed the issue as he faced MSPs on Holyrood’s Public Audit Committee, and convener Jenny Marra told him she was one of those affected.
Harra said: “We identified 45 MSPs where we had sent them an incorrect 19-20 code which did not identify them as a Scottish taxpayer. That was because of a clerical error in the tax office that looks after the affairs of Scottish parliamentarians.”
Pressing him on the issue, Marra said: “For such a significant clerical error to happen with such a small group when there is a special process in place, that is the thing that really worries me about the confidence in the wider system.”
Harra said he shares such concerns, but added he is “satisfied” the issue would not have applied to the general population.
He said: “There is a special clerical process that applies to parliamentarians and that is what went wrong.
“The process for the main bulk of the population is an automated one, based on the address.”
However he also told the committee HMRC had to correct some 30,000 self-assessment tax returns after people failed to identify themselves as Scottish taxpayers.
“The error rate is too high,” he conceded.
A tick box was included in the form for people to say if they are a Scottish taxpayer.
HMRC had initially based its calculations on what people put on the form, but Harra said: “We quickly learned the level of error in returns was such that it was actually better to calculate the level of tax based on what we knew from our own database.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel