HMRC System Error Links Stranger's Employment to Taxpayer's NI Number
A serious administrative error by HM Revenue and Customs has left a taxpayer from Chorley, Lancashire, facing unexpected financial strain. The tax authority has incorrectly associated another individual's employment details with the complainant's national insurance number, resulting in substantial monthly overcharges.
Revealing Sensitive Employment Information
According to the affected individual, HMRC's system randomly connected someone else's job to their NI number in November. This alarming mix-up allowed the taxpayer to view comprehensive details about the stranger's employment situation, including their workplace, start date, payroll number, and exact earnings.
The consequences of this administrative blunder have been financially significant. HMRC has been taxing the individual as though they hold two positions simultaneously, effectively doubling their apparent income. This miscalculation has triggered additional tax adjustments for perceived underpayment in the previous tax year.
Substantial Monthly Financial Impact
The erroneous calculations are costing the taxpayer approximately £450 each month in extra tax and national insurance contributions. When attempting to resolve the situation, the individual endured a 90-minute wait to speak with an HMRC adviser, only to be informed that the matter had not yet been addressed.
This case bears disturbing similarities to previous HMRC errors, including one where a taxpayer was mistakenly declared deceased after being assigned a deceased stranger's NI number. What many find particularly concerning is not just the initial mistakes, but what appears to be a lack of urgency in resolving them.
HMRC's Explanation and Resolution
HMRC has since provided an explanation for the error, stating that during a routine tax code review following a job change last year, their system incorrectly matched the taxpayer's employment data with that of another woman who shared some personal details. The authority confirmed that both individuals' national insurance numbers remained unaffected throughout the incident.
The tax body has now separated the two cases and committed to refunding the overpaid tax through the taxpayer's next payslip. Additionally, HMRC has offered £75 in compensation for the inconvenience caused.
Data Protection Concerns Raised
When questioned about potential data protection implications, given that the taxpayer could access another individual's employment details, HMRC stated that no formal data breach declaration to the Information Commissioner's Office was necessary. Their position maintains that since the other woman's name, address, and date of birth were not disclosed, the incident did not meet the threshold for mandatory reporting.
This incident highlights ongoing concerns about HMRC's administrative processes and their impact on ordinary taxpayers facing financial hardship due to systemic errors. The case serves as a reminder of the importance of robust data management systems within government departments handling sensitive personal and financial information.
