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A computer error which had led to 1.4million people receiving a demand for unpaid taxes was predicted by the Public and Communications Services Union.
A computer error which had led to 1.4million people receiving a demand for unpaid taxes was predicted by the Public and Communications Services Union(PCS) three years ago.
The union claims it made a submission to the 2007 Treasury select committee which warned HM Revenue and Customs was storing up problems for tax payers.
Letters began to be sent out by the tax office this week telling people they had underpaid their tax and needed to make up the difference.
The union claims the loss of 30,000 jobs since 2005 has resulted in one million pieces of post going unopened and 17 million ‘open cases’ – accounts where there are outstanding queries – not being dealt with.
The department introduced its new computer system at a cost of about £389m last year and told MPs on the Treasury select committee it would ensure big savings.
A spokesperson for the PCS said: ”Nearly six million people across the UK are to be told over the next few months that they have paid the wrong amount of tax collected through the pay as you earn (PAYE) system.
”More than 40 million calls, almost half of all those to HMRC enquiry centres went unanswered last year because the department does not have enough staff. With cuts of at least 25% expected through the Government’s draconian Budget and spending review, it is hard to envisage the situation for taxpayers getting any better.”
Chancellor George Osborne said the emergency Budget in June was ”tough but fair”.